Harlem Metal Corp. v. Brown

136 F.2d 242, 1943 U.S. App. LEXIS 3004
CourtEmergency Court of Appeals
DecidedMay 28, 1943
DocketNo. 24
StatusPublished
Cited by4 cases

This text of 136 F.2d 242 (Harlem Metal Corp. v. Brown) is published on Counsel Stack Legal Research, covering Emergency Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harlem Metal Corp. v. Brown, 136 F.2d 242, 1943 U.S. App. LEXIS 3004 (eca 1943).

Opinion

MARIS, Judge.

Complainant is a dealer in iron and steel scrap and is thereby subject to Revised Price Schedule No. 4 — Iron and Steel Scrap, which establishes maximum prices for iron and steel scrap when sold to consumers. The questions presented by complainant’s protest relate only to those provisions of the Schedule which establish maximum prices for steel scrap.

Revised Price Schedule No. 41 became effective on February 11, 1942, pursuant to Section 206 of the Emergency Price Control Act, 50 U.S.C.A.Appendix, § 926. Since its effective date the Schedule has established maximum prices for sales of steel scrap to consumers (steel mills, etc.) in terms of computed f.o.b. shipping point prices. The Schedule listed 39 basing points (representing the major scrap consuming centers) and -prescribed dollars- and-cents basing point prices for the base grade of steel scrap, No. 1 heavy melting steel, at each basing point. Sec. 1304.13 (a) ; 7 F.R. 1208. Basing point prices for other grades of steel scrap were also stated. The shipping point for steel scrap is the point where it has been placed f.o.b. railroad car or f.a.s. vessel for shipment to the consumer. Sec. 1304.13(c) (1); 7 F.R. 1210. A shipping point price is computed by deducting from the appropriate basing point price the transportation charges from the seller’s shipping point to the basing point. The Schedule generally establishes maximum shipping point prices for sellers with shipping points located outside a basing point as the basing point price “at the most favorable basing point, minus the lowest established charge for transporting scrap from the shipping point to such basing point by rail or water carrier, or combination thereof.” Sec. 1304.13(c) (1) (ii); 7 F.R. 1210. The “most favorable basing point” is defined as the basing point which, when used to compute the shipping point price, will yield the highest shipping point price. Sec. 1304.13(b); 7 F.R. 1210. The price thus determined is the seller’s maximum f.o.b. price.

Flowever, as the Schedule became effective on February 11, 1942, it provided that: “Maximum shipping point prices at any shipping point in New York City, Brooklyn, N. Y., and New Jersey, which by reason of vessel rates have Buffalo or Sparrows Point as their most favorable basing point shall be computed from the prices at the [243]*243Bethlehem, Pennsylvania basing point rather than the prices at Buffalo or Sparrows Point.” Sec. 1304.13(c) (4) (ii); 7 F.R. 1210.

At all times since February 11, 1942, the Bethlehem basing point price for No. 1 heavy melting steel has been $18.25 per gross ton. The freight rate from most points in New York City to Bethlehem, Pennsylvania, is $2.92 per gross ton, which when deducted from the Bethlehem basing point price of $18.25, resulted in a maximum f.o.b. shipping point price for complainant and most other scrap dealers in New York City (including Brooklyn) of $15.33 per gross ton. The freight rate from certain points in northern New Jersey, including points in Hudson and Bergen Counties, the New Jersey counties immediately adjacent to New York City, to Bethlehem is $2.08 per gross ton. The deduction of this charge from the Bethlehem basing point price of $18.25 resulted in a maximum shipping point price of $16.17 per gross ton for these shipping points in northern New Jersey. Thus, the Schedule, as it originally became effective, established for complainant a maximum f.o.b. shipping point price of $15.33 per gross ton, while establishing for scrap dealers at certain shipping points in northern New Jersey a maximum price of $16.17. This difference of 84 cents existed without change from February 11, 1942, the effective date of Revised Price Schedule No. 4 under the Act, to June 17, 1942.

On June 17, 1942, the quoted provision establishing maximum shipping point prices for shipping points in New York City and New Jersey, was changed, by Amendment No. 6 to Revised Price Schedule No. 4, to read as follows : “The maximum shipping point priceffor No. 1 Heavy Melting Steel (with differentials established in paragraph (a) of this section for all other grades) at all shipping points in New York City or Brooklyn, N. Y., shall be $15.33 per gross ton f.o.b. cars or f.a.s. vessel, or where delivery to the consumer is solely by motor vehicle, loaded on such vehicle. The maximum shipping point prices at all shipping points in the state of New Jersey shall be computed fro-m the most favorable basing point in terms of all-rail transportation charges.” 7 F.R. 4490.

It will be observed that Amendment No. 6 did two things: (1) It restated in dollars and cents the maximum shipping point price which had been established for complainant and most other scrap dealers in New York City since February 11, 1942; and (2) it provided that maximum shipping point prices at all shipping points in the state of New Jersey should be computed from the most favorable basing point in terms of all-rail transportation charges, instead of from the Bethlehem basing point as previously provided. For certain points in Northern New Jersey, the “most favorable basing point in terms of all-rail transportation charges” is Conshohocken, Pennsylvania, with a basing point price of $18.75. Since the all-rail transportation charges from certain points in Hudson and Bergen Counties to Conshohocken are $2.53, this provision established for scrap dealers located at those points a maximum shipping point price of $16.22 per gross ton. Thus, Amendment No. 6 to the Schedule had the effect of increasing from 84 cents tq 89 cents per gross ton the difference between complainant’s maximum shipping point price and that established for certain shipping points in Northern New Jersey.

On August 3, 1942, complainant filed its protest against Revised Price Schedule No. 4, alleging that this difference of 89 cents provided scrap dealers located at points in New Jersey contiguous to New York City with an unfair competitive advantage over complainant and other New York dealers, in that such New Jersey dealers were thereby enabled to pay a higher price for steel scrap originating in New York City.2

On February 11, 1943, the Administrator issued Amendment No. 11 to Revised Price Schedule No. 4, effective February 16, which added to Section 1304.13(c) (4) (ii) the following: “Provided, however, that maximum shipping point prices at all shipping points in Hudson and Bergen Counties, New Jersey, shall be computed from the Bethlehem, Pa., basing point.” 8 F.R. 1952.

[244]*244Thus, Amendment No. 11 reinstated the method of computing maximum prices for shipping points in Hudson and Bergen Counties which had existed from February 11, 1942, to June 17, 1942. In other words, Amendment No. 11 restored the maximum shipping point price for complainant’s competitors in Northern New Jersey to $16.17, the price which had been in effect prior to Amendment No. 6. Since the difference between complainant’s maximum shipping point price and that of its competitors in adjacent New Jersey was again 84 cents, Amendment No. 11 had the effect of returning complainant to the same relative price position as it had between February 11 and June 17, 1942, prior to Amendment No. 6. On February 23, 1943, the Administrator dismissed complainant’s protest, insofar as relief had not theretofore been granted by Amendment No. 11, on the ground that the protest was not filed within the period prescribed by Section 203(a) of the Emergency Price Control Act.

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Bluebook (online)
136 F.2d 242, 1943 U.S. App. LEXIS 3004, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harlem-metal-corp-v-brown-eca-1943.