9. A wholesale food warehouse is a commercial building and not an industrial ilding.

10. Food processing plants, including dairies, are industrial buildings. Hower, barns, garages (including service buildings), administration buildings, etc., ed incident to a food processing plant or dairy are commercial buildings. 11. A terminal warehouse is a commercial and not an industrial building. 12. A shop to repair industrial machines, operated as a service enterprise and t an integral part of a factory or producing plant, is a commercial building ad not an industrial building. If the repair shop is an integral part of a ictory and is used as an integral part of the factory operation, the shop is assified as an industrial building.

13. The inquiry concerns the classification of farm buildings other than farm sidences. They come within the category "all other construction" in Schedule of Direction 1 to CMP Regulation 6, unless they are food processing plants ach as a building for the bottling of milk or the manufacture of butter and heese. Whether the construction of various buildings on a farm shall be conidered one project or separate projects can only be determined after examining ll of the facts of the particular case.

14. The inquiry is whether a switching yard within the confines of an industrial lant is an industrial facility. The answer is yes. (See Washington Broadcast, August 30, 1951.)

*15. An industrial plant, factory or facility is a building, structure or project lesigned or intended for use in the production, manufacture, assembly or procssing of product or articles, including mining and extractive operations.

The term includes the following types of buildings, structures or projects when an integral part of the production, manufacturing, assembly, processing or mining and extractive operations: generating plant, railroad siding, loading platform, storage warehouse or repair shop, if such building, structures or projects are designed and intended for, and maintained and operated in connection with, such production, manufacturing, assembly, processing, or mining and extractive operations.

The term "industrial plants, factories, or facilities”, as used in connection with NPA Order M-4A and Direction 1 to CMP Regulation 6, does not include the following: commercial buildings, such as wholesale and retail establishments for the storage, distribution, or sale of products or articles; administration buildings for any enterprise; office buildings; lofts; warehouses (except as indicated above); garages; service stations; gasoline filling stations; buildings or facilities designed for furnishing services to those who may be either producers or consumers (except as indicated above); buildings, structures, or projects for radio broadcasting or television broadcasting, tobacco auction warehouses; printing and duplicating establishments, including but not limited to facilities for the publication of newspapers, books and periodicals; forestry and lumber operations, buildings and facilities (excluding saw mills and lumber processing operations); fishing, agricultural or dairy operations (excluding the processing, packaging and bottling of fish, food and dairy products); highways, roads and bridges and similar construction; buildings, structures or facilities designed or intended for use in connection with transportation operations, specifically including railroad switch tracks or spurs, terminals or bridges, transportation or carrier terminals (passengers or freight); piers or wharves used in the transshipment of persons or property; grain elevators, or grain or food warehouses; water and sewage systems; public utility systems. These listings are illustrative and not all inclusive.

DELIVERY

1. In determining total requirements for delivery, quotas of controlled materials ordered for delivery prior to October 1, but not received until after September 30, must be included in computing controlled materials requirements after September 30, 1951.

2. A steel distributor operates under Order M-6 and receives his allotment of steel under that order from the steel producer.

3. Self authorized orders are authorized controlled materials orders and should be honored in the same way as any other authorized controlled materials orders which have been issued pursuant to an allotment from NPA or one of the claimant agencies.

4. A steel distributor may not pass on to his supplier any priority for the procurement for the quotas or controlled materials covered by controlled ma

terials orders which were delivered by him, as the steel distributor receive his supply through his allotment under Order M-6.

5. A contractor who has an inventory of controlled materials prior to Octobe 1 is not prohibited from transferring it to a fabricator after October 1 f fabrication which would cause them to become Class A products.

6. The inquiry concerns the meaning of the words "requirements for delivery" in Order M-4A and Direction 1 to CMP 6. Legal title in the prime contractor is evidence that the materials have been delivered to the prime contractor. The test is not physical possession of the prime contractor, but whether the prime contractor has control of the materials within the meaning of the term inventory in CMP Regulation 2 and NPA Regulation 1.

