PILCHARD DIRECTION P-15 EFFECTIVE OCTOBER 25

On October 25, the Area Coordinator of OCF's Area II, with headquarters in San Francisco, issued General Direction P-15, which amended General Direction 13 to the Pilchard Order by adding thereto the following paragraph:

F. Temporary Suspension of Small Fish Deliveries--Because of an emergency in the port of Monterey caused by unusually heavy deliveries of pilchard (sardines) in that port during October, 1944, deliveries in such large amounts that the fish cannot be processed advantageously with a view to achieving the objectives of the Pilchard Order, it is deemed advisable and necessary, at least as a temporary measure, to prohibit entirely delivery of small pilchard (sardines) in that port. Accordingly, until further notice, paragraph E., and the application of paragraphs A., B., and C., of General Direction P-13 to Monterey is suspended, effective immediately; and during the suspension period no loads of small pilchard (sardines) whatsoever shall be delivered in that port. No person shall take delivery of any load of small pilchard (sardines) in that port, except with consent expressly applicable there to given by the Port Supervisor or his Assistant with full knowledge of the facts. The definition in paragraph D of General Direction P-13 of the phrase "load of small pilchard" shall apply to this paragraph also. The port of Monterey for purposes of this paragraph shall be taken to include Moss Landing.

WFA EXPLAINS POSITION ON SALES OF U. S. FOOD STOCKS

The Director of WFA's Office of Distribution in late October pointed out several important facts concerning sales of Government-owned food stocks. Excerpts from the statement follow:

Within the last few weeks there have been a few complaints and counter complaints about our sales. The chain stores say we sell exclusively to wholesalers and the wholesalers say we are favoring the chain stores. The mere fact that both groups feel the other is getting a better deal indicates, I think, that the charges are unfounded. Believe me--we play no favorites. Our twin goals are fairness to the trade and profit to the public.

I think such sentiment arises because there has been so much discussion of Government surpluses that buyers have come to feel that large quantities of food already are being sold. Actually, the quantities which we have offered for sale and the quantities which we are selling are very small compared with the total quantity of food available. As I mentioned earlier, we maintain a 600-million-dollar inventory, but what we have sold thus far has totaled only about 22 million dollars--and more than half of that was accounted for by the sale of eggs.

Or take the case of canned goods. Recently we offered for resale a half million cases of canned peas. We may have a few more to offer after our inventories and replacements are completely checked. However, that quantity, even if supplemented by a few thousand more cases, is very small when compared with a pack of about 30 million cases. Thus, when distributed, it can reach only a comparatively few markets. And at the wholesale-chain store levels the offerings, of course, are smaller yet. It is somewhat of a surprise to us that by far the greatest percentage of our resales is going back to small packers. These packers make their own distribution without any help from us or guidance as to distribution.

OPA OUTLINES PRICING OBJECTIVES FOR THE RECONVERSION PERIOD

In a memorandum to members of its advisory committees, Chester Bowles, Administrator of the Office of Price Administration, set forth in October a summary of OPA objectives for the reconversion period. Excerpts follow:

For two and a half difficult years we have been striving to maintain a stable wartime economy. In general, our efforts have been successful,

Since the spring of 1942, when price control first became effective, the Department of Labor tells us that industrial prices have risen less than three percent. The cost of living, expressed in the individual prices of items purchased by the average middle income family, has, according to the same authority, risen only about nine percent in this same period.

It has been the responsibility of the OPA under the Stabilization Act to administer the actual pricing of 8,000,000 products and services, and to establish rents for 14,500,000 dwelling units. It has been a staggering task.

The pricing policies which we have followed during the war period have been effective under wartime conditions. But today, we look forward to more and more cut backs in war production and the increased production of peace time goods.

The pricing policy on the reconverted civilian products which we adopt to meet the difficult conditions which lie ahead must, in my opinion, accomplish the following:

1. It must encourage maximum production. It must not stand in the way of the
manufacturer's desire to produce to the limit of his capacity. This means
prices which yield good profits for business, large or small, on the basis
of high volume production.

2. Our pricing policy must be easy to apply. Decisions must be made rapidly.
Manufacturers have a right to expect from us the quickest possible answers
on requests for prices on new items. We must realize, however, that prices
cannot be set without adequate information from the businesses affected.

3. Our pricing policies in the reconversion period must encourage the continued
payment of high wage rates. When wages are reduced, purchasing power begins
to dry up. Through the loss of overtime and through some unavoidable unemploy-
ment, as plants are reconverted from wartime production to peace, some deflation
in the take-home wages of our industrial workers is inevitable. If this trend
were increased by pricing policies that would result in a general lowering of
wage rates, we would soon face a serious depression.

4. Our pricing policies must continue to protect the public against general increases
in the cost of living. Rents, food prices, and clothing prices must be held at
no higher than present levels. On consumer goods which have been out of production
for some time, price increases must be given only when absolutely necessary, and
then held to the minimum amounts needed to encourage volume production.

