COMPILATION OF STATUTES

=í^- /S¿) RELATING TO

Marketing Activities, Including Research,

Service, and Regulatory Work

of the

AGRICULTURAL MARKETING SERVICE

UNITED STATES DEPARTMENT OF AGRICULTURE

AS OF JUNE 30, 1957

^^41558

Compiled Under the Direction of the General Countel

AGRICULTURE HANDBOOK NO. 130
COMPILATION OF STATUTES

RELATING TO

Marketing Activities, Including Research,

Service, and Regulatory Work

of the

AGRICULTURAL MARKETING SERVICE

UNITED STATES DEPARTMENT OF AGRICULTURE

AS OF JUNE 30, 1957

Compiled Under the Direction

of the General Counsel

AGRICULTURE HANDBOOK NO. 130

Issued January 1958

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

Washington 25, D.C.—^Price 60 cents

GUIDE TO MATERIAL

PAET A

RESEARCH, STATISTICS, AND REPORTS

Page

The Organic Act of the Department of Agriculture 1

(5 U.S.C. 511)

Established the Department of Agriculture to acquire and

diffuse useful information on subjects connected with agriculture.

Bankhead-Jones Act 1

(7 U.S.C. 427)

Title I provides for research into basic laws and principles

relating to agriculture and for further development of cooperative agricultural extension work and the more complete endowment and support of land-grant colleges.

Parity Determination : Agricultural Adjustment Act of 1938 2

(7 U.S.C. 1301(a))

Section 1301(a), as amended, contains general definitions with

respect to parity. Also see Sections 602 and 608e of the Agricultural Marketing Agreement Act of 1937—Part B.

Monthly Crop Report 4

(7 U.S.C. 411(a))

The Act of March 4, 1909, provided for gathering information

and printing and distributing a monthly report embracing statements of the conditions of crops and useful information for

illustrating the condition of crops.

Turpentine and Rosin Statistics 4

(5 U.S.C. 556(b))

The Act of August 15, 1935, provides for compilation and

publication of statistics and essential information relating to

spirits of turpentine and rosin.

Cotton Statistics and Estimates 5

(7 U.S.C. 471-476)

(13 U.S.C. 71, 72, 75, 76)

A. The Act of March 3, 1927 (7 U.S.C. 471-476), authorized

collection and publication of statistics or estimates concerning

cotton ^^carry-over*' and publication of estimates of the crop

current at the time of publication. By amendment the Secretary

has been (1) authorized to make rules and regulations to accomplish these purposes, (2) authorized to publish reports furnished

by the Director of the Census, and (3) given more specific direction with respect to reports based upon farmers' intention to

plant.

B. The Act of April 2, 1924 (13 U.S.C. 71, 72, 75, 76), requires

that the latest available statistics concerning cotton furnished

by the Director of the Census in connection with each of its

reports concerning cotton be published by this Department with

each of its reports concerning cotton.

Peanut Statistics 9

(7 U.S.C. 951-957) [Amended by Public Law 85-105, approved July 17, 1957.]

The Act of June 24, 1936, as amended, authorized the collection

and publication of statistics of raw peanuts and peanut oil.

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Tobacco Statistics 11

(7 U.S.C. 501-508)

The Act of January 14, 1929, as amended, authorized the collection and publication of statistics concerning the stocks of leaf

tobacco.

Agricultural Marketing Act of 1946 13

(7 U.S.C. 1621-1627)

This act provides for: (1) Continuous research to improve the

marketing, handling, storage, processing, transportation, and distribution of agricultural products; (2) cooperation among

Federal and State agencies, producers, industry organizations,

and others in the development and effectuation of research and

marketing programs to improve the distribution processes; (3)

an integrated administration of all laws to aid the distribution

of agricultural products through research, market aids and services, and regulatory activities, to the end that marketing methods

and facilities may be improved, that distribution costs may be

reduced, and the price spread between the producer and consumer

may be narrowed; and (4) matching funds with cooperating

State agricultural experiment stations.

PART B

SERVICE AND REGULATORY

COTTON

United States Cotton Standards Act 19

(7 U.S.C. 51-65)

(a) Provides for establishment, preparation, distribution and

use of official cotton standards.

(b) Provides for a cotton classing service by the Department

of Agriculture for the public on a fee basis.

(c) Provides for the licensing of cotton classers.

(d) Provides for agreements between the Secretary of Agriculture and cotton organizations in foreign countries for adoption, use, and observance of universal standards of cotton

classification; the arbitration and settlement of disputes with

respect thereto; and the preparation, distribution, inspection, and

protection of practical forms (boxes) of such universal standards.

Cooperative Cotton Classers 24

(7 U.S.C. 51a-l)

Authorizes contracts with cooperatives for classing cotton and

payment for services.

Cotton Futures Act 24

(26 U.S.C. 4851-4854, 4861-4865, 4871-4877, 6001, 6804, 7233,

7263, 7492, 7493, 7701(a) (1), (11), (12)

(a) Imposes a tax of 2 cents per pound on contracts of sale

of any cotton for future delivery made at, on, or in any exchange

or similar institution but exempts from the tax all contracts complying with certain conditions specified in the legislation, including provision for tender and settlement in accordance with

classification of the cotton by employees of the Department of

Agriculture.

(b) Provides for a cotton classing service by the Department

of Agriculture for tenderers and receivers of cotton on futures.

(c) Provides for establishment, preparation, and distribution

of official cotton standards.

(d) Provides for designation of bona fide spot cotton markets

by the Secretary of Agriculture and the use of cotton quotations

in certain of these markets in settlement of futures contracts.

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FRUITS AND VEGETABLES

Produce Agency Act 33

(7 U.S.C. 491, 493-497)

Prohibits destruction or dumping by commission merchants.

Perishable Agricultural Commodities Act, 1930 34

(7 U.S.C. 499a-499s)

(a) Prohibits unfair conduct by commission merchants, dealers

and brokers.

(b) Requires that persons engaged in these businesses have a

valid and effective license issued by the Secretary of Agriculture.

(c) Creates additional liability in damages to persons injured

by the unfair conduct of a commission merchant, dealer or broker.

(d) Provides for administrative action to establish the injury

and its extent as well as a sanction in the form of suspension of

license for failure to obey Secretary's order for the payment of

money.

(e) Provides for appeal to district courts from orders of the

Secretary.

(f) Authorizes investigations by Secretary including inspection and certification of commodities as to class, quality and

condition.

Export Standards for Apples and Pears 49

(7 U.S.C. 581-589)

Prohibits shipment or transportation of apples or pears to any

foreign destination in packages which are not accompanied by a

certificate issued under authority of the Secretary. After notice

and opportunity for interested persons to examine and make recommendations with respect to proposed standards or regulations

the Secretary is authorized to prescribe by regulations the requirements, other than those of grade, which fruit must meet

before certificates are issued.

Standard Containers Act of 1916 51

(15 U.S.C. 251-256)

Prescribes standards for Climax baskets for grapes and other

fruits and vegetables as well as mushrooms and prohibits interstate commerce in baskets or other containers which do not

conform.

Standard Containers Act of 1928 53

(15 U.S.C. 257, 257a-257i)

Prescribes capacities of standard hampers, round stave baskets

and splint baskets for fruits and vegetables and prohibits manufacture or sale of such articles which do not conform.

GRAIN AND SEED

united States Grain Standards Act 57

(7 U.S.C. 71-87)

(a) Authorizes investigation of handling, grading and transportation of grain and establishment of standards of quality and

condition which standards may be altered or modified as necessities of the trade require.

(b) Prohibits shipment or delivery for shipment in interstate

or foreign commerce of uninspected or ungraded grain.

(c) Prohibits misrepresentation with respect to grade; authorizes examination of the grain and a determination as to the

correctness of questioned certification. The Secretary's findings

may be published.

(d) Authorizes persons having a financial interest in inspected

grain involved in a dispute with respect to grade to appeal the

question to the Secretary.

(e) Authorizes licensing of inspectors and administrative procedure for revocation or suspension of licenses.

(f) Authorizes promulgation of regulations necessary to implement enforcement of the Act.

(g) Provides penalties for failure to comply with the requirements of the Act or Regulations, and for attempts to interfere

with enforcement of the Act.
Page

Federal Seed Act 62

(7 U.S.C. 1551-1609)

(a) Prohibits transportation or delivery for transportation in

interstate commerce of agricultural seeds unless each container

bears a label giving information prescribed by regulations.

(b) Requires all persons except carriers transporting or delivering for transportation agricultural seeds in interstate commerce to keep a complete record of origin, germination and

purity of such seed for a period of three years.

(c) Authorizes inspection of such records by the Secretary

or his agents.

(d) Makes unlawful false advertising by way of the U. S.

mails, or in interstate commerce by any means.

(e) Prohibits transportation of certain described seeds and

prescribes procedures relating to importations.

(f) Authorizes promulgation of rules and regulations by the

Secretary and by the Secretary of the Treasury jointly or

severally after notice and public hearing.

(g) Prohibits alteration, defacement or destruction of labels

and authorizes seizure and disposition by the U. S. Courts of

seed in interstate or foreign commerce in violation of the provisions of the Act.

(h) Provides criminal and civil penalties for violation of the

Act but requires that notice and an opportunity to present his

views be afforded persons against whom institution of a criminal

or civil proceeding is contemplated before a violation is reported

to a United States Attorney.

(i) Provides for issuance of a cease and desist order against a

violator after written complaint served upon him and opportunity

to be heard upon specific charges.

LIVESTOCK AND LIVESTOCK PRODUCTS

Packers and Stockyards Act, 1921 79

(7 U.S.C. 181-229)

(a) Makes unlawful any unfair, unjustly discriminatory practice or device on the part of packers, live poultry dealers or

handlers, operators of stockyards and commission men, as well

as dealers at stockyards. It provides an administrative procedure

to determine whether there has been a violation and the issuance

of cease and desist orders in proper cases. Supplementary legislation added July 12, 1943 (Ch. 215 §1 57 Stat. 422), authorizes

the Secretary to require reasonable bonds from registrants and

to suspend registrations on account of insolvency or violation of

the Act.

(b) Excludes from the definition of "stockyard" such places

when the area normally available for handling livestock is less

than 20,000 square feet. It provides for determination by the

Secretary as to which yards come within the definition and public

notice thereof by posting copies of the notice in the stockyard

and in such other manner as he may determine.

(c) Prohibits persons engaging in the business of a market

agency or dealer at "posted" stockyards unless he shall have

registered with the Secretary under rules and regulations prescribed by the Secretary.

(d) Requires that all rates and charges for stockyard services

and rates and charges of licensees be just and reasonable and

that printed schedules be filed with the Secretary and kept open

to inspection at the stockyard or licensee's place of business

showing all rates and charges for services furnished.

(e) Authorizes the Secretary to determine and prescribe manner and form of preparation of schedules, change requirements

from time to time, and reject or refuse to file any schedule for

cause.

(f) Establishes administrative procedure to determine lawfulness of rates and charges, regulations and practices and empowers

Secretary to suspend operation of a schedule and after hearing

make an appropriate order fixing rates.

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(g) Creates liability in damages to persons injured by unreasonable, unjust or discriminatory practices on the part of stockyard operators, commission men or dealers and provides for

administrative action to establish the injury and its extent, as

well as an action in a U. S. district court.

(h) Authorizes the Secretary to designate cities where unfair,

deceptive and fraudulent practices exist and, when such action

shall have been taken, forbids all persons from dealing in or

handling live poultry in or near such designated cities without

a license.

(i) Directs the Secretary to issue licenses to applicants who

comply with requirements of the regulations unless he finds, after

opportunity for a hearing, that the applicant is unfit because of

having engaged in a prohibited practice within the two years

preceding his application or because the applicant is financially

unable to fulfill the obligations which he would incur.

Wool Standards Act 95

(7 U.S.C. 415b-d)

Authorizes the use of certain funds to (a) acquire and diffuse

information relative to the standardization, grading, preparation

for market, marketing, etc. of wool (b) establishment of grades

and grading service, (c) charging of fees for such service, (d)

demonstration and promotion of the use of grades and (e)

promulgation of rules and regulations by the Secretary.

NAVAL STORES

Naval Stores Act 96

(7 U.S.C. 91-99)

(a) Authorizes establishment and promulgation of standards

for spirits of turpentine and resin.

(b) Prohibits (i) sale of naval stores in interstate commerce

except under or by reference to standards, (ii) misrepresentation

of naval stores, (iii) use of misleading designation of turpentine

as resin, and (iv) use of misleading or deceitful means or practice

in the sale of naval stores or of anything offered as such.

TOBACCO

Tobacco Inspection Act 99

(7 U.S.C. 511-511q)

(a) Authorizes (i) the promulgation and establishment of

Ofiicial U. S. Standard Grades, (ii) the designation of auction

markets for free and mandatory inspection after approval by

growers in a referendum, (iii) permissive inspection upon request

of owners or other financially interested persons and the fixing

and collection of fees for such inspection, and (iv) employing and

licensing of persons as samplers to take official samples of tobacco

or as weighers to weigh and certify the weight of tobacco or as

inspectors to inspect tobacco.

(b) Directs warehousemen to provide space on tickets, tags

or labels to show certified grades.

(c) Prohibits many practices designed to result in improper

certification of tobacco.

Tobacco Plant and Seed Exportation Act 105

(7 U.S.C. 516-517)

Prohibits exportation of tobacco seed or live tobacco plants

unless such action is in pursuance of a written permit by the

Secretary.

WAREHOUSING AND TRANSPORTATION

United States Warehouse Act 105

(7 U.S.C. 241-273)

(a) Authorizes (i) investigation of the storage, warehousing,

classifying according to grade and otherwise, weighing, and

certification of agricultural products, (ii) inspection of licensed

warehouses and warehouses for which an application for a license

has been filed, (iii) determination as to whether warehouses are

suitable for the proper storage of any agricultural product, (iv)

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classification of warehouse in accordance with ownership, location, surroundings, etc., as to the kind of licenses issued or to be

issued, (v) prescription of duties of warehousemen conducting

licensed warehouses, (vi) issuance of licenses, upon application,

for conduct of a warehouse in accordance with rules and regulations, (vii) suspension or revocation of licenses after opportunity

for a hearing for failure to comply with requirements of the

statute including unreasonable or exorbitant charges for services,

(viii) issuance of licenses to inspect, classify or sample agricultural products stored in a licensed warehouse and certificate

the grade, class, condition or weight thereof under prescribed

regulations or rules, (ix) suspension or revocation of licenses

issued to inspect, sample, classify or weigh after opportunity for

a hearing, (x) modification or extension of existing licenses, (xi)

examination of products stored in licensed warehouses, and (xii)

examination of all books, papers, and accounts of licensed warehousemen.

(b) Requires each warehouseman to file a bond, issue prescribed receipts, make delivery without unnecessary delay upon

proper demand, cancel receipts upon delivery of products covered

thereby, keep prescribed books and records and conduct the warehouse in compliance with the statute and rules and regulations

thereunder.

