, Compilation oí

t A,ricultural Marketing Agreement

Act of 1937

Reenactîng, Amending, and

Supplemenfîng the Asrîculiural

Adjustment Act, as Amended

As of January 1,1958

Agriculture Handbook No. 124

Agricultural Marketing Service

UNITED STATES DEPARTMENT OF AGRICULTURE
PREFATORY NOTE

This compilation is intended to indicate the present status of

legislation by Congress relating to marketing agreements and orders

regulating the handling of agricultural commodities m interstate

and foreign commerce. The Agricultural Marketing Agreement Act

of 1937, approved June 3, 193? (Public, No. 137-75th CongressChap. 296; 1st Session, 7 U. S. C. 674, 50 Stat. 249), reenacted and

amended certain provisions of the Agricultural Adjustmélit Act, as

amended, relating to marketing agreements and orders J-]^© compilation of the legislation is based on Title 7 of the United States

Code, 1952 ed. with amendments through 1957. ^' , . ^_ . ,

The applicable sections and headings of Title 7 ot the United

States Code are furnished over the paragraphs of the text. Statutory citations in parentheses at end of paragraphs of the text refPT

to pertinent sections of the acts and amendments thereto arranged

chronologically in législative sequence.

Explanatory notes relative to legislative history and amendments

of the Agricultural Marketing Agreement Act of 1937 as appear m

Title 7 of the United States Code are also included herein.

Cross references are omitted from this compilation of the Act.

These will be found under the respective headings and sections of

Title 7 of the United States Code.

Washington, D. C, issued April 1958.

For sale by the Superintendent of Documents, U.S. Government Printing Office

Washington 25, D. C. - Price 15 cents
CONTENTS

Agricultural Marketing Agreement Act of 1937, as amended,

7 U. S. C, 1952 ed., 601 et seq.

U. S. Code

Sections Page

601. Declaration of conditions 1

602. Declaration of policy; establishment of base periods for prices;

marketing standards; orderly supply flow 2

608a.

(5) Forfeitures 3

(6) Jurisdiction of district courts 3

(7) Duties of district attorneys; investigation of violations by Secretary;, hearings 3

(8) Cumulative remedies 3

(9) "Person" defined___ 3

608b. Marketing agreements; exemption from antitrust laws 4

608c. Orders regulating handling of commodity 4

(1) Issuance by Secretary 4

(2) Commodities to which applicable 5

(3) Notice and hearing 5

(4) Finding and issuance of order 5

(5) Milk and its products; terms and conditions of orders 6

(6) Other commodities; terms and conditions of orders 7

(7) Terms common to all orders 9

(8) Orders with marketing agreement 10

(9) Orders with or without marketing agreement 10

(10) Manner of regulation and applicability 11

(11) Regional application 11

(12) Approval of cooperative association as approval of producers 12

(13) Retailer and producer exemption ^ 12

(14) Violation of order; penalty 12

(15) Petition by handler for modification of order or exemption; court

review of ruling of Secretary 13

(16) Termination of orders and marketing agreements 13

(17) Provisions applicable to amendments 14

(18) Milk prices 14

(19) Producer referendum for approving order 14

608d. Books and records; disclosure of information 16

608e. Repealed 17

608e-l Import prohibitions on tomatoes, avocados, limes, etc., rules and

regulations 17

610. Administration 18

(a) Appointment of officers and employees; exemption from civil

service regulations; salaries; impounding appropriations 18

(b) State and local committees or associations of producers; handlers'

share of expenses of authority or agency 19

(c) Regulations; penalty for violation 20

(f) Geographical application 20

(g) Officers; dealing or speculating in agricultural products; penalties. 20

(h) Adoption of Federal Trade Commission Act; hearings; report of

violations to Attorney General 20

(i) Cooperation with State authorities; imparting information 21

(j) Definitions 21

612. Appropriation ; use of revenues; administrative expenses 23

614. Separability of provisions 24

624. Limitation pn imports; authority of President 24

671,, Arbitration of disputes concerning milk 26

(a) Application 26

(b) Conduct of meetings 27

(c) Approval of award 27

(d) Exemption from antitrust laws 27

672(a) Agreements; licenses, regulations, programs, etc., unaffected 27

673. Taxes under Agricultural Adjustment Act; laws unaffected 28

674. Short title 28

III
AGRICULTURAL MARKETING AGREEMENT ACT OF 1937

7 U. S. C. § 601

COMPILATION OF AGRICULTURAL MARKETING

AGREEMENT ACT OF 1937 REENACTING, AMENDING, AND SUPPLEMENTING THE AGRICULTURAL

ADJUSTMENT ACT, AS AMENDED, INCLUDING

AMENDMENTS OF THE EIGHTY-FIFTH CONGRESS,

FIRST SESSION

DECLARATION OF CONDITIONS AND POLICY

§ 601. Declaration of conditions.

It is declared that the disruption of the orderly exchange of commodities in interstate commerce impairs the purchasing power of

farmers and destroys the value of agricultural assets which support

the national credit structure and that these conditions affect transactions in agricultural commodities with a national public interest,

and burden and obstruct the normal channels of interstate commerce.

(May 12,1933, ch. 25, title I, § 1,48 Stat. 31 ; Aug. 24,1935, ch. 641, §§ 1,

2, 49 Stat. 750; June 3, 1937, ch. 296, §§ 1, 2 (a), 50 Stat. 246.)

SHORT TITLE

Section 8 (a) of act June 16, 1933, ch. 90, 48 Stat. 199, provided in part that

title I of act May 12, 1933, ch. 25, 48 Stat. 31-41, which constitutes sections

601-608, 608a, 620, 623, and 624 of this title, may for aU purposes be referred to

as the "Agricultural Adjustment Act".

VALIDITY OF CERTAIN SECTIONS AFFIRMED

Act June 3, 1937, ch. 296, §§1, 2, 50 Stat. 246, provided as follows:

"The following provisions of the Agricultural Adjustment Act, as amended,

not having been intended for the control of the production of agricultural

commodities, and having been intended to be effective irrespective of the validity

of any other provision of that Act are expressly affirmed and validated, and are

reenacted without change except as provided in section 2 :

"(a) Section 1 (relating to the declaration of emergency [this section]) ;

**(b) Section 2 (relating to declaration of policy [section 602 of this title]) ;

"(c) Section 8a (5), (6), (7), (8), and (9) (relating to violations and enforcement [section 608a (5), (6), (7), (8), and (9) of this title] ) ;

"(d) Section 8b (relating to marketing agreements [section 608b of this title] ) ;

"(e) Section 8c (relating to orders [section 608c of this title]) ;

"(f) Section 8d (relating to books and records [section 608d of this title]) ;

"(g) Section 8e (relating to determination of base period [section 608e of

this title] ) ;

"(h) Section 10 (a), (b) (2), (c), (f), (g), (h), and (i) (miscellaneous

provisions [section 610 (a), (b) (2), (c), (f), (g), (h), and (i) of this title]) ;

"(i) Section 12 (a) and (c) (relating to appropriation and expenses [section

612 (a) and (c) of this title] ) ;

"(j) Section 14 (relating to separability [section 614 of this title]) ;

"(k) Section 22 (relating to imports [section 624 of this title]).

"SEO. 2. The following provisions, reenacted in section 1 of this act, are

amended as follows: * * * [sections 601, 602 (1), 608a (6), 608c (5) (B) (d),

(6), (B), (18), (19), 610 (e), (f),612 (a)]."

Section 2 of act June 3, 1937, also added subdivision (j) to section 610.

Said section 2 of act June 3, 1937, was amended by act Aug. 5, 1937, ch. 567,

50 Stat. 563, which amending act provided for amendments to subdivs. (2) and

( 6 ) of section 608c of this title.
2 AGRICULTURAL MARKETING AGREEMENT ACT OF 1937

7 U. S. C. § 602

§602. Declaration of policy; establishment of base periods for

prices; marketing standards; orderly supply flow.

Itis declared to be the policy of Congress—

(1) Through the exercise of the powers conferred upon the Secretary of Agriculture under sections 601-608,608a, 608b, 608c, 608d-612,

613-619, 620, 623, and 624 of this title, to establish and maintain such

orderly marketing conditions for agricultural commodities in interstate commerce as will establish, as the prices to farmers, parity prices

as defined by section 1301 (a) (1) of this title.

(2) To protect the interest of the consumer by (a) approaching

the level of prices which it is declared to be the policy of Congress

to establish m subsection (1) of this section by gradual correction

of the current level at as rapid a rate as the Secretary of Agriculture deems to be in the public interest and feasible in view of the

current consumptive demand in domestic and foreign markets, and

(b) authorizing no action under sections 601-608, 608a, 608b, 608c,

608d-612, 613, 614-619, 620, 623, 624 of this title which has for its

purpose the maintenance of prices to farmers above the level which

it is declared to be the policy of Congress to establish in subsection (1)

of this section.

(3) Through the exercise of the powers conferred upon the

Secretary of Agriculture under sections 601-608, 608a, 608b, 608c,

608d-612, 613-619, 620, 623, and 624 of this title, to establish and

maintain such minimum standards of quality and maturity and

such grading and inspection requirements for agricultural commodities enumerated in section 608c (2) of this title, other than milk

and its products, in interstate commerce as will effectuate such

orderly marketing of such agricultural commodities as will be in

the public interest.

(4) Through the exercise of the powers conferred upon the Secretary of Agriculture under sections 601-608a, 608b, 608c, 608d-612,

613, 614-619, 620, 623, and 624 of this title, to establish and maintain

such orderly marketing conditions for any agricultural commodity

enumerated in section 608c (2) of this title as will provide, in the

interests of producers and consumers,, an orderly flow of the supply

thereof to market throughout its normal marketing season to avoid

unreasonable fluctuations in supplies and prices. (May 12, 1933, ch.

25, title I, § 2,48 Stat. 32; Aug. 24,1935, ch. 641, §§ 1, 62, 49 Stat. 750,

782; June 3, 1937, ch. 296, §§ 1, 2 (b), 50 Stat. 246, 247; Aug. 1, 1947,

ch. 425, § 1, 61 Stat. 707; July 3, 1948, ch. 827, title III, § 302 (a), 62

Stat. 1257; Aug. 28, 1954, ch. 1041, title IV, § 401, 68 Stat. 906.)

AMENDMENTS

1954—Subsec. (4) added by act Aug. 28, 1954.

1948—Subsec. (1) amended by act July 3, 1948, to make the definition of

"parity" conform to definition stated in section 1301 (a) (1) of this title.

