Order of the United States Fuel Administrator of Nov. 8, 1917, Empowering States Fuel Administrators to Authorize Sales of Coal by Jobbers at the Cost Price to Said Jobbers plus the Jobber's Margin and Amending Paragraph 11 of Publication No. 9 of the United States Fuel Administration. 1

WASHINGTON, D. C., November 8, 1917.

It appearing to the United States Fuel Administration that the amount of free or spot coal immediately obtainable is insufficient to supply the immediate demands of all consumers in various parts of the United States, and that the distribution of coal therein has been such, owing to an increased demand therein for coal and to other causes, as to create in various localities cases requiring additional supplies, and a need for the use of further agencies for distribution, of coal:

The United States Fuel Administrator, acting under authority of an Executive Order of the President of the United States, dated 23 August, 1917, appointing said Administrator, and in furtherance of the purpose of said order and of the Act of Congress therein referred to and approved August 10, 1917,

Hereby orders and directs that until further, or other, order of the United States Fuel Administrator, and subject to modification hereafter by him, from time to time, and at any time;

1 Your immediate attention is called to the enclosed order of the United States Fuel Administrator which provides an important extension of Ruling 11 relating to jobbers. After careful consideration it has been determined to modify Ruling II to the extent of permitting jobbers who are able to establish to the satisfaction of the State Administrator a bona fide and enforceable contract made prior to the date of the President's order, to dispose of the unsold coal covered by said contract, under conditions set forth in the order enclosed. We are advised that the terms of this order should do much to relieve the existing situation throughout the Country and you are urged therefore to lose no time in making its provisions effective. In effect the order provides as follows:

(1) The jobber must establish to the satisfaction of the Fuel Administrator of the State in which he desires to sell the coal that his contract is bona fide, and enforceable, and made prior to the date of the President's order.

(2) He must give proof of the amount of coal still unsold under his contract and state the names, addresses and occupations of the persons to whom he proposes to sell.

(3) The State Administrator shall, however, have the right to specify the persons to whom the coal must be sold and the jobber must undertake to sell the coal to such persons and in such amounts as the State Administrator may designate.

(4) The price at which the coal shall be sold shall not exceed the contract price plus the amount of the jobber's commission as fixed in the President's order.

(5) If the contract is not proved to be bona fide and enforceable, the coal may not be sold in excess of the price fixed in the President's order, plus the jobber's commission.

By the foregoing provisions, the State Administrator is given not only full authority to determine the validity of the jobber's contract, but an opportunity in the distribution of the coal to provide for the pressing needs of his own territory. While the desirability will be recognized of not disturbing the usual channels of trade any more than may be necessary, Administrators will keep in mind the necessity of providing for the immediate needs of domestic consumers and small manufacturers.

Please note that all decisions, rulings and authorizations made by the State Administrators under this order must be in writing and copies must be forwarded to this office. Records of the distribution of coal under this order must also be kept and copies sent to this office for the attention of the Department on Emergency Needs.

You will also bear in mind that the jobbers have now filed with the Federal Trade Commission in Washington, the statements required by Ruling 12, and that copies of all contracts made by jobbers with operators, dealers or consumers are also on file with the Commission and available for our inspection here we shall therefore be able to check up all transactions under these contracts and to use the information thus obtained in connection with any future plan to license jobbers.

For obvious reasons, it is desirable that the provisions of this order be made effective without delay. To accomplish this result, you will doubtless require immediate assistance, particularly of counsel to pass. upon the legality of contracts submitted. It is hoped that you may be able to enlist the voluntary services temporarily of counsel of standing in the community, in whose judgment you have full confidence. In addition to providing yourself with such clerical assistance as may be needed temporarily, you will also call upon us for any assistance we can render. (Letter from the United States Fuel Administrator to all State Fuel Administrators, dated, Nov. 8, 1917, interpreting and explaining the order of that date.)

