(c) Statutory preference distribution to certain producers of ammonium sulphate. For the purposes of this section, the term "producer of ammonium sulphate" means a person regularly engaged in the business of producing and selling a commercial fertilizer product composed chiefly of ammonium sulphate and containing not less than 20.5% of nitrogen; and the term "selling" ("or sale") does not include transactions with plants affiliated with a producer. (1) As required by Public Law 793 preference in distribution will be given to the following classes of producers of ammonium sulphate, who will be authorized by ODC to purchase Army anhydrous ammonia to the extent necessary to permit such producers to operate: (i) Those who were producing ammonium sulphate during the six-month period December 28, 1947–June 28, 1948; (ii) Those who were producing ammonium sulphate on or prior to June 28, 1948, and ceased commercial production for want of anhydrous ammonia or are faced with an imminent shut-down in the production of ammonium sulphate for want of anhydrous ammonia. This statutory preference distribution will be made upon the basis of applications submitted as explained in paragraph (g) of this section and subject to the conditions set out in paragraph (e) of this section. (2) An application from a producer of ammonium sulphate eligible under subparagraph (1) of this paragraph will be approved only for the minimum quantity of anhydrous ammonia needed to continue or return the particular plant to the production and sale of ammonium sulphate. (i) Ordinarily, approval will be limited to the quantity which the ODC estimates will, together with other available supplies of anhydrous ammonia, provide for production during the calendar quarter of 75% of the largest quantity of ammonium sulphate produced in the plant during any consecutive two months in the year July 1, 1947-June 30, 1948. (ii) However, if the applicant conclusively demonstrates to the ODC that the quantity of anhydrous ammonia provided for in subdivision (i) of this subparagraph will not permit him to continue or return to commercial production and sale of ammonium sulphate without serious financial loss, the ODC may make available an additional quantity sufficient to permit operation without such loss. (iii) In the event that, subsequent to an allocation to it of Army anhydrous ammonia under subparagraphs (2) (i) or (ii) of this paragraph, a plant obtains anhydrous ammonia for export purposes under Direction 4A to Allocations Regulation 2, the unshipped balance of the Army anhydrous ammonia previously allocated will be correspondingly reduced. (d) Distribution of balance. Any balance of the Army anhydrous ammonia not required for the statutory preference distribution under paragraph (c) of this section will be distributed, to the extent available, to the commercial producers of primary nitrogen who are supplying nitrogen for the civilian export program of 1948-49 either as anhydrous ammonia or in the form of other nitrogenous fertilizer materials. (1) The following classes of nitrogen producers who are participating in the 1948-49 export program will be eligible for a distribution: (i) Primary producers of anhydrous ammonia who manufacture solid nitrogenous fertilizer materials or who regularly sell anhydrous ammonia. (ii) Primary producers of byproduct sulphate who will use anhydrous ammonia for increasing their output of ammonium sulphate. (2) The distribution of Army anhydrous ammonia for the balance of the current fertilizer year (July 1, 1948, to June 30, 1949) will be made to the above classes of nitrogen producers in quantities proportionate to the amounts of nitrogen which they are to supply for the export program during the current fertilizer year under Direction 4A to Allocations Regulation 2. CONDITIONS (e) Conditions. Every distribution made under this section is made subject to the condition that the applicant agrees: (1) To comply with the sales terms for Army anhydrous ammonia established by the Department of the Army as to price, payment, point of delivery, etc. (2) To unload, promptly after arrival, the tank car (s) used to ship the Army anhydrous ammonia to the applicant's plant. (3) In the case of producers of ammonium sulphate receiving preference distribution under paragraph (c) of this section, to use the Army anhydrous ammonia only at the plant covered by the application and only for the production and sale of ammonium sulphate for domestic fertilizer use. (4) In the case of producers of primary nitrogen, receiving distribution under paragraph (d) of this section, to use or sell the tonnage of Army anhydrous ammonia or an equivalent quantity for the production of a corresponding additional quantity of solid nitrogenous fertilizer materials suitable for direct application to domestic crops. (5) To comply with any further conditions established by the ODC, in approving the application, in order to further the objectives of section 205 of Public Law 793. APPLICATION PROCEDURE (f) How to apply for distribution. Distribution of Army anhydrous ammonia under this section will be made on a calendar quarterly basis starting with, the fourth calendar quarter of 1948. Applications are to be made by letter, in duplicate, and must be received by ODC not later than the 10th day of October for the fourth quarter of 1948. For subsequent quarters applications must be received not later than 30 days prior to the first day of the quarter. (g) How producers of ammonium sulphate make application for preference distribution. A producer of ammonium sulphate who is eligible for statutory preference distribution as explained in paragraph (c) of this section, and who agrees to comply with the conditions of paragraph (e) of this section, may submit an application to the ODC on a plant basis. In his application he must