1 Reporter's Statement of the Case pounds of secondary or remelted aluminum, totaling 1,200,000,000, pounds per annum. Even in June 1941, before Pearl Harbor, the Truman Senate Committee found that this would be inadequate by 600,000,000 pounds per annum. Accordingly the Office of Production Management scheduled additional increases in production capacity and meanwhile sought to increase the net current supply for the defense demands by restricting nondefense uses and encouraging the movement of aluminum inventories to defense uses. This was undertaken particularly through issuance and administration of a series of general aluminum conservation orders which, issued by the Office of Production Management and its successor, the War Production Board, are known as the "M-1 series." 3. General Conservation Order M-1 and Supplementary Order M-1-a, both of which became effective March 22, 1941, were issued by the Office of Production Management. Order M-1 required aluminum producers, smelters, and fabricators, in filling their orders and contracts for sale of aluminum, to conform their deliveries to a schedule of preferences which was set forth in the two orders and which classified all orders and contracts for sale of aluminum according to the degree of usefulness or essentiality which the product to be made from the aluminum in question (the so-called "end-product") would bear to the national defense program. Defense orders were given "A" preference ratings, to be filled generally ahead of civilian orders, which were rated "B." The civilian orders were further subdivided, and the lowest rating was "B-8," which was described in Order M-1-a, as follows: B-8. For products in which a reasonably satisfactory substitute for aluminum is available or can be made available. This order also provided that deliveries made by producers, fabricators, or smelters on contracts or orders having a preference rating of B-2 Reporter's Statement of the Case 107 C. Cls. All orders on hand or placed by the plaintiff for aluminum thereafter bore the lowest preference rating, B-8, since the plaintiff had no use for aluminum other than to make cooking utensils or similar vessels. 4. Further restrictions were similarly effected by various Supplementary Orders, including Orders M-1-d, as amended May 2, 1942, M-1-e, and M-1-f, which were in effect on May 20, 1942, the date when the plaintiff's aluminum was requisitioned and taken. 5. Supplementary Order M-1-d was issued by the Office of Production Management on January 7, 1942, and provided in part as follows: (a) Definitions. For the purposes of this Order: 1) "Aluminum" means any material the principal individual ingredient of which by either weight or volume is metallic aluminum. (2) "Scrap" means all materials or objects which are the waste or by-product of industrial fabrication, or which have been discarded on account of obsolescence, failure or other reason, the principal ingredient of which by either weight or volume is metallic aluminum. (3) "Plant scrap" means that Scrap which is generated in the course of manufacture, including also drosses, skimmings, and defective or rejected material the principal metallic ingredient of which is aluminum. (4) "Segregated scrap" means Scrap which has been segregated and otherwise handled in such manner as to be acceptable for reprocessing into Aluminum of the original specifications, without the necessity for other than routine examination by the processor. (5) "Mixed scrap" means all scrap other than Segregated Scrap. (7) "Producer" means the Aluminum Company of America, the Reynolds Metals Company and any other Person who may be so designated by the Director of Priorities. (8) "Approved Smelter" means any Person whose name appears on Schedule A attached to this Order, as the same may be amended from time to time by the Director of Priorities. [Schedule A listed 27 smelter plants.] (9) "Dealer" means any Person regularly engaged in the business of buying and selling Scrap. * 1 Reporter's Statement of the Case (c) Restrictions on use of scrap. No person other than a Producer or Approved Smelter may melt, reprocess, smelt or otherwise use Aluminum Scrap unless specifically authorized by the Director of Priorities: Provided, however, That a Person who in normal course of operations melts Aluminum Scrap in fabricating Aluminum products may use his Plant Scrap in the plant in which it is generated in the production of those products (and only those products) for which he is currently obtaining allocations of Aluminum from the Director of Priorities, if in applying for such allocations he shall have reduced his requirements by a reasonable amount in anticipation of the amount of recoverable Plant Scrap. * (e) Sale of plant scrap. Unless specifically authorized by the Director of Priorities, no Person generating Plant Scrap may sell or deliver any such Scrap that he is not entitled to use in accordance with paragraph (c), except as follows: (1) 178, 248 and 52S solids. Segregated Scrap consisting of 17S, 24S and 52S Aluminum alloys in solid form, respectively, shall be sold and shipped directly to a Producer. (2) All other segregated scrap. All other Segregated Scrap shall be sold and shipped directly to a Producer or Approved Smelter: Provided, however, That