1947—Subsec. (3) added by act Aug. 1,1947.

1935—Subsec. (1) first sentence, amended by section 1; and the second and

third sentences, by section 62 of act Aug. 24, 1935. Subsec. (2) amended by act

of Aug. 24, 1935.

EFFECTIVE DATE OP 1948 AMENDMENT

Amendment of section by act July 3, 1948, effective as of Jan. 1, 1950, see

note set out under Section 1301 of this title.
AGRICULTURAL MARKETING AGREEMENT ACT OP 1937 3

7 U. S. C. §§ 602, 608a

VALIDITY OF SECTION AFFIRMED

Section 1 of act June 3, 1937, affirmed and validated, and reenacted without

change the provisions of this section except for the amendment to subd. (1) by

section 2 of said act. See note to section 601 of this title.

§ 608a.

(5) Forfeitures.

Any person willfully exceeding any quota or alloment fixed for

him under sections 601-608, 608a, 608b, 608c, 608d-612, 613, 614-619,

620, 623, and 624 of this title by the Secretary of Agriculture, and any

other person knowingly participating, or aiding, in the exceeding of

said quota or allotment shall forfeit to the United States a sum equal

to three times the current market value of such excess, which forfeiture shall be recoverable in a civil suit brought in the name of the

United States.

(6) Jurisdiction of district courts.

The several district courts of the United States are vested with

jurisdiction specifically to enforce, and to prevent and restrain any

person from violating any order, regulation, or agreement, heretofore or hereafter made or issued pursuant to sections 601-608, 608a,

608b, 608c, 608d-612,613,614-619,620, 623, and 624 of this title, in any

proceeding now pending or hereafter brought in said courts.

(7) Duties of United States attorneys; investigation of violations

by Secretary; hearings.

Upon the request of the Secretary of Agriculture, it shall be the

duty of the several United States attorneys in their respective districts, under the directions of the Attorney General, to institute proceedings to enforce the remedies and to collect the forfeitures provided for in, or pursuant to sections 601-608, 608a, 608b, 608c, 608d612, 613, 614-619, 620, 623, and 624 of this title. Whenever the Secretary, or such oíRcer or employee of the Department of Agriculture

as he may designate for the purpose, has reason to believe that any

handler has violated, or is violating, the provisions of any order or

amendment thereto issued pursuant to said sections, the Secretary

shall have power to institute an investigation and, after due notice

to such handler, to conduct a hearing in order to determine the facts

for the purpose of referring the matter to the Attorney General

for appropriate action.

(8) Cumulative remedies.

The remedies provided for in this section shall be in addition to,

and not exclusive of, any of the remedies or penalties provided for

elsewhere in sections 601-608, 608a, 608b, 608c, 608d-612, 613, 614-

619, 620, 623, 624 of this title or now or hereafter existing at law or

m equity.

(9) "Person" defined.

The term "person" as used in sections 601-608, 608a, 608b, 608c,

608d-612, 613, 614-619, 620, 623, and 624 of this title includes an individual, partnership, corporation, association, and any other business
4 AGRICULTURAL MARKETING AGREEMENT ACT OF 1937

7 D. S. C. |§ 608a, 608b, 608c

unit. (May 12,1933, ch. 25, title I, § 8a, as added May 9,1934,11:23

a. m., ch. 263, § 4, 48 Stat. 672 ; Aug. 24,1935, ch. 641, §§ 8-10, 49 Stat.

762; June 3, 1937, ch. 296, §§ 1, 2 (c), 50 Stat. 246, 247.)

VALIDITY OF SECTION AFFIRMED

Act June 3, 1937, affirmed and validated, and reenacted without change the

provisions of subsections (5), (6), (7), (8), and (9) of this section, except for

the amendment to subsection (6) by section 2 of the act. See note to section 601

of this title.

COMMODITY BENEFITS

§608b. Marketing agreements; exemption from antitrust laws.

In order to effectuate the declared policy of sections 601-608, 608a,

608b, 608c, 608d-612, 613, 614-619, 620, 623, and 624 of this title, the

Secretary of Agriculture shall have the power, after due notice and

opportunity for hearing, to enter into marketing agreements with

processors, producers, associations of producers, and others engaged

in the handling of any agricultural commodity or product thereof,

only with respect to such handling as is in the current of interstate or

foreign commerce or which directly burdens, obstructs, or affects, interstate or foreign commerce in such commodity or product thereof.

The making of any such agreement shall not be held to be in violation

of any of the antitrust laws of the United States, and any such agreement shall be deemed to be lawful : Provided, That no such agreement

shall remain in force after the termination of said sections. (May 12,

1933, ch. 25, title I, § 8 (2), 48 Stat. 34; Apr. 7, 1934, ch. 103, § 7, 48

Stat. 528 ; renumbered § 8b and amended Aug. 24,1935, ch. 641, § 4, 49

Stat. 753 ; June 3,1937, ch. 296, § 1, 50 Stat. 246 ; June 30,1947, ch. 166,

title II,§206 (d),61 Stat. 208.)

CODIFICATION

The provisions now appearing in this section, except the first sentence, were

originally enacted as part of section 8, subsec. 2, of the act of May 12, 1933, and

formerly appeared as section 608 (2) of this chapter.

AMENDMENTS

1947—Act June 30,1947, amended section by repeaUng provisions providing for

loans from the Reconstruction Finance Corporation.

1935—Act Aug. 24, 1935, designated subsection 2 of section 8 of act May 12,

1933, as section 8b and changed the first sentence to read as it now appears in the

text.

VALIDITY OF SECTION AFFIRMED

Act June 3, 1937, affirmed and validated, and reenacted without change the

provisions of this section. See note to section 601 of this title.

§ 608c. Orders regulating handling of commodity—(1) Issuance

by Secretary.

The Secretary of Agriculture shall, subject to the provisions of

this section, issue, and from time to time amend, orders applicable

to processors, associations of producers, and others engaged m the

handling of any agricultural commodity or product thereof specified in subsection (2) of this section. Such persons are referred
AGRICULTURAL MARKETING AGREEMENT ACT OF 1937 5

7 U. S. C. § 608c

to in sections 601-608, 608a, 608b, 608c, 608d-612, 613, 614-619, 620,

623, and 624 of this title as "handlers." Such orders shall regulate, in

the manner hereinafter in this section provided, only such handling of

such agricultural commodity, or productthereof, as is in the current of

interstate or foreign commerce, or which directly burdens, obstructs, or

affects, interstate or foreign commerce in such commodity or product

thereof.

(2) Commodities to which applicable.

Orders issued pursuant to this section shall be applicable only to the

following agricultural commodities and the products thereof (except

canned or frozen grapefruit, the products of naval stores, and the

products of honeybees), or to any regional, or market classification of

any such commodity or product: Milk, fruits (including filberts, almonds, pecans and walnuts but not including apples, other than apples

produced in the States of Washington, Oregon, and Idaho, and not

including fruits, other than olives and grapefruit, for canning or

freezing), tobacco, vegetables (not including vegetables, other than

asparagus, for canning or freezing), soybeans, hops, honeybees and

naval stores as included in the Naval Stores Act and standards established thereunder (including refined or partially refined oleoresin) :

Provided^ That no order issued pursuant to this section shall be effective as to any grapefruit for canning or freezing unless the Secretary

of Agriculture determines, in addition to other findings and determinations required by sections 601-608a, 608b, 608c, 608d-612, 613, 614-

619, 620, 623, and 624 of this title, thatthe issuance of such order is ap-,

proved or favored by the processors who, during a representative

period determined by the Secretary, have been engaged in canning

or freezing such commodity for market and have canned or frozen

for market more than 50 percentum of the total volume of such commodity canned or frozen for market during such representative

period.

(3) Notice and hearing.

Whenever the Secretary of Agriculture has reason to believe that

the issuance of an order will tend to effectuate the declared policy

of sections 601-608, 608a, 608b, 608c, 608d-612, 613, 614-619, 620,

623, and 624 of this title with respect to any commodity or product

thereof specified in subsection (2) of this section, he shall give due

notice of and an opportunity for a hearing upon a proposed order.

(4) Finding and issuance of order.

After such notice and opportunity for hearing, the Secretary of

Agriculture shall issue an order if he finds, and sets forth in such

order, upon the evidence introduced at such hearing (in addition

to such other findings as may be specifically required by this section)

that the issuance of such order and all of the terms and conditions

thereof will tend to effectuate the declared policy of sections 601-608,

608a, 608b, 608c, 608d-612, 613-619, 620, 623, and 624 of this title with

respect to such commodity.

428158 O -58
6 AGRICULTURAL MARKETING AGREEMENT ACT OF 1937

7 U. S. C. § 608c

(5) Milk and its products; terms and conditions of orders.

In the case of milk and its products, orders issued pursuant to this

section shall contain one or more of the following terms and conditions, and (except as provided in subsection (7) of this section) no

others:

(A) Classifying milk in accordance with the form m which or

the purpose for which it is used, and fixing, or providing a n^ethod

for fixing, minimum prices for each such use classification which all

handlers shall pay, and the time when payments shall be made,

for milk purchased from producers or associations of producers. Such

prices shall be uniform as to all handlers, subject only to adjustments

for (1) volume, market, and production differentials customarily

applied by the handlers subject to such order, (2) the grade or quality

of the milk purchased, and (3) the locations at which delivery of such

milk, or any use classification thereof, is made to such handlers.

(B) Providing:

(i) for the payment to all producers and associations of producers

delivering milk to the same handler of uniform prices for all milk

delivered by them : Provided, That, except in the case of orders covering milk products only, such provision is approved or favored by at

least three-fourths of the producers who, during a representative period determined by the Secretary of Agriculture, have been engaged m

the production for market of milk covered in such order or by producers who, during such representative period, have produced at least

three-fourths of the volume of such milk, produced for market during

such period ; the approval required hereunder shall be separate and

apart from any other approval or disapproval provided for by this

section; or

(ii) for the payment to all producers and associations of producers

delivering milk to all handlers of uniform prices for all milk so

delivered, irrespective of the uses made of such milk by the individual

handler to whom itis delivered ;

subject, in either case, only to adjustments for (a) volume, market,

and production differentials customarily applied by the handlers subject to such order, (b) the grade or quality of the milk delivered, (c)

the locations at which delivery of such milk is made, and (d) a further

adjustment, equitably to apportion the total value of the milk purchased by any handler, or by all handlers, among producers and

associations of producers, on the basis of their marketings of milk during a representative period of time.

