it may be amended or revised from time to time. Flour shall not include wheat products ground for feed for other than human consumption, nor wheat products produced during a continuing process of manufacturing processed wheat products other than flour or flour mixes.

(d) "Mill" means each separate establishment within the continental United States where wheat is ground into flour.

(e) "Applicant" means any person who files a claim for payment under §§ 7004.1 to 7004.12, inclusive.

(f) "Claim" means a right to payment on an application filed pursuant to this regulation.

(g) "Pacific Coast Area" means the entire states of California, Oregon, Washington, Idaho, Nevada, and Utah. (h) "Bushel" means sixty (60) pounds of wheat weighed before cleaning.

(i) "Dockage" means the customary allowance for tare in the wheat, in accordance with the official standards of the United States Department of Agriculture.

(j) "Grind" means to mill wheat to produce flour as defined in paragraph (c) of this section.

(k) "Type of wheat" means any of the three categories of wheat as defined herein, namely, (1) hard wheat, (2) soft wheat, and (3) durum wheat.

(1) "Hard wheat" means any of the varieties of wheat classified according to the official standards of the United States Department of Agriculture in Class I, Class IV, Class VI, A, and all mixtures of wheat containing 10% or less than 10% of soft wheat, or 10% or less than 10% of durum wheat.

(m) "Soft wheat" means any of the varieties of wheat classified according to the official standards of the United States Department of Agriculture in Class V, Class VI, B, C, or D, and all mixtures of wheat containing more than 10% of wheat of such classes and subclasses.

(n) "Durum wheat" means any of the varieties of wheat classified according to the official standards of the United States Department of Agriculture in Class II or Class III, and all mixtures containing more than 10% of wheat of such classes, and 10% or less than 10% of soft wheat.

(o) "Forward sales of flour" means the amount of unfilled orders to deliver flour, as defined in paragraph (c) of this section, which the applicant has contracted to deliver at a fixed price. Sales of flour shall include commitments between divisions of one company or between affiliated companies if such commitments are customarily booked as forward sales by the milling division or company.

(p) "Net forward sales of flour" means forward sales of flour less the amount of flour which the applicant owns in bulk storage or packed ready for delivery.

§ 7004.2 Persons eligible to apply for payments. Any miller may file an application for payment on account of wheat ground into flour in all of his mills on and after December 1, 1943.

§ 7004.3 Filing applications for payment-(a) Place of filing. Application for payment shall be filed with Defense Supplies Corporation at the regional office for the district in which the mill is located, except that a person operating more than one mill must file application for payment at the regional office for the district in which his main office is located. Appendix A to this part lists the offices of Defense Supplies Corporation.

(b) Time of filing. Application for payment shall be filed after the last day of the month in which the wheat is ground and on or before the last day of the calendar month following the end of the month in which the wheat is ground.

(c) Form of application. All applications for payment shall be filed in triplicate on forms approved by Defense Supplies Corporation and all information therein provided for shall be supplied. One and only one application can be filed on account of wheat ground during a month by an applicant in all of his mills except that for the month of October, 1944, two claims shall be filed in accordance with instructions of Defense Supplies Corporation.

(d) Supporting document. Every applicant who has made sales or deliveries of whole wheat flour to any one customer during a calendar month after November, 1943, in the amount of 20,000 pounds or more, shall file with his application for payment on account of wheat ground during that month a certified statement reporting all such sales or deliveries.

CODIFICATION: In §7004.3 (c), the period following the words "all of his mills" at the

end thereof was changed to a comma, and the clause set forth above was added, by Regulation 4, Amendment 2, Defense Supplies Corporation, Sept. 30, 1944, effective Oct. 11, 1944, 9 FR. 12092.

Records re

$ 7004.4 Records—(a) quired. Every applicant must keep accurate records of purchases, sales, deliveries and inventories of flour, and of wheat by types.

