(4) In the case of producers of primary nitrogen, receiving distributions under § 338.112 (b), 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 carry out the objections of section 205 of Public Law 793.

APPLICATION PROCEDURE

§ 338.114 How to apply for distributions. 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.

(a) 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 § 338.112 (a), and who agrees to comply with the conditions of § 338.113, 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 soil 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 fertilized 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 § 338.112 (a) (2) (ii) 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 Title 18, U. S. Code (Crimes), section 1001, that the applicant is familiar with the provisions of Allocation Order D-1; that the applicant is a producer of ammonium sulphate as defined in that order; that the applicant agrees to comply with the conditions of § 338.113 of that order and will use any Army anhydrous ammonia made available to him only for the purposes of 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.

(b) 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 § 338.112 (b). 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 Title 18, U. S. Code (Crimes), section 1001, that the applicant is familiar with the provisions

of Allocation Order D-1; that the applicant is a producer of primary nitrogen; that the applicant agrees to comply with the applicable conditions of § 338.113 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."

§ 338.115 ODC action on application. The ODC will notify each applicant, in writing, as to whether this application has been approved or denied. In approved cases, the CDC 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.

§ 338.116 Appeals. Any appeal for relief or exemption from the provisions of this subpart shall be made in accordance with §§ 336.51-336.61 (Allocation Regulation 3), by filing a letter in triplicate referring to the particular provision appealed from and the precise relief desired, and stating fully the grounds of the appeal and the reasons why a denial of the appeal would result in undue and excessive hardship on the appellant not suffered by others similarly situated or would result in improper discrimination.

§ 338.117 Violations. Any person who wilfully violates any provision of this subpart, or who in connection with this subpart wilfully conceals a material fact or knowingly furnishes false information to any department or agency of the United States is guilty of a crime, and upon conviction may be punished by fine or imprisonment, or both. In addition, any such person may be prohibited from making or obtaining further deliveries of, or from processing or using, material under allocation control.

COMMUNICATIONS

§ 338.118 Communications. All communications regarding this subpart, all reports and appeals, and all applications filed under this subpart, 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 Parts 334, 336, and 338 have been approved by the Bureau of the Budget pursuant to the Federal Reports Act of 1942. AUTHORITY: §§ 338.111 to 338.116 issued under Pub. Law 793, 80th Cong. Materials Control Reg. 1–A, 13 F. R. 3861.

The foregoing comprising Part. 338, § 338.111 to 338.118, shall be effective January 1, 1949.

[SEAL]

OFFICE OF DOMESTIC COMMERCE,
By RAYMOND S. HOOVER,

Insurance Officer.

EXHIBIT 5.-Distribution of Army ammonia and nitrogenous fertilizer materials, fertilizer year ending June 30, 1949

1 Farm Service, Oakland, Calif.; Columbia Metals, Salem, Oreg.; Greenville Chemical, Greenville, Miss.; A. F. Pringle, Charleston, S. C.

2 Alabama By-Product Coke, The Barrett Division, Commercial Solvents, E. I. du Pont de Nemours, Lion Oil Co., Mathieson Chemicals, Pittsburgh Coke, Schloss Sheffield, Spencer Chemical, Tennessee Products, TVA.

3 Will be distributed to the producer or producers required under Public Law 606 to supply material for 1 outstanding order for China.

4 Army production originally estimated at 255,000 tons of nitrogen. In March 1949, this estimate was revised to 300,627 tons of nitrogen and 10 percent equals 30,063 tons.

5 Will be distributed as soon as status of 1 Chinese and 1 Greek order are established.

6 Total nitrogen in export program, 61,287 tons. Army, under Public Law 606, is to supply one-half or 30,644 tons. Commercial portion of 30,643 tons has been obtained by requiring all producers of primary nitrogen to supply 3.25 percent of their production in one form or another. Total program complete except 2,088 tons for China.

Mr. ABERNETHY. Does that conclude your statement?