7. If a prime contractor had filed a 4C application, without realizing that be could commence construction of his industrial building without receiving authorization since he will not require an allotment of controlled materials, the inquiry is whether, if the 4C application is approved and an allotment is issued, such prime contractor may use the allotment. The answer is no. Any material allotted for a particular construction job in excess of the amounts actually required must be returned as provided for in CMP Regulation, 6.

8. The inquiry is whether a prime contractor who will not require delivery of any controlled materials after September 30, 1951, may use a DO rating to procure materials other than controlled materials, or equipment. The answer is no. The DO rating may be used only if the prime contractor either receives an authorized construction schedule, or self authorizes his orders for delivery under Direction 1 of CMP Regulation 6. If the prime contractor does not come within either of these categories, he may not apply a DO rating unless he files a CMP-4C and receives a specific authorization to apply a DO rating.

EXHIBIT 64

NPA PRESS RELEASE ON INTERPRETATION OF TERM “PRODUCTION EQUIPMENT" AS USED IN CONSTRUCTION REGULATIONS

UNITED STATES DEPARTMENT OF COMMERCE

NATIONAL PRODUCTION AUTHORITY

Washington 25, D. C.

CHARLES SAWYER, Secretary

For immediate release

Wednesday, October 17, 1951

CONSTRUCTION INTERPRETATION

NPA-1374

The National Production Authority, United States Department of Commerce, today announced that the term "production equipment" in its construction regulations does not include office supplies and machinery such as tables, desks, chairs, carpets, typewriters, and other office machines.

Notification of this interpretation of Controlled Materials Plah Regulation 6 and Direction 1 to that regulation has been sent to Department of Commerce attorneys in all field offices.

NPA said the action was taken because some applicants given allocations of controlled materials were using their priority ratings to obtain office equip ment.

Office supplies and machinery are neither production equipment nor pro duction material, NPA said, so it is improper for holders of 4C (construction) allotments to use rated orders to obtain such supplies and machinery.

EXHIBIT 65

'S PRESS RELEASE ON CEILING PRICE REGULATION 19—CEILING PRICES FOR TUNGSTEN CONCENTRATES

OFFICE OF PRICE STABILIZATION

Tempo E-Washington

r immediate release

iday, April 6, 1951

TUNGSTEN CONCENTRATES

(CPR 19-CEILING PRICES FOR TUNGSTEN CONCENTRATES)

OPS-0-75

The Office of Price Stabilization has set a ceiling price of $65 a ton for sales nd deliveries of tungsten concentrates, a vital strategic material now in critilly short supply, Michael V. DiSalle, Director of OPS, announced today. Ceiling Price Regulation 19, effective April 6, 1951, establishes the new price. In the pre-Korean period, Mr. DiSalle pointed out, prices of tungsten concenates fluctuated between $20 and $25 a short-ton unit but rose sharply thereter, both in the United States and in foreign markets, with some sellers chargg more than $65. The General Ceiling Price Regulation of January 26 froze rices in a range between $28 a unit for domestic production from relatively high rade deposits and $70 for imported material.

Mr. DiSalle said domestic production of tungsten must be expanded to the ullest possible extent because of substantially increased demands arising out of e defense program together with loss of our most important foreign sources. Tungsten concentrates are the principal raw materials used in producing errotungsten, tungsten metal powders, and various tungsten compounds and re the source of tungsten used in the manufacture of tool steels and other lloys, in electrical wire filament and contacts, and in many chemical and metallic products.

The United States, under ordinary circumstances, does not produce enough ungsten to satisfy its needs, and substantial amounts must be imported. China as been the chief supplier abroad.

Current consumption and stockpiling absorbed an average of 11,000,000 pounds. f contained tungsten annually from 1945 to 1949, with less than 5,000,000 ounds a year produced domestically, on the average. In 1948 and 1949 the nited States imported an average of 4,750,000 pounds of tungsten from China lone.