(b) Inspection of records. Every applicant shall preserve for inspection for a period of not less than two years after the date of filing an application, books, records, and other documents which furnish information in support of such application and Defense Supplies Corporation or its designated agents shall have the right at any time to make such examinations and audits of the books, records and other documents as may be necessary to ascertain the facts set forth in such application or as may be required by Defense Supplies Corporation.

(c) Failure to comply. Defense Supplies Corporation shall have the right to declare invalid any claim of an applicant who has failed to comply with the requirements of this section.

$ 7004.5 Rate of payment-(a) In general. Defense Supplies Corporation will make payment on approved claims at rates computed by subtracting from the current market prices for wheat, the prices used by the Office of Price Administration as basic related wheat prices in establishing maximum prices for flour in Revised Maximum Price Regulation No. 296, subject to the following qualifications:

(1) There shall be one rate for all types of wheat ground into flour by mills in the Pacific Coast area.

(2) There shall be separate rates on hard wheat, on soft wheat and on durum wheat ground into flour by mills outside the Pacific Coast area.

(3) The rates shall be in units of one-half of one cent ($.005).

(4) The rates shall never exceed the difference between the flour ceiling-related wheat prices and parity prices for wheat plus two and one-half cents ($.025) allowance for further charges above those included in the parity prices.

(b) Change in rate. Changes in rates may be made by Defense Supplies Corporation at any time and such changes shall become effective on the first day of the month following the month in which the announcement of such changes is made. Every person registered with Defense Supplies Corporation in accordance with $ 7004.7 below will be notifiled of such announcements.

(c) Determination of applicable rate—(1) In general. Except as otherwise provided, the rates of payment on account of wheat ground

during a month shall be the rates in effect during the month in which the wheat was ground.

(2) On wheat ground to produce flour previously sold. If the applicant has registered forward sales of flour in accordance with §7004.7, and has forward sales of flour booked at the beginning of the month, the rate of payment on account of wheat ground during that month up to the amount of such forward sales of flour shall be the rate or rates in effect at the time the flour produced from such wheat was sold. In determining which sale of flour is applicable to wheat ground, Defense Supplies Corporation will apply the first-in-first-out principle and not follow individual transactions, either as to dates of delivery or types of wheat necessary to produce the flour.

(3) Cancelled contracts for the sale of flour. In determining the amount of forward sales of flour, the amount of contracts for the sale of flour which have been cancelled on and after December 1, 1943, will be deducted from the sales of flour outstanding during the month in which the rate of subsidy is higher of either (1) the month in which the cancellation occurred, or (2) the month in which the sale was booked. No cancellations after December 1, 1943, will be deducted from the net forward sales of flour registered in accordance with $7004.7.

[Preceding section, in small type, superseded by following section during period covered by this Supplement]

$7004.5 Rate of payment. Rates and the periods during which such rates will be effective will be determined and announced from time to time. [Reg. 4, Amdt. 2, Sept. 30, 1944, effective Oct. 11, 1944, 9 F.R. 12092]

CODIFICATION: Prior to revision of § 7004.5, paragraph (b) was amended to read as set forth below, by Regulation 4, Amendment 1, effective June 28, 1944, 9 F.R. 7710.

(b) Change in rate. Changes in rates may be made by Defense Supplies Corporation at any time, and every person registered with Defense Supplies Corporation in accordance with 7004.7 below will be notified of such changes.

§ 7004.6 Base of payment. Payments will be made on the amount of wheat of each type ground on and after December 1, 1943, subject to the following qualifications:

(a) No payment will be made on wheat ground or processed into any other products than flour as defined in § 7004.1 (c).

(b) No payments will be made on imported wheat ground in bond.

(c) Payments will not be made on account of a greater number of bushels of wheat than the number required, at

the rate of 2.35 bushels for a hundredweight of flour, to produce the amount of flour ground by the applicant during the period covered by this application.

(d) No payment will be made on the wheat ground into flour on and after December 1, 1943, and prior to the date of termination of §§ 7004.1 to 7004.12, inclusive, to produce the amount of the net forward sales of flour, made by the applicant and unfilled at the close of business on November 30, 1943, and registered with Defense Supplies Corporation in accordance with § 7004.7.