where the amount of Segregated Scrap of any one alloy specification and form type does not amount to 1,000 pounds or more per month, it may be sold to a Dealer. (3) Mixed scrap. Mixed Scrap shall be sold to an Approved Smelter or Dealer. (f) All other scrap. No person who owns or originates any Scrap (other than a Person generating Plant Scrap or a Dealer) may sell or deliver such Scrap except to a Producer, Approved Smelter or Dealer; he shall not use or dispose of such Scrap in any other way. Certain parts of this order were amended May 2, 1942, in a manner not material to this case. 6. Supplementary Order M-1-e was issued by the Office of Production Management on January 23, 1942, and provided principally as follows: (b) No Person shall use Aluminum in manufacture except in production of the items (and the necessary material therefor), or for the uses, specified 736172-47-vol. 107- 3 Reporter's Statement of the Case 107 C. Cls. below, and then only where the use of alternate material is impracticable: There follows in the Order a list of 15 permitted uses. Cooking utensils were not on the list. (c) General Exception. The prohibitions and restrictions contained in (b) above shall not apply to the use of aluminum in the manufacture of any item (or the necessary material therefor) which is being produced under a specific contract or subcontract for the Army or Navy of the United States, the United States Maritime Commission, the Panama Canal, the Coast and Geodetic Survey, Coast Guard, Civil Aeronautics Authority, National Advisory Committee for Aeronautics, the Office for Scientific Research and Development, or any foreign country pursuant to the Act of March 11, 1941 * (Lend-Lease Act), if, but only if, in any such case, the use of aluminum to the extent employed is required by the specifications of the prime contract. During the period when Order M-1-e was effective the procurement officers of the Army and Navy were not specifying aluminum for cooking utensils or similar vessels ordered. Order M-1-e also contained, however, a hardship clause granting relief in the following terms: (e) Relief. Any person affected by this order who considers that compliance therewith would work an exceptional and unreasonable hardship upon him, or that it would result in a degree of unemployment which would be unreasonably disproportionate compared with the amount of aluminum conserved, or that compliance with this order would disrupt and impair a program of conversion from non-defense to defense work, may appeal to the Office of Production Management Under the Nation-wide policy with which this hardship clause was administered the plaintiff could not have obtained an authorization to make cooking utensils. 7. Plaintiff had no war contracts, and by the issuance of Order M-1-e plaintiff was prohibited from using aluminum in the manufacture of cooking utensils for civilian use. 8. Supplementary Order M-1-f was issued by the War Production Board on February 17, 1942, and provided in part as follows: 1 Reporter's Statement of the Case (a) Definitions. For the purposes of this Order: (6) "Essential Item" means any Aluminum to be used in conformity with Supplementary Order M-1-e as the same may be amended from time to time. (b) Allocation of Output of Producers, Approved Smelters, and Fabricators. No Producer, Approved Smelter, or Fabricator shall deliver any Aluminum except pursuant to allocation or as the Director of Industry Operations may otherwise specifically authorize. Each Producer, Approved Smelter, and Fabricator shall file a shipping schedule for each month, on or before the 15th day of the preceding month on Form PD26A * * *. The Director of Industry Operations will thereupon issue to him specific allocations authorizing the deliveries which he may make during that month. (d) Operations Restricted to the Fulfillment of Purchase Orders for Essential Items. Aluminum in the hands of any Person other than a Producer, Approved Smelter, or Fabricator, may be acquired and disposed of without specific authorization from the Director of Industry Operations, but only in the fulfillment of rated purchase orders for Essential Items; provided, always, that any Aluminum received pursuant to an allocation or other specific authorization shall be used and disposed of only for the particular purpose so authorized; and provided, further, that, except in the case of a Producer or Approved Smelter or as the Director of Industry Operations may specifically authorize, no Person shall acquire any Aluminum which he could use only by smelting or melting the same. Except as provided above or as the Director of Industry Operations may specifically authorize, no Aluminum shall be acquired or disposed of by any Person. * (f) Dead Stocks. (1) All Aluminum which is not being used in, or which is in excess of immediate needs for, the fulfillment of purchase orders for Essential Items shall, promptly (1) be sold upon certification in writing to the seller by the buyer that he will use, promptly, the Aluminum in question in the fulfillment of rated purchase orders for Essential Items, or (ii) be scrapped and disposed of as provided in Supplementary Order M-1-d. No such Aluminum shall be acquired or disposed of in any other way except as the Director of |