(c) Prohibits (i) issuance of further receipt with original outstanding, (ii) discrimination between persons desiring to use

warehouse, (iii) mingling except fungibles, and (iv) designation

of warehouse as bonded under Act until bond has been filed and

accepted.

Agricultural Adjustment Act of 1938 114

(7 U.S.C. 1291)

(a) Authorizes complaints and prosecution of complaints before Interstate Commerce Commission with respect to rates,

charges, tariffs and practices relating to the transportation of

farm products. /

(b) Requires the Commission to make the Secretary a party

to the proceeding.

(c) Provides for cooperation between the Department and the

Commission and the Department and cooperative associations of

farmers.

NOTE : Somewhat broader authority in connection with transportation is found in the Agricultural Marketing Act of 1946

(Part A.—Research, Statistics, and Reports).

FEES, REIMBURSEMENTS, AND RECORDS

Department of Agriculture Organic Act of 1944 114

(5 U.S.C. 571, 575; 7 U.S.C. 415e)

Authorizes other agencies of the Government requiring inspections, analyses and tests to be made for them to transfer funds

to this Department for direct expenditure (5 U.S.C. 571).

Directs that authorized market inspection certificates be received in U. S. Courts as prima facie evidence of statements

therein contained (5 U.S.C. 575).

Authorizes sale of samples, illustrations, practical forms or

sets of grades under rules and regulations to be prescribed

(7U.S.C. 415e).

Cooperative Contributions

(5 U.S.C. 563-564a)

Requires that moneys contributed from outside sources involved

in cooperative activities, except in the case of the Forest Service,

shall be paid only through the Secretary or through State, county

or municipal agencies, or local farm bureaus or like organizations, cooperating for the purpose with the Secretary (5 U.S.C.

563).

Exempts oflScials and employees of the Department engaged

in cooperative activities from criminal provisions prohibiting payment or receipt of salaries of Government employees from any

source other than the Government (18 U.S.C. 1914) under certain 115
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circumstances (5 U.S.C. 564).

Authorizes the Secretary to prescribe the measure and character of cooperation on the part of the Government unless otherwise provided by law (5 U.S.C. 564a).

Inspection Services—Reimbursements Ho

(5 U.S.C. 576)

Authorizes payment for overtime performed by employees performing inspection or quarantine services relating to imports or

exports.

Fees for Services Rendered H^

(5 U.S.C. 140) .^ ^

Authorizes heads of agencies of Government to prescribe fees,

charges or prices for work, service, publication, etc., rendered

to or for any person or other legal entity.

AGREEMENTS AND ORDERS, GRADING AND INSPECTIONS

Agricultural Marketing Agreement Act of 1937 117

(7 U.S.C. 601, 602, 608a-608e, 610-612, 614, 624, 671-673)

NOTE : This legislation enacted June 3, 1937, in the form of

an amendment of the Agricultural Adjustment Act of 1933, as

amended, reenacted certain provisions of the old legislation without change and amended and reenacted others as amended. While

not specifically reenacted the definition of "basic agricultural

commodity" found in section 11 of the AAA of 1933 is applicable

and appears as 611 in the text.

(a) Provides for forfeiture equal to three times the current

market value of the excess when any person willfully exceeds

any quota or allotment fixed under this legislation.

(b) Authorizes (i) marketing agreements with processors,

producers, associations of producers and others engaged in the

handling of a designated agricultural commodity, (ii) orders

regulating handling of designated agricultural commodities or

products in interstate commerce and (iii) fixing minimum prices

to be paid to producers or associations of producers for milk or

its products.

(c) Prohibits importation of certain enumerated commodities

when they are covered by a marketing order regulating grade,

size, quality or maturity unless they comply with these provisions

of the order.

Agricultural Marketing Act of 1946

(7 U.S.C. 1622 (h) )

(a) Authorizes grading, inspection, and certification of all

agricultural products;

(b) Makes certificates prima facie evidence; and

(c) Prohibits inspections with respect to such services. (See

page 15).

PART C

FOOD DISTRIBUTION

Section 32 and Related Statutes 139

NOTE : These excerpts from the Act of August 24, 1935, and

related extant legislation are grouped here and identified as (A),

(B), (C) and (D).

(A) Section 32 139

Authorizes the use of funds each fiscal year in an amount equal

to 30 per centum of the gross receipts from duties collected under

the custom laws during the preceding calendar year. These funds

may be used for the following purposes:

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(1) Agricultural Commodities:

(See 7 U.S.C. 612c)

(a) Payment of benefits or indemnities for losses in connection

with exportation;

(b) Payments to producers in connection with the production

required for domestic consumption in connection with exportation;

(c) Payment of benefits or idemnities for diversion from the

normal channels of trade or increasing utilization among persons

in low-income groups;

(d) Payments to farmers in connection with normal production.

(2) Fishery Products:

(See 15 U.S.C. 713c-2, 713c-3)

(a) Purchase and distribution through Federal, State, and

private relief channels of such products produced in the United

States;

(b) Transfer to the Secretary of the Interior for use by him

to (i) conduct a fishery educational service and fishery technological, biological and related research programs and (ii)

acquire, operate and maintain facilities for research directed to

promotion of the free flow of domestically produced products

in commerce;

(c) Ketransfer to the Secretary of Agriculture by the Secretary of the Interior a portion not in excess of $1,500,000 to

be used for the purpose stated in subparagraph (a) of this

paragraph.

NOTE : While the Fish and Wildlife Act of August 8, 1956, ch.

1036, Sec. 6, 11, 12, 70 Stat. 1119, 16 U.S.C. 742a et seq., is not

an amendment of or related to section 32 it does have a bearing

upon it and, accordingly, pertinent sections are set out in the

text of this compilation (page 142).

(B) Act of June 28, 1937 141

(formerly 15 U.S.C. 713c)

Authorized the Federal Surplus Commodities Corporation, the

functions of which have been transferred to the Secretary, to (a)

use section 32 funds for purchasing, exchanging, processing, distributing, disposing, storing and handling agricultural commodities and products thereof and inspection costs, commissions

and other incidental expenses for the purpose of encouraging

domestic consumption of agricultural commodities and diverting

them from the normal channels of trade by donation for relief

purposes. Funds may be so used without regard to the provisions

of existing law governing the expenditure of public funds and

for administrative expenses.

(C) Agricultural Act of 1949 141

(7 U.S.C. 1424)

Section 404 of this legislation authorizes the Secretary to

utilize the services and facilities of the Commodity Credit Corporation in carrying out programs.

(D) Agricultural Act of 1956 142

(7 U.S.C. 1855)

Authorized the yearly appropriation of $500,000,000 to enable

the Secretary to further carry out the provisions of Section 32

subject to a 50-percent limitation to the use of the $500,000,000

to any one agricultural commodity or the products thereof.

Price Support of Agricultural Commodities:

Agricultural Act of 1949 143

(7 U.S.C. 1421 et seq.)

(a) Authorizes and directs the Secretary to make available,

through loans, purchases or other operations, price support (i) to

cooperators for any crop of any basic agricultural commodity if

producers have not disapproved marketing quotas for such crops,

at a level not in excess of 90 per centum of parity nor less than

levels prescribed in the legislation (7 U.S.C. 1441) and (ii) to
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producers for tung nuts, honey, milk, butterfat and the products

of milk and butterfat at levels prescribed in the legislation

(7 U.S.C. 1446).

(b) Authorizes price supports to producers for any non-basic

agricultural commodity not designated in paragraph ( (a) (ii) )

at levels not in excess of 90 per centum of the parity price nor

less than levels prescribed in the legislation.

(c) Directs the Secretary to provide price support, authorized

or required, through the Commodity Credit Corporation and

other means available to him.

(d) Eequires that the level of price support be determined

upon the basis of its parity price as of the beginning of the

marketing year or season in the case of any commodity marketed

on a marketing year or season basis and as of January 1 in the

case of any other commodity.

(e) Authorizes price support at a level in excess of the maximum when certain conditions are met.

(f) Authorizes the utilization of the services and facilities of

the Commodity Credit Corporation and making advance payments

to it in carrying out Section 82 programs.

(g) Authorizes Secretary to furnish feed for livestock or seeds

for planting in connection with any major disaster and to utilize

the personnel, facilities, property and funds of any agency of

the Department for carrying out such functions and to reimburse

the agencies for the value of the commodities and administration

expense not paid for by the recipients.

(h) Authorizes Federal agencies to assist in connection with

any major disaster by utilizing or lending to States and local

government their facilities and personnel or donating surplus

equipment and supplies.

Domestic Disposition of Surplus Commodities:

(A) Agricultural Act of 1949 153

(7 U.S.C. 1431)

Authorizes use of commodities, acquired through price support

operations of the Commodity Credit Corporation and which might

otherwise be wasted, (a) to pay for commodities not produced in

the United States acquired by governmental agencies, (b) for

barter for strategic materials and (c) in the case of food commodities, donation to many enumerated charitable purposes.

(B) Agricultural Act of 1956 154

(7 U.S.C. 1859)

Authorizes donations of surplus commodities acquired through

price support operations to Federal penal and correctional institutions and to State correctional institutions for minors under

certain circumstances.

National School Lunch Act ^^K

(42 U.S.C. 1751-1760)

Provides for assistance to States through grants-in-aid and

other means in connection with the establishment, maintenance,

operation and expansion of nonprofit school lunch programs.

Special School Milk Program 1 na

(7 U.S.C. 1446(c)) ^^^

Authorizes the expenditure of certain amounts of the funds of

the Commodity Credit Corporation to increase the consumption

of fluid milk by children.

Agricultural Trade Development and Assistance Act of 1954 160

Authorizes (1) sale of defined surplus commodities in excess

of the usual marketmgs through private trade channels in foreign

trade and acceptance of foreign currencies in payment therefore

(2) negotiation and effectuation of agreements with friendly

nations, as defined, for sale of surplus commodities for foreign

currencies, (3) emergency assistance on behalf of the peoples of

the United States to friendly peoples in meeting famine or other

urgent or extraordinary relief requirements, and (4) transfer on

a grant basis of surplus commodities to assist programs undertaken with friendly governments or through relief agencies.

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Commodity Set-Aside 166

(7 U.S.C. 1741-1747)

Directs Commodity Credit Corporation to set aside certain

quantities of agricultural commodities or products thereof, acquired from 1954 and prior years' crops and production in connection with its price support operations. This commodity set

aside shall be reduced by disposal in accordance with directions

of the President for various purposes set out in the statute. The

President shall prescribe terms and conditions of disposals which

he determines will safeguard against interference with normal

marketings of the commodities outside the set aside.

PART D

MISCELLANEOUS

National Wool Act of 1954 169

(Title VII of the Agricultural Act of 1954)

(7 U.S.C. 1781-1787) . ,. ^ ^

Provides for support of prices of wool and mohair by the Secretary through the Commodity Credit Corporation. The support

may be by means of loans, purchases, payment or other operations in connection with wool and mohair marketed after April 1,

1955, and before March 31, 1959. The support is to be such level

as the Secretary determines to be necessary to encourage production of domestic wool and mohair but not in excess of 110

percent of parity. Authorizes (a) agreements with or apprçval

of agreements between marketing cooperatives, trade associations

or others engaged in the handling of wool, mohair, sheep or goats

or the product thereof for promotion purposes, (b) provision in

the agreements described in (a) above for pro rata deduction

from payments to producers and assignment and transfer of

amounts deducted to the person or agency designated in the

agreement for expenditure in accordance with the terms of the

agreement.

Capper-Volstead Act 172

(7 U.S.C. 291, 292) . ^ . ,. ,

Authorizes persons engaged in the production of agricultural

products to act together as associations in collectively processing,

preparing for market and marketing, and make the necessary

contracts and agreements to effect such purposes.

Prohibits monopolies and restraints of trade and provides an

administrative procedure to establish the facts and an order

directing the association to cease and desist.

Organic Act of 1944 1'74

(7 U.S.C. 396) . . .,. . , ^..^ Authorizes the inspections and examinations of livestock, hides,

skins, meat or other animal products at places other than the

headquarters of inspector upon request of the owner and charges

for the expenses of travel and subsistence.

Oaths, Witnesses, and Eecords 174

(7 U.S.C. 420)

Authorizes certain employees in performance of duties to administer oaths, examine witnesses and call for the production

of books and papers.

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Agricultural Marketing Act of 1929 174

(12 U.S.C. 1141j(d))

Prohibits inclusion in any Government report, bulletin, or other

such publication of any prediction with respect to cotton prices.

Excerpts from Appropriation Act of 1957 175

(70 Stat. 229)

(a) Prohibits use of funds for expense incident to ascertaining, collating, or publishing a report stating intention of farmers

as to acreage to be planted in cotton or for estimates of apple

production for other than the commercial crop.

(b) Makes at least $1,500,000 available for contracting in

accordance with specified statutes.

(c) Makes funds for research and service work available for

expenses of duly established advisory committees.

Organic Act of 1956 175

(70 Stat. 1034)

Authorizes use of funds for payment of transportation expenses and per diem of persons appointed for temporary or

seasonal services in inspection, etc., of agricultural commodities.

Federal Reports Act of 1942 175

(5 U.S.C. 139-139f)

Provides for coordination of reports needed by various governmental agencies to the end that the number may be kept to a

minimum and collected material so tabulated as to maximize

its use.

Reorganization Plan No. 2 of 1953 179

(5 U.S.C. 511 et seq.)

Authorizes the Secretary to delegate authorities, functions, etc.

Defense Production Act of 1950 180

(50 U.S.C. 2061-2166)

A comprehensive statute to provide for national defense and

national security.

Federal Civil Defense Act 196

(50 U.S.C. 2251-2297)

A comprehensive statute to provide a plan of civil defense for

the protection of life and property in the United States from

attack.

Xlll
PART A

RESEARCH, STATISTICS, AND REPORTS

The Organic Act of the Department of Agriculture

(5 U.S.C. 511)

§ 511. Establishment of Department.

There shall be at the seat of government a Department of Agriculture, the general design and duties of which shall be to acquire

and to diffuse among the people of the United States useful information on subjects connected with agriculture, in the most general

and comprehensive sense of that word, and to procure, propagate,

and distribute among the people new and valuable seeds and plants.

(R. S. § 520.)

Bankhead-Jones Act

(Excerpt from Bankhead-Jones Act 7 U.S.C. 427)

§427. Agriculture research; declaration of policy; duties of Secretary of Agriculture; use of existing facilities.

It is declared to be the policy of the Congress to promote the

efficient production and utilization of products of the soil as essential to the health and welfare of our people and to promote a sound

and prosperous agriculture and rural life as indispensable to the

maintenance of maximum employment and national prosperity.