(C) In order to accomplish the purposes set forth in paragraphs

(A) and (B) of this subsection, providing a method for making

adjustments in payments, as among handlers (including producers

who are also handlers), to the end that the total sums paid by each

handler shall equal the value of the milk purchased by him at the

prices fixed in accordance with paragraph (A) of this subsection.

(D) Providing that, in the case of all milk purchased by handlers

from any producer who did not regularly sell milk during a period of

30 days next preceding the effective date of such order for consumption

in the area covered thereby, payments to such producer, for the period

beginning with the first regular delivery by such producer and continuing until the end of two full calendar months following the first day of
AGRICULTURAL MARKETING AGREEMENT ACT OF 1937 7

7 U. S. C. § 608c

the next succeeding calendar month, shall be made at the price for the

lowest use classification specified in such order, subject to the adjustments specified in paragraph (B) of this subsection.

(E) Providing (i) except as to producers for whom such services

are being rendered by a cooperative marketing association, qualified

as provided in paragraph (F) of this subsection, for market information to producers and for the verification of weights, sampling, and

testing of milk purchased from producers, and for making appropriate

deductions therefor from payments to producers, and (ii) for assurance of, and security for, the payment by handlers for milk purchased.

(F) Nothing contained in this subsection is intended or shall be

construed to prevent a cooperative marketing association qualified

under the provisions of sections 291 and 292 of this title, engaged in

making collective sales or marketing of milk or its products for the

producers thereof, from blending the net proceeds of all of its sales

in all markets in all use classifications, and making distribution thereof

to its producers in accordance with the contract between the association

and it producers : Provided^ That it shall not sell milk or its products

to any handler for use or consumption in any market at prices less than

the prices fixed pursuant to paragraph (A) of this subsection for such

milk.

(G) No marketing agreement or order applicable to milk and its

products in any marketing area shall prohibit or in any manner limit,

in the case of the products of milk, the marketing in that area of any

milk or product thereof produced in any production area in the United

States.

(6) Other commodities; terms and conditions of orders.

In the case of the agricultural commodities and the products thereof,

other than milk and its products, specified in subsection (2) of this

section orders issued pursuant to this section shall contain one or more

of the following terms and conditions, and (except as provided in subsection (7) of this section), no others:

(A) Limiting, or providing methods for the limitation of, the total

quantity of any such commodity or product, or of any grade, size, or

quality thereof, produced during any specified period or periods,

which may be marketed in or transported to any or all markets in the

current of interstate or foreign commerce or so as directly to burden,

obstruct, or affect interstate or foreign commerce in such commodity or

product thereof, during any specified period or periods by all handlers

thereof.

(B) Allotting, or providing methods for allotting, the amount

of such commodity or product, or any grade, size, or quality thereof,

which each handler may purchase from or handle on behalf of any

and all producers thereof, during any specified period or periods,

under a uniform rule based upon the amounts sold by such producers

in such prior period as the Secretary determines to be representative,

or upon the current quantities available for sale by such producers, or

both, to the end that the total quantity thereof to be purchased, or

handled during any specified period or periods shall be apportioned

equitably among producers.

(C) Allotting, or providing methods for allotting, the amount

of any such commodity or product, or any grade, size, or quality
8 AGRICULTURAL MARKETING AGREEMENT ACT OF 1937

7 U. S. C. § 608c

thereof, which each handler may market in or transport to any or

all markets in the current of interstate or foreign commerce or so as

directly to burden, obstruct, or affect interstate or foreign commerce

in such commodity or product thereof, under a uniform rule based

upon the amounts which each such handler has available for current

shipment, or upon the amounts shipped by each such handler in such

prior period as the Secretary determines to be representative, or both,

to the end that the total quantity of such commodity or product, or

any grade, size, or quality thereof, to be marketed in or transported

to any or all markets in the current of interstate or foreign commerce

or so as directly to burden, obstruct, or affect interstate or foreign

commerce in such commodity or product thereof, during any specified period or periods shall be equitably apportioned among all of the

handlers thereof.

(D) Determining, or providing methods for determining, the existence and extent of the surplus of any such commodity or product,

or of any grade, size, or quality thereof, and providing for the control

and disposition of such surplus, and for equalizing the burden of such

surplus elimination or control among the producers and handlers

thereof.

(E) Establishing or providing for the establishment of reserve

pools of any such commodity or product, or of any grade, size, or

quality thereof, and providing for the equitable distribution of the

net return derived from the sale thereof among the persons beneficially

interested therein.

(F) Eequiring or providing for the requirement of inspection of

any such commodity or product produced during specified periods

and marketed by handlers.

(G) In the case of hops and their products, in addition to, or in

lieu of, the foregoing terms and conditions, orders may contain one or

more of the following:

(i) Limiting, or providing methods for the limitation of, the total

quantity thereof, or of any grade, type, or variety thereof, produced

during any specified period or periods, which all handlers may handle

in the current of or so as directly to burden, obstruct, or affect interstate or foreign commerce in hops or any product thereof.

(ii) Apportioning, or providing methods for apportioning, the total

quantity of hops of the production of the then current calendar year

permitted to be handled equitably among all producers in the production area to which the order applies upon the basis of one or more or

a combination of the following: The total quantity of hops available

or estimated will become available for market by each producer from

his production during such period ; the normal production of the acreage of hops operated by each producer during such period upon the

basis of the number of acres of hops in production, and average yield

of that acreage during such period as the Secretary determines to be

representative, with adjustments determined by the Secretary to be

proper for age of plantings or abnormal conditions affecting yield;

such normal production or historical record of any acreage for which

data as to yield of hops are not available or which had no yield during such period shall be determined by the Secretary on the basis

of the yields of other acreage of hops of similar characteristics as to

productivity, subject to adjustment as just provided for.
AGRICULTURAL MARKETING AGREEMENT ACT OF 1937 9

7 U. S. C. § 608c

(iii) Allotting, or providing methods for allotting, the quantity

of hops which any handler may handle so that the allotment fixed for

that handler shall be limited to the quantity of hops apportioned under

preceding section (ii) to each respective producer of hops; such allotment shall constitute an allotment fixed for that handler within the

meaning of subsection (5) of section 608c of this title.

(H) Providing a method for fixing the size, capacity, weight, dimensions, or pack of the container, or containers, which may be used

in the packaging, transportation, sale, shipment, or handling of any

fresh or dried fruits, vegetables, or tree nuts : Provided, hoio^ver^ That

no action taken hereunder shall conflict with the Standard Containers

Act of 1916 and the Standard Containers Act of 1928 ;

(I) Establishing or providing for the establishment of marketing

research and development projects designed to assist, improve, or

promote the marketing, distribution, and consumption of any such

commodity or product, the expense of such projects to be paid from

funds collected pursuant to the marketing order.

(7) Terms common to all orders.

In the case of the agricultural commodities and the products thereof

specified in subsection (2) of this section orders shall contain one or

more of the following terms and conditions :

(A) Prohibiting unfair methods of competition and unfair trade

practices in the handling thereof.

(B) Providing that (except for milk and cream to be sold for consumption in fluid form) such commodity or product thereof, or any

grade, size, or quality thereof shall be sold by the handlers thereof

only at prices filed by such handlers in the manner provided in such

order.

(C) Providing for the selection by the Secretary of Agriculture,

or a method for the selection, of an agency or agencies and defining

their powers and duties, which shall include only the powers:

(i) To administer such order in accordance with its terms and provisions ;

(ii) To make rules and regulations to effectuate the terms and provisions of such order ;

(iii) To receive, investigate, and report to the Secretary of Agriculture complaints of violations of such order ; and

(iv) To recommend to the Secretary of Agriculture amendments to

such order.

No person acting as a member of an agency established pursuant

to this paragraph shall be deemed to be acting in an official capacity,

within the meaning of section 610 (g) of this title, unless such person

receives compensation for his personal services from funds of the

United States. There shall be included in the membership of any

agency selected to administer a marketing order applicable to grapefruit for canning or freezing one or more representatives of processors

of the commodity specified in such order.

(D) Incidental to, and not inconsistent with, the terms and conditions specified in subsections (5)-(7) of this section and necessary to

effectuate the other provisions of such order.
10 AGRICULTURAL MARKETING AGREEMENT ACT OF 1937

7 U. S. C. § 608c

(8) Orders with marketing agreement.

Except as provided in subsection (9) of this section, no order issued

pursuant to this section shall become effective until the handlers (excluding cooperative associations of producers who are not engaged in

processing, distributing, or shipping the commodity or product thereof

covered by such order) of not less than 50 per centum of the volunie

of the commodity or product thereof covered by such order which is

produced or marketed within the production or marketing area defined in such order have signed a marketing agreement, entered into

pursuant to section 608b of this title, which regulates the handling of

such commodity or product in the same manner as such order, except

that as to citrus fruits produced in any area producing what is known

as California citrus fruits no order issued pursuant to this subsection

shall become effective until the handlers of not less than 80 per centum

of the volume of such commodity or product thereof covered by such

order have signed such a marketing agreement : Provided^ That no

order issued pursuant to this subsection shall be effective unless the

Secretary of Agriculture determines that the issuance of such order

is approved or favored :

(A) By at least two-thirds of the producers who (except that as

to citrus fruits produced in any area producing what is known as

California citrus fruits said order must be approved or favored by

three-fourths of the producers), during a representative period determined by the Secretary, have been engaged, within the production

area specified in such marketing agreement or order, in the production

for market of the commodity ^specified therein, or who, during such

representative period, have been engaged in the production of such

commodity for sale in the marketing area specified in such marketing

agreement, or order, or . i i

(B) By producers who, during such representative period, have

produced for market at least two-thirds of the volume of such commodity produced for market within the production area specified m

such marketing agreement or order, or who, during such representative period, have produced at least two-thirds of the volume of such

commodity sold within the marketing area specified in such marketing

agreement or order.

(9) Orders with or without marketing agreement.

