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(2) No producer shall connect with a line built by or for a consumer or a pros­pective consumer which, at the date of its completion, exceeded the restrictions of this order applicable to lines con­structed by or for producers, unless the producer has been specifically authorized by the Director, Office of War Utilities, to construct a line of substantially identical specifications to serve such consumer. (i) Sales from inventory. No pro­ducer may make a sale of material from his inventory except as follows: (1) Any sale of material which is a special sale under Priorities Regulation No. 13, as amended from time to time, may be made as provided in that regula­tion. In addition, any producer may make a special sale (i) to any other pro­ducer to fill an order bearing a prefer­ence rating of AA-5 or higher or (ii) pursuant to a specific direction issued by the Director, Office of War Utilities, and any such sale shall be expressly per­mitted under paragraph (c) (3) of Priori­ties Regulation No. 13. (2) Any sale of material which is not a special sale under Priorities Regulation No. 13 may, subject to the restrictions of Limitation Orders D-31, L-94, and L-102, be made: (i) To fill an order bearing a prefer­ence rating of AA-3 or higher, or (ii) Pursuant to a specific direction issued by the Director, Office of War Util­ities, or by the Director General for Operations, or (iii) To a person who produces, or to the person from whom the producer pur­chased, such material in the form in which it was purchased, or (iv) To a scrap dealer as scrap, or (v) To a used equipment dealer for re­sale if the item is used equipment and is jiot listed on Schedule D hereof, or (vi) To the Army, Navy, Maritime Commission, or a public housing author­ity for the repair of an actual or threat­ened breakdown of electric, gas, water, ? or central steam heating facilities owned ! and operated by such agencies. This | exception shall not be construed to ex- l tend to a sale of material for use in con- Vstruction. (j) Placing orders. After March 31, 1943, except in an emergency no pro­ducer may transmit to any supplier, other than another producer, an order totaling $100 or more for the delivery of any material listed in Schedule C of this order (including material to be used in construction) without first obtaining a statement from the War Production Board Utility Inventory Control Office in his region that such material is not rea­sonably available in the excess inventory of another producer. This statement shall be secured by filing an inquiry, in duplicate, in letter form or by using the producer’s own price inquiry forms, stat­ing (1) the quantity of each item required and (2) a description of the item. An oral or telephonic statement will be suffi­cient for the purposes of this paragraph, provided that confirmation is promptly obtained. (k) Refusal to sell to other producers. Any producer may, by specific direction from the Director, Office of War Utilities, be prohibited from applying or extend­ing preference ratings assigned by this order or by any other certificate or order, upon a determination by the Di­rector, Office of War Utilities, that such producer has wilfully refused to sell (after receiving a bona fide offer to pur­chase at not less than maximum prices established by regulations of the Office of Price Administration, made by any financially responsible producer who is authorized—under applicable regula­tions—to accept delivery of the material specified in such offer) the following material: (1) Material which is in inventory in excess of a practical working minimum, and (2) Material which is included in prac­tical working minimum inventory when such material is required by another pro­ducer for the repair of an actual break­down of facilities or equipment. (1) Audits and reports. (1) Each pro­ducer and each supplier who applies the preference ratings hereby assigned, and each person who accepts a purchase order or contract for material to which a preference rating is applied, shall sub­mit from time to time to an audit and in­spection by duly authorized representa­tives of the War Production Board. (2) Each producer and each such sup­plier shall execute and file with the War Production Board such reports and ques­tionnaires as said Board shall from time to time request. Unless otherwise di­rected, producers shall file quarterly in­ventory reports on Forms PD-193B, 194B, or 195B. (3) Each producer shall maintain a continuing record of inventory and of segregated material in his possession. (4) In addition to the records required to be kept under Priorities Regulation No. 1, the producer, and each supplier placing or receiving any purchase order or contract rated hereunder, shall re­tain, for a period of 2 years, for inspec­tion by representatives of the War Pro­duction Board, endorsed copies of all such purchase orders or contracts whether accepted or rejected, segregated from all other purchase orders or con­tracts or filed in such manner that they can be readily segregated for such in­spection. (m) Communications to War Produc­tion Board. All reports required to be filed hereunder and all communications concerning this order, shall, unless otherwise directed, be addressed to: Office of War Utilities, War Production Board, Washington, D. C., Ref,: U-l. (n) Violations. Any person who wil­fully violates any provision of this order, or who, in connection with this order, wilfully conceals a material fact or fur­nishes false information to any depart­ment or agency of the United States, is guilty of a crime, and upon conviction may be punished by fine or imprison­ment. In addition, any such person may be prohibited from making or ob­taining further deliveries of, or from process or use of, material under pri­ority control, and may be deprived of priorities assistance. (o) Applicability of regulations. This order and all transactions affected thereby, except as herein otherwise pro­vided, are subject to all applicable regu­lations of the War Production Board, as amended from time to' time. The re­strictions of paragraph (f) of CMP Reg­ulation 5, however, shall not apply to producers as defined in this order, nor shall the preference ratings assigned in CMP Regulation 5 supersede preference ratings assigned by this order. (p) All official actions pursuant to Preference Rating Order P-46 prior to February 24, 1943, in the name of the Director General for Operations are hereby ratified. Issued this 24th day of February 1943. J. A. Krug, Director, Office of War Utilities. Schedule A All material in the inventory of any pro­ducer shall be carried on the producer's own records and repeated to the War Production Board on Form PD-193B, 194B, 195B, or as otherwise required, classified as foUows: WATER UTILITIES MATERIAL CLASSES 1. Fuel, such as coal, fuel oil, and other fuel. 2. Material for source of supply, reservoirs, elevated and pressure tanks, pumping and booster stations (excluding fuels). 