(e) Payment will be made on the wheat ground into flour within one hundred and twenty (120) days after the termination of §§ 7004.1 to 7004.12, inclusive, not to exceed whichever is lower of (1) the amount of wheat which has been deducted in accordance with paragraph (d) of this section, and (2) the number of bushels required to produce the amount of net forward sales of flour made by the applicant and unfilled at the close of business on the day preceding the day notice is given of termination, provided that in computing the amount of such net forward sales of flour, a deduction will be made of the amount of contracts which include a provision for determination of the price at the time of delivery.

§7004.7 Registration of applicants. Every applicant shall register with Defense Supplies Corporation before filing his first application for payment on forms provided by Defense Supplies Corporation. Registration shall be by each applicant, not by each mill, and shall include a report of total net forward sales of flour unfilled at the close of business on November 30, 1943, except that a person who ground less than 110,000 bushels of wheat during the first eleven months of 1943, may register with Defense Supplies Corporation by reporting his total grind during such period, the daily capacity of his mill or mills and his inventory of flour at the close of business on November 30, 1943. If such person registers in accordance with this exception, he shall be considered to have no net forward sales of flour; he will have no deductible amounts under §7004.6 (d); he will have no right to additional payments under § 7004.6 (e); and the rate of payment applicable to the amount of wheat he grinds during a month will be the rate in effect during that month.

$ 7004.8 Determination of wheat ground. The amount of each type of wheat ground during a month shall be the actual number of bushels of wheat of that type ground during the month into flour as defined in § 7004.1 (c), determined in the following manner:

(a) One sixtieth (%) of the number of pounds of wheat of each type weighed into the mill bin or hopper of the mill during the month, and ground into flour, less allowance for dockage.

(b) If records are not available to use the method of paragraph (a) of this section, the number of bushels of each type ground during a month shall be: the inventory of wheat of that type in the mill elevator at the beginning of the month, plus additions of that type to inventory during the month, less wheat of that type taken out during the month for uses other than grinding into flour by that mill, less inventory of wheat of that type in the mill elevator at the end of the month, less allowance for dockage. This calculation shall be in terms of bushels of wheat.

(c) If records are not available to use the methods of either paragraphs (a) or (b) of this section, the number of bushels of each type ground during a month shall be determined in accordance with the customary practice of the mill, less allowance for dockage, by special permission of Defense Supplies Corporation.

§7004.9 Terms of payment-(a) Partial payment. A claim may be paid in whole or in part.

(b) Persons to whom payments are to be made. Payments will be made only to the person who files the claim with the Defense Supplies Corporation. No claim filed pursuant to §§ 7004.1 to 7004.12, inclusive, shall be assignable except as a part of a bona fide transfer of the applicant's business to a legal successor.

(c) Frequency. Payments will be made monthly upon preliminary approval of the claim.

(d) Terms. Preliminary approval and payment of claims shall not constitute final acceptance of the validity or amount of the claim. On a finding that the claim is invalid or defective, Defense Supplies Corporation shall have the right to require restitution of any payment or any part thereof. Any sums found to be due to Defense Supplies Corporation shall be deductible against any accrued or subsequent claim for any payment of Defense Supplies Corporation to the person.

§ 7004.10 Right to declare claims invalid. Defense Supplies Corporation shall have the right to declare invalid, in whole or in part, any claim which does not meet the requirements of §§ 7004.1 to 7004.12, inclusive, and any claim filed by an applicant who, in the judgment of the War Food Administrator or the Price Administrator has wilfully violated any regulation of their respective Agencies, applicable to the purchase, sale or distribution of wheat or flour.

§7004.11 Right to modify or revise claims. Upon announcement of any decision or interpretation issued hereunder, any applicant may within thirty (30) days, apply to Defense Supplies Corporation for the right to modify or revise any claims theretofore filed which are affected by such decision or interpretation and which accrued within the period of ninety (90) days immediately preceding the first of the month following the date when the decision or interpretation was announced. If Defense Supplies Corporation finds justification for reopening the claim, it shall so notify the applicant and the latter may thereupon submit a new application for payment which shall be processed in the same manner as though submitted within the required time.