It is also the intent of Congress to assure agriculture a position

in research equal to that of industry which will aid in maintaining

an equitable balance between agriculture and other sections of our

economy. For the attainment of these objectives, the Secretary of

Agriculture is authorized and directed to conduct and to stimulate

research into the laws and principles underlying the basic problems of agriculture in its broadest aspects, including but not limited to : Research relating to the improvement of the quality of,

and the development of new and improved methods of the production, marketing, distribution, processing, and utilization of plant

and animal commodities at all stages from the original producer

through to the ultimate consumer; research into the problems of

human nutrition and the nutritive value of agricultural commodities with particular reference to their content of vitamins,

minerals, amino and fatty acids, and all other constituents that

may be found necessary for the health of the consumer and to the

gains or losses in nutritive value that may take place at any stage

in their production, distribution, processing, and preparation for

use by the consumer; research relating to the development of

present, new, and extended uses and markets for agricultural
commodities and by-products as food or in commerce, manufacture,

or trade, both at home and abroad, with particular reference to

those foods and fibers for which our capacity to produce exceeds

or may exceed existing economic demand; research to encourage

the discovery, introduction, and breeding of new and useful agricultural crops, plants, and animals, both foreign and native,

particularly for those crops and plants which may be adapted to

utilization in chemical and manufacturing industries; research

relating to new and more profitable uses for our resources of

agricultural manpower, soils, plants, animals, and equipment than

those to which they are now, or may after August 14, 1946, be,

devoted ; research relating to the conservation, development, and

use of land, forest, and water resources for agricultural purposes ;

research relating to the design, development, and the more efficient

and satisfactory use of farm buildings, farm homes, farm machinery, including the application of electricity and other forms

of power; research relating to the diversification of farm enterprises, both as to the type of commodities produced, and as to the

types of operations performed, on the individual farm; research

relating to any other laws and principles that may contribute to

the establishment and maintenance of a permanent and effective

agricultural industry including such investigations as have for

their purpose the development and improvement of the rural home

and rural life, and the maximum contribution by agriculture to

the welfare of the consumer and the maintenance of maximum

employment and national prosperity; and such other researches

or experiments bearing on the agricultural industry or on rural

homes of the United States as may in each case be deemed advisable, having due regard to the varying conditions and needs

of Puerto Rico, the respective States and Territories. In effectuating the purposes of this section, maximum use shall be made

of existing research facilities owned or controlled by the Federal

Government or by State agricultural experiment stations and of

the facilities of the Federal and State extension services. Research

authorized under this section shall be in addition to research provided for under existing law (but both activities shall be coordinated so far as practicable). (June 29,1935, ch. 338, § 1, 49 Stat.

436 ; Aug. 14,1946, ch. 966 title I, § 101, 60 Stat. 1082.)

Parity Determination

(Excerpt from Agricultural Adjustment Act of 1938, 7 U.S.C. 1301(a))

§ 1301. (a) General definitions.

For the purposes of this title and the declaration of policy—

(1) (A) The "parity price" for any agricultural commodity,

as of any date, shall be determined by multiplying the adjusted

base price of such commodity as of such date by the parity index

as of such date.

(B) The "adjusted base price'' of any agricultural commodity,

as of any date, shall be (i) the average of the prices received by

farmers for such commodity, at such times as the Secretary may

select during each year of the ten-year period ending on the 31st

of December last before such date, or during each marketing season beginning in such period if the Secretary determines use of a

calendar year basis to be impracticable, divided by (ii) the ratio
of the general level of prices received by farmers for agricultural

commodities during such period to the general level of prices received by farmers for agricultural commodities during the period

January 1910 to December 1914, inclusive. As used in this subparagraph, the term **prices" shall include wartime subsidy payments made to producers under programs designed to maintain

maximum prices established under the Emergency Price Control

Act of 1942.

(C) The "parity index,'* as of any date, shall be the ratio of (i)

the general level of prices for articles and services that farmers

buy, wages paid hired farm labor, interest on farm indebtedness

secured by farm real estate, and taxes on farm real estate, for the

calendar month ending last before such date to (ii) the general

level of such prices, wages, rates, and taxes during the period

January 1910 to December 1914, inclusive.

(D) The prices and indices provided for herein, and the data

used in computing them, shall be determined by the Secretary,

whose determination shall be final.

(E) Notwithstanding the provisions of subparagraph (A), the

the transitional parity prices for any agricultural commodity, computed as provided in this subparagraph, shall be used as the parity

price for such commodity until such date after January 1, 1950,

as such transitional parity price may be lower than the parity

price, computed as provided in subparagraph (A), for such commodity. The transitional parity price for any agricultural commodity as of any date shall be—

(i) its parity price determined in the manner used prior

to the effective date of the Agricultural Act of 1948, less

(ii) 5 per centum of the parity price so determined multiplied by the number of full calendar years (not counting 1956

in the case of basic agricultural commodities) which, as of

such date, have elapsed after January 1, 1949, in the case of

nonbasic agricultural commodities, and after January 1,1955,

in the case of the basic agricultural commodities.

(F) Notwithstanding the provisions of subparagraphs (A) and

(E), if the parity price for any agricultural commodity, computed

as provided in subparagraphs (A) and (E) appears to be seriously

out of line with the parity prices of other agricultural commodities,

the Secretary may, and upon the request of a substantial number

of interested producers shall, hold public hearings to determine

the proper relationship between the parity price of such commodity and the parity prices of other agricultural commodities.

Within sixty days after commencing such hearing the Secretary

shall complete such hearing, proclaim his findings as to whether

the facts require a revision of the method of computing the parity

price of such commodity, and put into effect any revision so found

to be required.

(G) Notwithstanding the foregoing provisions of this section,

the parity price for any basic agricultural commodity, as of any

date during the six-year period beginning January 1, 1950, shall

not be less than its parity price computed in the manner used prior

to October 31,1949.

(2) "Parity," as applied to income, shall be that gross income

from agriculture which will provide the farm operator and his

family with a standard of living equivalent to those afforded per-
sons dependent upon other gainful occupation. 'Tarity" as applied

to income from any agricultural commodity for any year, shall

be that gross income which bears the same relationship to parity

income from agriculture for such year as the average gross income

from such commodity for the preceding ten calendar years bears

to the average gross income from agriculture for such ten calendar

years.

(3) The term "interstate and foreign commerce'' means sale,

marketing, trade, and traffic between any State or Territory or

the District of Columbia or Puerto Rico, and any place outside

thereof ; or between points within the same State or Territory or

within the District of Columbia or Puerto Rico, through any place

outside thereof ; or within any Territory or within the District of

Columbia or Puerto Rico.

(4) The term "affect interstate and foreign commerce" means,

among other things, such commerce, or to burden or obstruct such

commerce or the free and orderly flow thereof ; or to create or tend

to create a surplus of any agricultural commodity which burdens

or obstructs such commerce or the free and orderly now thereof.

(5) The term "United States" means the several States and Territories and the District of Columbia and Puerto Rico.

(6) The term "State" includes a Territory and the District of

Columbia and Puerto Rico.

(7) The term "Secretary" means the Secretary of Agriculture,

and the term "Department" means the Department of Agriculture.

(8) The term "person" means an individual, partnership, firm,

joint-stock company, corporation, association, trust, estate, or any

agency of a State.

(9) The term "corn" means field corn. (See also Sections 602

and 608e of the Agricultural Marketing Agreement Act of 1937—

Part B.)

Monthly Crop Report

(7 U.S.C. 411a)

§ 411a. Monthly crop report; contents issuance; approval by Secretary of Agriculture.

The monthly crop report, which shall be gathered as far as practicable from practical farmers, shall be printed and distributed

on or before the twelfth day of each month, and shall embrace

statements of the conditions of crops by States, in the United

States, with such explanations, comparisons, and information as

may be useful for illustrating the above matter, and it shall be

submitted to and officially approved by the Secretary of Agriculture before being issued or published. (Mar. 4,1909, ch. 301, 35

Stat. 1053; Mar. 4, 1917, ch. 179, 39 Stat. 1157.)

Turpentine and Rosin Statistics

(5 U.S.C. 556b)

§ 556b. Statistics relating to turpentine and rosin.

The Secretary of Agriculture is authorized and directed to

collect and/or compile and publish annually, and at such other

times, and in such form and on such date or dates as he shall

prescribe, statistics and essential information relating to spirits

4
of turpentine and rosin produced, held, and used in the domestic

and foreign commerce of the United States. (Aug. 15, 1935, ch.

548, 49 Stat. 653.)

Cotton Statistics and Estimates

(7 U.S.C. 471-476)

(13 U.S.C. 71, 72, 75, 76)

§ 471. Statistics and estimates of grades and staple length of

cotton; collection and publication.

The Secretary of Agriculture is authorized and directed to collect and publish annually, on dates to be announced by him,

statistics or estimates concerning the grades and staple length of

stocks of cotton, known as the carryover, on hand on the 1st of

August of each year in warehouses and other establishments of

every character in the continental United States; and following

such publication each year, to publish, at intervals in his discretion, his estimate of the grades and staple length of cotton of the

then current crop : Provided, That not less than three such estimates shall be published with respect to each crop. In any such

statistics or estimates published, the cotton which on the date

for which such statistics are published may be recognized as

tenderable on contracts of sale of cotton for future delivery under

chapter 14 of Title 26, shall be stated separately from that which

may be untenderable under said act. (Mar. 3, 1927, ch. 337, § 1,

44 Stat. 1372.)

§ 472. Information furnished of confidential character; penalty for

divulging information.

The information furnished by any individual establishment

under the provisions of this chapter shall be considered as strictly

confidential and shall be used only for the statistical purpose for

which it is supplied. Any employee of the Department of Agriculture who, without the written authority of the Secretary of

Agriculture, shall publish or communicate any information given

into his possession by reason of his employment under the provisions of this chapter shall be guilty of a misdemeanor and

shall, upon conviction thereof, be fined not less than $300 or more

than $1,000, or imprisoned for a period of not exceeding one year,

or both so fined and imprisoned, at the discretion of the court.

(Mar. 3,1927, ch. 337, § 2, 44 Stat. 1373.)

§473. Persons required to furnish information; request; failure

to furnish; false information.

It shall be the duty of every owner, president, treasurer, secretary, director, or other officer or agent of any cotton warehouse,

cotton ginnery, cotton mill, or other place or establishment where

cotton is stored, whether conducted as a corporation, firm, limited

partnership, or individual, and of any owner or holder of any

cotton and of the agents and representatives of any such owner

or holder, when requested by the Secretary of Agriculture or by

any special agent or other employee of the Department of Agriculture acting under the instructions of said Secretary to furnish

completely and correctly, to the best of his knowledge, all of the

information concerning the grades and staple len^h of cotton
on hand, and when requested to permit such agent or employee

of the Department of Agriculture to examine and classify samples of all such cotton on hand. The request of the Secretary

of Agriculture for such information may be made in writing

or by a visiting representative, and if made in writing shall be

forwarded by registered mail, and the registry receipt of the

Post Office Department shall be accepted as evidence of such

demand. Any owner, president, treasurer, secretary, director,

or other officer or agent of any cotton warehouse, cotton ginnery,

cotton mill, or other place or establishment where cotton is stored,

or any owner or holder of any cotton or the agent or representative

of any such owner or holder, who, under the conditions hereinbefore stated, shall refuse or willfully neglect to furnish any

information herein provided for or shall willfully give answers

that are false or shall refuse to allow agents or employees of

the Department of Agriculture to examine or classify any cotton

in store in any such establishment, or in the hands of any owner

or holder or of the agent or representative of any such owner or

holder, shall be guilty of a misdemeanor and, upon conviction

thereof, shall be fined not less than $300 or more than $1,000.

(Mar. 3, 1927, ch. 337, § 3, 44 Stat. 1373.)

§ 473a. Classification of cotton on request of producer.

The Secretary of Agriculture, upon request in writing from any

group of producers organized to promote the improvement of

cotton who comply with such regulations as he may prescribe,

is authorized and directed to determine and to make promptly

available to such producers, the classification, in accordance with

the official cotton standards of the United States, of any cotton

produced by them. The Secretary of Agriculture is further authorized to pay the transportation charges and to furnish tags

and containers for the samples of cotton submitted for classification under this section, and all samples of cotton so classified shall become the property of the Government, and the proceeds

of any sales thereof after classification shall be covered into the

Treasury of the United States as miscellaneous receipts. (Mar. 3,

1927, ch. 337, § 3a, as added, April 13, 1937, ch. 75, 50 Stat. 62.)

§ 473b. Market supply, demand, condition and prices; collection

and publication of information.

The Secretary of Agriculture is also authorized and directed to

collect, authenticate, publish, and distribute, by telegraph, radio,

mail, or otherwise, timely information on the market supply,

demand, location, condition, and market prices for cotton, and

to cause to be prepared regularly and distributed for posting at

gins, in post offices, or other public or conspicuous places in cottongrowing communities, information on prices for the various grades

and staple lengths of cotton. (Mar. 3, 1927, ch. 337, § 3b, as added

April 13, 1937, ch. 75, 50 Stat. 62.)

§ 473c. Rules and regulations.

The Secretary of Agriculture is further authorized to make such

rules and regulations as he may deem necessary to effectuate the

purposes of this chapter. (Mar. 3, 1927, ch. 337, § 3c, as added

April 13,1937, ch. 75, 50 Stat. 62.)
§ 473d. Quality tests and analyses by Secretary for breeders and

others: fees.

The Secretary of Agriculture is authorized to make analyses

of fiber properties, spinning tests, and other tests of the quality

of cotton samples submitted to him by cotton breeders and other

persons, subject to such terms and conditions and to the payment

by such cotton breeders and other persons of such fees as he may

prescribe by regulations under this chapter. The fees to be assessed

hereunder shall be reasonable, and, as nearly as may be, to cover

the cost of the service rendered. (Mar. 3, 1927, ch. 337, § 3d, as

added Apr. 7, 1941, ch. 42, 55 Stat. 131.)

§474. Powers of Secretary of Agriculture; appropriation.

The Secretary of Agriculture may cooperate with any department or agency of the Government, any State, Territory, District,

or possession, or department, agency, or political subdivision

thereof, or any person; and shall have the power to appoint, remove, and fix the compensation of such officers and employees,

not in conflict with existing law, and make such expenditures

for the purchase of samples of cotton, for rent outside the District of Columbia, printing, telegrams, telephones, books of reference, periodicals, furniture, stationery, office equipment, travel,

and other supplies and expenses as shall be necessary to the

administration of this chapter in the District of Columbia, and

elsewhere, and there are hereby authorized to be appropriated, out

of any moneys in the Treasury not otherwise appropriated, such

sums as may be necessary for such purposes. (Mar. 3, 1927, ch.

337, § 4, 44 Stat. 1373.)

§ 475. Cotton crop reports.