Any order issued pursuant to this section shall become effective

in the event that, notwithstanding the refusal or failure of handlers

(excluding cooperative associations of producers who are not engaged

in processing, distributing, or shipping the commodity or product

thereof covered by such order) of more than 50 per centum of the

volume of the commodity or product thereof (except that as to citrus

fruits produced in any area producing what is known as California

citrus fruits said per centum shall be 80 per centum) covered by such

order which is produced or marketed within the production or marketing area defined in such order to sign a marketing agreement relating to such commodity or product thereof, on which a hearing has

been held, the Secretary of Agriculture determines;

(A) That the refusai or failure to sign a marketing agreement

(upon which a hearing has been held) by the handlers (excluding
AGRICULTURAL MARKETING AGREEMENT ACT OF 1937 11

7 U. S. C. § 608c

cooperative associations of producers who are not engaged in processing, distributing, or shipping the commodity or product thereof

covered by such order) of more than 50 per centum of the volume of

the commodity or product thereof (except that as to citrus fruits

produced in any area producing what is known as California citrus

fruits said per centum shall be 80 per centum) specified therein which

is produced or marketed within the production or marketing area

specified therein tends to prevent the effectuation of the declared

policy of sections 601-608, 608a, 608b, 608c, 608d-612, 613, 614-619,

620, 623, and 624 of this title with respect to such commodity or product, and

(B) That the issuance of such order is the only practical means of

advancing the interests of the producers of such commodity pursuant

to the declared policy, and is approved or favored :

(i) By at least two-thirds of the producers (except that as to citrus

fruits produced in any area producing what is known as California

citrus fruits said order must be approved or favored by three-fourths

of the producers) who, during a representative period determined by

the Secretary, have been engaged, within the production area specified

in such marketing agreement or order, in the production for market

of the commodity specified therein, or who, during such representative period, have been engaged in the production of such commodity

for sale in the marketing area specified in such marketing agreement,

or order, or

(ii) By producers who, during such representative period, have

produced for market at least two-thirds of the volume of such commodity produced for market within the production area specified in

such marketing agreement or order, or who, during such representative period, have produced at least two-thirds of the volume of such

commodity sold within the marketing area specified in such marketing

agreement or order.

(10) Manner of regulation and applicability.

No order shall be issued under this section unless it regulates the

handling of the commodity or product covered thereby in the same

manner as, and is made applicable only to persons in the respective

classes of industrial or commercial activity specified in, a marketing

agreement upon which a hearing has been held. No order shall be

issued under sections 601-608, 608a, 608b, 608c, 608d-612, 613, 614-

619,620,623, and 624 of this title prohibiting, regulating, or restricting

the advertising of any commodity or product covered thereby, nor

shall any marketing agreement contain any provision prohibiting,

regulating, or restricting the advertising of any commodity or product

covered by such marketing agreement.

(11) Regional application.

(A) No order shall be issued under this section which is applicable to all production areas or marketing areas, or both, of any

commodity or product thereof unless the Secretary finds that the

issuance of several orders applicable to the respective regional production areas or regional marketing areas, or both, as the case may be,

of the commodity or product would not effectively carry out the
12 AGRICULTURAL MARKETING AGREEMENT ACT OF 1937

7 U. S. C. § 608c

declared policy of sections 601-608, 608a, 608b, 608c, 608d-612, 613,

614-619, 620, 623, and 624 of this title.

(B) Except in the case of milk and its products, orders issued

under this section shall be limited in their application to the smallest

regional production areas or regional marketing areas, or both, as

the case may be, which the Secretary finds practicable, consistently

with carrying out such declared policy.

(C) All orders issued under this section which are applicable to

the same commodity or product thereof shall, so far as practicable,

prescribe such different terms, applicable to different production

areas and marketing areas, as the Secretary finds necessary to give

due recognition to the differences in production and marketing of

such commodity or product in such areas.

(12) Approval of cooperative association as approval of producers.

Whenever, pursuant to the provisions of this section, the Secretary

is required to determine the approval or disapproval of producers

with respect to the issuance of any order, or any term or condition

thereof, or the termination thereof, the Secretary shall consider the

approval or disapproval by any cooperative association of producers,

bona fide engaged in marketing the commodity or product thereof

covered by such order, or in rendering services for or advancing the

interests of the producers of such commodity, as the approval or

disapproval of the producers who are members of, stockholders in, or

under contract with, such cooperative association of producers.

(13) Retailer and producer exemption.

(A) No order issued under subsection (9) of this section shall be

applicable to any person who sells agricultural commodities or

products thereof at retail in his capacity as such retailer, except to a

retailer in his capacity as a retailer of milk and its products.

(B) No order issued under sections 601-608, 608a, 608b, 608c, 608d612, 613, 614-619, 620, 623, and 624 of this title shall be applicable to

any producer in his capacity as a producer.

(14) Violation of order ; penalty.

Any handler subject to an order issued under this section, or any

officer, director, agent, or employee of such handler, who violates any

provision of such order (other than a provision calling for payment

of a pro rata share of expenses) shall, on conviction, be fined not less

than $50 or more than $500 for each such violation, and each day during which such violation continues shall be deemed a separate violation: Provided, That if the court finds that a petition pursuant to

subsection (15) of this section was filed and prosecuted by the defendant in good faith and not for delay, no penalty shall be imposed

under this subsection for such violations as occurred between the date

upon which the defendant's petition was filed with the Secretary, and

the date upon which notice of the Secretary's ruling thereon was given

to the defendant in accordance with regulations prescribed pursuant

to subsection (15) of this section.
AGRICULTURAL MARKETING AGREEMENT ACT OF 1937 13

7 U. S. C. § 608c

(15) Petition by handler for modification of order or exemption;

court review of ruling of Secretary.

(A) Any handler subject to an order may file a written petition

with the Secretary of Agriculture, stating that any such order or

any provision of any such order or any obligation imposed in connection therewith is not in accordance with law and praying for a

modification thereof or to be exempted therefrom. He shall thereupon be given an opportunity for a hearing upon such petition, in

accordance with regulations made by the Secretary of Agriculture,

with the approval of the President. After such hearing, the Secretary shall make a ruling upon the prayer of such petition which shall

be final^if in accordance with law.

(B) The District Courts of the United States in any district in

which such handler is an inhabitant, or has his principal place of business, are vested with jurisdiction in equity to review such ruling, provided a bill in equity for that purpose is filed within twenty days from

the date of the entry of such ruling. Service of process in such proceedings may be had upon the Secretary by delivering to him a copy

of the bill of- complaint. If the court determines that such ruling

is not in accordance with law, it shall remand such proceedings to the

Secretary with directions either (1) to make such ruling as the court

shall determine to be in accordance with law, or (2) to take such

further proceedings as, in its opinion, the law requires. The pendency

of proceedings instituted pursuant to this subsection shall not impede,

hinder, or delay the United States or the Secretary of Agriculture

from obtaining relief pursuant to section 608a (6) of this title. Any

proceedings brought pursuant to section 608a (6) of this title (except

wiiere brought by way of counterclaim in proceedings instituted pursuant to this subsection) shall abate whenever a final decree has been

rendered in proceedings between the same parties, and covering the

same subject matter, instituted pursuant to this subsection.

(16) Termination of orders and marketing agreements.

(A) The Secretary of Agriculture shall, whenever he finds that

any order issued under this section, or any provision thereof, obstructs

or does not tend to effectuate the declared policy of sections 601-608,

608a, 608b, 608c, 608d-612, 613, 614-619, 620, 623, and 624 of this title,

terminate or suspend the operation of such order or such provision

thereof.

(B) The Secretary shall terminate any marketing agreement entered into under section 608b of this title, or order issued under this

section, at the end of the then current marketing period for such commodity, specified in such marketing agreement or order, whenever

he finds that such termination is favored by a majority of the producers who, during a representative period determined by the Secretary,

have been engaged in the production for market of the commodity

specified in such marketing agreement or order, within the production

area specified in such marketing agreement or order, or who, during

such representative period, have been engaged in the production of

such commodity for sale within the marketing area specified in such
14 AGRICULTURAL MARKETING AGREEMENT ACT OF 1937

7 U. S. C. § 608c

marketing agreement or order: Provided^ That such majority have,

during such representative period, produced for market more than

50 per centum of the volume of such commodity produced for market

within the production area specified in such marketing agreement or

order, or have, during such representative period, produced more than

50 per centum of the volume of such commodity sold in the marketing

area specified in such marketing agreement or order, but such termination shall be effective only if announced on or before such date

(prior to the end of the then current marketing period) as may be

specified in such marketing agreement or order.

(C) The termination or suspension of any order or amendment

thereto or provision thereof, shall not be considered an order within

the meaning of this section.

(17) Provisions applicable to amendments.

The provisions of this section and section 608d of this title applicable to orders shall be applicable to amendments to orders : Provided^

That notice of a hearing upon a proposed amendment to any order

issued pursuant to this section, given not less than three days prior

to the date fixed for such hearing, shall be deemed due notice thereof.

(18) Milk prices.

The Secretary of Agriculture, prior to prescribing any term in

any marketing agreement or order, or amendment thereto, relating

to milk or its products, if such term is to fix minimum prices to be

paid to producers or associations of producers, or prior to modifying the price fixed in any such term, shall ascertain the parity

prices of such commodities. The prices which it is declared to be

the policy of Congress to establish in section 602 of this title shall,

for the purpose of such agreement, order, or amendment, be adjusted

to reñect the price of feeds, the available supplies of feeds and other

economic conditions which affect market supply and demand for

milk or its products in the marketing area to which the contemplated

marketing agreement, order, or amendment relates. Whenever the

Secretary finds, upon the basis of the evidence adduced at the hearing

required by section 608b of this title or this section, as the case may be,

that the parity prices of such commodities are not reasonable in view

of the price of feeds, the available supplies of feeds, and other economic

conditions which affect market supply and demand for milk and its

products in the marketing area to which the contemplated agreement,

order, or amendment relates, he shall fix such prices as he finds will

reflect such factors, insure a sufficient quantity of pure and wholesome

milk, and be in the public interest. Thereafter, as the Secretary finds

necessary on account of changed circumstances, he shall, after due

notice and opportunity for hearing, make adjustments in such prices.

(19) Producer referendum for approving order.

For the purpose of ascertaining whether the issuance of an order

is approved or favored by producers, as required under the applicable

provisions of sections 601-608, 608a, 608b, 608c, 608d-612, 613, 614-

619, 620, 623, and 624 of this title, the Secretary may conduct a referendum among producers. The requirements of approval or favor
AGRICULTURAL MARKETING AGREEMENT ACT OF 1937 15

7 U. S. C. § 608c

under any such provision shall be held to be complied with if, of the

total number of producers, or the total volume of production, asthe case

may be, represented in such referendum, the percentage approving

or favoring is equal to or in excess of the percentage required under

such provision. Nothing in this subsection shall be construed as

limiting representation by cooperative associations as provided in

subsection (12) of this section. (May 12, 1933, ch. 25, title I, § 8c,

as added Aug. 24, 1935, ch. 641, § 5, 49 Stat. 753, and amended June

25,1936, ch. 804, 49 Stat. 1921; June 3, 1937, ch. 296, §§ 1, 2 (d), (e),

(f), (k), (1), (m), 50 Stat. 246, 247; Aug. 5, 1937, ch. 567, 50 Stat.