(1) The New England Fuel Administrator, for the New England States, and the State Fuel Administrator, for any other state, may authorize from time to time, subject to the conditions hereinafter stated, any jobber, wholesaler, or other person found by him after investigation and upon advice of counsel, to be the bona fide owner of any bituminous coal, purchased by such owner under a valid and bona fide contract made prior to August 21, 1917, or of any anthracite coal so purchased under such a contract made prior to August 23, 1917, to sell a specified quantity of such coal, from unsold tonnage covered by such contract to any consumer or dealer found by such Administrator after investigation to be in need of such coal to meet his reasonable requirements for use or distribution within the jurisdiction of such Administrator, as the case may be, upon and subject to the following terms and conditions:

(a) The person desiring to make such sale shall exhibit to such Administrator the contract under which he claims to be the owner of coal which he desires to sell, together with evidence satisfactory to the Administrator upon advice of counsel, that the contract was made in good faith prior to the date of the President's order fixing the price of the kind of coal covered by said contract and that the same is in effect and enforceable at law, and shall file a copy of such contract with the Administrator.

(b) Such person shall prove by evidence satisfactory to the Administrator the amount of coal already sold or contracted to be sold by such person under any contract so submitted to the Administrator, the amount of coal unsold thereunder and still available for sale, and shall furnish the name, address, and occupation of the proposed purchaser and the location of the residence, plant, or place of business at which it is desired to deliver such coal for use or retail distribution, as the case may be.

(c) Only such an amount of coal shall be sold by such person to any consumer or dealer as such Administrator shall specify in his authorization of such sale, and the fact of such sale together with the name of the vendee, the amount of coal delivered, the place of delivery, and the price of the coal delivered, shall be promptly reported to such Administrator.

(d) The price at which any coal authorized by any Administrator to be sold hereunder may be sold, shall not exceed the contract price thereof, as found by the Administrator and stated in his authorization of such sale, plus the amount of a jobber's gross margin, as fixed and limited in the President's order of August 23, 1917. (e) Any person requesting authority from the Administrator to sell coal under the provisions of this order, shall, by reason of his request therefor, be deemed to agree to sell to any consumers or dealers whom the Administrator may designate and for use or distribution by such consumers or dealers, as the case may be, such quantity, as the Administrator may require of the coal then unsold and not covered by any contract for the sale thereof made prior to the date of the President's order fixing the price for such coal, to which such person may be entitled under the contract exhibited to the Administrator.

(f) If any contract presented to an Administrator under this order is found by such Administrator not to conform to the requirements of paragraph (a) above, such contract shall not be presented by the jobber, wholesaler, or other person claiming rights thereunder, to any other State Fuel Administrator as a basis for authority to make sales of coal alleged to be covered by such contract, unless and until the contract shall have been presented to the United States Fuel Administrator and approved by him as a contract conforming to the requirements of said paragraph (a), and the fact of such rejection of any contract by a State Fuel Administrator shall be at once reported by the person claiming rights thereunder to the United States Fuel Administrator.

(2) All decisions, rulings, and authorizations made by the New England or any State Fuel Administrator under any of the provisions of this order must be in writing and copies thereof forwarded to the United States Fuel Administrator in Washington. 92082-19-29

(3) Records of the distribution of coal made or authorized under the provisions of this order shall be kept by the New England and State Administrators making the same and copies of such records shall be sent as made, endorsed "Attention of Department of Emergency Needs," to the Office of the United States Fuel Administrator in Washington.

(4) Ruling numbered 11 in the order of the United States Fuel Administrator dated 6 October, 1917 (printed as Publication No. 9), relative to jobbers holding, at the date of the President's order fixing the price of the coal in question, contracts for the purchase of coal without having already sold or contracted to sell such coal, shall not apply to any sales by jobbers which they may be duly authorized by the New England or any State Fuel Administrator to make in accordance with the provisions of this order.

(5) Paragraph (2) of the order of the United States Fuel Administrator dated October 27, 1917, which paragraph authorized and empowered the New England Fuel Administrator to authorize sales of coal in New England not at the time unloaded from a vessel or car, is hereby terminated from and after November 8, 1917.