The Secretary of Agriculture shall discontinue making his

reports based upon farmers' intention to plant cotton and shall

cause to be issued after August 8, 1946, only five reports, one as of

August 1, one as of September 1, one as of October 1, one as of November 1, and one as of December 1, each of which shall state the

condition and progress of the crop and the probable number of

bales which will be ginned, these reports to be issued simultaneously with the cotton ginning reports of the Bureau of the Census

relating to the same dates, the two reports to be issued from the

same place at eleven o'clock antemeridian of the eighth day following that to which the respective reports relate. When such date of

release falls on Sunday, a legal holiday, or other day which pursuant to statute or executive order is a nonworkday in the Department of Agriculture generally, the report shall be issued at eleven

o'clock antemeridian of the next succeeding workday. No such

report shall be approved and released by the Secretary of Agriculture until it shall have been passed upon by a cotton-crop

reporting committee or board consisting of five members or more

to be designated by him, not less than three of which shall be

supervisory field statisticians of the Department of Agriculture

located in different sections of the cotton-growing States, experienced in estimating cotton production and who shall have firsthand knowledge of the conditions of the cotton crop based upon recent field observations, and the majority of which committee or
board shall be familiar with the methods and practices of producing cotton. (May 3, 1924, ch. 149, § 1, 43 Stat. 115; Mar. 3, 1927,

ch. 337, § 5, 44 Stat. 1373; Aug. 8, 1946, ch. 909, 60 Stat. 940.)

§ 476. Acreage reports.

The Secretary of Agriculture shall cause to be issued a report

on or before the 10th day of July of each year showing by States

and in toto the number of acres of cotton in cultivation on July 1,

to be followed on September 1 and December 1 with an estimate

of the acreage of cotton abandoned since July 1. (May 27, 1912,

ch. 135, § 1, 37 Stat. 118; Mar. 3,1927, ch. 337, § 6, 44 Stat. 1374.)

(13 U.S.C. 71, 72, 75, 76)

§ 71. Collection and publication.

The Director of the Census is authorized and directed to collect

and publish statistics concerning the amount of cotton ginned;

the quantity of raw cotton consumed in manufacturing establishments of every character ; the quantity of baled cotton on hand ;

the number of active consuming cotton spindles; the number of

active spindle hours, and the quantity of cotton imported and

exported, with the country of origin and destination. (Apr. 2,

1924, ch. 80, § 1, 43 Stat. 31 ; June 18, 1929, ch. 28, § 21, 46 Stat.

26.)

§ 72. Contents and distribution of reports; publication by Department of Agriculture.

The statistics of the quantity of cotton ginned shall show the

quantity ginned from each crop prior to August 1, August 16,

September 1, September 16, October 1, October 18, November 1,

November 14, December 1, December 13, January 16, and March 1 :

Provided, That the Director of the Census may limit the canvasses

of August 1 and August 16, to those sections of the cotton-growing

States in which cotton has been ginned. The quantity of cotton

consumed in manufacturing establishments, the quantity of baled

cotton on hand, the number of active consuming cotton spmdles,

the number of active spindle hours, and the statistics of cotton

imported and exported shall relate to each month, and shall be

published as soon as possible after the close of the month.

The Director of the Census shall furnish to the Department of

Agriculture, immediately prior to the publication of each report of

that department regarding the cotton crop, the latest available statistics hereinbefore mentioned, and the said Department of Agriculture shall publish the same in connection with each of its reports concerning cotton. (Apr. 2, 1924, ch. 80, § 2, 43 Stat. 31;

June 18,1929, ch. 28, § 21, 46 Stat. 26; June 28, 1949, ch. 256, § 1,

63 Stat. 278.)

§ 75. Foreign cotton statistics.

In addition to the information regarding cotton in the United

States provided for in sections 71, 72, and 74, the Director of the

Census shall compile, by correspondence or the use of published

reports and documents, any available information concerning the

8
production, consumption, and stocks of cotton in foreign countries, and the number of cotton-consuming spindles in such countries. Each report published by the Bureau of the Census regarding cotton shall contain an abstract of the latest available information obtained under the provisions of this section, and the

Director of the Census shall furnish the same to the Department

of Agriculture for publication in connection with the reports of

that department concerning cotton in the same manner as in

the case of statistics relating to the United States. (Apr. 2, 1924,

ch. 80, § 5, 43 Stat. 32; June 18,1929, ch. 28, § 21, 46 Stat. 26.)

§ 76. Simultaneous publication of cotton reports.

The reports of cotton ginned to the dates as of which the Department of Agriculture is also required to issue cotton crop reports

shall be issued simultaneously with the cotton crop reports of

that department, the two reports to be issued from the same place

at eleven o'clock antemeridian on the eighth day following that on

which the respective reports relate. When such date of release

falls on Sunday or a legal holiday or other day which pursuant

to statute or Executive order is a non-work day in the Department

of Commerce at Washington generally the reports shall be issued

at eleven o'clock antemeridian of the next succeeding workday.

(Apr. 2, 1924, ch. 80, § 6, 43 Stat. 32; June 18, 1929, ch. 28, § 21,

46 Stat. 26 ; June 28,1949, ch. 256, § 2, 63 Stat. 278).

Peanut Statistics

(7 U.S.C. 951-957) [Amended by Public Law 85-105, approved July 17, 1957.]

§951. Collection and publication; facts required; submission of

report.

The Secretary of Agriculture is authorized and directed to

collect and publish statistics of raw peanuts, shelled, unshelled,

and crushed, and peanut oil, in the United States, received,

processed, shipped, and owned by or in the possession of warehousesmen, brokers, cleaners, shellers, dealers, growers' cooperative associations, crushers, salters, manufacturers of peanut products, and owners other than the original producers of peanuts:

Providedy That the Secretary may, in his discretion, omit for any

period of time to collect such statistics from any or all salters of

peanuts or manufacturers of peanut products who used, during

the calendar year preceding that for which statistics are being

collected, less than thirty thousand pounds of shelled and unshelled

peanuts. Such statistics shall show the quality of peanuts in such

details as to kinds—Virginias, Runners, Spanish, and imported

varieties—as the Secretary shall deem necessary for the purposes

of this chapter. All reports except those required from persons

owning or operating peanut picking or threshing machines shall

be submitted monthly in each year. (June 24, 1936, ch. 745, § 1, 49

Stat. 1898; May 12, 1938, ch. 199, § 1, 52 Stat. 348.)

§ 952. Same; quantity picked or threshed.

The Secretary is authorized and directed to collect and publish

statistics of the quantity of peanuts picked or threshed by any

person owning or operating peanut picking or threshing machines.
(June 24,1936, eh. 745, § 2, 49 Stat. 1899; May 12, 1938, ch. 199,

§ 2, 52 Stat. 349.)

§ 953. Reports; necessity; by whom made; penalties.

It shall be the duty of every warehouseman, broker, cleaner,

sheller, dealer, growers' cooperative association, crusher, salter,

manufacturer of peanut products, and owner or operator of peanut

picking or threshing machines to furnish promptly upon request

of the Secretary, within the time prescribed by him, completely

and correctly to the best of his knowledge, a report of the quantity

of peanuts and peanut oil received, processed, shipped, and owned

by or on hand and in the case of an operator of peanut picking

and threshing machines the quantity picked or threshed, segregating in accordance with forms furnished for the purpose by the

Secretary. Any person required by this chapter, or the regulations promulgated thereunder, to furnish reports or information,

and any officer, agent, or employee thereof who shall refuse or

willfully give answers that are false and misleading, shall be

guilty of a misdemeanor, and upon conviction thereof shall be

fined not less than $300 nor more than $1,000 or imprisoned not

more than one year, or be subjected to both such fine and imprisonment. (June 24, 1936, ch. 745, § 3, 49 Stat. 1899; May 12, 1938,

ch. 199, § 3, 52 Stat. 349.)

§ 954. Grades and standards for classiñeation.

The Secretary is hereby authorized to establish and promulgate grades and standards for the classification of peanuts, whenever in his discretion he may see fit. (June 24, 1936, ch. 745, § 4,

49 Stat. 1899.)

§ 955. Limitation on use of statistical information.

The information furnished under the provisions of this chapter

shall be used only for the statistical purposes for which it is supplied. No publication shall be made by the Secretary whereby the

data furnished by any person can be identified, nor shall the

Secretary permit anyone other than the sworn employees of the

Department of Agriculture to examine the individual reports.

(June 24, 1936, ch. 745, § 5, 49 Stat. 1899.)

§ 956. Rules and regulations; cooperation with departments, etc.;

officers and employees; expenses of administration; appropriation.

The Secretary may make rules and regulations as may be necessary in the administration of this chapter and may cooperate with

any department or agency of the Government, any State, Territory, District, or possession, or department, agency, or political

subdivision thereof, or any person ; and shall have the power to

appoint, remove, and fix the compensation of such officers and

employees not in conflict with existing law, and make such expenditures for rent outside the District of Columbia, printing, binding,

telegrams, telephones, law books, books of reference, publications,

furniture, stationery, office equipment, travel, and other supplies

and expenses, including reporting services, as shall be necessary

to the administration of this chapter in the District of Columbia

and elsewhere, and as may be appropriated for by Congress, and

10
there is authorized to be appropriated, out of any money in the

Treasury not otherwise appropriated, such sums as may be necessary for such purpose. (June 24, 1936, ch. 745, § 6, 49 Stat. 1899.)

§ 957. Definitions.

(1) The term "person" includes individuals, partnerships, corporations, and associations;

(2) The term **Secretary" means the Secretary of Agriculture.

(June 24, 1936, ch. 745, § 7, 49 Stat. 1899.)

Tobacco Statistics

(7 U.S.C. 501-508)

§ 501. Collection and publication; facts required; deteriorated

tobacco.

The Secretary of Agriculture is authorized and directed to collect and publish statistics of the quantity of leaf tobacco in all

forms in the United States and Puerto Rico, owned by or in the

possession of dealers, manufacturers, quasi-manufacturers,

growers' cooperative associations, warehousemen, brokers, holders, or owners, other than the original growers of tobacco. The

statistics shall show the quantity of tobacco in such detail as to

types, groups of grades, and such other subdivisions as to quality,

color, and/or grade for particular types, as the Secretary of Agriculture shall deem to be practical and necessary for the purposes

of this section and sections 502-508 of this title, shall be summarized as of January 1, April 1, July 1, and October 1 of each

year, and an annual report on tobacco statistics shall be issued:

Provided, That the Secretary of Agriculture shall not be required

to collect statistics of leaf tobacco from any manufacturer of

tobacco who, in the first three quarters of the preceding calendar

year, according to the returns of the Commissioner of Internal

Revenue or the record of the Treasurer of Puerto Rico, manufactured less than thirty-five thousand pounds of tobacco, or

from any manufacturer of cigars who, during the first three

quarters of the preceding calendar year, manufactured less than

one hundred and eighty-five thousand cigars, or from any manufacturer of cigarettes who, during the first three quarters of the

preceding year, manufactured less than seven hundred and fifty

thousand cigarettes: And provided further, That the Secretary

of Agriculture may omit the collection of statistics from any

dealer, manufacturer, growers' cooperative association, warehouseman, broker, holder, or owner who does not own and/or

have in stock, in the aggregate, fifty thousand pounds or more

of leaf tobacco on the date as of which the reports are made. For

the purposes of this section and sections 502-508 of this title,

any tobacco which has deteriorated on account of age or other

causes to the extent that it is not merchantable or is unsuitable

for use in manufacturing tobacco products shall be classified with

other nondescript tobacco and reported in the "N'' group of the

type to which it belongs. (Jan. 14, 1929, ch. 69, § 1, 45 Stat. 1079;

July 14, 1932, ch. 480, § 1, 47 Stat. 662; Aug. 27, 1935, ch. 749,

§ 1, 49 Stat. 893. May 17,1932, ch. 190, 47 Stat. 158).

11
§ 502. Standards for classification; returns and blanks.

The Secretary of Agriculture shall establish standards for the

classification of leaf tobacco, and he is authorized to demonstrate

such standards, to prepare and distribute samples thereof, and to

make reasonable charges therefor. He shall specify the types,

groups of grades, qualities, colors, and/or grades, which shall be

included in the returns required by sections 501-508 of this title.

The Secretary of Agriculture shall prepare appropriate blanks

upon which the returns shall be made, shall, upon request, furnish

copies to persons who are required by sections 501-508 of this

title to make returns, and such returns shall show the types,

groups of grades, qualities, color, and/or grades and such other

information as the Secretary may require. (Jan. 14, 1929, ch. 69,

§ 2, 45 Stat. 1079; Aug. 27, 1935, ch. 749, § 2, 49 Stat. 894.)

§ 503. Reports; necessity; by whom made; penalties.

It shall be the duty of every dealer, manufacturer, quasi-manufacturer, growers' cooperative association, warehouseman, broker,

holder, or owner, other than the original grower, except such persons as are excluded by the proviso to section 501 of this title, to

furnish within fifteen days after January 1, April 1, July 1, and

October 1 of each year, completely and correctly, to the best of his

knowledge, a report of the quantity of leaf tobacco on hand, segregated in accordance with the blanks furnished by the Secretary of

Agriculture. Any person, firm, association, or corporation required

by sections 501-508 of this title to furnish a report, and any officer,

agent, or employee thereof who shall refuse or willfully neglect

to furnish any of the information required by sections 501-508

of this title, or shall willfully give answers that are false or misleading, shall be guilty of a misdemeanor, and upon conviction

thereof shall be fined not less than $300 or more than $1,000, or

imprisoned not more than one year, or both. (Jan. 14, 1929, ch.

69, § 3, 45 Stat. 1080; July 14,1932, ch. 480. § 2, 47 Stat. 663.)

§ 504 Definition of "person."

The word "person'' as used in sections 501-508 of this title

shall be held to embrace also any partnerships, corporation, association, or other legal entity. (Jan. 14, 1929, ch. 69, § 4, 45 Stat.

1080.)

§ 505. Access to internal revenue records.

The Secretary of Agriculture shall have access to the tobacco

records of the Commissioner of Internal Revenue and of the several collectors of internal revenue for the purpose of obtainmg

lists of the persons subject to sections 501-508 of this title and

for the purpose of aiding the collection of the information required

by sections 501-508 of this title, and the Commissioner of Internal

Revenue and the several collectors of internal revenue shall cooperate with the Secretary of Agriculture in effectuating the

provisions of sections 501-508 of this title. (Jan. 14, 1929, ch. 69 ;

§ 5, 45 Stat. 1080 ; Aug. 27,1935, ch. 749, § 3, 49 Stat. 894.)

§ 506. Returns under oath; administration.

The returns provided for in sections 501-508 of this title shall

12
be made under oath before a collector or deputy collector of internal revenue, a postmaster, assistant postmaster, or anyone

authorized to administer oaths by State or Federal law. (Jan. 14,

1929, ch. 69, § 6, 45 Stat. 1080.)

§ 507. Limitation on use of statistical information.

The information furnished under the provisions of sections 501-

508 of this title shall be used only for the statistical purposes for

which it is supplied. No publication shall be made by the Secretary

of Agriculture whereby the data furnished by any particular

establishment can be identified, nor shall the Secretary of Agriculture permit anyone other than the sworn employees of the

Department of Agriculture to examine the individual reports.

(Jan. 14,1929, ch. 69, § 7,45 Stat. 1080.)

§ 508. Invalidity of provisions in sections 501-507; validity of

remaining provisions.