563; Apr. 13, 1938, ch. 143, §§ 1, 2, 52 Stat. 215; May 31, 1939, ch.

157, 53 Stat. 793; Feb. 10, 1942, ch. 52, §§2, 3, 56 Stat. 85; Aug. 1,

1947, ch. 425, §§ 2, 4, 61 Stat. 707, 710; 1947 Keorg. Plan No. 1, § 102,

eff. July 1,1947,12 F. E. 4534, 61 Stat. 951 ; July 3,1948, ch. 827, title

III, § 302 (b, c), 62 Stat. 1258; June 29, 1949, ch. 273, 63 Stat. 282;

Aug. 28,1954, ch. 1041, Title IV, § 401 (b)-(d), 68 Stat. 907.)

REFERENCES IN TEXT

The Naval Stores Act, referred to in the text of subsec. (2), is classified

to chapter 4 of this title.

The Standard Containers Act of 1916 and the Standard Containers Act of

1928, referred to in the text of subsec. (6) (H) are classified to sections 251-

256 and 257-257Í, respectively, of Title 15, Commerce and Trade.

AMENDMENTS

1954—Subsec. (2) amended by act Aug. 28, 1954, §401 (b), to make grapefruit for canning and freezing (but not the canned or frozen product) subject

to its provisions, and to add proviso.

Subsec. (6) amended by act Aug. 28, 1954, § 401 (c), to bring within its scope

all agricultural commodities specified in subsec. (2) of this section, and to

add pars. (H) and (I).

Subsec. (7) (C) amended by act Aug. 28, 1954, §401 (d), to provide for the

appointment of representations from the grapefruit for canning processors.

1949—Subsecs. (2) and (6) amended by act June 29, 1949, to make section applicable to filberts and almonds.

1948-_Subsec. (17) amended by act July 3, 1948, § 302 (c), to strike out section

608e of this title" which has been repealed.

Subsec. (18) amended by act July 3, 1948, § 302 (b), to make the definition of

"parity" conform to the definition stated in section 1301 (a) (1) of this title.

1947—Subsec. (2) amended by act Aug. 1, 1947, which inserted "or freezing"

after "canning" in two places.

Subsec. (6) amended by act Aug. 1, 1947, which, in opening par., inserted "or

freezing" after "canning" in two places, reenacted pars. (A) (E) without change,

inserted par. (F), redesignated former par. (F) as "(G)" and reenacted such

par. without further change.

1942—Subsec. (6), opening par., amended by act Feb. 10, 1942, §2, which inserted "and their products" immediately after "hops".

Subsec. (6) (F) added by act Feb. 10,1942, § 3.

1939—Act May 31, 1939, amended Act June 3, 1937, § 2, by adding subsection

(m) thereto, which in turn amended paragraphs 2 and 6 of this section.

1938—Subsec. (2) amended by act Apr. 13, 1938, §1, to insert **hops" after

"soybeans".

Subsec. (6) amended by act Apr. 13, 1938, § 2, to insert "hops" after "soybeans

and their products".

1937—Subsec. (2) amended by act Aug. 5, 1937, by adding thereto subsec. (k),

which in turn amended subsec. (2) by inserting after "except the products of

naval stores" the words "and the products of honeybees" and after "soybeans"

the word, "honeybees".

Subsec. (5) (B) (d) amended by act June 3, 1937, §2 (d), by striking out

"production" and inserting in lieu thereof "marketings".
16 AGRICULTURAL MARKETING AGREEMENT ACT OF 1937

7 U. S. C. §§ 608c, 608d

Subsec. (6) amended by act Aug. 5, 1937, by adding subset. (1), which in turn

amended subsec. (6) by inserting after "soybeans; and their products", the word

"honeybees".

Subsec. (6) (B) amended by act June 3, 1937, §2 (e), by striking out "produced or" and "production or sales of" and inserting in lieu thereof "quantities

available for sale by".

Subsec. (18) and (19) added by act June 3, 1937, §2 (f). See note set out

under section 601 of this title.

1936—Act June 25, 1936, provided that the Supreme Court of the District of

Columbia should thereafter be known as the "district court of the United States

for the District of Columbia."

1935—Section added to the Agricultural Adjustment Act by act Aug. 24, 1935,

which also struck out former section 608 (3) of this title.

EFFECTIVE DATE OF 1948 AMENDMENT

Amendment of section by act July 3, 1948, effective as of Jan. 1, 1950, see note

set out under section 1301 of this title.

VALIDITY OF SECTION AFFIRMED

Act June 3, 1937, cited to text, affirmed and validated, and reenacted without

change the provisions of this section, except for the amendments to subsections

(5) (B) (d) and (6) (B) by section 2 of the act, and the addition of subsections

(18) and (19) by said section 2. See note to section 601 of this title.

PRESIDENTIAL APPROVAL ABOLISHED

Phrase ", with the approval of the President," following "Secretary of Agriculture" in opening par. of subsec. (9) of this section was omitted on the

authority of 1947 Reorg. Plan. No. 1, and set out in note to section 133y-16 of

Title 5, Executive Departments and Government Officers and Employees which

abolished the function of the President with respect to approving determinations of the Secretary of Agriculture in connection with agricultural marketing

orders under this section.

§608d. Books and records; disclosure of information.

(1) All parties to any marketing agreement, and all handlers subject to an order, shall severally, from time to time, upon the request of

the Secretary, furnish him with such information as he finds to be

necessary to enable him to ascertain and determine the extent to which

such agreement or order has been carried out or has effectuated the

declared policy of sections 601-608,608a, 608b, 608c, 608d-612,613,614-

619, 620, 623, and 624 of this title, and with such information as he

finds to be necessary to determine whether or not there has been any

abuse of the privilege of exemptions from the antitrust laws. Such

information shall be furnished in accordance with forms of reports

to be prescribed by the Secretary. For the purpose of ascertaining the

correctness of any report made to the Secretary pursuant to this subsection, or for the purpose of obtaining the information required in

any such report, where it has been requested and has not been furnished, the Secretary is authorized to examine such books, papers,

records, copies of income-tax reports, accounts, correspondence, contracts, documents, or memoranda, as he deems relevant and which are

within the control (1) of any such party to such marketing agreement, or any such handler, from whom such report was requested

or (2) of any person having, either directly or indirectly, actual or

legal control of or over such party or such handler or (3) of any subsidiary of any such party, handler, or person.

(2) Notwithstanding the provisions of section 607 of this title, all

information furnished to or acquired by the Secretary of Agriculture
AGRICULTURAL MARKETING AGREEMENT ACT OF 1937 17

7 U. S. C. §§ 608d, 608e, 608e-l

pursuant to this section shall be kept confidential by all officers and

employees of the Department of Agriculture and only such mformation so furnished or acquired as the Secretary deems relevant shall be

disclosed by them, and then only in a suit or administrative hearing

brought at the direction, or upon the request, of the Secretary of Agriculture, or to which he or any officer of the United States is a party,

and involving the marketing agreement or order with reference to

which the information so to be disclosed was furnished or acquired.

Nothing in this section shall be deemed to prohibit (A) the issuance of

general statements based upon the reports of a number of parties to

a marketing agreement or of handlers subject to an order, which

statements do not identify the information furnished by any person,

or (B) the publication by direction of the Secretary, of the name ot

any person violating any marketing agreement or any order, together

with a statement of the particular provisions of the marketing agreement or order violated by such person. Any such officer or employee

violating the provisions of this section shall upon conviction be subject

to a fine of not more than $1,000 or to imprisonment for not more than

one year, or to both, and shall be removed from office. (May 12, 1933,

ch. 25, title I, § 8d, as added Aug. 24, 1935, ch. 641, § 6, 49 Stat. 761,

and amended June 3,1937, ch. 296, § 1,50 Stat. 246.)

CODIFICATION

Act of Aug. 24, 1935, struck out provisions of section 8 (4) of act May 12, 1933,

cited to text, formerly appearing in section 608 (4) of this title and added a new

section 8d containing provisions now appearing in text.

VALIDITY OF SECTION AFFIRMED

Act June 3, 1937, affirmed and validated, and reenacted without change the

provisions of this section. See note to section 601 of this title.

§ 608e. Repealed* July 3, 1948, ch. 827, title III, § 302 (d), 62

Stat. 1258.

Repeal effective as of Jan. 1, 1950, see note set out under section 1301 of this

title.

§ 608e~l. Import prohibitions on tomatoes, avocados, limes, etc.,

rules and regulations.

Notwithstanding any other provision of law, whenever a marketing

order issued by the Secretary of Agriculture pursuant to section 608c

of this title contains any terms or conditions regulating the grade, size,

quality, or maturity of tomatoes, avocados, mangoes, limes, grapefruit,

green peppers, Irish potatoes, cucumbers, or eggplants produced in

the United States the importation into the United States of any such

commodity during the period of time such order is in effect shall be

prohibited unless it complies with the grade, size, quality, and maturity provisions of such order or comparable restrictions promulgated hereunder : Provided^ That this prohibition shall not apply to

such commodities when shipped into continental United States from

the Commonwealth of Puerto Rico or any Territory or possession of

the United States where sections 601-608a, 608b, 608c, 608d-612,

613, 614-619, 620, 623, and 624 of this title have force and effect:

Provided further^ That whenever two or more such marketing orders

regulating the same agricultural commodity produced in different
18 AGRICULTURAL MARKETING AGREEMENT ACT OF 1937

7 U. S. C. §§ 608e-l, 610

areas of the United States are concurrently in effect, the importation

into the United States of any such commodity shall be prohibited unless it complies with the grade, size, quality, and maturity provisions

of the order which, as determined by the Secretary of Agriculture,

regulates the commodity produced in the area with which the imported

commodity is in most direct competition. Such prohibition shall not

become effective until after the giving of such notice as the Secretary

of Agriculture determines reasonable, which shall not be less than three

days. In determining the amount of notice that is reasonable in the

case of tomatoes the Secretary of Agriculture shall give due consideration to the time required for their transportation and entry into the

United States after picking. Whenever the Secretary of Agriculture

finds that the application of the restrictions under a marketing order

to an imported commodity is not practicable because of variations in

characteristics between the domestic and imported commodity he shall

establish with respect to the imported commodity such grade, size,

qiiality, and maturity restrictions by varieties, types, or other classifications as he finds will be equivalent or comparable to those imposed

upon the domestic commodity under such order. The Secretary of

Agriculture may promulgate such rules and regulations as he deems

necessary, to carry out the provisions of this section. Any person who

violates any provision of this section or of any rule, regulation, or order

promulgated hereunder shall be subject to a forfeiture in the amount

prescribed in section 608a (5) of this title or, upon conviction, a

penalty in the amount prescribed in section 608c (14) of this title, or

to both such forfeiture and penalty. (May 12, 1933, ch. 25, title I,

§ 8e, as added Aug. 28, 1954, ch. 1041, title IV, § 401 (e), 68 Stat. 907,

and amended Aug. 31,1954, ch. 1172, § 3 (a), 68 Stat. 1047.)