Mr. ARDEN. That concludes the statement.

Mr. ABERNETHY. There are four plants which benefit under the hardship clause of section 205, I believe you said.

Mr. HART. That is correct.

Mr. ARDEN. Yes.

Mr. ABERNETHY. Identify those four plants.

Mr. ARDEN. Columbia Metals Corp. in Salem, Oreg.; Farmer Service Co., Oakland, Calif.; Grenville Chemical Co., Greenville, Miss.; and A. F. Pringle & Co., Charleston, S. C.

Mr. ABERNETHY. What is the quantity allotted to each?

Mr. ARDEN. We have not published what went to each plant. I have it here.

Mr. ABERNETHY. It is not secret; is it?

Mr. ARDEN. I think it is probably generally known, but we do not make public the information with respect to any one plant where we can possibly avoid it.

Mr. ABERNETHY. Congress passed a law and intended it to benefit certain plants. I certainly think we have a right to know who is sharing in the supply, and how much.

Mr. BROWN. We will give it to the committee instantly. We were just wondering whether it should be disclosed in a public hearing of

this kind.

Mr. ABERNETHY. What difference does it make? It belongs to the taxpayers who paid for it. I think they have a right to know who is getting it.

Mr. BROWN. I think probably they have. The only thing we do not want to do, Mr. Abernethy, is to disclose plant production.

Mr. ABERNETHY. I realize that is your policy, but here is the way I feel about it. This is a congressional program. This is not a program of the Department of Commerce. The plants that are benefiting by this program are benefiting as a result of the action of this Congress. I think the Members of Congress and the public, so far as that is concerned, are entitled to know who is getting this ammonia which the taxpayer is paying for. I do not appreciate the policy of the Department that it should not be made public. Certainly the people who are benefiting by it are not ashamed of that fact. I think the record ought to show, and the people ought to know who is getting it and how much and why.

Mr. BROWN. We will give it to you.

Mr. ABERNETHY. We would like to have it.

Mr. HART. Columbia Metals Co. gets 96 cars. They are in Salem, Oreg. They get 96 cars a quarter.

Mr. ABERNETHY. That is 32 cars a month?

Mr. HART. That is correct. Farmer Service Co., Oakland, Calif., gets 22 cars per month, or a total of 66 cars for the last quarter. A. F. Pringle & Co., Charleston, S. C., gets 26 cars per quarter. The Greenville Chemical Co., who formerly were in that category of the preference group, as you call it, got 18 cars per quarter, 6 cars a month. However, they elected to take some export business, which, of course, meant that their plant was not shut down. Therefore, they were not entitled to any ammonia under the preference group. However, we understand they have applied for their position in the preference group in view of the fact that they state that by March 31 they will have completed their export program and will face an imminent shutdown, so we have allocated to that company the same amount as is allocated to the A. F. Pringle Co., or 26 cars.

Mr. ABERNETHY. Columbia Metals gets 32 cars a month. How much does Farmer Service get?

Mr. HART. Twenty-two a month.

Mr. ABERNETHY. Pringle gets how much?

Mr. HART. Twenty-six per quarter, a little less than nine per month. Mr. ABERNETHY. So for the present all of the supply of ammonia that is being allocated under the hardship clause goes to these three plants?

Mr. HART. That is correct.

Mr. ABERNETHY. When was the Farmer Service Co. at Oakland, Calif., established?

Mr. HART. It was established prior to the enactment of the act.
Mr. ABERNETHY. How old a concern is it?

Mr. HART. Not too old.

Mr. ARDEN. About 3 years old. I do not know how old the concern is, but that sulfate plant was put in, I think, in the early spring or late winter of 1946 or 1947. It was around the end of that year.

Mr. ABERNETHY. When was the Columbia Metals organization established?

Mr. HART. The Columbia Metals organization was established about 2 years ago. They acquired their plant from the Government. During the last fertilizer year, Mr. Chairman, they were very largely engaged in the export program.