3. Purification materials, such as chlorine, alum, lime, other chemicals, and other puri­fication operating supplies. 4. Meters. 5. Transmission and distribution .material and supplies (excluding meters), cast iron, steel, and wrought iron pipe, copper and brass pipe and tubing, lead pipe, pipe fittings, valves and valve parts, hydrants, parts for meters and hydrants, other transmission and distribution materials and supplies. 6. Other material and supplies. ELECTRIC UTILITIES MATERIAL CLASSES 1. Fuel, such as coal, fuel oil, and other fuel. 2. Generating Station Material (other than fuel), such as electrical equipment, parts, and materials, chemical materials and supplies, and other materials and supplies. 3. Switching and substation material, such as power transformers, other station equip­ment, parts, and material, and other material and supplies. 4. Wire, cable, and bus bar, such as bare copper and aluminum, weatherproof copper, underground cable, aluminum and copper shapes. 5. Wood poles and cross arms. 6. Meters. 7. Other transmission and distribution ma­terial, such as iron and steel poles, towers, and parts, line hardware—overhead and under­ground, distribution transformers, meter and transformer parts, and other line material and equipment (including insulators, light­ning arrestors, etc.). 8. Other material and supplies. GAS UTILITIES MATERIAL CLASSES 1. Fuel and gas production material, such as coal, coke, gas oil and crude oil, butane and propane, other fuel, residuals, and byproducts. 2. Production and pumping station mate­rial (excluding fuel). 3. Chemical material and supplies. 4. Meters and house regulators. OPO— War Board 4059— p. 4 5. Transmission and distribution material ^excluding meters and house regulators), such as cast iron, steel and wrought iron pipe, cop­per and brass pipe and tubing, pipe fittings, valves, and valve parts, governors and regula­tors, parts for meters, regulators, and gover­nors, other transmission and distribution ma­terial and supplies. 6. Other material and supplies. Schedule B Forms of controlled material subject to the restrictions of paragraph (g) : ALUMINUM Cable (electric transmission only). COPPER Copper and copper base alloy tubing and pipe. Copper rods and bars, including extruded shapes. Copper wire and cable (Including copper content of insulated wire and cable and cop­per content of composite conductor). STEEL Carbon and alloy steel bars, cold finished or hot rolled. Carbon and alloy steel pipe. Carbon and alloy steel plates. Carbon steel rails and track accessories. Carbon steel sheets and strip. Carbon steel structural shapes and piling. Carbon and alloy steel tubing. Carbon steel wheels and axles. Carbon and alloy steel wire rods, wire and wire products. Schedule C Items restricted by the provisions of para­graph (J) : A. Items to be used by water utilities: 1. Cast iron pipe 2. Steel pipe 3. Wrought iron pipe 4. Cement asbestos pipe 5. Copper and brass tubing 6. Lead and lead-alloy pipe and tubing 7. Steel pipe fittings 8. Electric motors 9. Meters 10. Hydrants A. Items to be used by water utilities—Con. 11. Distribution valves, 2 inches and larger 12. Bronze valves, smaller than 2 inches, corporation cocks, curb stops 13. Pumps 14. Steel tanks 15. Steam engines 16. Chlorinators B. Items to be used by gas utilities: 1. Cast iron pipe 2. Steel pipe 3. Wrought iron pipe 4. Copper and brass pipe and tub­ing 5. Steel pipe fittings, 1(4 inches and larger 6. Mechanical pipe couplings 7. District regulators and gover­nors 8. Gas meters 9. Valves, 1(4 inches and larger 10. Condensers (coolers) 11. Electric motors 12. Steam engines 13. Exhausters 14. Boosters 15. Compressors 16. Pumps 17. Blowers 18. Station meters C. Items to be used by electric utilities: 1. Wire (all types) 2. Cable 3. Bus bar shapes 4. Power transformers 5. Distribution transformers 6. Watt-hour meters 7. Oil or air circuit breakers 8. Disconnecting switches 9. Electric motors 10. Current transformers 11. Potential transformers 12. Suspension insulators 13. Lightning arrestors, 20,000 volts and over 14. Steam valve, piping and fittings', larger than 3 inch and for pressures of 300 pounds and over 15. Regulators (feeder voltage) 16. Fuse cutouts 17. Automatic line splices Schedule D The following items of used equipment in the possession of producers may not be the subject of a sale to any used equipment dealer pursuant to paragraph (i) (2) (v) of this order: USED EQUIPMENT (1) Steam generating boilers designed for pressures of 100 pounds per square inch or above (2) Steam engines and engine generator units of more than 300 h. p. rated capacity (3) Oil or air circuit breakers of 2200 volts or higher (4) Air circuit breakers of less than 2200 volts with interrupting capacity of 15,000 am­peres or higher (5) Metal clad switchgear of 2200 volts or higher (6) Metal clad switchgear of less than 2200 volts containing oil or air circuit breakers listed in this Exhibit (7) Unit substations containing transform­ers of 250 KVA or higher rated capacity (8) Unit substations containing transform­ers of less than 250 KVA rated capacity if they also contain oil or air circuit breakers listed in this Exhibit (9) Chlorinators (10) Diesel and natural gas engines and engine generator units of more than 300 h. p. rated capacity (11) Liquid filled power or distribution transformers 250 KVA and larger (12) Steam turbine generator units of more than 300 h. p. rated capacity (13) Mechanical drive steam turbines of more than 300 h. p. rated capacity (14) Water gas sets (15) Gas purification apparatus (16) Electric motors, 250 h. p. or larger (17) Pumps, 100 g. p. m. and larger (18) Boosters (19) Compressors (20) Scrubbers (21) Gas holders (22) Gas station meters (23) Blowers for manufactured gas plants (24) Exhausters for manufactured gas plants GI’O— War Board 4059— p. 5