AMENDMENT 16 TO MPR-364 EFFECTIVE APRIL 24 Several changes in the regulation controlling processors' and wholesalers' prices for frozen fish were announced by the OPA on April 18. Perhaps most important among these changes incorporated in Amdt. 16 to MPR-364 are new, reduced base prices for New England species of frozen fish and for frozen halibut landed in Canada and Alaska. This new schedule of prices, effective April 22, 1944, represents a 20 percent reduction at the processor's level under current prices, or about 7 to 8 cents per pound of frozen fish to the consuming public. Summer ceiling prices for fresh East Coast varieties of fish became effective April 1. These prices are lower than the winter schedule of prices because of the spring and summer period of natural plenty. Consequently, fish frozen during this period when raw material costs are less, are accordingly reduced in the new amendment. OPA also adjusted ceiling prices on frozen halibut in line with recently issued fresh halibut prices. The existing ceiling prices for frozen halibut landed at Seattle are not changed. But a 2 cent reduction has been made on round, drawn or dressed halibut landed or frozen in Canada or Alaska. The processor's base price in Seattle, for round halibut is 14 cents per pound; the drawn price is 16 cents per pound and the dressed price is either 20 cents per pound, or 21-3/4 cents per pound according to size. The price of the fish weighing 5 to 10 pounds is 20 cents per pound, and a fish weighing from 10 to 60 pounds is 21-3/4 cents per pound. Reductions on frozen halibut steaks and fillets are 3 and 4 cents, respectively, at the processor's level. At retail the prices for these items are reduced by 5 to 6 cents, respectively. The net cost which any wholesaler can use for determining his maximum prices in sales of halibut must be based on the Seattle base price plus transportation for the type of shipment used from Seattle to his receiving plant, or the base price for the halibut landed frozen in Canada plus transportation for the type of shipment used from Prince Rupert, British Columbia, whichever is less. However, if the wholesaler's net cost for sales of halibut as figured elsewhere in the frozen fish regulation is less, he must use that net cost in determining his ceiling prices. The small amount of halibut landed and frozen on the Atlantic Coast is priced at one-half cent higher than the Seattle base price. This will reflect the Prince Rupert price plus transportation. Other changes in the regulation, primarily of interest to the trade, include: After April 30, 1944, the action provides that the wholesaler's net cost must be based on the new base prices for frozen fish irrespective of the time the fish was purchased and regardless of the base price at the time the purchase was made. OPA feels that this period of time is sufficient to allow wholesalers to dispose of their higher priced winter inventories. Also, the period between the issuance and effective dates of this amendment should be sufficient time for processors to dispose of their winter inventories. The action taken by OPA also placed further restrictions on the application of the primary wholesaler's markups for sales of the frozen fish or seafood by processors. To qualify for the primary wholesaler's mark-ups, a processor must have working for him two or more full-time employees who are stationed at and engaged in making sales and performing services solely for him at a warehouse other than and remote from the original freezer. Prior to this, the regulation permitted a processor who performed the functions of a primary wholesaler at a separately maintained warehouse to add the mark-up provided for a primary wholesale sale. This provision was intended to allow a primary wholesaler mark-up for sales by a remote branch warehouse of a processor. OPA's attention has been called to the fact that in many instances processors have removed frozen fish to a separate warehouse in the close vicinity of the freezing plant to take advantage of the 12 percent mark-up allowed for primary wholesale sales. Another change made in the frozen fish regulation is at processors' ceiling prices are now f.o.b. shipping point nearest the freezer plant, instead of f.o.b. the point at which the product is frozen as originally provided for in the regulation. This change clarifies the transportation allowances permitted purchasers of frozen fish items. The current action does not affect sales by a processor to a retailer or purveyor of meals. He may still take the mark-up allowed for cash-and-carry or service-and-delivery sales. Additional limitations are placed on those who may qualify as primary wholesalers of the frozen fish and seafood. Prior to the action any wholesaler who purchased frozen fish or seafood from processors and distributed it for resale to other wholesalers, retailerowned cooperatives or chain store warehouses, qualified as a primary wholesaler and could charge the appropriate mark-up allowed him. The primary wholesaler mark-ups were originally designed for distributors who were generally large volume distributors and were able to buy in carload lots. These distributors