The necessary expansion in domestic supply will have to come from higher output of currently operating mines, reopening of closed mines, and mining of new deposits, Mr. DiSalle said.

Since much of the required tonnage may have to come from low-grade ores, he said, the ceiling price has been established at a level to compensate for higher costs and investment. The Rocky Mountain area contains substantial deposits of lower-grade ores.

It is believed in OPS, after consultation with the Defense Minerals Administration, that the $65 figure will encourage higher output from existing mines, exploitation of inactive deposits, and shipments of foreign produced tungsten to the United States.

Tungsten concentrates are defined by the regulation as wolframite, Hubnerite, ferberite, and natural or synthetic scheelite separated from gangue or associated rocks by physical or chemical processes. A short-ton unit of tungsten concentrates is 20 pounds of WO, (tungsten trioxide, the basic tungsten compound).

82354-52- -54

EXHIBIT 66

OPS CEILING PRICE REGULATION 19-TUNGSTEN CONCENTRATES TUNGSTEN CONCENTRATES

CEILING PRICE REGULATION D

APR. 6, 1951

OFFICE OF PRICE STABILIZATION

Washington

TITLE 32A-NATIONAL DEFENSE, APPENDIX

CHAPTER III-OFFICE OF PRICE STABILIZATION, ECONOMIC STABILIZATION AGENCI [Ceiling Price Regulation 19]

CPR 19-TUNGSTEN CONCENTRATES

Pursuant to the Defense Production Act of 1950 (Pub. Law 774, 81st Cong), and Executive Order 10161 (15 F. R. 6105), and Economic Stabilization Agency General Order No. 2 (16 F. R. 738), this Ceiling Price Regulation 19 is here issued.

STATEMENT OF CONSIDERATIONS

Tungsten concentrates, produced from the ore by physical or chemical proc esses which remove the gangue and associated rock, are the principal raw materials used in the production of ferrotungsten, tungsten metal powders, and various other tungsten compounds. These concentrates are the source of tungsten used in the manufacture of tool steels and other alloys (both ferrous and nonferrous), in electrical wire filament and contacts and in many other chemical and metallic products. Tungsten concentrates are a strategic material vitally needed for the production of the tools of war and many items important in our civilian economy.

Under ordinary circumstances, the United States does not produce enough tungsten to satisfy its needs and substantial quantities must be imported. Thus in the five year period from 1945 to 1949 current consumption and stockpiling required an average of 11 million pounds of contained tungsten a year, of which less than 5 million pounds a year, on the average, were produced domestically. In 1948 and 1949, the United States imported an average of 4,750,000 pounds of tungsten annually from China alone while substantial additional tonnages were obtained from Korea, Thailand, and other countries.

As a consequence of the substantial increased demand arising out of our de fense program and the loss of our most important foreign sources, tungsten is in critically short supply, and it is imperative that domestic production be ex panded to the fullest extent possible. Normally, the ores mined and milled in the United States contain 0.5 to 2.5 percent WO, (tungsten trioxide, the basic tungsten compound) although there are substantial deposits of lower grade ores. principally in the Rocky Mountain area. The needed increase in domestic sup ply will have to come from expansion in the output of currently operating mines (in part through the working of lower grade ore-bodies), the reopening of mines now closed, and the mining of new deposits. Since a large part of the needed tonnage may have to be obtained from low grade ores, it is necessary to estab lish ceiling prices at a level which will compensate for the increase in costs and investment which this will entail.

