which OPA expects to follow generally in setting up equitable pricing for legitimate primary distributors of other food products. The new regulation provides that qualified primary distributors may take a mark-up of 6 percent over "net cost." Other distributors may sell at a ceiling price no higher than their supplier's ceiling price for that item, f.o.b. shipping point, plus incoming freight, Before he may price canned fish and seafood under the new regulation, every distributor prior to wholesale must file an application with his OPA regional office. If he can establish that he meets the regulation's qualifications for a primary distributor and that he was doing business as a primary distributor before April 28, 1942, the date of issuance of the first general price control measure, the regional office may give permission to use the 6 percent mark-up. If, however, the distributor has gone into the business of handling a product as a primary distributor after this date, or if he does not meet the "primary distributor" requirements in the regulation, he will be restricted to his supplier's ceiling price, plus freight. Bona fide primary distributors selling in carload lots are also limited to this cost plus freight ceiling. The new regulation contains an explicit requirement that brokers operate as agents of the seller (packer), as they have normally functioned. It is provided that the broker's fee (which is now allowed for in the packer's ceiling price) must be paid by the packer or, if it is paid by the purchaser, that fee must be included in the packer's ceiling price and not added to that ceiling. Maximum Price Regulation No. 542--Ceiling Prices for Certain Canned Fish and Seafood Items Sold by Primary Distributors and Other Distributors--becomes effective July 17, 1944. Excerpts follow: SECTION 1. What this regulation does. This regulation fixes ceiling prices for "distributors", other than "wholesalers" and "retailers", of the canned fish and seafood listed in section 3. SEC. 2. Who are "distributors" under this regulation. A "distributor" is one, other than a wholesaler or retailer, who purchases all he sells (for his own account) of the kind and brand of canned fish and seafood being priced and resells it without packing or processing any part of it. If you are a "primary distributor" or any "other distributor" of canned fish and seafood, you are covered by this regulation. (a) Who are "primary distributors". You are a "primary distributor" if you are not a wholesaler or retailer, and if (1) You purchase all you sell (for your own account) of the kind and brand of canned fish or seafood being priced without packing or processing any part of it, and (2) You customarily make at least 50 percent (by dollar volume) of your purchases from canners or processors of that kind of canned fish or seafood in carload quantities, delivered, for storage, into a warehouse or other receiving point not owned or controlled by any of your customers or the supplier, and (3) You resell at least 50 percent of your purchases of that kind of canned fish or seafood in less than carload quantities, and (4) You did business in this manner before April 28, 1942. For sales which you make as a primary distributor, you find your ceiling price under section 4. (b) Who are "other distributors". You are classified with "other distributors" if you are not a primary distributor, wholesaler or retailer, and if you purchase all you sell (for your own account) of the kind and brand of canned fish or seafood being priced and resell it without packing or processing any part of it. For sales which you make as "other distributors", you find your ceiling price under section 5. SEC. 3. To what canned fish and seafood items this regulation applies. This regulation applies to the canned fish and seafood which are covered by the regulations listed below: Sales by Canners of Maine Sardines (Maximum Price Regulation No. 184 1). Sales by Canners of California Sardines (Maximum Price Regulation No. 2092). Domestic Canned Crabmeat (Maximum Price Regulation No. 2472). Sales by Canners of Salmon (Maximum Price Regulation No. 265'). Sales by Canners of Mackerel (Maximum Price Regulation No. 277). Sales by Canners of Tuna, Bonito and Yellowtail (Maximum Price Regulation No. 299"). Sales by Canners of Shrimp (Maximum Price Regulation No. 3117). Canned Eastern and Gulf Oysters (Maximum Price Regulation No. 328 *). Sales by Canners of Atlantic Sea Herring and Alewives (Maximum Price Regulation No. 396). Canned Clams (Maximum Price Regulation No. 448 1o). Sales by Canners of Fish Flakes (Maximum