5. Our pricing policy must not contribute to any repetition of the farm collapse which
followed the inflation in prices after World War I. The ability of our farmers to
purchase industrial products and generally to increase their standard of living
has been tremendously improved during the war period.

With sustained high purchasing power, our farmers can furnish one of the largest and
most profitable markets for industrial products. In my judgment that market, in
the reconversion period as well as during the post-war period, must be encouraged
vigorously and sustained. The responsibility for that, of course, lies in other
agencies.

6. Our OPA pricing policy must call for the elimination of price control as rapidly as
possible. This means that ceilings should be removed on each product or in each
industry one after another, when there is no longer any danger of inflationary
price rises in that particular field.

If we decontrol too quickly, we will find ourselves in serious trouble with the
possible need for reimposing controls at a later date. But if we hold controls
in effect after they are no longer needed, it will tend to discourage production
and initiative on the part of industry.

It is obvious that the development of a pricing policy to meet all these objectives is a difficult task. But if we are to achieve a vigorous, full production economy with a high standard of living and with full opportunity for every group, it must be successfully accomplished.

The regulations setting up ceiling prices in the fields now covered have been geared to the individual requirements of the businesses and industries affected. With few exceptions, they have been fair both to buyers and sellers. They meet the legal obligation that they must be "generally fair and equitable."

These present price controls present no new problem. They will be continued in substantially their present form. We shall continue to use the same pricing standards, standards which during the last few months have been carefully reviewed and approved by Congress. In other words, we will expect absorption of cost increases on less profitable items, as well as on more profitable items, by industries which manufacture several lines and whose to tal profits are satisfactory.

We have been adjusting prices in cases of individual hardship ever since ceiling prices were established, and we will, of course, continue to do so.

We will also continue to allow price increases to industries whose profits have fallen below the level of the 1936-39 period. But in most of these consumer lines now in production, volume should increase as war restrictions are removed and as raw materials become more plentiful.

The wartime lack of balance between supply and demand made price control necessary. When supply and demand come back into balance, price controls will not be needed. As soon as there

is no further danger of price increases in a particular commodity field, there will be no reason for price ceilings in that field and we will drop them.

The exact timing will vary widely from item to item. But, working with Industry Advisory Committees, we will watch each field closely. We will rely heavily on their recommendations as to when controls can be safely removed.

DATE FOR END OF HALIBUT FISHING SET

Termination of all halibut fishing on the Pacific Coast of Canada and the United States, including Alaska, was set for November 30 by the International Fisheries Commission in a notice released November 7. The final closure of fishing was effected by an order closing Areas 3 and 4, fishing in Areas 1 and 2 having previously been terminated. By the order, permits for the retention and landing of halibut caught incidentally to fishing for other species would become invalid on November 30.

U. S. AND CANADA MAKE RECOMMENDATIONS FOR CONSERVATION OF GRAYFISH

On October 11-13 government officials of the United States and Canada (representing State and Provincial as well as Dominion and Federal agencies) met at Vancouver, British Columbia, to discuss results of the past two years of research programs concerning conservation of grayfish (dogfish) and soupfin shark. Based on the results, the meeting made the recommendation that male grayfish should not be taken which measured less than 30 inches in length nor female grayfish of less than 36 inches. Fish exceeding these size limits produce livers that run less than 120 per 5-gallon can.

That taking of fish smaller than the above size limits is quite uneconomic is evident from the following tabulation showing the value of male grayfish based on the value of their livers at current market prices.

Female fish are worth less than males of corresponding length, although females of the 36-inch length are valued at more than the top figure given in the foregoing tabulation. Adoption of the recommended program would promote continued propagation of the species since considerably more than 50 percent of the male fish become mature before reaching 30 inches and about the same proportion of the females become mature before reaching 36 inches.

FISHERMEN ADOPT GRAYFISH CONSERVATION MEASURE

In recognition of a need to restrict the taking of small-sized grayfish (dogfish) to permit maximum use of grayfish resources, the Otter Trawlers' Union of Seattle, Washington, has instructed its members with regard to size of livers taken. If more than 120 livers per 5-gallon can are taken by such union members, they will receive only a small fraction of the price paid for larger livers.

Recent investigations by the Fish and Wildlife Service's technological station in Seattle determined there is an enormous increase in Vitamin A content as the livers increase in size. The Otter Trawlers' Union, which aided materially in providing samples of livers during the investigations, informed the Service of its decision to discourage the taking of small grayfish, after it had been advised on the findings of the investigations.

NON-COMMERCIAL FISHING TACKLE LIMITATIONS REMOVED

Limited production of fishing rods, reels, and other types of non-commercial fishing tackle may be resumed, and manufacture of fish hooks may be increased slightly as a result

1942, to control the This will not only

of the revocation of Limitation Order L-92, which was issued April 23, production of non-commercial fishing tackle, the WPB said October 23. help to supply returning service men with fishing tackle, but, to a limited extent, will also enable civilians to augment their family food supply with fish.