§7004.12 Termination. Sections 7004.1 to 7004.12, inclusive, may be terminated at any time after ten (10) days notice. Such termination shall not preclude the filing of applications (1) on account of wheat ground on or before the date of termination for which the applicant would otherwise have been eligible and (2) on account of wheat ground within one hundred and twenty (120) days after the date of termination, as provided in § 7004.6 (e). Such applications must be filed within thirty (30) days after the end of the month in which such wheat is ground.

APPENDIX A-OFFICES OF DEFENSE SUPPLIES CORPORATION

gia

Atlanta: Healey Building, Atlanta 3, Geor

Dallas: Cotton Exchange Building, Dallas 1, Texas.

Denver: Boston Building, Denver 2, Colorado.

Detroit: 607 Shelby Street, Detroit 26, Michigan.

Helena: Power Block, Helena, Montana. Houston, Rusk Building, 723 Main Street, Houston 2, Texas. Jacksonville:

Western Union Building, Jacksonville 2, Florida.

Kansas City: Federal Reserve Bank Building, Kansas City 6, Missouri.

Little Rock: Pyramid Building, Little Rock, Arkansas

Los Angeles: Pacific Mutual Building, Los Angeles 14, California.

Louisville: Lincoln Bank Building, 421 West Market Street, Louisville 2, Kentucky.

Minneapolis: McKnight Building, Minneapolis 1, Minnesota.

Nashville: Nashville Trust Building, Union Street, Nashville 3, Tennessee.

New Orleans: Union Building, 837 Gravier Street, New Orleans 12, Louisiana.

New York: Federal Reserve Bank Building, 33 Liberty Street, New York 5, New York. Oklahoma City: Cotton Exchange Building, Oklahoma City 2, Oklahoma.

Omaha: Woodmen of the World Building, Omaha 2, Nebraska.

Philadelphia: 1528 Walnut Street, Philadelphia 2, Pennsylvania.

Portland: Pittock Block, Portland 5, Oregon.

Richmond: Richmond Trust Building, Richmond 19, Virginia.

St. Louis: Landreth Building, 320 North Fourth Street, St. Louis 2, Missouri.

Salt Lake City: Dooley Building, Salt Lake City 1, Utah.

San Antonio: Alamo National Building, San Antonio 5, Texas.

San Francisco: 200 Bush Street, San Francisco 4, California.

Seattle: Dexter Horton Building, Seattle 4, Washington.

Spokane: Columbia Building, Spokane 8, Washington.

Birmingham: Comer Building, Birmingham 3, Alabama.

7005.2 Persons eligible to file claims. 7005.3 Filing claims for compensation. 7005.4 Inspection and payment of claims. 7005.5 Amount of compensatory adjustments.

Boston: 40 Broad Street, Boston 9, Massachusetts.

Charlotte: Wilson Building, 109 West Third St., Charlotte, North Carolina.

Chicago: 208 South LaSalle Street, Chicago 4, Illinois.

Cleveland: Federal Reserve Bank Building, Cleveland 1, Ohio.

625507-45-SUPP. VII-BK. 2-90

SOURCE: $$ 7005.1 to 7005.5, inclusive, contained in Regulation 5, Defense Supplies Corporation, Jan. 22, 1944, effective Dec. 4, 1943, 9 F.R. 1948.

$ 7005.1 Definitions. When used in $$ 7005.1 to 7005.5, inclusive, the following terms shall have the following meanings:

(a) "District Two" means the States of Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, Oklahoma, South Dakota, Tennessee and Wisconsin.

(b) "District Three" means the States of Alabama, Arkansas, Louisiana, Mississippi, New Mexico and Texas.

(c) "Crude" means crude petroleum.