AMENDMENTS

1954—Act Aug. 31, 1954, amended section to make it applicable to mangoes.

EFFECTIVE DATE OF 1954 AMENDMENT

Section 3 (b) of act Aug. 31, 1954, provided that the amendment of this

section should become effective Aug. 31, 1954.

§ 610, Administration (a) Appointment of officers and employees;

exemption from civil service regulations; salaries; impounding appropriations.

The Secretary of Agriculture may appoint such officers and

employees, subject to the provisions of the Classification Act of

1949, and such experts, as are necessary to execute the functions

vested in him by sections 601-608, 608a, 608b, 608c, 608d-612, 613,

614-619, 620, 623, and 624 of this title ; and the Secretary may make

such appointments without regard to the civil service laws or regulations: Provided^ That no salary in excess of $10,000 per annum

shall be paid to any officer, employee, or expert of the Agricultural

Adjustment Administration, which the Secretary shall establish in

the Department of Agriculture for the administration of the functions vested in him by said sections : And provided further^ That the

State Administrator appointed to administer said sections in each

State shall be appointed by the President, by and with the advice

and consent of the Senate. Section 8 of Title II of the Act entitled
AGRICULTURAL MARKETING AGREEMENT ACT OF 1937 19

7 U. S. C, § 610

''An Act to maintain the credit of the United States Government,"

approved March 20, 1933, to the extent that it provides for the impoundment of appropriations on account of reductions in compensation, shall not operate to require such impoundment under appropriations contained in sections 601-608, 608a, 608b, 608c, 608d-612, 613,

614-619, 620, 623, and 624 of this title.

(b) State and local committees or associations of producers; handlers'' share of expenses of authority or agency,

(1) The Secretary of Agriculture is authorized to establish, for the

more eifective administration of the functions vested in him by sections

601-608, 608a, 608b, 608c, 608d-612, 613, 614-619, 620, 623, and 624 of

this title. State and local committees, or associations of producers, and

to permit cooperative associations of producers, when in his judgment

they are qualified to do so, to act as agents of their members and patrons

in connection with the distribution of payments authorized to be made

under section 608 of this title. The Secretary, in the administration

of said sections, shall accord such recognition and encouragement to

producer-owned and producer-controlled cooperative associations as

will be in harmony with the policy toward cooperative associations set

forth in existing Acts of Congress, and as will tend to promote efficient

methods of marketing and distribution.

(2) (i) Each order relating to milk and its products issued by the

Secretary under sections 601-608, 608a, 608b, 608c,, 608d-612, 613-619,

620, 623, and 624 of this title shall provide that each handler subject

thereto shall pay to any authority or agency established under such

order such handler's pro rata share (as approved by the Secretary) of

such expenses as the Secretary may find will necessarily be incurred

by such authority or agency, during any period specified by him, for

the maintenance and functioning of such authority or agency, other

than expenses incurred in receiving, handling, holding, or disposing

of any quantity of milk or products thereof received, handled, held, or

disposed of by such authority or agency for the benefit or account

of persons other than handlers subject to such order. The pro rata

share of the expenses payable by a cooperative association of producers

shall be computed on the basis of the quantity of milk or product

thereof covered by such order which is distributed, processed, or

shipped by such cooperative association of producers.

(ii) Each order relating to any other commodity or product issued

by the Secretary under sections 601-608, 608a, 608b, 608c, 608d-612,

613-619, 620, 623, and 624 of this title shall provide that each handler

subject thereto shall pay to any authority or agency established under

such order such handler's pro rata share (as approved by the Secretary) of such expenses as the Secretary may find are reasonable and

are likely to be incurred by such authority or agency, during any period

specified by him, for such purposes as the Secretary may, pursuant to

such order, determine to be appropriate, and for the maintenance and

functioning of such authority or agency, other than expenses incurred

m receiving, handling, holding, or disposing of any quantity of a

commodity received, handled, held, or disposed of by such authority or

agency for the benefit or account of persons other than handlers subject

to such order. The pro rata share of the expenses payable by a cooperative association of producers shall be computed on the basis
20 AGRICULTURAL MARKETING AGREEMENT ACT OF 1937

7 U. S. C. § 610

of the quantity of the agricultural commodity or product thereof

covered by such order which is distributed, processed, or shipped by

such cooperative association of producers. The payment of assessments for the maintenance and functioning of such authority or agency,

as provided for herein, may be required under a marketing agreement

or marketing order throughout the period the marketing agreement

or order is in effect and irrespective of whether particular provisions

thereof are suspended or become inoperative.

(iii) Any authority or agency established under an order may

maintain in its own name, or in the name of its members, a suit

against any handler subject to an order for the collection of such

handler's pro rata share of expenses. The several district courts of

the United States are hereby vested with jurisdiction to entertain such

suits regardless of the amount in controversy.

(c) Regulations; penalty for violation.

The Secretary of Agriculture is authorized, with the approval of the

President, to make such regulations with the force and effect of law

as may be necessary to carry out the powers vested in him by sections

601-608, 608a, 608b, 608c, 608d-612, 613, 614-619, 620, 623, and 624 of

this title. Any violation of any regulation shall be subject to such

penalty, not in excess of $100, as may be provided therein.

(f) Geographical application.

The provisions of section 601-608, 608a, 608b, 608c, 608d-612, 613,

614-619,620, 623, and 624 of this title shall be applicable to the United

States and its possessions, except the Virgin Islands, American Samoa,

the Canal Zone, and the island of Guam; except that, in the case of

sugar beets and sugarcane, the President, if he finds it necessary in

order to effectuate the declared policy of said sections, is authorized

by proclamation to make the provisions of said sections applicable to

the Virgin Islands, American Samoa, the Canal Zone, and/or the

island of Guam.

(g) Officers; dealing or speculating in agricultural products;

penalties.

No person shall, while acting in any official capacity in the administration of sections 601-608, 608a, 608b, 608c, 608d-612, 613, 614-619,

620, 623, and 624 of this title, speculate, directly or indirectly, in any

agricultural commodity or product thereof, to which said sections

apply, or in contracts relating thereto, or in the stock or membership

interests of any association or corporation engaged in handling, processing, or disposing of any such commodity or product. Any person violating this subsection shall upon conviction thereof be fined

not more than $10,000 or imprisoned not more than two years, or both.

(h) Adoption of Federal Trade Commission Act ; hearings; report

of violations to Attorney General.

For the efficient administration of the provisions of sections 608,

608a, 608b, 608c, 608d-612, 613, 614-619, 620, 623, and 624 of this title,

the provisions, including penalties, of sections 48, 49, and 50 of Title
AGRICULTURAL MARKETING AGREEMENT ACT OF 1937 21

7 U. S. C. § 610

15, are made applicable to the jurisdiction, powers, and duties of

the Secretary in administering the provisions of said sections and to

any person subject to the provisions of said sections, whether or not

a corporation. Hearings authorized or required under said sections

shall be conducted by the Secretary of Agriculture or such officer or

employee of the Department as he may designate for the purpose.

The Secretary may report any violation of any agreement entered into

under said sections to the Attorney General of the United States, who

shall cause appropriate proceedings to enforce such agreement to be

commenced and prosecuted in the proper courts of the United States

without delay.

(i) Cooperation with State authorities; imparting information.

The Secretary of Agriculture upon the request of the duly constituted authorities of any State is directed, in order to effectuate the declared policy of sections 601-608, 608a, 608b, 608c, 608d-612, 613, 614-

619, 620, 623, and 624 of this title and in order to obtain uniformity

in the formulation, administration, and enforcement of Federal and

State programs relating to the regulation of the handling of agricultural commodities or products thereof, to confer with and hold

joint hearings with the duly constituted authorities of any State, and

is authorized to cooperate with such authorities ; to accept and utilize,

with the consent of the State, such State and local officers and eniployees as may be necessary ; to avail himself of the records and facilities of such authorities; to issue orders (subject to the provisions of

section 608c of this title) complementary to orders or other regulations issued by such authorities ; and to make available to such State

authorities the records and facilities of the Department of Agriculture : Provided^ That information furnished to the Secretary of Agriculture pursuant to section 608d (1) of this title shall be made ayail^

able only to the extent that such information is relevant to transactions

within the regulatory jurisdiction of such authorities, and then only

upon a written agreement by such authorities that the inforniation

so furnished shall be kept confidential by them in a manner similar

to that required of Federal officers and employees under the provisions

of section 608d (2) of this title.

(j) Definitions.

The term "interstate or foreign commerce" means commerce between

any State, Territory, or possession, or the District of Columbia, and

any place outside thereof ; or between points within the same State,

Territory, or possession, or the District of Columbia, but through any

place outside thereof; or within any Territory or possession, or the

District of Columbia. For the purpose of sections 601-608, 608a,

608b, 608c, 608d-612, 613, 614-619, 620, 623, and 624 of this title (but

in nowise limiting the foregoing definition) a marketing transaction

in respect to an agricultural commodity or the product thereof shall be

considered in interstate or foreign commerce if such commodity or

product is part of that current of interstate or foreign commerce usual

in the handling of the commodity or product whereby they, or either

of them, are sent from one State to end their transit, after purchase,
22 AGRICULTURAL MARKETING AGREEMENT ACT OF 1937

7 U. S. C. § 610

in another, including all cases where purchase or sale is either for

shipment to another State or for the processing within the State and

the shipment outside the State of the products so processed. Agricultural commodities or products thereof normally in such current

of interstate or foreign commerce shall not be considered out of such

current through resort being had to any means or device intended to

remove transactions in respect thereto from the provisions of said sections. As used herein the word "State" includes Territory, the District

of Columbia, possession of the Uinted States, and foreign nations.