supply the following information: (1) The total tonnage of ammonium sulphate produced at that plant during (i) the period July 1, 1947, to June 30, 1948, and (ii) the highest consecutive two months in the period. (2) The total tonnage of ammonium sulphate sold as such from that plant during the period July 1, 1947, to June 30, 1948, excluding sales to affiliated plants. (3) The types and total tonnages of other fertilizers and fertilizer materials, if any, produced at the plant during the period July 1, 1947, to June 30, 1948. (4) The names and locations of other domestic commercial fertilizer or fertilizer materials plants, if any, currently owned or operated by the applicant or affiliated companies or being constructed by either. (5) The total tonnages, and names of suppliers, of anhydrous ammonia, used by the applicant (including any used under toll agreement) during the period July 1, 1947 to June 30, 1948 (i) at the plant for which application is being made and (ii) at all other domestic commercial fertilizer or fertilizer materials plants, if any, owned or operated by the applicant or affiliated companies. (6) The quantities of anhydrous ammonia covered by contracts, commitments, position or other arrangements of any kind he has or expects to have with commercial suppliers of anhydrous ammonia for the quarterly period covered by his application for all domestic commercial fertilizer or fertilizer materials plants owned or operated by the applicant or affiliated companies; the names of such suppliers; the minimum and maximum tonnages of anhydrous ammonia expected to be received during the quarterly period (state months) for the applicant plant; the quantities of anhydrous ammonia on hand at the first day of the quarterly period at the applicant plant. (7) In addition, persons applying under paragraph (c) (2) (ii) of this section should specify the minimum quantity of ammonium sulphate production needed to avoid operation at a serious financial loss during the quarterly period and should support this with appropriate data as to costs, income and operating rates. (8) Certify his application in substantially the following form: "The undersigned applicant certifies, subject to the penalties of section 35A of the United States Criminal Code, that the applicant is familiar with the provisions of Distribution Order D-1, as amended September 21, 1948; that the applicant is a producer of ammonium sulphate as defined in that order; that the applicant agrees to comply with the conditions of paragraph (e) of that order and will use any Army anhydrous ammonia made available to him only for the purposes for which it is made available; and that all information supplied in or in connection with this application is true and correct to the best of his knowledge and belief." (h) How a producer of primary nitrogen makes application. Any producer of primary nitrogen who is participating in the 1948-49 export program may make an application for Army anhydrous ammonia under paragraph (d) of this section. In his application he must: (1) State that he wishes to participate in the distribution of the balance of Army anhydrous ammonia, and (2) Certify his application in substantially the following form: "The undersigned applicant certifies, subject to the penalties of section 35A of the United States Criminal Code, that the applicant is familiar with the provisions of Distribution Order D-1 as amended September 21, 1948; that the applicant is a producer of primary nitrogen; that the applicant agrees to comply with the applicable conditions of paragraph (e) of that order and will use any Army anhydrous ammonia made available to him only for the purpose for which it is made available; and that all information supplied in or in connection with this application is true and correct, to the best of his knowledge and belief. (i) ODC action on application. The ODC will notify each applicant, in writing, as to whether his application has been approved or denied. In approved cases, the ODC will notify the applicant how to place his orders with the Department of the Army and will issue appropriate directives to the Department of the Army. COMMUNICATIONS (j) Communications. All communications regarding this section, and all applications filed under this section, should be addressed to: Chemicals Division, Office of Domestic Commerce, Department of Commerce, Washington 25. D. C., Ref.: D-1. NOTE: The reporting requirements of this section have been approved by the Bureau of the Budget pursuant to the Federal Reports Act of 1942. (Pub. Law 793, 80th Cong.; Materials Control Regulation 1-A, 13 F. R. 3861) Issued this 21st day of September 1948. [SEAL] OFFICE OF DOMESTIC COMMERCE, [F. R. Doc. 48-8560; Filed, Sept. 23, 1948; 8: 47 a. m.] [PUBLIC LAW 606-80TH CONGRESS] [CHAPTER 419-2D SESSION] [H. R. 6659] AN ACT To continue for a temporary period certain powers, authority, and discretion conferred on the President by the Second Decontrol Act of 1947, and for other purposes Provided, however, That 50 per centum of the export requirements of nitrogenous fertilizer materials to nonoccupied areas shall be supplied out of nitrogenous fertilizer materials or nitrogenous compounds (including anhydrous ammonia) produced in plants operated by or for the Department of the Army, and notwithstanding any other provision of law the Department of the Army is authorized to produce and sell such nitrogenous fertilizer materials and nitrogenous compounds (including anhydrous ammonia) to fill such 50 per centum of such export requirements." Subsection (c) of such section 1501 is hereby amended by striking out "May 31, 1948" and inserting in lieu thereof "June 30, 1949." * [PUBLIC LAW 793-80TH CONGRESS] [CHAPTER 685-2d SESSION] [H. R. 6801] AN ACT Making appropriations for foreign aid, and for other purposes * SEC. 205. Not less