Unfortunately, very little data is available to measure with any degree of precision the ceiling price level necessary to bring about the required expansiza and the exigency of the situation does not permit of any extended study. I the pre-Korean period, prices fiuctuated within a range of $20-$25 per unit, bat they rose sharply thereafter, both in the United States and in foreign markets, with some sellers charging more than $65 per unit. Present ceiling prices, established by the General Ceiling Price Regulation, range between $28 per short ton unit for tungsten produced domestically from relatively high grade deposits and $70 per short ton unit for imported material and it has been determined after consultation with, and largely upon the advice of, the Defense Minerais Administration that a ceiling price of $65 per short ton unit will be adequate, a conjunction with other programs being adopted, to encourage a sulista:fal increase in output from existing mines and the exploitation of deposits not so

ʼn production. It is believed that this price will also result in an increase in hipments of foreign produced tungsten to the United States.

In the judgment of the Director of Price Stabilization, the provisions of Ceiling Price Regulation 19 are generally fair and equitable and are necessary to effectuate the purposes of Title IV of the Defense Production Act of 1950.

So far as practicable, the Director has given due consideration to the national effort to achieve maximum production in the furtherance of the objectives of the Defense Production Act of 1950; to prices prevailing during the period from May 24, 1950, to June 24, 1950, inclusive; and to relevant factors of general applicability.

In formulating Ceiling Price Regulation 19, the Director consulted with industry representatives, including trade association representatives, to the extent practicable under existing circumstances, and has given full consideration to their recommendations.

The provisions of Ceiling Price Regulation 19 and their effect upon business practices, cost practices, or means or aids to distribution in the industry have been considered. It is believed that no changes in such practices or methods have been effected. To the extent, however, that the provisions of the regulation may operate to compel changes in such practices or methods, such provisions are necessary to prevent circumvention or evasion of the regulation and to effectuate the policies of the act.

REGULATORY PROVISIONS

Sec.

1. Coverage of the regulation.

2. Applicability and prohibitions. 3. Ceiling prices.

4. Definitions.

5. Record-keeping requirements.

6. Enforcement.

7. Petitions for amendment.

AUTHORITY: Sections 1 to 7 issued under sec. 704, Pub. Law 774, 81st Cong. Interpret or apply Title IV, Pub. Law 774, 81st Cong, and E. O. 10161, Sept. 9, 1950, 15 F. R. 6105, 3 CFR, 1950 Supp.

SECTION 1. Coverage of the regulation. This regulation establishes ceiling prices for sales and deliveries of tungsten concentrates by any person, including importers and exporters.

SEC. 2. Applicability and prohibitions—(a) Applicability. This regulation applies in the 48 States of the United States, its Territories and Possessions, and the District of Columbia.

Regardless

(b) Prohibitions—(1) Against transactions above ceiling prices. of any contract or other obligation, on and after the effective date of this regulation no person shall sell or deliver, and no person shall buy or receive in the regular course of trade or business, tungsten concentrates at a price in excess of the ceiling price established in this regulation. No person shall offer, solicit, attempt, or agree to do any of the foregoing.

Lower prices than those set forth in this regulation may be charged, demanded, paid, or offered.

(2) Against evasion. No person shall evade or circumvent the provisions of this regulation by direct or indirect methods in connection with the sale, purchase, delivery, or transfer of tungsten concentrates, alone or in conjunction with any other commodity, or by way of commission, service or transportation charge or discount, premium or other privilege, or by up-grading, tie-in agreements, trade understanding or otherwise.

SEC. 3. Ceiling prices. The ceiling price, f. o. b. shipping point, for tungsten concentrates is $65.00 per short ton unit. A short ton unit is 20 pounds of WO, (tungsten trioxide).

SEC. 4. Definitions. When used in this regulation the term:

(a) "Exporter" means a person who sells tungsten concentrates which are transported from a place inside the United States, its Territories, or Possessions to a place outside thereof.

(b) "Importer" means a person who first sells tungsten concentrates which are transported from a place outside the United States, its Territories or Possessions to a place inside thereof.

(c) "Person" includes any individual, corporation, partnership, association or any other organized group of persons, or legal successor or representative of the foregoing, and the United States or any other Government or their political subdivisions or agencies.