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U -l, the material ordered, and to use the preference ratings or CMP allotment symbol which the undersigned has placed on this order. The certifications set forth in Priorities Regulation 3 and CMP Regulations 1 and 5 may not be used but the standard form of certification provided in Priorities Regulation 7 is permissible it the pro­ducer adds a statement saying that ma­terial ordered is for utility uses under Utilities Order U -l. Restrictions on Ordering Material (e) Scheduling deliveries. Except as permitted by paragraphs (f) and (g) be­low, no producer shall schedule for de­livery to it any material to be used for maintenance and repair, as operating supplies, or for minor plant additions, unless the following conditions are satis­fied: (1) [Deleted Aug. 31,1944.1 (2) The producer does not have rea­son to believe that its inventory of ma­terial in the same class is or will, by virtue of its acceptance of the delivery when made, become in excess of a prac­tical working minimum. A practical working minimum inventory is that amount of material which a producer, exercising prudent operating judgment, considers the smallest quantity of ma­terial it can hold and render war-time service at minimum standards. It may be less than the values established in Schedule C, but it shall in no case ex­ceed them. ' (3) No producer may place an order for any item of material, including ma­terial for major plant additions, if the required item or a practical substitute therefor is in the producer’s inventory in excess of minimum requirements for that item. (f) Exceptions to paragraph (e). (1) The restrictions of paragraph (e) do not apply to a producer so long as its in­ventory does not exceed $25,000 in value, except that such a producer must re­strict its inventory to that amount of materia] which in the exercise of pru­dent operating judgment, it considers the smallest quantity it can hold and render war-time service at minimum standards. Each purchase of material by such a pro­ducer, however, must be treated as the purchase of a “short item” , and is sub­ject to the provisions of paragraph (g) below. A producer engaged in furnish­ing more than one of the services named in paragraph (a) (1) may consider its inventory for each service separately for the purposes of this paragraph. (2) The restrictions of paragraph (e) do not apply to material excepted from inventory by the definition in paragraph (a) (11). (3) [Deleted Aug. 31, 1944.1 (4) [Deleted Aug. 31,1944.1 (5) The War Production Board may from time to time establish specific lim­its for permissible inventory for individ­ual producers, modifying the provisions of Schedule C. (6) [Deleted Aug. 31, 1944.1 (7) Notwithstanding the restrictions of paragraph (e) or of paragraph (g) below a producer may schedule an item of material for delivery in a minimum procurable commercial quantity, and in the case of cast iron, carbon steel, and non-metallic pipe, may schedule for de­livery a minimum carload quantity. j(g) Short item d e l i v e r i e s . Even though it cannot schedule deliveries without exceeding the limits of para­graph (e), a producer may schedule for delivery material which it will require for use in maintenance and repair, as operating supplies and for minor plant additions during the ninety-day period following the date it expects to receive such material, so long as the producer’s inventory of the required material, to­gether with material already scheduled for delivery, will be insufficient to meet requirements during such ninety-day period. (1) [Deleted Aug. 31,1944.1 (2) [Deleted Aug. 31, 1944.1 Restrictions on Use of Material (h) Restrictions on use of material for maintenance and repair. A job which can be classed as maintenance or repair, as those terms are defined in paragraphs <a> (4> and (5), may be done without regard to the dollar value of the material required when the following standards are met: (1) The job must be necessary to maintain or restore service at minimum service standards or to prevent damage to facilities from serious overload, de­terioration, storm, flood, climate, soil conditions, or similar contingencies. (2) Design must emphasize economy of manpower and material as well as the substitution of the more plentiful for scarce material. (3) No facility or part which is serv­iceable in its existing installation may be replaced except to avoid an imminent breakdown. (i) Restrictions on use of material for minor plant additions. A job which is a plant addition, as defined in paragraph (a) (6), rather than maintenance and repair, may be done without special per­mission from the War Production Board, if it is a “minor plant addition” ; that is, if its net material cost does not exceed $10,000. Paragraph (a) (9) explains what is meant by net material cost. However, all minor plant additions are subject to the following restrictions: (1) No facility or part which is serv­iceable in its existing installation may be replaced except to avoid an imminent breakdown. (2) Design must emphasize economy of manpower and material as well as the substitution of the more plentiful for scarce material. (3) New facilities must be necessary for rendering service at minimum stand­ards. (4) No extension of a line to consumer premises may be made or connected by a producer unless it is authorized by a Supplementary U -l order or by the ap­proval of an application filed on Form WPB-2774. In an emergency approval may be obtained