were then able to sell less than carload lots to small wholesalers who were unable to buy such large quantities and who had no connection with the source of supply. For this service the regulation provided a mark-up of 12 percent, when frozen fish or seafood was sold from a warehouse, and 7 percent when sold by the primary wholesaler direct from a freight car. This has resulted in a pyramiding of mark-ups on both smaller lots and carload lots. It also has resulted in an influx of brokers into the business of buying from and selling to wholesalers. The cost of their (the brokers') function has normally been part of the processor's selling expense and their insertion into the distributive pattern as buyers rather than brokers has caused a multiplication of mark-ups. This amendment provides that primary wholesalers, with respect to any frozen fish or seafood listed in the regulation, are wholesalers who buy from processors in carload lots and distribute the frozen items for resale to other wholesalers, Government agencies, retailer-owned cooperatives or chain stores warehouses in less than carload lots. Furthermore, in order to qualify as a primary wholesaler he must have bought the greater portion of his frozen fish or seafood in carload lots and distributed the greater portion in less than carload lots, during the greater part of the year preceding April 13, 1943, the effective date of the wholesale frozen fish regulation. The action modifies the transportation which may be added by an importer of frozen fish or seafood other than frozen Atlantic Coast smelts or frozen Canadian lake fish. This is in line with similar provisions in the fresh fish regulation and provides that the importer or agent of a foreign consignor determines the transportation allowance he may add by taking the lowest of the following three methods: The actual transportation cost to his receiving point from the foreign shipping point. (3) The transportation cost to his receiving point from the nearest domestic port from which a substantial volume of that fish is shipped. Thus, where a Boston concern imports a carload of frozen haddock from Canada, it cannot add any transportation in selling that imported fish, since a substantial volume of haddock is shipped from Boston. A wholesaler buying from an importer may pass on this transportation allowance and also may add transportation in the same manner as would any other wholesaler purchasing from a wholesaler. With respect to the following species of frozen fish the cost of transportation must not exceed the cost for the actual type of shipment used from Boston, Mass.: Cod, haddock, pollock, hake, cusk, yellowtail, blackback, lemon sole, gray sole, sea dab, mackerel, and rosefish. This action is taken to avoid higher ceiling prices for imported frozen fish than the domestic frozen fish of the same species. Imported fish normally sells in competition with domestic fish of the same kind at about the same price. An additional provision to the invoice section of the regulation is the insertion of a penalty price if the seller fails to note on the statement furnished the purchaser that the fish or seafood is frozen. The penalty price, which applies only if a price is listed in the fresh fish regulation (Maximum Price Regulation No. 418) for the species in the particular style of dressing or processing sold, is the lower of the prices listed in the fresh and frozen regulations. This will provide enforcement agents with a more effective means of enforcing the invoice and record provisions. The fresh fish regulation has a similar provision. Other miscellaneous changes are made in the regulation, and a footnote is attached to lemon sole and gray sole, fillet prices, which states that unless these items are wrapped and marked as gray sole or lemon sole, whichever is the case, the applicable base price is that listed for yellowtail fillets. Excerpts from Amendment 16 follow: 1. Section 2 is amended to read as follows: SEC. 2. How processors' maximum prices are fixed. Section 14 lists the various species of frozen fish and seafood for which maximum prices are fixed by this regulation. The base price, in cents per pound, is listed for each species according to the style of processing and the size. The listed base prices in section 14 are base prices per pound for frozen fish and seafood as packed in the container size and kind customary' for the species and for the industry. Section 13 sets out the amount which may be added to, or which must be subtracted from, the listed base price when the frozen fish or seafood is packed in other kinds or sizes of containers. The listed base price, with any adjustment for kind of package, and transportation allowance for freezing at a point which is not a port of entry, is the processor's maximum price f. o. b. the shipping point nearest the freezer. If the processor freezes the fish or seafood in any place other than that port where the species is landed ex-vessel or shipped in by a producer, he may add as transportation allowance to the listed base price the actual per pound transportation cost, not to exceed the carload rail freight rate per pound for fresh fish, where