(May 12, 1933, ch. 25, title I, § 10, 48 Stat. 37; June 16, 1933, ch. 98,

title VIII, § 86, 48 Stat. 273 ; May 9,1934 ,11: 23 a. m., ch. 263, § 7, 48

Stat. 675; Aug. 24,1935, ch. 641, §§ 16-18, 49 Stat. 767; Aug. 26,1935,

ch. 685, 49 Stat. 801 ; June 22, 1936, 9: 00 p. m., ch. 690, § 601 (a), 49

Stat. 1739; June 3, 1937, ch. 296, §§ 1, 2 (g-i), 50 Stat. 246, 248; 1946

Proc. No. 2695, eff. July 4, 1946, 11 F. R. 7817, 60 Stat. 1352; Aug. 1,

1947, ch. 425, §3, 61 Stat. 709; Oct. 28, 1949, ch. 782, title XI,

§1106 (a), 63 Stat. 972.)

REFERENCES IN TEXT

The Classification Act of 194^, referred to in text of subsection (a), is classified to chapter 21 of Title 5, Executive Departments and Grovernment Officers and

Employees.

CODIFICATION

References to the Philippine Islands in subsec. (f) of this section were omitted

as obsolete in view of the independence of the Philippine Islands, proclaimed by

the President of the United States in Proc. No. 2695, which is set out as a note

under section 1394 of Title 22, Foreign Relations and Intercourse.

AMENDMENTS

1949—Subsec. (a) amended by act Oct. 28, 1949, which substituted the "Classification Act of 1949" for the "Classification Act of 1923".

1947—Subsec. (b) (2), formerly comprising one paragraph, amended by act

Aug. 1,1947, which, among other changes, inserted subpar. (i), designated former

single par. of subsection as subpar. (ii) and added present final sentence thereto,

and designated former third and fourth sentences of subsec. as subpar. (iii).

1937—Subsec. (c) amended by striking out last clause of first sentence by act

June 3, 1937, §2 (g).

Subsec. (f) amended by act June 3, 1937, §2 (b), by striking out the last

sentence.

Subsec. (j) added by act June 3,1937, § 2 (i).

1936—Subsec. (d) reenacted for refund puriwses by act June 22, 1936. See

section 641 (a) of this title.

1935—Subsec. (b) amended by act Aug. 24, 1935, § 16, which, among other

changes, added "The Secretary, * * * amount in controversy" at the end of the

first sentence.

Subsec. (e) amended by act Aug. 24,1935, § 17, by striking out "rental or benefit payment" and inserting in lieu thereof "payment authorized to be made under

section 8."

Subsec. (i) added by act Aug. 24, 1935, § 18.

1934—Subsec. (f) amended by act Aug. 26,1935, which added the last sentence.

1933—Subsec. (a) amended by act June 16, 1933, which added '*And provided

further, * * and consent of the Senate" after the end of the first sentence.

VALIDITY OF SECTION AFFIRMED

Act June 3, 1937, § 1, affirmed, validated, and reenacted without change the

provisions of subsecs. (a), (b) (2), (c), and (f) —(i) of this section, except for

the amendments to subsecs. (c) and (f) by section 2 of the act. See note to

section 601 of this title.
AGRICULTURAL MARKETING AGREEMENT ACT OF 1937 23

7 U. S. C. §§ 610, 612

APPROPRIATIONS FOR REFUNDS AND PAYMENTS OF PROCESSING AND RELATED TAXES

AND LIMITATIONS THEREON

Acts June 25, 1938, eh. 681, 52 Stat. 1150 ; May 6, 1939, ch. 114, § 1, 53 Stat. 661,

662 ; Feb. 12,1940, ch. 28, § 1, 54 Stat. 36 ; Mar. 25,1940, ch. 71, title I, 54 Stat. 61 ;

May 31,1941, ch. 156, title I, § 1, 55 Stat. 218; Mar. 10,1942, ch. 178, title I, § 1, 56

Stat. 156; June 30, 1943, ch. 179, title I, 57 Stat. 257; Apr. 22, 1944, ch. 175,

title I, § 1, 58 Stat. 201 ; Apr. 24, 1945, ch. 92, title I, 59 Stat. 62 ; July 20, 1946,

ch. 588, title I, 60 Stat. 574.

Ex. ORD. NO. 10199. REGULATIONS WITHOUT APPROVAL OF PRESIDENT

Ex. Ord. No. 10199, Dec. 22, 1950, 15 F. R. 9217, provided : By virtue of the

authority vested in me by the act of August 8,1950, Public Law 673, 81st Congress

[sections 301-303 of Title 3], I hereby authorize the Secretary of Agriculture to

make without the approval of the President such regulations with the force and

effect of law as may be necessary to carry out the powers vested in him by the

Agricultural Marketing Agreement Act of 1937, as amended [this chapter].

§612. Appropriations; administrative expenses.

(a) There is appropriated, out of any money in the Treasury not

otherwise appropriated, the sum of $100,000,000 to be available to the

Secretary of Agriculture for administrative expenses under sections

601-608, 608a, 608b, 608c, 608d-612, 613, 614-619, 620, 623, and 624 of

this title and for payments authorized to be made until section 608

of this title. Such sum shall remain available under expended. To

enable the Secretary of Agriculture to finance, under such terms

and conditions as he may prescribe, surplus reductions with respect

to the dairy- and beef-cattle industries, and to carry out any of the

purposes described in subsections (a) and (b) of this section and to

support and balance the markets for the dairy and beef cattle industries, there is authorized to be appropriated, out of money in the

Treasury not otherwise appropriated, the sum of $200,000,000: Provided^ That not more than 60 per centum of such amount shall be used

for either of such industries.

(c) The administrative expenses provided for under this section

shall include, among others, expenditures for personal services and

rent in the District of Columbia and elsewhere, for lawbooks and

books of reference, for contract stenographic reporting services, and

for printing and paper in addition to allotments under the existing law.

The Secretary of Agriculture shall transfer to the Treasury Department, and is authorized to transfer to other agencies, out of funds

available for administrative expenses under sections 601-608, 608a,

608b, 608c, 608d-612, 613, 614-619, 620, 623, and 624 of this title, such

sums as are required to pay administrative expenses incurred and refunds made by such department or agencies in the administration of

said sections. (May 12, 1933, ch. 25, title I, § 12, 48 Stat. 38; Apr. 7,

1934, ch. 103, § 2, 48 Stat. 528 ; Aug. 24, 1935, ch. 641, §§ 3, 19, 49,

Stat. 753, 768; June 3, 1937, ch. 296, §§ 1, 2 (j), 50 Stat. 246, 248.)

VALIDITY OF SECTION AFFIRMED

Act J'une 3, 1937, § 1, aflärmed and validated, and reenacted without change

the provisions of subsecs. (a) and (c) of this section, except for the amendment

to subsec. (a) by section 2 of the act. See note to section 601 of this title.
24 AGRICULTURAL MARKETING AGREEMENT ACT OF 1937

7 U. S. C. §§ 612, 614, 624

SETTLEMENT OF CERTAIN CLAIMS AND ACCOUNTS

Act June 5, 1942, ch. 349, §§ 2, 3, 56 Stat. 324, authorized Comptroller General

to relieve disbursing and certifying officers from liability for payments made

prior to January 6, 1936, under Agricultural Adjustment Act of 1933 or amendments thereto [sections 601-608, 608a, 608b, 608c, 608d-612, 613-619, 620, and

623, and 624 of this title], or under the appropriation "Payments for Agricultural Adjustment" in act Feb. 11, 1936, ch. 49, 49 Stat. 1116 upon certificate of

Secretary of Agriculture that such payments were made in good faith, and also

provided that no action should be taken to recover such excess payments, if the

Secretary of Agriculture should further certify that in view of the good faith of

the parties or other circumstances of the case, such attempt to recover them

would be inadvisable or inequitable.

§ 614. Separability of provisions.

If any provision of sections 601-608, 608a, 608b, 608c, 608d-612, 613,

614-619, 620, 623, and 624 of this title is declared unconstitutional, or

the applicability thereof to any person, circumstance, or commodity

is held invalid the validity of the remainder of said sections and

the applicability thereof to other persons, circumstances, or commodities shall not be aifected thereby. (May 12, 1933, ch. 25, title 1,

§ 14, 48 Stat. 39; June 3, 1937, ch. 296, § 1, 50 Stat. 246.)

VALIDITY OF SECTION AFFIRMED

Act June 3, 1937, §1, cited to text, affirmed and validated, and reenacted

without change the provisions of this section. See note to section 601 of this

title.

§ 624. Limitation on imports; authority of President.

(a) Whenever the Secretary of Agriculture has reason to believe

that any article or articles are being or are practically certain to be

imported into the United States under such conditions and in such

quantities as to render or tend to render ineffective, or materially interfere with, any program or operation undertaken under sections 601-

608,608a-608c, 608d-612, 613, 614-619, 620, 623, and 624 of this title, or

the Soil Conservation and Domestic Allotment Act, as amended, or

section 612c of this title, or any loan, purchase, or other program or

operation undertaken by the Department of Agriculture, or any agency

operating under its direction, with respect to any agricultural commodity or product thereof, or to reduce substantially the amount of any

product processed in the united States from any agricultural commodity or product thereof with respect to which any such program or

operation is being undertaken, he shall so advise the President, and, if

the President agrees that there is reason for such belief, the President

shall cause an immediate investigation to be made by the United States

Tariff Commission, which shall give precedence to investigations

under this section to determine such facts. Such investigation shall

be made after due notice and opportunity for hearing to interested

parties, and shall be conducted subject to such regulations as the

President shall specify.

(b) If, on the basis of such investigation and report to him of

findings and recommendations made m connection therewith, the

President finds the existence of such facts, he shall by proclamation

impose such fees not in excess of 50 per centum ad valorem or such

quantitative limitations on any article or articles which may be
AGRICULTURAL MARKETING AGREEMENT ACT OF 1937 25

7 U. S. C. § 624

entered, or withdrawn from warehouse, for consumption as he finds

and declares shown by such investigation to be necessary m order

that the entry of such article or articles will not render or tend to

render ineffective, or materially interfere with, any program or

operation referred to in subsection (a) of this section, or reduce substantially the amount of any product processed in the United States

from any such agricultural commodity or product thereof with respect

to which any such program or operation is being undertaken : Provided,, That no proclamation under this section shall impose any

limitation on the total quantity of any article or articles which may

be entered, or withdrawn from warehouse, for consumption which

reduces such permissible total quantity to proportionately less than

50 per centum of the total quantity of such article or articles which

was entered, or withdrawn from warehouse, for consumption during

a representative period as determined by the President: Aiiid provided

further^ That in designating any article or articles, the President may

describe them by physical qualities, value, use, or upon such other

bases as he shall determine.