(d) "Claim" means a claim under §§ 7005.1 to 7005.5, inclusive, computed in accordance with the provisions hereof.

(e) "Person" means an individual, corporation, partnership, association or legal successor or representative of any of the foregoing, but shall not include the United States or any of its political subdivisions or any agency thereof, or any other Government or any of its political subdivisions or any agency thereof.

a

(f) "Applicant" means a person who files claim for compensation pursuant to §§ 7005.1 to 7005.5, inclusive.

(g) "Barrel" means a quantity equal to 42 U. S. gallons of 231 cubic inches.

§ 7005.2 Persons eligible to file claims. Any person who receives crude shipped to such person from any point in District Three specified in Schedule A to any point in District Two specified in such Schedule A, and who refines such crude at a refinery operated by such person at the point in District Two to which shipment is made, may file a claim for extra costs covered by §§ 7005.1 to 7005.5, inclusive, Provided:

(a) Such shipment is made solely by tank car directly from such point in District Three to such point in District Two without any intermediate storage, loading or unloading between such points;

(b) Such shipment is commenced from such point in District Three on or after December 4, 1943;

(c) Such shipment is made pursuant to a shipping schedule approved by the Petroleum Administration for War or is otherwise specifically approved by the Petroleum Administration for War and the volume of crude for which a claim is made does not exceed the quantity specified in the schedule or other approval of the Petroleum Administration for War; and

(d) The freight on such shipment is paid direct to the railroad carrier by such person. §7005.3 Filing claims for compensation— (a) Place of filing. Claims shall be filled with Price, Waterhouse & Co., 33 North LaSalle Street, Chicago 2, Illinois.

(b) Time of filing. No claim may be made with respect to any shipment until such shipment is received at destination. Claims with respect to shipments received at destination during any calendar month

shall be accumulated until the end of such month and shall be filed on or before the last day of the second calendar month following the month in which the shipments covered by such claims are received at destination.

(c) Form of claim. A separate claim shall be filed for each calendar month in which shall be included all shipments received at destination during such month. All claims shall be filed in quadruplicate on forms approved by Defense Supplies Corporation and shall be accompanied by:

(1) The bill of lading covering each shipment included therein showing the applicant as the consignee of such shipment;

(2) Receipted freight bill or such other evidence as may be satisfactory to Defense Supplies Corporation, showing payment by the applicant to the carrier of the railroad freight charges on such shipment;

(3) Copy of Petroleum Administration for War shipping schedule or other approval; and

(4) Supporting documents provided for in the form of claim except that information required in a claim need not be restated after such information has once been included in a previous claim filed pursuant to §§ 7005.1 to 7005.5, inclusive, provided reference is made to such previous claim.

§7005.4 Inspection and payment of claims. (a) If the Defense Supplies Corporation determines that a valid claim has been filed within the provisions of §§ 7005.1 to 7005.5, inclusive, then Defense Supplies Corporation will pay to the applicant the amount thereof. Defense Supplies Corporation may at any time make or cause to be made an examination or audit of any books, records and other supporting data as it may deem necessary to verify further the validity and correctness of any claim filed hereunder. If any claim which has theretofore been paid is found incorrect upon such examination or audit, then the amount of such payment shall be due and payable to Defense Supplies Corporation and shall be returned to it upon demand and without limitation of any other rights accruing to Defense Supplies Corporation. No further advances or payments shall be made to such applicant until such deficiency has been returned.

(b) Should any claim be rejected in whole or in part or should any applicant desire an interpretation of §§ 7005.1 to 7005.5, inclusive, the applicant may request Defense Supplies Corporation to reconsider its action or issue an interpretation. If the request is in connection with a rejected claim, it must be filed within thirty (30) days after such claim is rejected. Such request shall be addressed to Defense Supplies Corporation, 811 Vermont Avenue, N.W., Washington 25, D. C. and shall state clearly and concisely the questions involved and the applicant's views thereon. Upon the announcement of any decision or interpretation issued hereunder any applicant may within thirty (30) days apply to Defense Supplies Corporation for the