If any provision of sections 501-507 of this title is declared

unconstitutional or the applicability thereof to any person or circumstance is held invalid, the validity of the remainder of said

sections and the applicability of such provisions to other persons

and circumstances shall not be affected thereby. (Jan. 14, 1929,

ch. 69, § 9, 45 Stat. 1080.)

Agricultural Marketing Act of 1946

(7 U.S.C. 1621-1627)

§ 1621. Congressional declaration of purpose; use of existing facilities; cooperation with States.

The Congress declares that a sound, efficient, and privately

operated system for distributing and marketing agricultural products is essential to a prosperous agriculture and is indispensable

to the maintenance of full employment and to the welfare, prosperity, and health of the Nation. It is further declared to be the

policy of Congress to promote through research, study, experimentation, and through cooperation among Federal and State

agencies, farm organizations, and private industry a scientific

approach to the problems of marketing, transportation, and distribution of agricultural products similar to the scientific methods

which have been utilized so successfully during the past eightyfour years in connection with the production of agricultural

products so that such products capable of being produced in

abundance may be marketed in an orderly manner and efficiently

distributed. In order to attain these objectives, it is the intent of

Congress to provide for (1) continuous research to improve the

marketing, handling, storage, processing, transportation, and distribution of agricultural products ; (2) cooperation among Federal

and State agencies, producers, industry organizations, and others

in the development and effectuation of research and marketing

programs to improve the distribution processes ; (3) an integrated

administration of all laws enacted by Congress to aid the distribution of agricultural products through research, market aids and

services, and regulatory activities, to the end that marketing methods and facilities may be improved, that distribution costs may be

13
reduced and the price spread between the producer and consumer

may be narrowed, that dietary and nutritional standards may be

improved, that new and wider markets for American agricultural

products may be developed, both in the United States and in other

countries, with a view to making it possible for the full production

of American farms to be disposed of usefully, economically, profitably, and in an orderly manner. In effectuating the purposes of

this chapter, maximum use shall be made of existing research

facilities owned or controlled by the Federal Government or by

State agricultural experiment stations and of the facilities of the

Federal and State extension services. To the maximum extent

practicable marketing research work done under this chapter in

cooperation with the States shall be done in cooperation with the

State agricultural experiment stations ; marketing educational and

demonstrational work done under this chapter in cooperation with

the States shall be done in cooperation with the State agricultural

extension service; market information, inspection, regulatory

work and other marketing service done under this chapter in cooperation with the State agencies shall be done in cooperation

with the State departments of agriculture, and State bureaus and

departments of markets. (Aug. 14, 1946, ch. 966, Title II, § 202,

60 Stat. 1087.)

§ 1622. Duties of Secretary relating to agricultural products.

The Secretary of Agriculture is directed and authorized—

(a) DETERMINATION OF METHODS OF PROCESSING, PACKAGING,

MARKETING, ETC.; PUBLICATION OF RESULTS.—To COnduct, aSSist,

and foster research, investigation, and experimentation to determine the best methods of processing, preparation for market,

packaging, handling, transporting, storing, distributing, and marketing agricultural products: Provided, That the results of such

research shall be made available to the public for the purpose of

expanding the use of American agricultural products in such

manner as the Secretary of Agriculture may determine.

(b) DETERMINATION OF COSTS.—To determine costs of marketing agricultural products in their various forms and through the

various channels and to foster and assist in the development and

establishment of more efficient marketing methods (including

analyses of methods and proposed methods), practices, and facilities, for the purpose of bringing about more efficient and orderly

marketing, and reducing the price spread between the producer

and the consumer.

(c) IMPROVEMENT OF STANDARDS OF QUALITY, CONDITIONS, ETC.

—To develop and improve standards of quality, condition, quantity, grade, and packaging, and recommend and demonstrate such

standards in order to encourage uniformity and consistency in

commercial practices.

(d) ELIMINATION OF ARTIFICIAL BARRIERS TO FREE MOVEMENT.—

To conduct, assist, foster, and direct studies and informational

programs designed to eliminate artificial barriers to the free

movement of agricultural products.

(e) DEVELOPMENT OF NEW MARKETS.—To foster and assist in

the development of new or expanded markets (domestic and foreign) and new and expanded uses and in the moving of larger

14
quantities of agricultural products through the private marketing

system to consumers in the United States and abroad.

(f) INCREASING CONSUMER EDUCATION.—TO conduct and cooperate in consumer education for the more effective utilization and

greater consumption of agricultural products : Provided, That no

money appropriated under the authority of this chapter shall be

used to pay for newspaper or periodical advertising space or radio

time in carrying out the purposes of this section and subsection

(e) of this section.

(g) COLLECTION AND DISSEMINATION OF MARKETING INFORMATION.—To collect and disseminate marketing information, including adequate outlook information on a market-area basis, for the

purpose of anticipating and meeting consumer requirements, aiding in the maintenance of farm income, and bringing about a

balance between production and utilization of agricultural

products.

(h) INSPECTION AND CERTIFICATION OF PRODUCTS IN INTERSTATE

COMMERCE; CERTIFICATES AS EVIDENCE.—To inspect, certify, and

identify the class, quality, quantity, and condition of agricultural

products when shipped or received in interstate commerce, under

such rules and regulations as the Secretary of Agriculture may

prescribe, including assessment and collection of such fees as will

be reasonable and as nearly as may be to cover the cost of the

service rendered, to the end that agricultural products may be

marketed to the best advantage, that trading may be facilitated,

and that consumers may be able to obtain the quality product

which they desire, except that no person shall be required to use

the service authorized by this subsection. Any official certificate

issued under the authority of this subsection shall be received by

all officers and all courts of the United States as prima facie evidence of the truth of the statements therein contained.

Whoever knowingly shall falsely make, issue, alter, forge, or

counterfeit any official certificate, memorandum, mark, or other

identification, or device for making such mark or identification,

with respect to inspection, class, grade, quality, size, quantity, or

condition, issued or authorized under this section or knowingly

cause or procure, or aid, assist in, or be a party to, such false

making, issuing, altering, forging, or counterfeiting, or whoever

knowingly shall possess, without promptly notifying the Secretary

of Agriculture or his representative, utter, publish, or use as true,

or cause to be uttered, published, or used as true, any such falsely

made, altered, forged, or counterfeited official certificate, memorandum, mark, identification, or device, or whoever knowingly

represents that an agricultural product has been officially inspected

or graded (by an authorized inspector or grader) under the authority of this section when such commodity has in fact not been

so graded or inspected shall be fined not more than $1,000 or

imprisoned not more than one year, or both.

(i) DEVELOPMENT OF FACILITIES FOR ASSEMBLING, PROCESSING,

TRANSPORTING, ETC.—To determine the needs and develop or assist

in the development of plans for efficient facilities and methods of

operating such facilities for the proper assembly, processing,

transportation, storage, distribution, and handling of agricultural

products.

(j) IMPROVEMENT OF TRANSPORTATION FACILITIES AND RATES.—

15
To assist in improving transportation services and facilities and

in obtaining equitable and reasonable transportation rates and

services and adequate transportation facilities for agricultural

products and farm supplies by making complaint or petition to

the Interstate Commerce Commission, the Maritime Commission,

the Civil Aeronautics Board, or other Federal or State transportation regulatory body with respect to rates, charges, tariffs, practices, and services, or by working directly with individual carriers

or groups of carriers.

(k) COLLECTION AND DISSEMINATION OF MARKETING STATISTICS.

—To collect, tabulate, and disseminate statistics on marketing

agricultural products, including, but not restricted to statistics on

market supplies, storage stocks, quantity, quality, and condition of

such products in various positions in the marketing channel,

utilization of such products, and shipments and unloads thereof.

(1) DEVELOPMENT OF PROCUREMENT STANDARDS AND SPECIFICATIONS.—To develop and promulgate, for the use and at the request

of any Federal agency or State, procurement standards and specifications for agricultural products, and submit such standards

and specifications to such agency or State for use or adoption for

procurement purposes.

(m) PROMOTION OF RESEARCH FOR HANDLING, STORING, PRESERVING, ETC.—To conduct, assist, encourage, and promote research, investigation, and experimentation to determine the most

efficient and practical means, methods, and processes for the handling, storing, preserving, protecting, processing, and distributing

of agricultural commodities to the end that such commodities may

be marketed in an orderly maner and to the best interest of the

producers thereof.

(n) GENERAL RESEARCH, SERVICES, AND ACTIVITIES.—To conduct

such other research and services and to perform such other activities as will facilitate the marketing, distribution, processing,

and utilization of agricultural products through commercial channels. (Aug. 14, 1946, ch. 966, Title II, § 203, 60 Stat. 1087; Aug. 9,

1955, ch. 632, § 1, 69 Stat. 553.)

§ 1623. Appropriations; allotments to States.

(a) In order to conduct research and service work in connection

with the preparation for market, processing, packaging, handling,

storing, transporting, distributing, and marketing of agricultural

products as authorized by this chapter, there is authorized to be

appropriated the following sums :

(1) $2,500,000 for the fiscal year ending June 30, 1947, and

each subsequent fiscal year.

(2) An additional $2,500,000 for the fiscal year ending June

30, 1948, and each subsequent fiscal year.

(3) An additional $5,000,000 for the fiscal year ending June 30,

1949, and each subsequent fiscal year.

(4) An additional $5,000,000 for the fiscal year ending June 30,

1950, and each subsequent fiscal year.

(5) An additional $5,000,000 for the fiscal year ending June 30,

1951, and each subsequent fiscal year.

(6) In addition to the foregoing, such additional funds beginning with the fiscal year ending June 30, 1952, and thereafter, as

the Congress may deem necessary.

16
Such sums appropriated in pursuance of this chapter shall be in

addition to, and not in substitution for, sums appropriated or

otherwise made available to the Department of Agriculture.

(b) The Secretary of Agriculture is authorized to make available from such funds such sums as he may deem appropriate for

allotment to State departments of agriculture. State bureaus and

departments of markets, State agricultural experiment stations,

and other appropriate State agencies for cooperative projects in

marketing service and in marketing research to effectuate the purposes of this chapter: Provided, That no such allotment and no

payment under any such allotment shall be made for any fiscal

year to any State agency in excess of the amount which such State

agency makes available out of its own funds for such research.

The funds which State agencies are required to make available in

order to qualify for such an allotment shall be in addition to any

funds now available to such agencies for marketing services and

for marketing research. The allotments authorized under this

section shall be made to the agency or agencies best equipped and

qualified to conduct the specific project to be undertaken. Such

allotments shall be covered by cooperative agreements between

the Secretary of Agriculture and the cooperating agency and

shall include appropriate provisions for preventing duplication or

overlapping of work within the State or States cooperating. Should

duplication or overlapping occur subsequent to approval of a

cooperative project or allotment of funds, the Secretary of Agriculture is authorized and directed to withhold unexpended balances

on such projects notwithstanding the prior approval thereof.

(Aug. 14, 1946, ch. 966, Title II, § 204, 60 Stat. 1089.)

§ 1624. Cooperation with Government and State agencies, private

research organizations, etc.; rules and regulations; report to

Congress.

(a) In carrying out the provisions of this chapter, the Secretary of Agriculture may cooperate with other branches of the

Government, State agencies, private research organizations, purchasing and consuming organizations, boards of trade, chambers

of commerce, other associations of business or trade organizations,

transportation and storage agencies and organizations, or other

persons or corporations engaged in the production, transportation,

stormg, processing, marketing, and distribution of agricultural

products whether operating in one or more jurisdictions. The

Secretary of Agriculture shall have authority to enter into contracts and agreements under the terms of regulations promulgated

by him with States and agencies of States, private firms, institutions, and individuals for the purpose of conducting research and

service work, making and compiling reports and surveys, and

carrying out other functions relating thereto when in his judgment the services or functions to be performed will be carried out

more effectively, more rapidly, or at less cost than if performed

by the Department of Agriculture. Contracts under this section

may be made for work to be performed within a period not more

than four years from the date of any such contract, and advance,

progress, or other payments may be made. The provisions of section 529 of Title 81 and section 5 of Title 41 shall not be applicable

to contracts or agreements made under the authority of this sec17
tion. Any unexpended balances of appropriations obligated by

contracts as authorized by this section may, notwithstanding the

provisions of section 713 of Title 31, remain upon the books of the

Treasury for not more than five fiscal years before being carried

to the surplus fund and covered into the Treasury. Any contract

made pursuant to this section shall contain requirements making

the result of such research and investigations available to the

public by such means as the Secretary of Agriculture shall

determine.

(b) The Secretary of Agriculture shall promulgate such orders,

rules, and regulations as he deems necessary to carry out the

provisions of this chapter. (Aug. 14, 1946, ch. 966, Title II, § 205,

60 Stat. 1090; Aug. 30, 1954, ch. 1076, § 1 (7), 68 Stat. 966.)

§ 1625. Transfer and consolidation of functions, powers, bureaus,

etc.

In order to facilitate administration and to increase the effectiveness of the marketing research, service, and regulatory work

of the Department of Agriculture to the fullest extent practicable,

the Secretary of Agriculture is authorized, notwithstanding any

other provisions of law, to transfer, group, coordinate, and consolidate the functions, powers, duties, and authorities of each and

every agency, division, bureau, service, section, or other administrative unit in the Department of Agriculture primarily concerned

with research, service, or regulatory activities in connection with

the marketing, transportation, storage, processing, distribution

of, or service or regulatory activities in connection with, the

utilization of, agricultural products, into a single administrative

agency. In making such changes as may be necessary to carry out

effectively the purpose of this chapter, the records, property, personnel, and funds of such agencies, divisions, bureaus, services,

sections, or other administrative units in the Department of Agriculture affected are authorized to be transferred to and used by

such administrative agency to which the transfer may be made,

but such unexpended balances of appropriations so transferred

shall be used only for the purposes for which such appropriations

were made. (Aug. 14,1946, ch. 966, Title II, § 206, 60 Stat. 1090.)

§ 1626. Definitions.

When used in this chapter, the term "agricultural products"

includes agricultural, horticultural, viticultural, and dairy products, livestock and poultry, bees, forest products, fish and shellfish,

and any products thereof, including processed and manufactured

products, and any and all products raised or produced on farms

and any processed or manufactured product thereof. (Aug. 14,

1946, ch. 966, Title II, § 207, 60 Stat. 1091.)

§ 1627. Appointment of personnel; compensation; employment of

specialists.

The Secretary of Agriculture shall have the power to appoint,

remove, and fix, in accordance with existing law, the compensation

of such officers and employees, and to make such expenditures

as he deems necessary, including expenditures for rent outside

the District of Columbia, travel, supplies, books, equipment, and

such other expenditures as may be necessary to the administration

18
of this chapter: Provided, That the Secretary of Agriculture may

appoint and fix the compensation of any technically qualified person, firm, or organization by contract or otherwise on a temporary

basis and for a term not to exceed six months in any fiscal year

to perform research, inspection, classification, technical, or other

special services, without regard to the civil-service laws or sections

661-663, 664-669, 670-672, 673 and 674 of Title 5. (Aug. 14, 1946,

ch. 966, Title II, § 208, 60 Stat. 1091.)