Price Regulation No. 537 *). All Other Canned Domestic Fish or Seafood (General Maximum Price Regulation "). SEC. 4. How a primary distributor figures his ceiling price. If you are a primary distributor selling, in less than carload quantities, an item of canned, fish or seafood which you purchase from a canner or processor and which you have actually warehoused, you find your ceiling price for that item by multiplying your "net cost" of the item by 1.06. (a) However, you may not use this method of pricing in the following cases: (1) For sales of a "kind" of canned fish or seafood if you did not sell that kind as a primary distributor before April 28, 1942 (e. g., "kind" means canned salmon in contrast to canned tuna fish). (2) For a greater percentage of your sales of canned fish and seafood than you warehoused and sold in less than carload quantities during the one-year period ending April 28, 1942. (3) For sales of canned fish and seafood items which are not in less than carload quantities. (4) For sales of canned fish and seafood items which you have not warehoused. (5) For sales of your purchases from a canner or processor of his annual pack of a kind of canned fish or seafood which exceed the percentage of your purchases of that kind from him during the oneyear period ending April 28, 1942, or, if you did not sell that kind during the one-year period ending April 28, 1942, then during the last full year ending April 28th in which you sold that kind. (6) For sales of canned fish and seafood items which you purchase from a "wholesaler" or "retailer." In the above cases, you must figure your ceiling price as "other distributors" under section 5. (b) If you purchase any canned fish or seafood items from a primary distributor or "other distributor", you must use as your ceiling price for each such item your supplier's ceiling price for that item, f. o. b. shipping point, plus incoming freight paid by you. SEC. 5. How "other distributors" figure their ceiling prices. For sales which you make as "other distributors", your ceiling price for each item of canned fish or seafood is your supplier's ceiling price for that item, f. o. b. shipping point, plus incoming freight paid by you. However, if you purchase any canned fish or seafood item from a "wholesaler" or "retailer", your ceiling price shall be that wholesaler's or retailer's "net cost" (as the case may be) plus transportation you paid to your usual receiving point (except local trucking or local unloading). You must figure your ceiling price under this section also in the cases set forth in section 4 (a). SEC. 6. Discounts. If you had a practice during March 1942 of giving to different classes of purchasers allowances, discounts or other price differentials, you are required to continue such allowances, discounts or price differentials. SEC. 7. Position of brokers. In accordance with trade custom, every broker shall be considered as the agent of the seller and not the agent of the buyer. In each case, the amount paid by the buyer to the seller plus any amount paid by the buyer to the broker shall not exceed the seller's maximum price, including allowable transportation actually paid by the seller or by the broker. In other words, the seller may not collect from the buyer any more than his maximum price, including allowable transportation so paid, less the amount which the buyer pays the broker. SEC. 8. Indirect price increases prohibited. You must not evade any of the provisions of this regulation or any order issued pursuant to it, by any stratagem, scheme or device. You must not, as a condition of selling any particular canned fish or seafood item, require a customer to buy anything else. SEC. 9. Application bu primary distributors. (a) Before making any sales as a primary distributor under section 4 of this regulation, you must apply in writing to the OPA Regional Office for the region in which your principal place of business is located. Such application must state, in addition to your name and address: (1) Whether or not you price any kind of canned fish or seafood as a wholesaler or retailer under Maximum Price Regulations Nos. 421," 422 " and 423.1 (2) Whether you purchase all you sell (for your own account) of the kind and brand of canned fish or seafood being priced without packing or processing any part of it. (3) For each kind of canned fish and seafood, your total dollar purchases during the one-year period ending April 28, 1942; your total dollar purchases in carload quantities during the one-year period ending April 28, 1942, from canners or processors, which were delivered, for ⚫ storage, into a warehouse or other receiving point not owned or controlled by any of your customers or the suppliers; and the name and address of such warehouse. If you did not sell that kind during the one-year period ending April 28, 1942, give this information for the last full year ending April 28th in which you sold that kind. (4) For each kind of canned fish and seafood, your total dollar sales during (6) For each kind of canned fish and seafood, the date when you started doing business in this manner. Until receipt of written notice from the Regional Office of the OPA that you qualify as a primary distributor for certain kinds of canned fish and seafood, you may not use section 4 of this regulation in pricing those kinds of canned fish and seafood, but your ceiling prices shall be figured in accordance with section 5. (b) Any Regional Office of the OPA may act on all applications submitted under the provisions of this section by persons located within the area under its jurisdiction. SEC. 10. Notification of change in ceiling price. With the first delivery of any item priced under this regulation, every person subject to this regulation shall: (a) Supply each wholesaler and retailer who purchases from him with written notice as set forth below: (Insert date) NOTICE TO WHOLESALERS AND RETAILERS Cur OPA ceiling price for (describe item by kind, brand, grade, variety, containertype and container-size) has been changed under the provisions of Maximum Price Regulation No. 542. We are authorized to inform you that if you are a wholesaler or retailer pricing this item under Maximum Price Regulations Nos. 421, 422 and 423, you must refigure your ceiling price for the item in accordance with the applicable provisions of those regulations (see section 6 in each case). You must refigure your ceiling price on the first delivery of this item to you containing this notification after July 17, 1944. For a period of 60 days after first determining his ceiling price under this regulation, and with the first shipment after the 60-day period to each person who has not made a purchase within that time, the seller shall supply the written notice set forth above by attaching it to, or stating it on, the invoice covering the shipment. SEC. 11. Invoices and receipts. You must give each of your customers an invoice, receipt or other evidence of purchase in connection with every sale, retaining a copy for your files. Each such record you prepare and give your customer must show the date of the sale, the name and address of the customer, your name and address, the item sold, the quantity, and the price you charged for it. Your description of the item must show the kind, brand, variety, containertype and container-size. SEC. 15. Taxes. You may collect, in addition to your ceiling price, any tax upon or incident to a sale at wholesale of the canned fish or seafood items covered by this regulation, if you state the tax separately and if the tax statute or ordinance does not prohibit sellers from stating and collecting the tax separately from the price. SEC. 16. Export sales. The ceiling prices at which a person may export any item covered by this regulation shall be determined in accordance with the Second Revised Maximum Export Price Regulation," as amended, issued by the OPA. SEC. 18. Geographical applicability. This regulation applies in the 48 states of the United States and the District of Columbia. SEC. 19. Definitions. (a) "Canner" and "processor" shall mean, with respect to the commodities listed in section 3, the persons referred to as such in the maximum price regulations indicated in section 3. (b) "Retailer" means all the persons referred to as such in section 2 of Maximum Price Regulations Nos. 422 and 423. (c) "Wholesaler" means all the persons referred to as such in section 2 of Maximum Price Regulation No. 421. (d) "Item" means a kind, variety, grade, brand, container-type and container-size. (e) "Net cost" means the amount you paid your supplier for the item less all discounts except the discount for prompt payment and swell and label allowances, plus all transportation charges paid by you, to your usual receiving point by a customary means of delivery, except local trucking and local unloading. (f) "Carload quantity" means any quantity of the kind of canned fish or seafood being priced which equals or exceeds the carload minimum weight specified for that product in Consolidated Freight Classification No. 16, and amendments, issued by Agents Greenly (I. C. C.O. C. No. 60), Dulaney (I. C. C. No. 92), Fyfe (I. C. C. No. 29), and Raasch (I. C. C. No. 566). This regulation shall become effective on the 17th day of July 1944, except with respect to Section 9, for which it shall become effective June 26, 1944. CHARGES FOR CANNED OYSTER INSPECTION RAISED The Food and Drug Administration on June 12, issued the following amendment to its Canned Oyster Inspection regulation: PART 155-SEA FOOD INSPECTION INSPECTION OF CANNED OYSTERS Under the authority of section 702A1 of the Federal Food, Drug, and Cosmetic Act, each of the sections hereinafter specified of the regulations for the in#pection of canned oysters, published in the FEDERAL REGISTER of January 4, 1944, and as amended in the FEDERAL REGISTER of February 2, 1944, is hereby amended as indicated below: In 155.30 (a) "$164" is changed to "$180." In § 155.32 (a) "$123" is changed to "$135." In 155.42 (b) "$123" in each instance where it appears is changed to "$135"; "$164" in each instance where it Appears is changed to "$180"; "$4.10" is changed to "$4.50." These amendments shall become effective upon their publication in the FEDERAL REGISTER but shall apply only to service to be rendered after July 1, 1944. All applications for such service to be rendered after July 1, 1944, shall be submitted in accordance with these regulations as amended hereby. CANNED SHRIMP INSPECTION CHARGES RAISED On June 12, the Food and Drug Administration amended its canned shrimp inspection regulations as follows: ·INERECTION OF CANNED SHRIMP Under the authority of section 702A 1 of the Federal Food, Drug, and Cosmetic Act, each of the sections hereinafter specified, of the regulations for the inspection of canned shrimp, published in the FEDERAL REGISTER of July 2, 1942, and as amended in the FEDERAL REGISTER June 10, 1943, is hereby amended as in dicated below: In § 155.00 (a), "$184.50" is changed to "$202.50." In § 155.02 (a), "$123" is changed to "$135." In § 155.12 (b), "$123" in each instance where it appears is changed to "$135"; "$184.50" in each instance where it appears is changed to "$202.50"; "$4.10" is changed to "$4.50." These amendments shall become effectiye upon their publication in the FEDERAL REGISTER but shall apply only to service to be rendered after July 1, 1944. All applications for such service to be rendered after July 1, 1944, shall be submitted in accordance with these regu lations as amended hereby. DEFINITIONS AND STANDARDS PROMULGATED BY F.D.A. COVER CANNED SHRIMP The Food and Drug Administration's service and regulatory announcement, Food, Drug, and Cosmetic No. 2, entitled "Definitions and Standards for Food," contains the definitions and standards for food which were promulgated before June 1, 1943, under the Federal Food, Drug, and Cosmetic Act, as they appear in the Code of Federal Regulations (21 CFR Cum. Supp.), as amended by the order on enriched flour promulgated July 1, 1943. Some of the relevant sections of the Act and general regulations, follow, as well as the only definition and standard that has been promulgated for fishery products. PROVISIONS OF THE FOOD, DRUG, AND COSMETIC ACT RELATING TO THE PROMULGATION SEC. 701. (a) The authority to promulgate regulations for the efficient enforcement of this Act, except as otherwise provided in this section, is hereby vested in the Administrator. (d) The definitions and standards of identity promulgated in accordance with the provisions of this Act shall be effective for the purposes of the enforcement of this Act, notwithstanding such definitions and standards as may be contained in other laws of the United States and regulations promulgated thereunder. (e) The Administrator, on his own initiative or upon an application of any interested industry or by his representative. As soon as practicable after completion of the hearing, the Adminis- SEC. 401. Whenever in the judgment of the Administrator such action will promote honesty SEC. 403. A food shall be deemed to be misbranded- . . . . . .. (g) If it purports to be or is represented as a food for which a definition and standard of identity has been prescribed by regulations as provided by section 401, unless (1) it conforms to such definition and standard, and (2) its label bears the name of the food specified in the definition and standard, and, insofar as may be required by such regulations, the common name s of optional ingredients (other than spices, flavoring, and coloring) present in such food. Regulation. (§2.13) Conformity to definitions and standards of identity. In the following conditions, among others, a food does not conform to the definition (a) If it contains an ingredient for which no provision is made