In any case where the Secretary of Agriculture determines and

reports to the President with regard to any article or articles that a

condition exists requiring emergency treatment, the President may

take immediate action under this section without awaiting the recommendations of the Tariff Commission, such action to continue in effect

pending the report and recommendations of the Tariff Commission

and action thereon by the President.

(c) The fees and limitations imposed by the President by proclamation under this section and any revocation, suspension, or modification thereof, shall become effective on such date as shall be therein

specified, and such fees shall be treated for administrative purposes

and for the purposes of section 612c of this title, as duties imposed

by the Tariff Act of 1930, but such fees shall not be considered as

duties for the purpose of granting any preferential concession under

any international obligation of the United States.

(d) After investigation, report, finding, and declaration in the

manner provided in the case of a proclamation issued pursuant to

subsection (b) of this section, any proclamation or provision of such

proclamation may be suspended or terminated by the President

whenever he finds and proclaims that the circumstances requiring the

proclamation or provision thereof no longer exist or may be modified

by the President whenever he finds and proclaims that changed

circumstances require such modification to carry out the purposes of

this section.

(e) Any decision of the President as to facts under this section

shall be final.

(f) No trade agreement or other international agreement heretofore or hereafter entered into by the United States shall be applied in

a manner inconsistent with the requirements of this section. (May

12, 1933, ch. 25, title I, § 22, as added Aug. 24, 1935, ch. 641, § 31, 49

Stat. 773, and amended Feb. 29, 1936, ch. 104, § 5, 49 Stat. 1152; June

3, 1937, ch. 296, § 1, 50 Stat. 246; Jan. 25, 1940, ch. 13, 54 Stat. 17;

July 3, 1948, ch. 827, title I, § 3, 62 Stat. 1248; June 28, 1950, ch. 381,

§ 3, 64 Stat. 261 ; June 16, 1951, ch. 141, § 8 (b), 65 Stat. 75; Aug. 7,

1953, ch. 348, title I, § 104,67 Stat. 472.)
26 AGRICULTURAL MARKETING AGREEMENT ACT OF 1937

7 Ü. S. C. §1624, 671

REFERENCE IN TEXT

The Soil Conservation and Domestic Allotment Act, as amended, referred to

in the text of subsection (a), is classified to chapter 3B of Title 16, Conservation.

The Tarife Act of 1930, referred to in subsection (c) is classified to chapter

4 of Title 19, Customs Duties.

AMENDMENTS

1953—Subsec. (b) amended by subsec. (c) of section 8 of act June 16, 1951, as

added to such section 8 by act of Aug. 7, 1953, which added second paragraph

to such subsec. (b).

1951—Subsec. (f) amended generally by act June 16, 1951, to provide that no

trade agreement concessions can be construed to interfere with the operation

of agricultural programs.

1950—Subsec. (a) amended by act June 28, 1950, to place upon the Secretary

of Agriculture the responsibility of notifying the President whenever the Secretary believes or has reason to believe that any article or articles are being or

practically certain to be brought into this country so as to render or tend to

render ineffective or materially interfere with programs undertaken under this

chapter.

Subsec. (b)—(e) reenacted without change by act June 28, 1950.

Subsec. (f) amended by act June 28, 1950, make certain that future international agreements or amendments to existing agreements give effect to this section within the framework of the general agreements on tariffs and trade.

1948—Act July 3, 1948, amended section generally to extend the authority of

this section to agriculture products as well as commodities; to extend such

authority to cover articles the import of which affects any loan, purchase,

or other Departmental operation or program; to make quantitative limitation

restrictions applicable to the total quantity of an article imported during a representative period as determined by the President, rather than to each country's average annual quantity of the article imported during the period from

Jan. 1, 1929, to Dec. 31, 1933, as formerly provided; to give the President a

specific grant of authority to describe designated articles by physical qualities,

value, use, or upon such bases as he determines ; to clarify the definition respecting authorized fees, which formerly were considered duties for some purposes,

so that they no longer shall be considered as duties for the purpose of granting

any preferential concession under any international obligation of the United

States; and, to prohibit the enforcement of a proclamation under this section

which would be in contravention to any treaty or international agreement to

which the United States is a part.

1940—Subsecs. (a)—(c)amended generally by act Jan. 25, 1940.

1936—Act Feb. 29, 1936, inserted after "this title" wherever the words appear

"the Soil Conservation and Domestic Allotment Act", and struck out "an adjustment" wherever the words appeared and inserted in lieu thereof "any".

E5FFE0TIVE DATE OF 1948 AMENDMENT

Section 6 of act July 3, 1948, provided that the amendment of this section

by section 3 of said act July 3, 1948, should be effective as of July 3, 1948.

VALIDITY OF SECTIONS AFFIRMED

Act of June 3, 1937, aflírmed and validated, and reenacted without change the

provisions of this section. See note to section 601 of this title.

§ 671. Arbitration of disputes concerning milk—(a) Application.

The Secretary of Agriculture, or such officer or employee of the

Department of Agriculture as may be designated by him, upon written

application of any cooperative association, incorporated or otherwise,

which is in good faith owned or controlled by producers or organizations thereof, of milk or its products, and which is bona fide engaged

in collective processing or preparing for market or handling or marketing (in the current of interstate or foreign commerce, as defined

by section 610 (j) of this title), milk or its products, may mediate
AGRICULTURAL MARKETING AGREEMENT ACT OF 1937 27

7 U. S. C. §§671, 672

and, with the consent of all parties, shall arbitrate if the Secretary

has reason to believe that the declared policy of sections 601-608,

608a, 608b, 608c, 608d-612, 613, 614-619, 620, 623, and 624 of this title

would be effectuated thereby, bona fide disputes, between such associations and the purchasers or handlers or processors or distributors of

milk or its products, as. to terms and conditions of the sale of milk or

its products. The power to arbitrate under this section shall apply

only to such subjects of the term or condition in dispute as could be

regulated under the provisions of said sections relating to orders for

milk and its products.

(b) Conduct of meetings.

Meetings held pursuant to this section shall be conducted subject

to such rules and regulations as the Secretary may prescribe.

(c) Approval of award.

No award or agreement resulting from any such arbitration or

mediation shall be effective unless and until approved by the Secretary

of Agriculture, or such officer or employee of the Department of Agriculture as may be designated by him, and shall not be approved if it

permits any unlawful trade practice or any unfair method of competition.

(d) Exemption from antitrust laws.

No meeting so held and no award or agreement so approved shall

be deemed to be in violation of any of the antitrust laws of the United

States. (June 3,1937, ch. 296, §3, 50 Stat. 248.)

§672. Agreements; licenses, regulations, programs, etc., unaffected.

(a) Nothing in this Act shall be construed as invalidating any

marketing agreement, license, or order, or any regulation relating to,

or any provision of, or any act of the Secretary of Agriculture in

connection with, any such agreement, license, or order which has been

executed, issued, approved, or done under sections 601-608, 608a, 608b,

608c, 608d-612, 613, 614-619, 620, 623, 624 of this title, but such marketing agreements, licenses, orders, regulations, provisions, and acts

are expressly ratified, legalized, and confirmed.

(b) Any program in effect under sections 601, 602, 608a-608c, 610,

612, 614, and 624 of this title, on January 1, 1950, shall continue in

effect without the necessity for any amendatory action relative to such

program, but any such program shall be continued in operation by

the Secretary of Agriculture only to establish and maintain such

orderly marketing conditions as will tend to effectuate the declared

purpose set out in section 602 or 608c of this title. (June 3, 1937,

ch. 296, §4, 50 Stat. 249; July 3, 1948, ch. 827, title III, §302 (e),

62 Stat. 1258.)

REFERENCES IN TEXT

Word "Act", referred to in the text, refers to act June 3, 1937, ch. 296, 50 Stat.

249. Sections 1 and 2 of said act amended sections 601, 602, 608a, 608b, 608c,

608d, 610, 612, 614, and 624 of this title, and sections 3-6 comprised this chapter.
28 AGRICULTURAL MARKETING AGREEMENT ACT OF 1937

7 U. S. C. §§ 672, 673, 674

AMENDMENTS

1948_^Subsec. (a) amended by act July 3,1948, which designated former section

tobesubsec. (a).

Subsec. (b) added by act July 3,1948.

EFFECTIVE DATE OF 1948 AMENDMENT

Amendment of section by act July 3, 1948, effective as of Jan. 1, 1950, see note

set out under section 1301 of this title.

§ 673. Taxes under Agricultural Adjustment Act ; laws unaffected.

No processing taxes or compensating taxes shall be levied or collected under sections 601-608, 608a, 608b, 608c, 608d-612, 613, 614r619, 620, 623 and 624 of this title. Except as provided in the preceding sentence, nothing in this Act shall be construed as affecting provisions of said sections other than those enumerated in sections 601, 602,

608a (5-9), 608b, 608c, 608d, 610 (a), (b), (2), (c), (f), (g-i),612 (a),

(c), 614, and 624 of this title. The provisions so enumerated shall

apply in accordance with their terms (as amended by this Act) to the

provisions of sections 601-608, 608a, 608b, 608c, 608d-612, 613, 614-

619, 620, 623 and 624 of this title, sections 671-674 of this title, and

other provisions of law to which they have been heretofore made applicable. (June 3,1937, ch. 296, § 5,50 Stat. 249.)

REFERENCES IN TEXT

Word "Act" referred to in the text refers to act June 3, 1937, ch. 296, 50 Stat.

249. Sections 1 and 2 of said act amended sections 601, 602, 608a, 608b, 608c,

608d, 610, 612, 614, and 624 of this title, and sections 3-6 comprised this chapter.

§ 674. Short title.

CODIFICATION

Section, act June 3, 1937, ch. 296, § 6, 50 Stat. 249, provided that such act

might be cited as the Agricultural Marketing Agreement Act of 1937. Sections

1 and 2 of said act amended sections 601, 602, 608a, 608b, 608c, 608d, 610,

612, 614, and 624 of this title, and sections 3-6 of such act comprised this chapter.

U. S. GOVERNMENT PRINTÍNG OFFICE: 1958 O—428158