Reporter's Statement of the Case 107 C. Cls. Industry Operations may specifically authorize or direct. The provisions of (b), (c), and (d) above shall not apply to any transaction required by this subparagraph and specific authorization from the Director of Industry Operations is not required for any such transaction; provided, however, that, except in the case of a Producer or Approved Smelter or as the Director of Industry Operations may specifically authorize, no Person shall acquire any Aluminum which he could use only by smelting or melting the same. (2) Each Person who owns any Aluminum shall, on or before March 31, 1942, report the amount and kind of all Aluminum owned by him; provided, however, that no such report need be filed (i) as regards any Aluminum to which this Order does not apply as provided in (n) below, or (ii) by a Governmental corporation or agency or any Person who is required to file inventory reports pursuant to (e) above. No special form is prescribed for such report. Failure to make such report on the part of any such Person shall be deemed a representation to the War Production Board, subject to the penalties of Section 35-A of the United States Criminal Code, that such person does not own any Aluminum. (k) Hardship Clause. Where, under the peculiar circumstances of individual case, disposition of Aluminum as required by (f) above cannot be effected at regularly established prices and terms of sale or payment, or would otherwise impose an unreasonable hardship or sacrifice, the Person required to dispose of the same may apply to the Director of Industry Operations for exemption in whole or in part from the operation of such provision. Such application shall specify the nature and extent of exemption applied for and shall fully set forth the facts alleged to prove unreasonable hardship or sacrifice. * (n) Scope of the Order. (1) This Order shall govern the acquisition and disposition of all Aluminum, but, anything herein to the contrary notwithstanding shall not apply (i) to Aluminum products which are being used by the ultimate consumer, (ii) to Aluminum products after completion which are being disposed of to, or for resale to, the ultimate consumer, in the normal channels of trade, or (iii) to "Aluminum Scrap" as defined in Supplementary Order M-1-d. 1 Reporter's Statement of the Case 9. No aluminum was purchased by plaintiff after September 27, 1941. 10. Early in 1942, in order to accelerate the movement of existing aluminum inventories into war production, the War Production Board inaugurated an "aluminum recovery program" whereby it (a) obtained detailed reports from holders of their "idle and excessive inventories," (b) made some effort to locate users for such stocks or inventories in war production, and (c) offered to buy up such inventories at a scale of prices referred to herein as the Program prices (Table I). In execution of this program the Board, commencing February 23, 1942, sent to several hundred holders throughout the land, including the plaintiff, a circular letter, signed by J. S. Knowlson, Director of Industry Operations, which read in part as follows: All aluminum available in the country is required immediately for war purposes. Every effort is therefore being made by the War Production Board to convert quickly idle and excessive stocks of aluminum to active war use. Arrangements have been made to purchase for a limited time idle and excessive stocks of aluminum in whatever form they may exist. There is attached a price schedule at which such aluminum will be purchased. Federated Metals Division of American Smelting & Refining Company, acting as agent for Metals Reserve Company, a Federal corporation, will carry out arrangements made by the War Production Board for the purchase and disposal of all aluminum sold voluntarily * * The War Production Board requires you to complete immediately the report form attached, upon which you must specify your idle and excessive inventories of aluminum and inform us whether you are willing to sell according to the price schedule attached * On the reverse side of the letter, hereinafter referred to as the "Knowlson" letter, appeared the Program price list, which is reproduced herein as Table I. Reporter's Statement of the Case TABLE I-WPB PROGRAM PRICE LIST 107 C. Cls. (Accompanying the Knowlson circular letter dated February 23d, 1942) PRICE SCHEDULE Instructions for determining price 1. Determine for each item in your idle and excessive inventory the lowest quoted base prices for maximum quantities prevailing on October 1, 1941. 2. Locate that price in Column #1. On the corresponding line in Column #2 appears the price at which the Metals Reserve Company, through its agent, the Federated Metals Division of American Smelting and Refining Company, will purchase your inventory. The letter was also accompanied by a report form, Form WPB 667, which stated, in the heading: Idle and excessive inventory is defined as aluminum which is in excess of the amount required to be put into continuing production during the next 90 days in order to meet scheduled deliveries on A rated orders. 