The Ypsilanti daily press. (Ypsilanti, Mich.) 1928-1962, 1943-09-04
Brokers Status

QUESTION cost is higher than
the maximum price but the
buyer is paying not only for oil
but for services"
An OPA investigator, very
likeable Mr.. l. A. Devlin began his
Investigation at our office about the
middle of February and prior to
July list. had spent about twelve
weeks at our office going over our
records OF about two years.
| did not profit by the alleged
over-charge in the least. My earn.
ings from this petroleum business
in 1912 were approximately one
half that of 194l.
This condition was solely due to
the insufficient supply OF oil for my
customers and insufficient lack OF
transportation of same.
We will continue TO operate lie.
gally and counsel assures us that
in their opinion we have legally
operated since ceiling price October
1871 and are doing so today.
We are confident that we will
convince the Federal Court OF the
OPA's error in causing us unneces-
sary hardship and expense in de-
tending my just rights.
o.P.A. Interpretation
Following is the copy of O.P.A.
Interpretation referred to above in
Mr.. TROOPS statement:
April 90. 1913.
Office OF Price Administration
Region N-St. Louis District Office
Paul Brown Building
st. Louis. Missouri
Apex Oil Company
1918 Olive Street
st. Louis. Missouri
Gentlemen:
have your letter OF April 2g re.
questing copy OF OPA Broadcast
SILVA, dated March Goth, 1943.
We do not have an extra copy OF
this broadcast. For your informa-
ton the substance of this teletype
mentioned is as follows:
Section 1340.153 provides that the
price limitation OF price schedule
No. SIS shall not be evaded by direct
or indirect methods in connection
with the sale of petroleum products
or by way Of any commission sery-
ice, transportation, or other charge.
Questions have been asked as to
whether all brokerage commits
sions are outlawed except when de-
Quoted by the seller from his maxi
mum price. The answer is that
when seller employs a broker to
find buyer. then the seller. being
the party in need OF the brokers'
services. must absorb the charges
as part of the sellers expense of
doing business and the buyer can
not be charged more than maxi.
mum.
On the other hand, IL a buyer
needs assistance in finding oil.
there is no objection to his en-
ploying a broker or anyone else to
render such service and no objec-
ton to his paying the party so en-
ployed. In such a case the buyers
acquisition cost is higher than the
maximum price. but the buyer is
paying not only for oil but for serv.
ices.
In determining whether the seller
Is using otensible buyers broker to
eYade price ceiling, all crcum.
stances will be carefully consid-
cred. Where the brokers' participa-
ton increases the buyers cost OF
acquisition over the maximum sell
ing prices. it must appear that the
buyer was in a bona fide and legit-
innate need of the brokers' services,
and that the buyer actually hired
the broker and that the services
performed by the broker were in
tended for and were for the benefit
Of the buyer.
II you desire any further informa.
ton. please advise us.
Yours very truly.
(Signed) Ronald J. FOULS.
Chief Price Attorney.
Represents Customers
Mr.. Throop pointed out today that |
he has been acting as broker for
jobbers and industry during the |
past eleven years that he has been |
located in Ypsilanti. In many in
stances, he said, he has supplied oil |
for war industries when none was |
available from other sources. BY
this service plants have been kept |
running and their owners and man.
ayers we're glad TO pay him for his
services. such payment being no
violation Of laws pertaining to such
transactions.
Aside from his business, Mr..
Throop has found time to aid in
municipal projects and OF late has
devoted much of his time TO rou.
tine work In the local rationing Of
flee, recently spending % hours
there in single week Mrs.
Throop has also given much OF her
time TO this work.