such rate is available,, from the port of entry to the freezing point, excluding any charges for local trucking, hauling and handling. A processor who performs the functions of a primary wholesaler and employs two or more full-time employees who are stationed at and engaged in making sales and performing services solely for the processor at a warehouse other than and remote from the original freezer shall establish his maximum price for sales from such warehouse by adding the mark-up provided for a primary wholesale sale to the base price, plus or minus any package differential as listed in section 13, plus the allowable transportation to the warehouse from which the sale is made. Sales to wholesalers by persons not qualifying as primary wholesalers as defined in section 3 (d) (1) shall be at prices no higher than those fixed for sales by processors. A processor who performs the function of a cash-and-carry or service-and-delivery wholesaler, as specified in section 3, shall establish his maximum price by adding the mark-up provided for the particular class of sale to the base price, plus or minus any package differential as listed in section 13, plus allowable transportation cost. 2. Section 3 (b) is amended to read as follows: (b) Net cost. The wholesaler's "net cost" is the amount he paid for the particular item of frozen fish or seafood delivered at his established place of doing business, plus or minus any package differentials listed in section 13, less all discounts allowed him except the discount for prompt payment, and excluding any charges for local trucking, hauling and handling. Except that for sales of halibut, the wholesaler's "net cost" shall not exceed the lowest amount determined by the application of section 3 (b) and 3 (b) (1). After April 30, 1944, the wholesaler's "net cost" must not exceed the sum of the following: (1) the base price listed for the species in the table of base prices in section 14 on April 22, 1944, plus or minus (2) any package differentials listed in Section 13 added or subtracted by previous handlers of the fish or seafood, plus (3) allowable transpor tation costs added by previous handlers of the fish or seafood, plus (4) the appropriate mark-up allowed his supplier in section 3 (d) (1) if his supplier is a primary wholesaler, plus or minus (5) any package differentials listed in section 13 for packaging changes, if any, made by the wholesaler, plus (6) allowable transportations costs for delivery of the frozen fish or seafood to the established place of doing business of the wholesaler from his supplier's place of business, exclusive of local trucking, hauling and handling. Any wholesaler who buys frozen fish or seafood and processes it by a style of processing for which a price is listed in the table of base prices in section 14 may include as part of his "net cost" the difference between the price listed in the table for the frozen fish or seafood in the condition in which it is purchased by the wholesaler and the price listed in the table for the fish or seafood in the condition it is after processing by the wholesaler. 3. Subparagraph (1) is added to section 3 (b) to read as follows: (1) Net cost on sales of halibut. The wholesaler's "net cost" in sales of frozen halibut shall not exceed the lowest amount determined by the application of (i), (ii) and section 3 (b). (i) The appropriate base price for frozen halibut landed or frozen on the Pacific Coast of the United States, plus or minus any package differentials listed in section 13 added or subtracted by previous handlers of the fish, plus the rail rate for the type of shipment used for frozen fish from Seattle to the established place of doing business of the primary wholesaler of that fish, if there is a primary wholesaler involved, plus the primary wholesaler's mark-up, if a primary wholesaler is involved, plus or minus any package differentials listed in section 13 for packaging changes made by the wholesaler, if any, plus transportation costs for delivery of the fish to the wholesaler from his supplier, not to exceed the rail rate for the type of shipment used for frozen fish from Seattle to his established place of doing business; or (ii) the appropriate base price for frozen halibut landed or frozen on the Pacific Coast of Canada, plus or minus any package differentials listed in section 13 added or subtracted by previous handlers of the fish, plus the rail rate for the type of shipment used for frozen fish from Prince Rupert, British Columbia, to the established place of doing business of the primary wholesaler of that fish, if there is a primary wholesaler involved, plus the primary wholesaler's mark-up, if a primary wholesaler is involved, plus or minus any package differentials listed in section 13 for packaging changes made by the wholesaler, if any, plus transportation costs for delivery of the fish to the wholesaler from his supplier, not to exceed the rail rate for the type of shipment used for frozen fish from Prince Rupert, British Columbia, to his established place of doing business. greater part of the year preceding April 13, 1943, bought the greater portion of the frozen fish or seafood they