11. The Knowlson letter, with enclosures, was sent to plaintiff who, on April 24, 1942, forwarded its report of "Idle and Excessive Inventory of Aluminum" to the War Production Board, Federated Metals Division, as directed, on Form WPB 667, and it was received by the latter on April 25, 1942. This report stated that plaintiff's holdings amounted to 145,001 pounds of aluminum. In its report plaintiff rejected the Government's purchase offer on the ground that it was considerably less than the fair market 1 Reporter's Statement of the Case value of the property; that the fair market value of the materials was not less than $44,539.64. 12. In response to the Knowlson letter 1,971 holders, including the plaintiff, reported idle and excessive inventories on Form WPB 667, which contained the following question: Are you willing to sell your idle and excessive inventory reported on attached form at prices quoted on attached list? Yes or no. Of the 1,971 holders reporting inventories on this form, 1,961 answered the above question "yes,” while 10, including the plaintiff, answered "no." The War Production Board processed the inventories and had Metals Reserve Company purchase the stocks, for which the defendant was unable to find a use in war production without remelting. A total of 1,997 holders sold 17,526,483 pounds of idle and excessive inventories to the Metals Reserve Company's agent at the Program prices. Of this amount 3,964,747 pounds were ingots, and 3,255,023 pounds were classified by the holders as scrap. The remainder, 10,306,713 pounds, consisted of partly fabricated aluminum material like the plaintiff's such as sheet, circles, coils, shapes, castings, and rods. Said 10,306,713 pounds were purchased by the Metals Reserve Company at Program prices amounting generally to 50 to 75 percent of the base prices shown in the trade's current price lists (the price lists under which the items could have been sold if a buyer could have been found who could use them without remelting), except for 1,345,859 pounds of castings and forgings, which, although partly fabricated, were purchased by Metals Reserve Company at the lower Program prices which would have applied if they had been scrap. The entire 10,306,713 pounds were resold by Metals Reserve Company for remelt at the market prices prevailing for scrap. 13. May 2, 1942, the War Production Board made its determination of "Necessity for Requisitioning" plaintiff's idle and excessive inventory of aluminum, which provided that the property was to be sold or otherwise disposed of to "manufacturers of military and naval equipment." 14. May 20, 1942, the defendant, acting pursuant to the powers conferred by the Act of October 16, 1941 (55 Stat. Reporter's Statement of the Case 107 C. Cls. 742), as amended, requisitioned and took possession of plaintiff's inventory of aluminum, consisting of 83,140 pounds of 2-SO and 62,908 pounds of 3-SO aluminum, or a total of 146,048 pounds, of fabricated aluminum consisting of sheets, circles, coils, tubing and rivets of various sizes and gauges. Defendant removed the aluminum from plaintiff's storeroom and dumped it into freight cars thereby damaging it in such a way as to prevent any possibility of its ever being used again "as is," and shipped it directly to a smelter. 15. The plaintiff duly filed with the War Production Board its proof of claim for $45,145.25 as fair and just compensation for the requisitioned aluminum. 16. July 28, 1942, the defendant, acting through the War Production Board, made a preliminary determination that fair and just compensation for the property requisitioned was $30,791.83. Plaintiff was so advised. Plaintiff duly transmitted to the War Production Board its objection to said preliminary determination and reiterated its claim for $45,145.25. On October 19, 1942, plaintiff received from the WPB copy of Award of Compensation in the amount of $30,791.83 for the aluminum requisitioned and taken, together with a letter informing plaintiff that if it was unwilling to accept that amount as full and complete compensation, Metals Reserve Company had been authorized to pay 50% of that amount to plaintiff upon the execution of a proper release and indemnity agreement. Accordingly, upon its application, plaintiff received from Metals Reserve Company as agent of the defendant, $15,395.92 on January 18, 1944. In connection with said payment plaintiff executed and delivered to defendant a release and indemnity agreement wherein it waived claims against the defendant arising from the requisition, with the following reservation: Except that the right is hereby expressly reserved by Claimant to assert a claim against the United States in an amount which, when added to the amount of $15,395.92 paid to Claimant hereunder, is considered by it to be fair and just compensation for said property. The defendant's determination of fair and just compensation was computed according to the "Recovery Program |