in such defini- (b) If it fails to contain any one or more ingredients required by such definition and standard; (c) If the quantity of any ingredient or component fails to conform to the limitation, if any, prescribed therefor by such definition and standard. SEC. 403. A food shall be deemed to be misbranded- (h) If it purports to be or is represented as- (1) A food for which a standard of quality has been prescribed by regulations as provided by section 401, and its quality falls below such standard, unless its label bears, in such manner and form as such regulations specify, a statement that it falls below such standard; or (2) a food for which a standard or standards of fill of container have been prescribed by regulations as provided by section 401, and it falls below the standard of fill of container applicable thereto, unless its label bears, in such manner and form as such regulations specify, a statement that it falls below such standard. PART 36-SHELLFISH; DEFINITIONS § 36.3 Canned wet pack shrimp and canned dry pack shrimp in nontransparent containers; fill of containers; label statement of substandard fill. (a) The standard of fill of nontransparent containers for canned wet pack shrimp is a fill such that the cut-out weight of shrimp taken from each can is not less than 64 percent of the water capacity of the container, and, for canned dry pack shrimp (except that packed in the nontransparent cylindrical container which is 2116 inches in diameter and 4 inches in height), is a fill such that the cut-out weight of shrimp taken from each can is not less than 60 percent of the water capacity of the container. The standard of fill for canned dry pack shrimp packed in the nontransparent cylindrical container which is 216 inches in diameter and 4 inches in height is a cut-out weight of not less than 61⁄2 Keep the unopened canned shrimp Commerce, National Bureau of Standards. Without shifting the material on the sieve, so incline the sieve as to facilitate drainage. Two minutes from the time drainage begins, weigh the sieve and the drained shrimp. The weight so found, less the weight of the sieve, shall be considered to be the cut-out weight of the shrimp. (b) If canned wet pack shrimp or canned dry pack shrimp, in nontransparent containers, falls below the applicable standard of fill of container prescribed in paragraph (a) of this section, the label shall bear the general statement of substandard fill provided in § 10.2 (b), in the manner and form therein specified. (52 Stat. 1046, 1047, 53 Stat. 561; 21 U.S.C. 341, 343, 5 U.S.C. 133-133r, and Reorganization Plans Nos. I and IV; Title 3, supra) [Reg., June 30, 1942, effective Aug. 1, 1942; 7 F.R. 4944] NOTE: For findings of fact preceding § 36.3, see 7 F.R. 4944. INCREASES IN CANNED SHRIMP PRICES ANNOUNCED Increases of 55 cents per dozen cans in canners' ceiling prices for jumbo shrimp and ten cents per dozen cans in the ceilings for large shrimp were announced on June 2 by the OPA. As a result, jumbo shrimp will cost about seven cents per can more at retail than it does now, and large shrimp will cost about one cent more per can. Canned jumbo and large shrimp together represent about 45 percent of the total supply of canned shrimp. The increases, effective June 1, 1944, were provided, OPA said, after a substantial part of the shrimp canning industry had presented data showing inability to pack these two grades of shrimp at present ceilings without an actual loss, The result has been a decrease in the canning of shrimp and a consequent diversion into fresh and frozen markets. The new prices, OPA said, will make possible normal distribution of shrimp between canned and frozen and fresh sales. At the same time, OPA extended the coverage of the regulation on canned shrimp to include all shrimp or prawn wherever caught. Formerly, only shrimp caught in waters in the Southeastern part of the United States were priced under the regulation. The new action also includes a more specific definition of the various grades of shrimp in terms of the number of shrimp per ounce. These definitions are in line with criteria used by inspectors of the Food and Drug Administration in approving the labeling of canned shrimp and are well established in the industry, OPA said. They make no substantial changes in the grading. Amdt. 1 to MPR-311--Sales by Canners of Shrimp--became effective June 1, 1944. Excerpts follow: Maximum Price Regulation No. 311 is amended in the following respects: 1. Section 1364.761 (a) (3) is amended to read as follows: (3) "Shrimp" means shrimp or prawn. 