PART B

SERVICE AND REGULATORY

Cotton

United States Cotton Standards Act

(7 Ü.S.C. 51-65)

§ 51, Short title of chapter.

This chapter shall be known by the short title of "United States

Cotton Standards Act." (Mar. 4,1923, ch. 288, § 1, 42 Stat. 1517.)

§ 51a. Extension of classification facilities to cotton growers.

The Secretary of Agriculture is requested to extend to cotton

growers facilities for the classification of cotton authorized in this

chapter, with such supervision of licensed classifiers as he shall

deem necessary under authority of chapter 14 of Title 26. (Mar. 4,

1933, ch. 284, § 1, 47 Stat. 1621.)

§ 51b. Licensing samplers; revocation and suspension of license.

Further to carry out the purposes of this chapter the Secretary

of Agriculture is authorized to issue to any qualified person, upon

presentation of satisfactory evidence of competency, a license to

sample cotton. Any such license may be suspended or revoked by

the Secretary of Agriculture whenever he is satisfied that such

licensee is incompetent or has knowingly or carelessly sampled

cotton improperly, or has violated any provision of this chapter

or the regulations thereunder so far as the same may relate to

him, or has used his license, or allowed it to be used, for any improper purpose. The Secretary of Agriculture may prescribe by

regulation the conditions under which licenses may be issued

under this section, and may require any licensed sampler to give

bond for the faithful performance of his duties and for the protection of persons affected thereby and may prescribe the conditions under which cotton shall be sampled by licensed samplers

for the purpose of classification by officers of the Department of

19
Agriculture, or by licensed cotton classifiers. (Mar. 4, 1933, ch.

284, § 2,47 Stat. 1621.)

§ 52. Use of nonoflScial standards prohibited; sales by sample

excepted.

It shall be unlawful (a) in or in connection with any transaction

or shipment in commerce made after August 1,1923, or (b) in any

publication of a price or quotation determined in or in connection

with any transaction or shipment in commerce after August 1,

1923, or (c) in any classification for the purposes of or in connection with a transaction or shipment in commerce after August 1,

1923, for any person to indicate for any cotton a grade or other

class which is of or within the official cotton standards of the

United States then in effect under this chapter by a name, description, or designation, or any system of names, description, or designation not used in said standards : Provided, That nothing in this

section shall prevent a transaction otherwise lawful by actual

sample or on the basis of a private type which is used in good

faith and not in evasion of or substitution for said standards.

(Mar. 4, 1923, ch. 288, § 2, 42 Stat. 1517.)

§ 53. Licensing classifiers; revocation and suspension of license.

The Secretary of Agriculture may, upon presentation of satisfactory evidence of competency, issue to any person a license to

grade or otherwise classify cotton and to certificate the grade or

other class thereof in accordance with the official cotton standards

of the United States. Any such license may be suspended or

revoked by the Secretary of Agriculture whenever he is satisfied,

after reasonable opportunity afforded to the licensee for a hearing,

that such licensee is incompetent or has knowingly or carelessly

classified cotton improperly, or has violated any provision of this

chapter or the regulations thereunder so far as the same may

relate to him, or has used his license or allowed it to be used for

any improper purpose. Pending investigation the Secretary of

Agriculture, whenever he deems necessary, may suspend a license

temporarily without a hearing. (Mar. 4,1923, ch. 288, § 3, 42 Stat.

1517.)

§54. Classification by Department of Agriculture; certification

thereof; effect of certificate; regulations for classification.

Any person who has custody of or a financial interest in any

cotton may submit the same or samples thereof, drawn in accordance with the regulations of the Secretary of Agriculture, to such

officer or officers of the Department of Agriculture as may be

designated for the purpose pursuant to the regulations of the

Secretary of Agriculture for a determination of the true classification of such cotton or samples, including the comparison

thereof, if requested, with types or other samples submitted for

the purpose. The final certificate of the Department of Agriculture showing such determination shall be binding on officers of

the United States and shall be accepted in the courts of the United

States as prima facie evidence of the true classification or comparison of such cotton or samples when involved in any transaction

or shipment in commerce. The Secretary of Agriculture shall fix

rules and regulations for submitting samples of cotton for classi20
fication providing that all samples shall be numbered so that no

one interested in the transaction involved shall be known by any

classifier engaged in the classification of such cotton samples.

(Mar. 4, 1923, ch. 288, § 4, 42 Stat. 1517).

§ 55. Charges for licenses and classifications; disposition of

moneys.

The Secretary of Agriculture may cause to be collected such

charges as he may find to be reasonable for licenses issued to

classifiers of cotton under section 53 of this title and for determinations made under section 54 of this title, and the amounts so

collected shall be used by the Secretary of Agriculture in paying

expenses of the Department of Agriculture connected therewith.

(Mar. 4,1923, ch. 288, § 5, 42 Stat. 1518.)

§56. Establishment of cotton standards; furnishing copies of

established standards sold.

^ The Secretary of Agriculture is authorized to establish from

time to time standards for the classification of cotton by which

its quality or value may be judged or determined for commercial

purposes, which shall be known as the official cotton standards of

the United States. Any such standard or change or replacement

thereof shall become effective only on and after a date specified

in the order of the Secretary of Agriculture establishing the same,

which date shall be not less than one year after the date of such

order: Provided, That the official cotton standards established,

effective August 1, 1923, under the United States Cotton Futures

Act, constituting chapter 14 of Title 26, shall be at the same time

the official cotton standards for the purpose of this chapter unless

and until changed or replaced under this chapter. Whenever any

standard or change or replacement thereof shall become effective

under this chapter, it shall also, when so specified in the order of

the Secretary of Agriculture, become effective for the purposes

of the United States Cotton Futures Act, constituting chapter 14

of Title 26, and supersede any inconsistent standard established

under said chapter. Whenever the official cotton standards of the

United States established under this chapter shall be represented

by practical forms, the Department of Agriculture shall furnish

copies thereof, upon request, to any person, and the cost thereof,

as determined by the Secretary of Agriculture, shall be paid by

the person making the request. The Secretary of Agriculture

may cause such copies to be certified under the seal of the Department of Agriculture, and may attach such conditions to the

purchase and use thereof, including provision for the inspection,

condemnation, and exchange thereof by duly authorizing representatives of the Department of Agriculture, as he may find to

be necessary to the proper application of the official cotton standards of the United States. (Mar. 4, 1923, ch. 288, § 6, 42 Stat

1518 renumbered 6(a) Sept. 21, 1944, ch. 412, § 401 (b) 58 Stat.

738.)

§57. Disposition of proceeds of sale of cotton and of copies of

standards.

Any moneys received from or in connection with the sale of

21
cotton purchased for the preparation of the copies, mentioned

in section 56 of this title and condemned as unsuitable for such

use or with the sale of such copies may be expended for the purchase of other cotton for such use. (Mar. 4, 1923, ch. 288, § 6, 42

Stat. 1518; renumbered § 6(a) Sept. 21,1944, chap. 412, § 401 (b)

58 Stat. 738.)

§ 57a. Agreements with cotton associations, etc., in foreign countries to establish cotton standards.

The Secretary of Agriculture is authorized to effectuate agreements with cotton associations, cotton exchanges, and other cotton

organizations in foreign countries, for (1) the adoption, use, and

observance of universal standards of cotton classification, (2) the

arbitration or settlement of disputes with respect thereto, and

(3) the preparation, distribution, inspection, and protection of the

practical forms or copies thereof under such agreements. (Mar. 4,

1923, ch. 288, § 6 (b), as added Sept. 21, 1944, ch. 412, title IV,

§401 (b), 58 Stat. 738.)

§ 58. General inspection and sampling of cotton.

In order to carry out the provisions of this chapter, the Secretary of Agriculture is authorized to cause the inspection, including

the sampling, of any cotton involved in any transaction or shipment in commerce, wherever such cotton may be found, or of any

cotton with respect to which a determination of the true classification is requested under section 54 of this title. (Mar. 4, 1923,

ch. 288, § 7, 42 Stat. 1518.)

§ 59. Offenses in relation to cotton standards.

It shall be unlawful for any person (a) with intent to deceive

or defraud, to make, receive, use, or have in his possession any

simulate or counterfeit practical form or copy of any standard or

part thereof established under this chapter; or (b) without the

written authority of the Secretary of Agriculture, to make, alter,

tamper with, or in any respect change any practical form or copy

of any standard established under this chapter; or (c) to display

or use any such practical form or copy after the Secretary of

Agriculture shall have caused it to be condemned. (Mar. 4, 1923,

ch. 288, § 8, 42 Stat. 1519.)

§ 60. Penalties for violations.

, (a) Any person who shall knowingly violate any provision of

sections 52 or 59 of this title, or (b) any person licensed under

this chapter who, for the purposes of or in connection with any

transaction or shipment in commerce, shall knowingly classify

cotton improperly, or shall knowingly falsify or forge any certificate of classification, or shall accept money or other consideration, either directly or indirectly, for any neglect or improper

performance of duty as such licensee, or (c) any person who shall

knowingly influence improperly or attempt to influence improperly

any person licensed under this chapter in the performance of his

duties as such licensee relating to any transaction or shipment

in commerce, or (d) any person who shall forcibly assault, resist,

impede, or interfere with or influence improperly or attempt to

22
influence improperly any person employed under this chapter in

the performance of his duties, shall, upon conviction thereof, be

deemed guilty of a misdemeanor and shall be fined not exceeding

$1,000, or imprisoned not exceeding six months, or both, in the

discretion of the court. (Mar. 4, 1923, ch. 288, § 9, 42 Stat. 1619.)

§ 61. General regulations, investigations, tests, etc., by Secretary.

For the purposes of this chapter the Secretary of Agriculture

shall cause to be promulgated such regulations, may cause such

investigations, tests, demonstrations, and publications to be made,

including the investigation and determination of some practical

method whereby repeated and unnecessary sampling and classification of cotton may be avoided, and may cooperate with any

department or agency of the Government, any State, Territory,

District, or possession, or department, agency or political subdivision thereof, or any person, as he shall find to be necessary.

(Mar. 4, 1923, ch. 288, § 10, 42 Stat. 1519.)

§ 62. Definitions; "person'^; "commerce^'; "cotton."

Wherever used in this chapter, (a) the word "person'' imports

the plural or the singular, as the case demands, and includes

an individual, a partnership, a corporation, or two or more persons having a joint or common interest; (b) the word "commerce''

means commerce between any State or the District of Columbia

and any place outside thereof, or between points within the same

State or the District of Columbia but through any place outside

thereof, or within the District of Columbia; and (c) the word

"cotton" means cotton of any variety produced within the continental United States, including linters. (Mar. 4, 1923, ch. 288,

§ 11, 42 Stat. 1519.)

§ 63. Liability of principal for act of agent.

When construing and enforcing the provisions of this chapter,

the act, omission, or failure of any agent, officer, or other person

acting for or employed by any person within the scope of his

employment or office, shall in every case be deemed also the act,

omission, or failure of such person as well as that of such agent,

officer, or other person. (Mar. 4,1923, ch. 288, § 11, 42 Stat. 1519.)

§64. Appropriation for expenses; appointments by Secretary of

officers and agents; compensation.

There are authorized to be appropriated out of any moneys in

the Treasury not otherwise appropriated, such sums as may be

necessary for carrying out the provisions of this chapter ; and the

Secretary of Agriculture is authorized, within the limits of such

appropriations, to appoint, remove, and fix the compensations of

such officers and employees, not in conflict with existing law, and

make such expenditures for rent outside the District of Columbia,

printing, telegrams, telephones, law books, books of reference,

periodicals, furniture, stationery, office equipment, travel, and

other supplies and expenses as shall be necessary to the administration of this chapter in the District of Columbia and elsewhere.

(Mar. 4, 1923, ch. 288, § 12, 42 Stat. 1519.)

23
§65. Effect of partial invalidity.

If any provision of this chapter or the application thereof to

any person or circumstances is held invalid, the validity of the

remainder of the chapter and the application of such provision

to other persons and circumstances shall not be affected thereby.

(Mar. 4,1923, ch. 288, § 13, 42 Stat. 1520.)

Cooperative Cotton Classers

(7 U.S.C. 51a-l)

§ 51a-l. Contracts with cooperatives furnishing classers; amount

and type of payment.

Hereafter the Secretary may contract with cooperatives furnishing classers and other facilities for classing cotton and may pay

for such services in amount, some part of which may be in kind,

not in excess of the value of the samples. (July 5, 1952, ch. 574,

title I, § 101, 66 Stat. 349.)

Cotton Futures Act

(26 U.S.C. 4851-4854, 4861-4865, 4871-4877, 6001, 6804, 7233, 7263, 7492,

7493, 7701(a)(1), (11), (12))

§ 4851. Imposition of tax.

(a) RATE.

Upon each contract of sale of any cotton for future delivery

made at, on, or in any exchange, board of trade, or similar institution or place of business, there shall be imposed a tax in the nature

of an excise of 2 cents for each pound of the cotton involved in

any such contract.

(b) BY WHOM PAID.

The tax imposed by subsection (a) shall be paid by the seller

of the cotton involved in the contract of sale. (Aug. 16, 1954, 9:45

a. m., E. D. T., ch. 736, 68A Stat. 580.)

§4852. Definition.

For the purpose of this subchapter, the term "contract of sale"

shall be held to include sales, agreements of sale, and agreements

to sell. (Aug. 16,1954, 9:45 a. m., E. D. T., ch. 736, 68A Stat. 580.)

§ 4853. Form and validity of contracts.

(a) FORM.

Each contract of sale of cotton for future delivery mentioned

in section 4851 (a) shall be in writing plainly stating, or evidenced

by written memorandum showing, the terms of such contract,

including the quantity of the cotton involved and the names and

addresses of the seller and buyer in such contract, and shall be

signed by the party to be charged, or by his agent in his behalf.

If the contract or memorandum specify in bales the quantity of

the cotton involved, without giving the weight, each bale shall,

for the purpose of this subchapter, be deemed to weigh 500 pounds.

(b) VALIDITY.

No contract of sale of cotton for future delivery mentioned m

section 4851 (a), which does not conform to the requirements

24
of subsection (a) of this section and has not the necessary stamps

affixed thereto as required by section 4871, shall be enforceable

in any court of the United States by, or on behalf of, any party

to such contract or his privies. (Aug. 16,1954, 9:45 a. m., E. D. T.,

ch. 736, 68A Stat. 580.)

§ 4854. Cotton standards.

(a) SOURCE AND DESCRIPTION.