Except for fish hooks, production of new non-commercial fishing tackle or repair parts using metals, plastics, and cork had been prohibited by L-92 since May 31, 1942. Manufacture of fish hooks was limited to 50 percent of the 1941 rate of production. Revocation of the order removes these restrictions.

The use of material for the manufacture of non-commercial fishing tackle will continue to be restricted by the applicable materials conservation orders and through allotments under the Controlled Materials Plan. Manufacturers will be dependent largely upon materials available in their own inventories or from idle and excess stocks.

For permission to use copper or brass, fishing tackle manufacturers may apply under Priorities Regulation 25 ("spot authorization" procedure). To obtain permission to use iron and steel, they will file CMP-4-b forms with the Consumers Durable Goods Division, WPB. Fishing tackle manufacturers may obtain allotments of aluminum in accordance with CMP regulations, Priorities Regulation 13 (or WPB Directive 16), or the "spot authorization" procedure.

Aluminum was used in quantity by fishing tackle manufacturers before the war. WPB expects that it will now be used not only for the pre-war purposes, as for freshwater reels, lures, and handles for fishing poles, but also as a substitute for copper and other materials that are still critical.

Fishing tackle manufacturers have been actively engaged in war production. Early in the war period, they converted their machine tools for the manufacture of ski poles, radio antennae, gun mounts, machine gun parts, signal kites, percussion primers, shroud and flare parachute cords, glider parts, and other war items.

As a result of recent cutbacks and cancellations of war contracts, an estimated 65 percent of the facilities of the larger fishing tackle manufacturers and an estimated 90 percent of the facilities of the smaller manufacturers are available for fishing tackle production.

In 1941, the industry consisted of about 200 manufacturers, who employed approximately 3,500 workers, Output of all types of fishing tackle in that year was valued at more than $15,000,000.

U. S. RELAY RADIO STATIONS INSTRUCTED TO RELAY FISH REPORTS

The following instructions were issued on October 11 by the Commandant of the Thirteenth Naval District, Seattle, covering the use of U. S. coastal and marine relay radio stations:

In the interests of National security, the Navy Department found it necessary, at the beginning of the War, to restrict the use of radio by commercial vessels. This restriction on the use of radio by the larger fishing vessels has prevented the customary scheduling of landings so as to avoid over taxing the shore handling and processing facilities.

This variation in landings was not critical so long as adequate shore labor was available to handle the fish on peak days, although it was wasteful of manpower. However, the manpower shortage has become so acute that days of ten occur on which the fish landed cannot be handled, while on other days a substantial part of the shore labor is idle.

To overcome this uneconomical use of manpower, the Navy Department has modified the existing regulations to the extent that fishing vessels are now authorized to employ the established commercial marine relay radio stations for communications by radio-telephone via such stations to their owners, while operating outside of inland waters, such communications to be restricted to transmissions only for the purpose of informing the owner of the vessel of the catch on board and the distance from port in hours of running time. The owner is authorized to make a reply restricted to instructions as to when and where to land the catch.

All other requirements of existing regulations are still in effect except as modified in the foregoing paragraphs.

This modification does not alter the requirement that persons using radio through the facilities of marine relay radio stations must be authorized to do so by the Commandant, Thirteenth Naval District, or such other District concerned.

WMC FACILITATES EMPLOYMENT OF WAR VETERANS

The War Manpower Commission announced September 27 the lifting of all manpower controls for veterans of the present war. This action was taken to speed the reemployment of returning veterans and to remove all employment obstacles in the way of their return to civilian life.

Relaxation of manpower controls for war veterans is provided for in the following manner:

1. Veterans of the present war will not be required to secure or present statements
of availability in order to change jobs.

2. Veterans of the present war may be hired by any employer without referral by the
United States Employment Service or other authorized referral channels.

3. Any veteran of the present war who seeks employment through USES will be entitled
to a referral, as a matter of right, to any job of his choice, without regard to
the essentiality or priority status of such job.

4. Veterans of the present war may be hired without regard to employment ceilings.
However, all employees who are veterans of this war will be counted against an
established employment ceiling unless the applicable local employment stabilization
program provides for the exemption of such veterans from employment ceiling deter-
minations. No workers other than veterans of the present war and any other groups
that may be exempted locally may be hired if employment is at or above the established
ceiling.

NEW FISHERY LEAFLETS

The following Fish and Wildlife Service Fishery Leaflets became available during September and October:

Copies of these leaflets may be obtained free of charge from the Service at the Merchandise Mart, Chicago 54, Illinois. Leaflets 78 to 90 are reprints from the Service's Research Report 7, which is available complete from the Superintendent of Documents, Washington 25, D. C., for 50 cents.

Sectional Marketing Review

FISHERIES OF NEW YORK

The production of skimmers or surf clams reached its greatest activity on record during October, when over 20,000 bushels were taken, according to reports received from local Fish and Wildlife Service representatives. This was about a 100 percent increase over September. A continued rise in production is anticipated for the coming months.