sold in carload lots and distributed the greater portion of such fish or seafood in lessthan-carload lots. In the sale of frozen fish or seafood which has been unloaded, stored and warehoused in the regular course of his business, the primary wholesaler's mark-up is 12 percent. In the case of sales of fish or seafood which has not been stored and warehoused, the primary wholesaler's mark-up is 7 percent. In the case of sales involving delivery from the processor's cold storage warehouse to the primary wholesaler's customer, there is no mark-up. 5. Section 3 (e) is amended to read as follows: (e) Imported frozen fish and seafood. (1) The maximum price at which a wholesaler, including any agent of a foreign shipper, may sell any imported frozen fish or seafood listed in section 14 shall be the base price listed in the table of base prices in section 14 for the species in the style of processing and size sold, plus or minus the differential for packaging provided in Section 13, plus transportation allowance as provided in section 3 (e) (1) (i). To this amount may be added the markup provided for the class of sale in paragraphs (c) and (d) of section 3. (i) Transportation allowance for imported fish. Any importer or agent of a foreign consignor of any frozen fish or seafood except frozen Atlantic Coast smelts and frozen Canadian lake fish covered in Schedules Nos. 70-77, inclusive, in the table of base prices in section 14 may add as a transportation allowance to the appropriate table price in section 14 the lowest amount determined on the following three bases: (a) The actual cost of transportation (exclusive of local trucking, hauling and handling charges) from the seller's shipping point to the importer's receiving point; (b) The actual cost of transportation (exclusive of local trucking, hauling and handling charges) to the importer's receiving point from the point at which the frozen fish or seafood entered the United States or the carload rail rate for frozen fish or seafood from the point in the United States nearest the foreign shipper's shipping point, whichever is designated on the invoice by the seller. (c) The actual cost of transportation (exclusive of local trucking, hauling and handling charges) to the importer's receiving point from the nearest domestic pert from which a substantial volume of that species is shipped. However, with respect to the species listed hereinafter, the cost of transportation shall not exceed the cost for the type of shipment used from the ports listed for that species. Species: Cod, haddock, pollack, hake, cusk, yellowtail, blackback, lemon sole, gray sole, sea dab, mackerel, rosefish. Port: Boston, Mass. Where frozen Atlantic Coast smelts are imported for resale in the United States, 4. Section 3 (d) (1) is amended to the freight from the point of shipment to read as follows: (1) Primary wholesalers. Primary wholesalers with respect to any species of fish or seafood listed in the table of base prices in Section 14 are wholesalers who buy frozen fish or seafood from processors in carload lots and distribute it for resale to other wholesalers, government agencies, retailer-owned cooperatives or chain store warehouses in lessthan-carload lots, and who, during the the wholesaler's warehouse, not to exceed the carload rail freight rate, if such rate is available, may be added. Where frozen Canadian lake fish covered in Schedules Nos. 70-77, inclusive, in the table of base prices in section 14 are imported for resale in the United States, there may be added the actual transportation cost (excluding local trucking, hauling and handling charges) from the point of shipment in Canada to the destination point in the United States, but in no event more than the carload rail rate for frozen fish from the City of Winnipeg in the Province of Manitoba, Canada, to the destination point in the United States. A buyer of imported frozen fish or seafood from an importer-wholesaler, including any agent of a foreign shipper, may add the transportation from the shipper to his established place of doing business, exclusive of local trucking, hauling and handling charges. In determining the transportation allowance, common carrier rates shall be used. The importer may add the allowance only when he records it on an invoice to the customer purchasing the fish or seafood, designating which of the three bases he is using. A purchasing wholesaler or subsequent wholesalers of that fish or seafood may pass on such transportation allowance, but only if they in turn record it on an invoice to their customers. 