Subject to the provisions of section 6 of the Act of March 4,

1923 (42 Stat, 1518; 7 U. S. C. 56), the Secretary of Agriculture

is authorized from time to time, to establish and promulgate

standards of cotton by which its quality or value may be judged

or determined, including its grade, length of staple, strength of

staple, color, and such other qualities, properties, and conditions

as may be standardized in practical form, which, for the purpose

of this subchapter, shall be known as the "Official cotton standards

of the United States'' : Provided, That any standard of any cotton

established and promulgated under this subchapter by the Secretary of Agriculture shall not be changed or replaced within a

period less than one year from and after the date of the promulgation thereof by the Secretary of Agriculture: Provided

further, That no change or replacement of any standard of any

cotton established and promulgated under this subchapter by the

Secretary of Agriculture shall become effective until after one

year's public notice thereof, which notice shall specify the date

when same is to become effective.

(b) PRACTICAL FORMS.

(1) Preparation, certification, and distribution. The Secretary

of Agriculture is authorized and directed to prepare practical

forms of the official cotton standards which shall be established

by him, and to furnish such practical forms from time to time,

upon request, to any person, the cost thereof, as determined by

the Secretary of Agriculture, to be paid by the person requesting

the same, and to certify such practical forms under the seal of the

Department of Agriculture and under the signature of the said

Secretary, thereto, affixed by himself or by some official or employee of the Department of Agriculture thereunto duly authorized

by the said Secretary.

(2) Disposition of receipts from sales. All sums collected by

the Secretary of Agriculture for furnishing practical forms under

paragraph (1) shall be deposited and covered into the Treasury

as miscellaneous receipts. (Aug. 16, 1954, 9:45 a. m., E. D. T., ch.

736, 68A Stat. 580.)

§ 4861. Spot cotton.

This subchapter shall not be construed to impose a tax on any

sale of spot cotton. (Aug. 16, 1954, 9:45 a. m., E. D. T., ch. 736,

68A Stat. 581.) . ' ^.

§ 4862. Definition of bona fide spot markets.

(a) DEFINITION.

For the purpose of this subchapter, the only markets which

shall be considered bona fide spot markets shall be those which

the Secretary of Agriculture shall, from time to time, after inves25
tigatîon, determine and designate to be such, and of which he

shall give public notice,

(b) DETERMINATION.

In determining, pursuant to the provisions of this subchapter,

what markets are bona fide spot markets, the Secretary of Agriculture is directed to consider only markets in which spot cotton

is sold in such volume and under such conditions as customarily

to reñect accurately the value of middling cotton and the differences between the prices or values of middling cotton and of other

grades of cotton for which standards shall have been established

by the Secretary of Agriculture : Provided, That if there be not

sufficient places, in the markets of which are made bona fide sales

of spot cotton of grades for which standards are established by the

Secretary of Agriculture, to enable him to designate at least five

spot markets in accordance with section 4863 (c), he shall, from

data as to spot sales collected by him, make rules and regulations

for determining the actual commercial differences in the value

of spot cotton of the grades established by him as reflected by bona

fide sales of spot cotton, of the same or different grades, in the

markets selected and designated by him, from time to time, for

that purpose, and in that event differences in value of cotton of

various grades involved in contracts made pursuant to section

4863 (a) and (b) shall be determined in compliance with such

rules and regulations: Provided further, That it shall be the duty

of any person engaged in the business of dealing in cotton, when

requested by the Secretary of Agriculture or any agent acting

under his instructions, to answer correctly to the best of his knowledge, under oath or otherwise, all questions touching his knowledge of the number of bales, the classification, the price or bona

fide prices offered, and other terms of purchase or sale, of any

cotton involved in any transaction participated in by him, or to

produce all books, letters, papers, or documents in his possession

or under his control relating to such matter. (Aug. 16, 1954, 9:45

a. m., E. D. T., ch. 736, 68A Stat. 581.)

§ 4863. Basis grade contracts.

(a) CONDITIONS. ^ ^

No tax shall be imposed under this subchapter on any contract

of sale mentioned in section 4851 (a) if the contract comply with

each of the following conditions :

(1) Conformity with section 4853 (a) and regulations. Conform to the requirements in section 4853 (a) and the rules and

regulations made pursuant to this subchapter.

(2) Specification of grade, price, and dates of sale and settlement. Specify the basis grade for the cotton involved in the

contract, which shall be one of the grades for which standards are

established by the Secretary of Agriculture, except grades prohibited from being delivered on a contract made under this section

by the fifth paragraph of this subsection, the price per pound at

which the cotton of such basis grade is contracted to be bought

or sold, the date when the purchase or sale was made, and the

month or months in which the contract is to be fulfilled or settled:

Provided, That middling shall be deemed the basis grade incorporated into the contract if no other basis grade be specified either

in the contract or in the memorandum evidencing the same.

26
(3) Provision for delivery of standard grades only. Provide

that the cotton dealt with therein or delivered thereunder shall be

of or within the grades for which standards are established by

the Secretary of Agriculture except grades prohibited from being

delivered on a contract made under this section by paragraph (5)

and no other grade or grades.

(4) Provision for settlement on basis of actual commercial

differences. Provide that in case cotton of grade other than the

basis grade be tendered or delivered in settlement of such contract,

the differences above or below the contract price which the receiver shall pay for such grades other than the basis grade shall

be the actual commercial differences, determined as hereinafter

provided.

(5) Prohibition of delivery of inferior cotton. Provide that

cotton that, because of the presence of extraneous matter of any

character, or irregularities or defects, is reduced in value below

that of low middling, or cotton that is below the grade of low

middling, or, if tinged, cotton that is below the grade of strict

middling, or, if yellow stained, cotton that is below the grade of

good middling, the grades mentioned being of the official cotton

standards of the United States, or cotton that is less than seveneighths of an inch in length of staple, or cotton of perished staple,

or of immature staple, or cotton that is "gin cut" or reginned,

or cotton that is "repacked" or "false packed" or "mixed packed"

or "water packed," shall not be delivered on, under, or in settlement of such contract.

(6) Provisions for tender in full, notice of delivery date, and

certificate of grade. Provide that all tenders of cotton under such

contract shall be the full number of bales involved therein, except

that such variations of the number of bales may be permitted as

is necessary to bring the total weight of the cotton tendered within

the provisions of the contract as to weight ; that, on the fifth business day prior to delivery, the person making the tender shall

give to the person receiving the same written notice of the date

of delivery, and that, on or prior to the date so fixed for delivery,

and in advance of final settlement of the contract, the person making the tender shall furnish to the person receiving the same a

written notice or certificate stating the grade of each individual

bale to be delivered and, by means of marks or numbers, identifying each bale with its grade.

(7) Provision for tender and settlement in accordance with

government classification. Provide that all tenders of cotton and

settlements therefor under such contract shall be in accordance

with the classification thereof made under the regulations of the

Secretary of Agriculture by such officer or officers of the Government as shall be designated for the purpose, and the costs of such

classification shall be fixed, assessed, collected, and paid as provided in such regulations. All moneys collected as such costs may

be used as a revolving fund for carrying out the purposes of this

paragraph. The Secretary of Agriculture is authorized to prescribe

regulations for carrying out the purposes of this paragraph, and

the certificates of the officers of the Government as to the classification of any cotton for the purposes of this paragraph shall be

accepted in the courts of the United States in all suits between the

27
parties to such contract, or their privies, as prima facie evidence

of the true classification of the cotton involved.

(b) INCORPORATION OF CONDITIONS IN CONTRACTS.

The provision of subsection (a) (8), (4), (5), (6), and (7)

shall be deemed fully incorporated into any such contract if there

be written or printed thereon, or on the memoranda evidencing

the same, at or prior to the time the same is signed, the phrase

"Subject to Internal Revenue Code, section 4863."

(c) DELIVERY ALLOWANCES.

For the purpose of this section, the differences above or below

the contract price which the receiver shall pay for cotton of grades

above or below the basis grade in the settlement of a contract of

sale for the future delivery of cotton shall be determined by the

actual commercial differences in value thereof upon the sixth

business day prior to the day fixed, in accordance with subsection

(a) (6), for the delivery of cotton on the contract, established

by the sale of spot cotton in the spot markets of not less than

five places designated for the purpose from time to time by the

Secretary of Agriculture, as such values were established by the

sales of spot cotton, in such designated five or more markets:

Provided, That for the purpose of this subsection such values

in the said spot markets be based upon the standards for grades

of cotton established by the Secretary of Agriculture : And provided further, That whenever the value of one grade is to be

determined from the sale or sales of spot cotton of another grade

or grades, such value shall be fixed in accordance with rules and

regulations which shall be prescribed for the purpose by the

Secretary of Agriculture. (Aug. 16, 1954, 9:45 a. m., E. D. T.,

ch. 736, 68A Stat. 582.)

§ 4864. Tendered grade contracts.

(a) CONDITIONS.

No tax shall be imposed under this subchapter on any contract

of sale mentioned in section 4851 (a) if the contract—

(1) Compliance with section 4863. Comply with all the terms

and conditions of section 4863 not inconsistent with this section ;

and

(2) Provision for contingent specific performance. Provide

that, in case cotton of grade or grades other than the basis grade

specified in the contract shall be tendered in performance of the

contract, the parties to such contract may agree, at the time of

the tender, as to the price of the grade or grades so tendered, and

that if they shall not then agree as to such price, then, and in

that event, the buyer of said contract shall have the right to

demand the specific fulfillment of such contract by the actual

delivery of cotton of the basis grade named therein and at the

price specified for such basis grade in said contract.

(b) INCORPORATION OF CONDITIONS IN CONTRACT.

Contracts made in compliance with this section shall be known

as "Section 4864 Contracts.*' The provisions of this section shall

be deemed fully incorporated into any such contract if there be

written or printed thereon, or on the memorandum evidencing the

same, at or prior to the time the same is signed, the phrase "Subject to Internal Revenue Code, section 4864.''

28
(c) APPLICATION OF SECTION.

Nothing in this section shall be so construed as to relieve from

the tax imposed by section 4851 (a) any contract in which, or

in the settlement of or in respect to which, any device or arrangement whatever is resorted to, or any agreement is made, for the

determination or adjustment of the price of the grade or grades

tendered other than the basis grade specified in the contract by

any "fixed difference" system, or by arbitration, or by any other

method not provided for by this subchapter. (Aug. 16, 1954, 9:45

a. m., E. D. T., ch. 736, 68A Stat. 584.)

§ 4865. Specific grade contracts.

(a) CONDITIONS.

No tax shall be imposed under this subchapter on any contract

of sale mentioned in section 4851 (a) if the contract comply with

each of the following conditions :

(1) Conformity with rules and regulations. Conform to the

rules and regulations made pursuant to this subchapter.

(2) Specification of grade, price, dates of sale and delivery.

Specify the grade, type, sample, or description of the cotton

involved in the contract, the price per pound at which such cotton

is contracted to be bought or sold, the date of the purchase or sale,

and the time when shipment or delivery of such cotton is to be

made.

(3) Prohibition of delivery of other than specified grade. Provide that cotton of or within the grade or of the type, or according

to the sample or description, specified in the contract shall be delivered thereunder, and that no cotton which does not conform

to the type, sample, or description, or which is not of or within

the grade specified in the contract shall be tendered or delivered

thereunder.

(4) Provision for specific performance. Provide that the delivery of cotton under the contract shall not be effected by means

of "set-off" or "ring" settlement, but only by the actual transfer

of the specified cotton mentioned in the contract.

(b) INCORPORATION OF CONDITIONS IN CONTRACT.

The provisions of subsection (a) (1), (3), and (4) shall be

deemed fully incorporated into any such contract if there be

written or printed thereon, or on the document or memorandum

evidencing the same, at or prior to the time the same is entered

into, the words "Subject to Internal Revenue Code, section 4865."

(c) APPLICATION OF SECTIONS.

This section shall not be construed to apply to any contract of

sale made in compliance with section 4863 or 4864. (Aug. 16,1954,

9:45 a. m., E. D. T., ch. 736, 68A Stat. 584.)

§ 4871. Method of payment.

The tax imposed by section 4851 (a) shall be paid by means of

stamps which shall be affixed to such contracts, or to the memoranda evidencing the same, and canceled in compliance with rules

and regulations which shall be prescribed by the Secretary or

his delegate. (Aug. 16,1954, 9:45 a. m., E. D. T., ch. 736, 68A Stat.

585.)

29
§ 4872. Collection and enforcement.

(a) EULES AND REGULATIONS.

The Secretary or his delegate is authorized to make and promulgate such rules and regulations as he may deem necessary to collect the tax imposed by this subchapter and otherwise to enforce

its provisions.

(b) RECORDS AND RETURNS.

Further to effect the purpose of subsection (a), the Secretary

or his delegate shall require all persons coming within its provisions to keep such records and statements of account, and may

require such persons to make such returns verified under oath or

otherwise, as will fully and correctly disclose all transactions

mentioned in section 4851 (a), including the making, execution,

and fulfillment thereof; he may require all persons who act in

the capacity of a clearing house, clearing association, or similar

institution for the purpose of clearing, settling, or adjusting

transactions mentioned in section 4851 (a) to keep such records

and to make such returns as will fully and correctly disclose all

facts in their possession relating to such transactions.

(c) EMPLOYMENT OF OFFICERS AND EMPLOYEES.

The Secretary or his delegate may appoint officers and employees

to conduct the inspection necessary to collect said tax and otherwise to enforce this subchapter and all rules and regulations made

by him in pursuance hereof. (Aug. 16, 1954, 9:45 a. m., E. D. T.,

ch. 736, 68A Stat. 585.)

§ 4873. Liability of principal for acts of agent.

When construing and enforcing the provisions of this subchapter, the act, omission, or failure of any official, agent, or other

person acting for or employed by any association, partnership, or

corporation within the scope of his employment or office shall, in

every case, also be deemed the act, omission, or failure of such

association, partnership, or corporation, as well as that of the

person. (Aug. 16, 1954, 9:45 a. m., E. D. T., ch. 736, 68A Stat.

586.)

§ 4874. Immunity of witnesses.

No person whose evidence is deemed material by the officer

prosecuting on behalf of the United States in any case brought

under any provision of this subchapter shall withhold his testimony because of complicity by him in any violation of this subchapter or of any regulation made pursuant to this subchapter,

but any such person called by such officer who testifies in such

case shall be exempt from prosecution for any offensé to which

his testimony relates. (Aug. 16, 1954, 9:45 a. m., E. D. T., ch. 736,

68A Stat. 586.)

§ 4875. Operation of State laws.

The payment of any tax imposed by this subchapter shall not

exempt any person from any penalty or punishment now or hereafter provided by the laws of any State for entering into contracts

of sale of cotton for future delivery, nor shall the payment of

any tax imposed by this subchapter be held to prohibit any State

30
or municipality from imposing a tax on the same transaction.

(Aug. 16, 1954, 9:45 a. m., E. D. T., ch. 736, 68A Stat. 586.)

§ 4876. Reports of Secretary of Agriculture.

The Secretary of Agriculture is directed to publish from time to

time the results of investigations made in pursuance of this subchapter. (Aug. 16, 1954, 9:45 a. m., E. D. T., ch. 736, 68A Stat.

586.)

§ 4877. Cross references.

For penalties and other general and administrative provisions applicable to this subchapter, see subtitle F.