2. Section 1364.761 (a) (9) is added to read as follows: (9) "Jumbo" means shrimp cooked and peeled for canning of such size that less than 31⁄2 shrimp shall weigh at least one ounce. 3. Section 1364.761 (a) (10) is added to read as follows: (10) "Large" means shrimp cooked and peeled for canning of such size that 31⁄2 to, but not including, 5 shrimp shall weigh at least one ounce. 4. Section 1364.761 (a) (11) is added to read as follows: (11) "Medium" means shrimp cooked and peeled for canning of such size that 5 to, but not including, 8 shrimp shall weight at least one ounce. 5. Section 1364.761 (a) (12) is added to read as follows: (12) "Small" means shrimp cooked and peeled for canning of such size that 8 or more shrimp shall weigh at least one ounce. 6. Section 1364.761 (a) (13) is added to read as follows: (13) "Broken" means canned shrimp of which broken pieces constitute more than 5 percent of the weight of the shrimp in the can. 7. Section 1364.763 is amended to read as follows: (b) For varieties and container sizes of canned shrimp and styles of pack not listed in paragraph (a), the price shall be a price determined by the Office of Price Administration to be in line with the prices listed in paragraph (a). Such determination shall be made upon written request, addressed to the Office of Price Administration, Washington, D. C., and accompanied by sworn statements showing costs and usual differentials. (c) Notification of new maximum price. With the first delivery after June 1, 1944, of jumbo and large canned shrimp, and with the first delivery of any grade of canned shrimp not covered by this regulation prior to June 1, 1944, the seller determining his maximum prices for these items under this regulation shall supply each wholesaler and retailer who purchases from him with the following written notice: NOTICE TO WHOLESALERS AND RETAILERS Our OPA ceiling price for (describe item by kind, variety, grade and container, type and size) has been changed by the Office of Price Administration. We are authorized to inform you that if you are a wholesaler or retailer pricing this item under Maximum Price Regulation No. 421, 422 or 423, you must refigure your ceiling price for this item on the Arst delivery of it to you from your customary type of supplier containing this notification after June 1, 1944. You must refigure your ceiling price following the rules in section 6 of Maximum Price Regulation No. 421, 422 or 423, whichever is applicable to you. For a period of 60 days after determining the new maximum price for the item, and with the first shipment after the 60-day period to each person who has not made a purchase within that time, each seller shall include in each receptacle containing the item, the written notice set forth above, or securely attach it to the outside. However, for sales direct to any retailer, the seller may supply the notice by attaching it to, or stating it on, the invoice covering the shipment, instead of providing it with the goods. (d) The maximum price for sales to any procurement agency of the Armed Forces, the War Food Administration and any procurement agency thereof, the War Shipping Administration, and the Veterans' Administration shall be 972 percent of the price established pursuant to this section; from the price thus computed there shall be deducted a cash discount of 12 percent if payment is made within 10 days from date of receipt by the designated office of the government procurement agency of a properly authenticated claim. This amendment shall become effective June 1, 1944 OPA INCREASES CANNED RAZOR CLAM PRICES Ceiling prices which consumers may have to pay for canned razor clams have been increased by 5 to 7 cents per can on several minor styles of pack, the OPA announced on June 10. However, the prices will remain the same on 75 percent of the pack. These increases, effective June 15, 1944, were necessary in order to encourage the processing of this seafood. Production of canned razor clams has decreased since 1942, because the prices fixed for this item at that time were too low in relation to increased raw material costs, OPA said. Canners faced out-of-pocket losses in their operations. There is no increase to consumers in the price of minced razor clams packed in Flat size can (net drained weight of 3 ounces of clams). Seventy-five percent of the total pack of razor clams is processed in this size can. The price of the No. 1 Tall can is increased by 7 cents. This size can contains a net drained weight of 7 ounces of whole razor clams. Approximate prices in the higher price stores for the Flat size can are as follows: |