by telephone or tele­graph. Confirmation must be obtained, however, by the submission of an appli­cation on Form WPB-2774. (5) In the case of any building con­struction or alteration involving a cost in excess of $800 for materials and labor, the restrictions on the use of certain terials contained in Appendix I, Schecmle A to CMP Regulation 6 must be observed. Applications for relief from these re-strictions must be filed by producers on Form WPB-2774. ^ ^ 7 (j ) Restrictions on use of material for major plant additions'. No material may be used for a major plant addition unless the job has been authorized by the approval of an application filed on Form WPB-2774. In an emergency ap­proval may be obtained by telephone or telegraph. Confirmation must be ob­tained, however, by the submission of an application on Form WPB-2774. Selling Material (k) Sales of material. A producer may sell material which is in its inven­tory or which it acquired for major plant additions only in accordance with the following rules: (l) It may be sold without a pref­erence rating or CMP allotment symbol to any producer as defined in Order U -l, unless it is: (1) Printing machinery and equip­ment, subject to Order L-226; (ii) Construction machinery, subject to Order L-192; (iii) Electric generating equipment, subject to Order L-94; or (iv) Industrial power trucks, subject to Order L-112. (2) It may be sold without a prefer­ence rating or CMP allotment symbol to any person if it is used material or equip­ment unless it is one of the items in paragraph (k) (1) above, or: (i) Controlled materials; or (ii) Scrap. (3) It may be sold pursuant to a spe­cific written authorization from the War Production Board to the seller or to the purchaser. (4) It may be sold without a prefer­ence rating or CMP allotment symbol to a person who produces, or to the person from whom the producer purchased, the material in its present form. (5) It may be sold without a prefer­ence rating or CMP allotment symbol to a scrap dealer as scrap unless it is'rubber tires or automotive parts. (6) It may be sold without a prefer­ence rating or CMP allotment symbol to the Army, Navy, Maritime Commission, or a public housing authority for the re­pair of an actual or threatened break­down of their electric, gas, water or cen­tral steam heating facilities. (7) Producers may sell material pur­suant to this paragraph (k). However, if a producer chooses to do so he may sell pursuant to the provisions of Pri. Reg. 13. (1) Refusal to sell to other producers. Any producer may, by specific direction from the War Production Board, be pro­hibited from applying or extending pref­erence ratings assigned by this order or by any other certificate or order, upon a determination by the War Production Board, that such producer has wilfully refused to sell (after receiving a bona fide offer to purchase at not less than maximum prices established by regula­GPO— War Board 13400— p. 2 tions of the Office of Price Administra­tio n , made by any financially responsible tWoducer who is authorized—under ap­plicable regulations—to accept delivery of thj materia] specified in such offer) material in inventory when such mate­rial is required by another producer for the repair of an actual breakdown of facilities or equipment. (1) [Deleted Aug. 31, 1944.1 (2) ; [Deleted Aug. 31, 1944.1 Inventory Redistribution (m) [Deleted Aug. 31,1944.1 General Provisions (n) Appeals. Relief from any of the restrictions of this order may be request­ed by filing a letter with the War Produc­tion Board, Office of War Utilities, Wash­ington 25, D. C., Ref.: U -l, stating the reasons why relief is necessary. If the relief requested involves a request to make a plant addition, the request should be filed on Form WPB-2774. (o) Records. In addition to the rec­ords required to be kept under Priorities Regulation 1, each producer who applies the preference ratings or allotment num­ber hereby assigned shall maintain a continuing record of inventory and of segregated material in his possession. (p) 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 25, D. C., Ref.: U-l. (q) 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 processing or using, material under priorities con­trol and may be deprived of priorities assistance. (r) Applicability of WPB regulations. This order and all transactions affected hereby are subject to all applicable reg­ulations of the War Production Board, as amended from time to time, unless there is a conflict between this order and such regulations, in which case this order shall govern, if it specifically so provides. No producer is, however, subject to the re­strictions of CMP Regulation 5 nor may any producer in any way use the prefer­ence ratings therein assigned. (s) Special i n v e n t o r y directions. Nothing in this order is intended to su­persede any special inventory base estab-lished by a specific direction from the War Production Board to a named pro­ducer. All such directions shall remain in effect unless modified by a further specific direction to the producer affected. (t) Special provisions relating to Form WPB-2774 approvals issued prior to Au-gust 31,1944. With respect to WPB-2774 authorizations issued prior to August 31, 1944 and involving between $1,500 and $10,000 net material cost, producers may: (1) Use the preference ratings and CMP allotment symbol assigned in para­graphs (b) and (c) of this order in lieu of those specifically assigned on such a Form WPB-2774 authorization. (2) Treat as