H. A. GARFIELD, States Fuel Administrator.

1917, Effective 7 A. M., ·

Nov.

Maximum Prices for Bee

Order of the United States Fuel Administrator of Nov. 9, 10, 1917, Prohibiting the Addition of Jobbers' Margins to hive Coke, Issued in Publication No. 13 of the United States el Administration.

WASHINGTON, D. C., November 9, 1917. It appearing to the United States Fuel Administrator that var rious regulations should be put in force at once for the better regulation of the distribution of coke and of the prices at which the same may be sold,

The United States Fuel Administrator, acting under authority of an Executive order of the President of the United States, dated 23 August, 1917, appointing said Administrator, and in furtherance of the purpose of said order and of the act of Congress therein referred to and approved August 10, 1917,

Hereby orders and directs that the price of coke shall be understood as the price per ton of 2,000 pounds f. o. b. cars at the plant where the coke is manufactured.

All the maximum prices mentioned herein shall apply to car lots sold to consu mers or to dealers for wagon delivery; any commissions paid to selling agencies, or mar gins allowed to jobbers, shall be paid by the vendors, and shall not be added to the prices established hereby.

This order to become effective 7 A. M., November 10, 1917, and to remain in effect until January 1, 1918, or until superseded by further order.

H. A. GARFIELD,

United States Fuel Administrator.

Νου.

Order of the United States Fuel Administrator of Nov. 17, 1917, Effective 7 A. M.,
19, 1917, Prohibiting the Addition of Jobbers' Margins to Maximum Prices for By-
Product and Gas Coke, Issued in Publication No. 13 of the United States Fuel
Administration.

WASHINGTON, D. C., November 17, 1917.

It appearing to the United States Fuel Administrator that various regulations should be put in force at once for the better control of the distribution of by-product coke and of gas coke, and of the prices at which the same may be sold, the United States Fuel Administrator, acting under authority of an Executive order of the President of the United States dated 23 August, 1917, appointing said administrator, and in furtherance of the purpose of said order and of the act of Congress therein referred to and approved August 10, 1917, hereby orders and directs as follows:

The price of coke shall be understood as the price per ton of 2,000 pounds f. o. b. cars at the plant where the coke is manufactured.

All the maximum prices mentioned herein shall apply to car lots sold to consumers or to dealers for wagon delivery; any commissions paid to selling agencies, or margins allowed to jobbers, shall be paid by the vendors, and shall not be added to the prices established hereby.

This order becomes effective 7 A. M., November 19, and will remain in effect until January 1, 1918, or until superseded by further order.

H. A. GARFIELD, United States Fuel Administrator.

Order of the United States Fuel Administrator of Dec. 24, 1917, Effective 7 A. M., Dec. 29, 1917, Is ued as Publication No. 16 of the United States Fuel Administration, Regulating the Making of Contracts by Jobbers of Coal and Coke.

WASHINGTON, D. C., December 24, 1917. The United States Fuel Administrator, acting under authority of an Executive order of the President of the United States, dated August 23, 1917, appointing said administrator, and in furtherance of the purpose of said order and of the act of Congress therein referred to and approved August 10, 1917,

Hereby orders and directs, That until further or other order of the United States Fuel Administrator, and subject to modification hereafter from time to time and at any time, the following regulations are established relative to

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A coal or coke operator or producer may, in accordance with these regulations, and not otherwise, make contracts for the sale of coal mined or produced, or of coke produced or made, by him with any consumer or other person including jobbers.

(1) No such contract shall provide for the delivery or supply of coal or coke over a period longer than one year; and such period of one year shall terminate at a date not more than 18 months from the date of actual execution of the contract.

(4) Every such contract shall provide that the same shall be forthwith canceled and of no further binding effect upon either party thereto, upon receipt of a request or an order from the United States Fuel Administrator for such cancellation, and that in case of such cancellation neither party to the contract shall be under any further liability to the other thereunder and that neither shall have any claim against the United States by reason of such contract or the cancellation thereof.