6. Section 7 (e) is amended to read as follows: (e) Every person making a sale of any frozen fish or seafood subject to this regulation shall furnish to the purchaser at the time of delivery a written statement setting forth the date of the sale; the name and address of the buyer and seller; the species sold; a notation that the fish or seafood is frozen; the quantity, sizes, grades and styles of processing of frozen fish or seafood where price differences exist in the table of base prices in section 14 because of these factors, and the prices charged therefor, including a separate statement of the container differentials, if any, as provided in section 13, and allowable transportation cost, if any. If the statement furnished a purchaser at the time of delivery does not identify the size, grade and style of processing, where price differences exist in the table of base prices in section 14 because of these factors, the maximum price which may be charged for the frozen fish and seafood involved in the sale is the maximum price for the lowest priced size, grade and style of processing of the species of frozen fish and seafood sold. If the seller fails to note on the statement that the fish or seafood is frozen, and if a price is listed in Maximum Price Regulation No. 418 for the species in the particular style of processing or uressing sold, the maximum price which may be charged for the fish or seafood involved in the sale is the lower of the prices listed in Maximum Price Regulation No. 418 and this Maximum Price Regulation No. 364. 7. In section 12, after the definition of "Government agency" the following definition is inserted: "Grade" means any qualification of the name of the fish or seafood listed in the table of base prices in section 14. 8. In section 12, after the definition of "Round" the following definition is inserted: "Saddles" means the pectoral fins and the connecting cartilaginous strip of a rajafish. 9. In section 12, after the definition of "Tail cut" the following definition is inserted: "Wings" means the pectoral fins of a rajafish. 10. In the table of base prices in section 14, Schedule Nos. 5, 7, 11 (a), 11 (b), 11 (c), 11 (e), 11 (f), 13, 14, 27, 39 and 48 are amended, reference to footnote 10 is added to the name of Schedule No. 15 and reference to footnote 11 is added to Item No. 2 of Schedule Nos. 11 (e) and 11 (f) and Item Nos. 6 and 7 are added to Schedule No. 15 to read as follows: For frozen halibut landed or frozen on the Atlantic Coast of the United States, add 1⁄2 cent to the listed prices. 12. Footnote 11 is added at the end of the table of base prices in section 14 to read as follows: "The base price listed for these fillets apply only if they are wrapped and marked as gray sole or lemon sole, whichever is the case; ctherwise the applicable base price is that listed for Item No. 2 of Schedule No. 11 (c), Dab (Yellowtail). This amendment shall become effective April 22, 1944. Canned and Cured Fish Trade CALIFORNIA TUNA PACK FOR MARCH 72 PERCENT GREATER THAN MARCH 1943 The production of canned tuna by California packers during March amounted to 137,725 standard cases, according to the California Division of Fish and Game. This exceeded by 19 percent the February pack and was 72 percent greater than that of March 1943. The total pack during the first three months of 1944 was 90 percent greater than the same period of 1943. Substantial increases were reported in the packs of tuna flakes, yellowfin, and blue fin tuna. The pack of mackerel during the first three months of 1944 amounted to 84,444 standard cases, 9 percent less than the pack in the same quarter of 1943. There was no mackerel canned in California during March 1944. Standard cases of tuna represent cases of 48 7-ounce cans, while those of mackerel represent cases of 48 1-pound cans. MARCH PACK OF SHRIMP SMALL Adding 1,119 standard cases to the 1943-44 shrimp pack in the four weeks ending April 1, the canneries operated under the supervision of the Food and Drug Administration's Seafood Inspection Service ran the season's total to 382,527 cases, according to the Service's Market News office in New Orleans. This was 68 percent of the 1942-43 total to April 3 and 53 percent of the average of the five previous years. The average pack for March for the previous five seasons was 2,286 cases. Wet and Dry Pack Shrimp in all Sizes in Tin and Glass--Standard Cases* SEASON * All figures on basis of new standard case--48 No. 1 cans with 7 oz. per can in the wet pack and 63 oz. per can in the dry pack. Wholesale canned shrimp prices have held to maximum prices since these levels became effective on February 2, 1943. On April 1, quctations per dozen plain No. 1 standard tins, f.o.b. point of production, remained at the llowing maximum figures. No quotations were made for dry pack shrimp. In order to save manpower and equipment, the Puget Sound salmon canning industry was placed under a concentration order April 12 by Coordinator of Fisheries Harold L. Ickes, and as a result fewer packing plants will operate this year than in any year since 1893. Following the successful operation of the Alaska salmon packing industry under a concentration plan, which is being repeated this year, representatives of the industry in the Puget Sound area requested that a similar plan be placed in erfect for their segment of the industry. Only three plants will operate this year instead of the usual eleven although one standby plant will be available if the runs warrant its operation. A single plant, the largest in the area, will pack salmon for nine different firms. This plant, at. Anacortes, Washington, has a capacity of 10,000 cases a day and storage facilities for 100,000 cases. The other operating plants will be at Deer Harbor and La Conner, Washington. |