segregated under para­graph (a) (11) any material to be used pursuant to such a WPB-2774 authoriza­tion. Issued this 15th day of November 1944. W ar P roduction Board, By J. Joseph W helan, Recording Secretary. S c h e d u l e A MATERIAL CLASSES Material in the inventory of any producer which has an inventory, as defined in para­graph (a) (11), in excess of $25,000 shall he carried on the producer’s own records and reported to the War Production Board as may be required, classified as follows: WATER PRODUCERS Class 1—Material for sources of supply, water treatment plants, reservoirs, elevated and pressure tanks, pumping and booster stations, including related pipe, valves, valve parts, and fittings. Class 2—Meters. Class 3—Transmission and distribution material (excluding meters>. such as 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, and other transmis­sion and distribution material and supplies except pipe, valves, valve parts, and fittings included in Class 1 above. Class 4—Other material and supplies GAS PRODUCERS Class 1—Production and pumping station material. Class 2—Meters and house regulators. Class 3—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. Class 4—Other material and supplies ELECTRIC POWER PRODUCERS Class 1—Generating station material. Class 2—Switching and substation mate­rial, such as power transformers, other station equipment, parts, and material, and other material and supplies. Class 3—Wire, cable, and bus bar, such as bare copper and aluminum, weatherproof copper, underground cable, aluminum and copper shapes. Class 4—Wood poles and cross arms. Class 5—Meters. Class 6—Transmission and distribution material (excluding Classes 2, 3, 4 and 5 above), such as iron and steel poles, towers and parts, line hardware, distribution trans­formers, meter and transformer parts, and other line material and equipment (includ­ing Insulators, lightning arrestors, etc.). Class 7—Other material and supplies. CENTRAL STEAM HEATING PRODUCERS Class 1—Production plant material. Class 2— Transmission and distribution ma­terial. Class 3—Other material and supplies. [Schedule B deleted Aug. 31, 1944.] S c h e d u l e C LIMITS ON PRACTICAL WORKING M IN IM U M IN ­VENTORY 1 For purposes of paragraph (e) (2) a prac­tical working minimum inventory^(except for producers having a total inventory of $25,000 or less, who are exempted by para­graph ( f )) may in no case exceed the fpllow-ing dollar values: WATER PRODUCERS * ; Class 1—The dollar value of items of ma­terial of this class in inventory on the most recent date in 1940 on which the producer’s Inventory was taken. Increased proportion­ately to the increase in system output in the twelve-month period preceding 'the current quarter over output in 1940. Class 2—Four-thirds of the dollar value oi authorized withdrawals in this class made during the last nine months of 1942 for use as “maintenance, repair, and operating supplies ’ as those terms were defined in Utilities Order U-l as amended September 24. 1943.' Class 3—Sixty per cent of the dollar value of material in this class in inventory on the most recent date in 1940 on which the pro­ducer's inventory was taken. Class 4—Two-thirds of the dollar value of authorized withdrawals in this class made during the last nine months of 1942 foi use as “maintenance, repair, and operating sup­plies”, as those terms were defined in Utilities Order U -l as amended September 24, 1943.' GAS PRODUCERS * 1 2 3 4 5 6 7 Class 1—The dollar value of items of ma­terial of this class in inventory on the most recent date in 1940 on which the producer’s inventory was taken, increased proportion­ately to the increase in system output in the twelve-month period preceding the current quarter over output in 1940. Classes 2 and 3—Four-thirds ot the dollar value of withdrawals in this class made dur­ing the last nine months of 1942 for use as “maintenance, repair, and operating sup­plies” , as those terms were defined in Utilities Order U -l as amended September 24. 1943.’ Class 4—Two thirds of the dollar value o t . withdrawals in this class made during the last nine months of 1942 for use as “main­tenance. repair, and operating supplies” , as those terms were defined in Utilities Order U-l as amended September 24, 1943.' 1 These definitions are reprinted here for convenience in reference; please note that they differ from definitions used in the cur­rent order: “Maintenance” means the upkeep of a producer’s property and equipment in sound working condition. “Repair” means the restoration of a pro­ducer’s property, and equipment to sound working condition after wear and tear, dam­age, destruction of parts, or the like have made such property or equipment unfit or unsafe for service. “Operating supplies” means (1) material which is essential to the operation of any of the industries or services specified above and which is generally carried in a producer's Inventory and charged to operating expense accounts, and (2) material for an addition to or an expansion of property or equipment (including a minor extension of lines), pro­vided that such addition or expansion shall not include any work order. Job, or project in which the cost of material shall exceed $1500 In the case of underground construc­tion and $500 in the case of other con­struction, and provided that no single con­struction project shall be subdivided into parts in order to come below these limits. 1 See Schedule A for complete identification of classes. GPO— War Board 13400— p. 3