(5) Every such contract shall provide that coal or coke deliverable thereunder shall be subject to requisition by the United States Fuel Administrator, including under the term requisition the right to divert such coal or coke to any other party than the purchaser named in the contract; that such requisition may be made at any time during the continuance of the contract and prior to actual receipt and unloading of the coal or coke so requisitioned, at the point of ultimate destination, by the person entitled thereto under the terms of the contract; that such requisition shall be made at the going Government price at the date of shipment from the mine of the coal so requisitioned or of the shipment of the coke so requisitioned from the place of production or storage thereof, and without other or further liability of the Government to either party to the contract than the payment of such price and freight, so far as either party to the contract may at the time of such requisition or diversion be liable for such freight payment.

(6) A jobber may make contracts for the sale of coal or coke owned by him, or to which he is entitled under contracts made by him with operators or producers in con

formity with these regulations, at a price not exceeding the purchase price paid or payable by such jobber for such coal or coke under the limitations of the foregoing paragraphs numbered (2) and (3), plus such commission on coal (not on coke) as may, at the time of the shipment thereof from the mine where such coal is produced, be the then permissible jobber's commission. All such contracts by jobbers for the sale of coal or coke shall conform to the provisions and requirements in the foregoing paragraphs numbered (1), (1), and (5).

(7) Every coal or coke operator or producer and every jobber shall send within 10 days of the execution of any contract by him a certified copy thereof to the United States Fuel Administrator at Washington, D. C., marked "Attention of legal department."

CROSS HAULING.

No contract may be made, or if made hereafter will be recognized as valid, by the United States Fuel Administrator, which involves railroad cross hauling of coal, except in the case of gas coal or coal to be used for by-product purposes.

ORAL CONTRACTS.

Oral contracts for the delivery or supply of coal or coke will in no cases be recognized by the Fuel Administrator as valid or binding upon either party thereto and are hereby prohibited.

CANCELLATION AND TERMINATION.

All and any contracts for the sale of coal or coke are subject to cancellation and termination at any time by the President or by the United States Fuel Administrator acting under authority of the President.

This order shall be effective December 29, 1917, 7 a. m.

H. A. GARFIELD,
United States Fuel Administrator.

Section 2-Orders Relating to Licensed Distributors.

Proclamation by the President of the United States of Mar. 15, 1918, Requiring the Licensing of Distributors of Coal and Coke, Issued in Publication No. 22 of the United States Fuel Administration. 1

WHEREAS, Under and by virtue of an act of Congress entitled "An act to provide further for the national security and defense by encouraging the production, conserving the supply, and controlling the distribution of food products and fuel,"

1 Decisions of the License Board, referred to as L. B. D.-1, etc., interpreting the President's Proclamation requiring the Licensing of distributors of coal and coke.

No License is required if the producer distributes only its own product.

(L. B. D.-24.)
(L. B. D.-23.)

A producer distributing coal other than its own product is required to have a license. A jobber is defined in Paragraph 1, Publication #3, as "a person (or other agency) who purchases and resells coal to coal dealers or to consumers without physically handling it on, over, or through his own vehicle, dock, trestle, or yard. (L. B. D.-14.)

A retail dealer who sells carload lots of coal or coke without physically handling the same is required to have a license. (L. B. D.-25.)

A salesman who acts for one or more licensees where all bills and reports are made in the licensee's name, is not required to have a license. (L. B. D.-27.)

A salesman for a retail dealer is not required to have a license but is construed to be an employe of the retail dealer. Payment for his services cannot be added to the price allowed to retail dealers by local or State Fuel Administrators. (L. B. D.-26.)

Licenses will not be denied because the applicant has entered upon the business of distributing coal or coke after April 1, 1918. (L. B. D.-21.) An employer distributing coal or coke to his employees, and physically handling the same, is construed to be a retail dealer, and is not required to have a license for such distribution.

This ruling is subject to the provisions of Paragraph 5 of the order of March 8, 1918 (infra, Chapter III, Title X). (L. B. D.-48.)