60 STAT.] 79TH CONG., 2D SESS.- CH. 671-JULY 25, 1946 production and employment and to make possible the balancing of supply and demand, promptly remove maximum purchase prices from imports of such commodity and maximum prices from products processed directly therefrom, or increase the maximum prices of imports of such commodity and of products processed directly there- from to the extent necessary to prevent such reduction in importation or curtailment of domestic trade." SEC. 11. The Emergency Price Control Act of 1942, as amended, 5BSta:- 2pp is amended by inserting after section 5 thereof the following new app. §905. section: "SEC. 6. (a) For the purposes of this section the base period shall Base period. be the calendar year 1940, or in the case of an industry customarily keeping its accounts on a fiscal year basis, the industry's fiscal year 1940. "(b) In order that adequate general price levels shall be estab- aEstablishleveof lished for all commodities to bring about maximum production and employment, no maximum prices shall be established or maintained for any product of a producing, manufacturing, or processing indus- try (including any industry furnishing service or transportation the charges for which are subject to the Administrator's control) which do not return on the average to the industry not less than the average dollar price of such product during the base period, plus the average increase in cost of producing manufacturing, or processing the same accruing since the base period, but the maximum prices for a product Mdeaximum pric deemed in compliance shall be deemed in compliance with this standard if such prices on the with standard. average are equal to the average current total cost of the product plus the industry's average over-all profit margin on sales in the base period. "(c) For the purpose of determining costs under this section, cur- Dte t minatton of rently or for the base period, the Administrator shall ascertain the costs of a reasonable number of typical producers, manufacturers, or processors and shall follow accepted methods of accounting and such fair and reasonable methods of calculation as he shall establish by regulation, including adjustments for temporary cost abnormalities which may be reasonably anticipated to be eliminated within the three months following the Administrator's determination, and adjust- ments for increases in the volume of production which may be reason- ably anticipated to be experienced within such three-month period. "(d) Maximum prices established hereunder shall not be held invalid notMheldinalid."ld on account of their failure to return his costs to any particular member of any group involved. "(e) Nothing herein shall nullify the power of the Administrator mentsand excepons. to make reasonable adjustments and exceptions in individual cases 6 stat. 26. 50 s. c.,Supp. under the provisions of section 2 (c) of this Act. v, app. §902 (c). "(f) If the maximum prices of a product on the average equal its deNsaed per io d.o average current total cost plus a reasonable profit, nothing herein shall require any further adjustment of such maximum prices for any period with respect to which it appears that a substantial expansion in the production or use of the product would not be practicable or would be practicable only by reducing the production of at least equally needed products. "(g) As used in this section, 'product' shall mean any major item, "o or any article different in character from other products of the indus- try; but all the styles, models, or other varieties of any such item or article shall be considroduct. Manuacturered as one product "(h) The provisions of this section shall not apply with respect to cotton or wool prod- any maximum price applicable to manufacturers or processors in the ucts. case of products made in whole or major part from cotton or cotton yarn or wool or wool yarn. 675
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