than 50 per centum of the United States export requirements of nitrogenous fertilizer materials or nitrogenous compounds (including anhydrous ammonia) for nonoccupied areas shall come from production of plants operated by or for the Department of the Army. In addition, the Department of the Army shall make available, for the commercial production of nitrogenous fertilizer materials for domestic use, 10 per centum of the total anhydrous ammonia produced in the United States in plants operated by or for the Department of the Army, said anhydrous ammonia to be distributed as directed by the Department of Commerce, which shall give preference, in distributing said anhydrous ammonia, to producers of ammonium sulphate who were producing ammonium sulphate during the six months preceding the enactment of this Act or who shall have ceased to produce, or shall be faced with an imminent shutdown in the production of, ammonium sulphate for want of anhydrous ammonia, to the extent necessary to permit such producers to operate. The Department of the Army is hereby authorized to produce and sell, in addition to its production for occupied areas, such nitrogenous fertilizer materials or nitrogenous compounds (including anyhdrous ammonia) required for United States exports to nonoccupied areas or for the production of nitrogenous fertilizer materials for domestic use and to credit the proceeds of such sales to the appropriation for Government and Relief in Occupied Areas to the extent of the cost of such production for such sales and any balance to miscellaneous receipts of the Treasury. * (Additional statement by R. C. Jopling:) Hon. THOMAS G. ABERNETHY, * APRIL 7, 1949. Chairman, Subcommittee on Fertilizer, House Agriculture Committee, House Office Building, Washington 25, D. C. DEAR MR. CHAIRMAN: I am enclosing herewith an additional statement to your committee which I think may be helpful as a matter of clarification. I assure you of our wholehearted cooperation in providing additional fertilizer for which there appears to be a critical shortage. Cordially yours, Hon. THOMAS G. ABERNETHY, R. C. JOPLING, Vice President. APRIL 4, 1949. Chairman, Subcommittee on Fertilizer, House Agriculture Committee, House Office Building, Washington 25, D. C. DEAR MR. CHAIRMAN: Subsequent to my appearance before your committee on March 17, 1949, additional testimony was given to the committee and additional information pertinent to the fertilizer program has come to us. I should therefore like to submit the following additional statement to the committee with the request that it be made a part of the record. STATEMENT First, I should like to clarify the part of my own testimony concerning the production of the Cactus plant and the disposition that was made of it. During this fiscal year this plant will produce about 68,500 tons of ammonia, or 56,500 tons of nitrogen, which will be sold as follows: Phillips sold the Army approximately 14,500 tons of nitrogen, bu the Army in turn sold to the nonoccupied countries 18,669 tons of nitrogen in the form of ammonium nitrate. Therefore, all of Phillips' Cactus production during this fiscal year is going into export except the 30,000 tons which is sold domestically to the preference producers of sulfate and to the primary producers of nitrogen. Next, I should like to refer to the contracts between Phillips Chemical Co. and the Army. I have previously submitted copy of the lease contract for Cactus plant, and attached hereto is copy of the supplemental agreement under which Phillips makes deliveries under the 50-percent-export and 10-percent-domestic programs. Representatives of the Army have testified that Cactus plant is a Governmentoperated plant. I wish to again state that neither the Army nor any other branch of the Government has anything to do with Phillips' operation of Cactus plant. The Army does not produce ammonia or fertilizer at Cactus plant-it can only purchase it from Phillips. As I understand, the Army fertilizer program of operating Government plants was originally for the purpose of supplying the occupied countries, this fertilizer program being financed from funds appropriated for government and relief in occupied areas. Until Public Laws 606 and 793 were passed the Army had no authority to sell fertilizer to anyone. The Congress, in section 205 of Public Law 793, gave the Army authority to sell fertilizer by including the following: "The Department of the Army is hereby authorized to produce and sell, in addition to its production for occupied areas, such nitrogenous fertilizer materials or nitrogenous compounds (including anhydrous ammonia) required for United States exports to nonoccupied areas or for the production of nitrogenous fertilizer materials for domestic use and to credit the proceeds of such sales to the appropriation for Government and Relief in Occupied Areas to the extent of the cost of such production for such sales and any balance to miscellaneous receipts of the Treasury." If the Congress had not increased the scope of the Army fertilizer program by the enactment of Public Law 606 and Public Law 793, the Army program would now include only the supplying of fertilizer to the occupied areas and during the next fiscal year, this program would consist of supplying Japan and the Ryukyus for which the Army has asked for 130,000 tons of nitrogen. This would be about one-half of the Army's production in the two plants it now operates and the new San Jacinto plant which it will put into operation in July 1949. If Public Law 793 continues in effect, the Army program for the next fiscal year will be the supplying of occupied countries, Japan and the Ryukyus, one-half of the export program and 10 percent of its total production to be made available for domestic use. Since Korea is now a nonoccupied country, the Army is authorized |