(Aug. 16, 1954, 9:45 a. m., E. D. T., ch. 736, 68A Stat, 586.)

§ 6001. Notice or regulations requiring records, statements, and

special returns.

Every person liable for any tax imposed by this title, or for

the collection thereof, shall keep such records, render such statements, make such returns, and comply with such rules and regulations as the Secretary or his delegate may from time to time prescribe. Whenever in the judgment of the Secretary or his delegate

it IS necessary, he may require any person, by notice served upon

such person or by regulations, to make such returns, render such

statements, or keep such records, as the Secretary or his delegate

deems sufficient to show whether or not such person is liable for

tax under this title. (Aug. 16, 1954, 9:45 a. m., E. D. T., ch. 736,

68A Stat. 731.)

§ 6804. Attachment and cancellation.

Except as otherwise expressly provided in this title, the stamps

referred to in section 6801 shall be attached, protected, removed,

canceled, obliterated, and destroyed, in such manner and by such

mstruments or other means as the Secretary or his delegate may

prescribe by rules or regulations. (Aug. 16, 1954, 9:45 a. m.,

E. D. T., ch. 736, 68A Stat. 830.)

§ 7233, Failure to pay, or attempt to evade payment of, tax on

cotton futures, and other violations.

Any person—

(1) iSTonpayment or evasion of tax. Liable to the payment of

any tax imposed by subchapter D of chapter 39, who fails to pay,

or evades, or attempts to evade the payment of such tax; and

(¿) Other violations. Who otherwise violates any provision of

subchapter D of chapter 39, or any rule or regulation made in pursuance thereof ; shall, upon conviction thereof, be fined not less than

?100 nor more than $20,000, in the discretion of the court; and, in

case of natural persons, may, in addition, be punished by imprisonment for not less than 60 days nor more than 3 years, in the discretion of the court. (Aug. 16, 1954; 9:45 a.m., E. D. T., ch. 736,

68A Stat. 858.)

§ 7263. Penalties relating to cotton futures.

(a) WITHHOLDING INFORMATION.

Any person engaged in the business of dealing in cotton who

31
shall, within a reasonable time prescribed by the Secretary of

Agriculture or any agent acting under his instructions, willfully

fail or refuse to answer questions or to produce books, letters,

papers, or documents, as required under section 4862 (b), or

who shall willfully give any answer that is false or misleading,

shall, upon conviction thereof, be fined not more than $500.

(b) CIVIL PENALTIES.

In addition to the criminal penalties provided by section 7233,

there shall be imposed, on account of each violation of subchapter

D of chapter 39, relating to cotton futures, a penalty of $2,000, to

be recovered in a civil action founded on subchapter D of chapter

39 in the name of the United States as plaintiff, and when so

recovered one-half of said amount shall be paid over to the person

giving the information upon which such recovery was based. It

shall be the duty of United States attorneys, to whom satisfactory

evidence of violations of subchapter D of chapter 39 is furnished,

to institute and prosecute actions for the recovery of the penalties

prescribed by this subsection. (Aug. 16, 1954, 9:45 a.m., E. D. T.,

ch. 736, 68A Stat. 862.)

§ 7492. Enforceability of cotton futures contracts.

No contract of sale of cotton for future delivery mentioned in

section 4851 (a), which does not conform to the requirements of

section 4853 and has not the necessary stamps affixed thereto as

required by section 4871, shall be enforceable in any court of the

United States by, or on behalf of, any party to P^h contract or

his privies. (Aug. 16,1954, 9:45 a. m., E. D. T., ch. 736, 68A Stat.

893.)

§ 7493. Immunity of witnesses in cases relating to cotton futures.

No person whose evidence is deemed material by the officer

prosecuting on behalf of the United States in any case brought

under any provision of subchapter D of chapter 39 (relating to

cotton futures) shall withhold his testimony because of complicity

by him in any violation of subchapter D of chapter 39, or of any

regulation made pursuant to such chapter, but any such person

called by such officer who testifies in such case shall be exempt

from prosecution for any offense to which his testimony relates.

(Aug. 16, 1954, 9:45 a. m., E. D. T., ch. 736, 68A Stat. 893.)

§7701. Definitions.

(a) When used in this title, where not otherwise distinctly

expressed or manifestly incompatible with the intent thereof—

(I) The term "person'' shall be construed to mean and include

an individual, a trust, estate, partnership, association, company

or corporation. ,, ,-, n i. J:

(II) Secretary. The term "Secretary'' means the Secretary of

the Treasury.

(12) Delegate. The term "Secretary or his delegate" means

the Secretary of the Treasury, or any officer, employee, or agency

of the Treasury Department duly authorized by the Secretary

(directly, or indirectly by one or more redelegations of authority)

to perform the function mentioned or described m the context, and

the term "or his delegate" when used in connection with any other

official of the United States shall be similarly construed.

32
Fruits and Vegetables

Produce Agency Act

(7 U.S.C. 491, 493-497)

§ 491. Destruction or dumping of farm produce received in interstate commerce by commission merchants, etc., prohibited;

penalty.

After June 30, 1927, any person, firm, association, or corporation receiving any fruits, vegetables, melons, dairy, or poultry

products or any perishable farm products of any kind or character,

referred to in this section and section 492 of this title as produce,

in interstate commerce, or in the District of Columbia, for or on

behalf of another, who without good and sufficient cause therefor,

shall destroy or abandon, discard as refuse, or dump any produce

directly or indirectly, or through collusion with any person, or

who shall knowingly and with intent to defraud make any false

report or statement to the person, firm, association, or corporation

from whom any produce was received, concerning the handling,

condition, quality, quantity, sale, or disposition thereof, or who

shall knowingly and with intent to defraud fail truly and correctly

to account therefor shall be guilty of a misdemeanor and upon

conviction shall be punished by a fine of not less than $100 and

not more than $3,000, or by imprisonment for a period of not

exceeding one year, or both, at the discretion of the court. (Mar.

3, 1927, ch. 309, § 1, 44 Stat. 1355.)

§ 492. (repealed by Public Law 272, 84th Cong.)

§493. Enforcement of provisions; prosecution of cases.

The Secretary of Agriculture is hereby authorized and directed

to enforce this chapter. It is hereby made the duty of all United

States attorneys to prosecute cases arising under this chapter,

subject to the supervision and control of the Department of Justice. (Mar. 3, 1927, ch. 309, § 2, 44 Stat. 1355.)

§ 494. Rules and regulations; cooperation with States, etc., officers

and employees; expenditures.

^ The Secretary of Agriculture may make such rules and regulations as he may deem advisable to carry out the provisions of this

chapter and may cooperate with any department or agency of the

Government, any State, Territory, District, or possession, or department, agency, or political subdivision thereof, or any person ;

and may call upon any Federal department, board, or commission

for assistance in carrying out the purposes of this chapter; and

shall have the power to appoint, remove, and fix the compensation

of such officers and employees not in conflict with existing law

and make such expenditure for rent, outside the District of Columbia, printing, telegrams, telephones, books of reference, books of

law, periodicals, newspapers, furniture, stationery, office equipment, travel, and other supplies and expenses as shall be deemed

necessary to the administration of this chapter in the District

of Columbia and elsewhere. (Mar. 3, 1927, ch. 309, § 3, 44 Stat.

1355.)

33
§ 495. Appropriation.

There is hereby authorized to be appropriated, out of any money

in the Treasury not otherwise appropriated, such sums as may

be necessary after the fiscal year beginning July 1, 1927, to carry

out the purposes of this chapter. (Mar. 3, 1927, ch. 309, § 3, 44

Stat. 1355.)

§ 496. Validity of other statutes dealing with same subject.

This chapter shall not abrogate nor nullify any other statute,

whether State or Federal, dealing with the same subjects as this

chapter, but it is intended that all such statutes shall remain

in full force and effect, except insofar only as they are inconsistent herewith or repugnant hereto. (Mar. 3,1927, ch. 309, § 3,44

Stat. 1355.)

§ 497. Invalidity of any provision of chapter as affecting other

provisions.

If any provision of this chapter is declared unconstitutional

or the applicability thereof to any person or circumstance is held

invalid, the validity of the remainder of the chapter and the

applicability of such provisions to other persons and circumstances

shall not be affected thereby. (Mar. 3, 1927, ch. 309, § 4, 44 Stat.

1356.)

Perishable Agricultural Commodities Act, 1930

(7 U.S.C. 499a-499s)

§499a. Definitions.

When used in this chapter—

(1) The term "person'' includes individuals, partnerships, corporations, and associations;

(2) The term "Secretary" means the Secretary of Agriculture;

(3) The term "interstate or foreign commerce'' means commerce between any State or Territory, or the District of Columbia

and any place outside thereof ; or between points within the same

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

place outside thereof ; or within the District of Columbia ;

(4) The term "perishable agricultural commodity"—

(A) Means any of the following, whether or not frozen or

packed in ice: Fresh fruits and fresh vegetables of every kind

and character; and

(B) Includes cherries in brine as defined by the Secretary in

accordance with trade usages ;

(5) The term "commission merchant" means any person engaged in the business of receiving in interstate or foreign commerce any perishable agricultural commodity for sale, on commission, or for or on behalf of another ;

(6) The term "dealer" means any person engaged in the business of buying or selling in carloads any perishable agricultural

commodity in interstate or foreign commerce, except that (A)

no producer shall be considered as a "dealer" in respect of sales

of any such commodity of his own raising; (B) no person buying

any such commodity solely for sale at retail shall be considered

as a "dealer" in respect of any such commodity in any calendar

34
year until his purchases of such commodity in carloads in such

year are in excess of twenty; and (C) no person buying any such

commodity for canning and/or processing within the State where

grown shall be considered a "dealer" whether or not the canned

or processed product is to be shipped in interstate or foreign

commerce, unless such product is frozen or packed in ice, or consists of cherries in brine, within the meaning of paragraph 4 of

this section. Any person not considered as a "dealer'* under clauses

(A), (B), and (C) may elect to secure a license under the

provisions of section 499c of this title, and in such case and while

the license is in effect such person shall be considered as a "dealer."

As used in this paragraph, the term "in carloads" includes

wholesale or jobbing quantities as defined for any commodity by

the Secretary.

(7) The term "broker" means any person engaged in the business of negotiating sales and purchases of any perishable agricultural commodity in interstate or foreign commerce for or on behalf

of the vendor or the purchaser, respectively ;

(8) A transaction in respect of any perishable agricultural

commodity shall be considered in interstate or foreign commerce

if such commodity is part of that current of commerce usual in

the trade in that commodity whereby such commodity and/or

the products of such commodity are sent from one State with the

expectation that they will end their transit, after purchase, in

another, including in addition to cases within the above general description, all cases where sale is either for shipment to

another State, or for processing within the State and the shipment outside the State of the products resulting from such processing. Commodities normally in such current of commerce shall

not be considered out of such commerce through resort being

had to any means or device intended to remove transactions

in respect thereto from the provisions of this chapter. (June 10,

1930, ch. 436, § 1, 46 Stat. 531 ; Apr. 13, 1934, ch. 120, § 1, 48 Stat.

584; Aug. 20, 1937, ch. 719, § 1, 50 Stat. 725; June 29, 1940,

ch. 456, §§ 1, 2, 54 Stat. 696.)

§ 499b. Unfair conduct; what constitutes.

It shall be unlawful in or in connection with any transaction in

interstate or foreign commerce—

(1) For any commission merchant, dealer, or broker to engage

in or use any unfair, unreasonable, discriminatory, or deceptive

practice in connection with the weighing, counting, or in any way

determining the quantity of any perishable agricultural commodity received, bought, sold, shipped, or handled in interstate

or foreign commerce;

(2) For any dealer to reject or fail to deliver in accordance

with the terms of the contract without reasonable cause any

perishable agricultural commodity bought or sold or contracted to

be bought, sold, or consigned in interstate or foreign commerce

by such dealer;

(3) For any commission merchant to discard, dump, or destroy without reasonable cause, any perishable agricultural commodity received by such commission merchant in interstate or

foreign commerce ;

(4) For any commission merchant, dealer, or broker to make,

35
for a fraudulent purpose, any false or misleading statement in

connection with any transaction involving any perishable agricultural commodity which is received in interstate or foreign

commerce by such commission merchant, or bought or sold, or

contracted to be bought, sold, or consigned, in such commerce

by such dealer, or the purchase or sale of which in such commerce

is negotiated by such broker; or to fail or refuse truly and correctly to account and make full payment promptly in respect

of any transaction in any such commodity to the person with

whom such transaction is had; or to fail, without reasonable

cause, to perform any specification or duty, expressed or implied,

arising out of any undertaking in connection with any such

transaction ;

(5) For any commission merchant, dealer, or broker, to misrepresent by word, act, mark, stencil, label, statement, or deed

the character, kind, grade, quality, quantity, size, pack, weight,

condition, degree of maturity, or State, country, or region of origin

of any perishable agricultural commodity received, shipped, sold,

or offered to be sold in interstate or foreign commerce ;

(6) For any commission merchant, dealer, or broker, for a

fraudulent purpose, to remove, alter, or tamper with any card,

stencil, stamp, tag, or other notice placed upon any container

or railroad car containing any perishable agricultural commodity,

if such card, stencil, stamp, tag, or other notice contains a

certificate or statement under authority of any Federal or State

inspector or in compliance with any Federal or State law or

regulation as to the grade or quality of the commodity contained

in such container or railroad car or the State or country in which

such commodity was produced ;

(7) For any commission merchant, dealer, or broker, without

the consent of an inspector, to make, cause, or permit to be made

any change by way of substitution or otherwise in the contents

of a load or lot of any perishable agricultural commodity after

it has been officially inspected for grading and certification, but

this shall not prohibit re-sorting and discarding inferior produce.

(June 10, 1930, ch. 436, § 2, 46 Stat. 532; Apr. 13, 1934, ch. 120,

§§ 2, 3, 48 Stat. 585; June 19, 1936, ch. 602, § 1, 49 Stat. 1533;

Aug. 20, 1937, ch. 719, §§ 2-4, 50 Stat. 725, 726; June 29, 1940,

ch. 456, §§ 3, 4, 54 Stat. 696; Apr. 6, 1942, ch. 211, 56 Stat. 200;

July 30,1956, ch. 786, § 1, 70 Stat. 726.)

§ 499c, Licenses.

(a) BY WHOM LICENSE REQUIRED ; PENALTY FOR FAILURE TO OBTAIN.

After December 10, 1930, no person shall at any time carry

on the business of a commission merchant, dealer, or broker without a license valid and effective at such time. Any person who

violates any provision of this subdivision shall be liable to a

penalty of not more than $500 for each such offense and not more

than $25 for each day it continues, which shall accrue to the United

States and may be recovered in a civil suit brought by the United

States.

Any person violating this provision may; upon a showing satisfactory to the Secretary of Agriculture, or his authorized representative, that such violation was not willful but was due to

inadvertence, be permitted by the Secretary, or such representa36
tive, to settle his liability in the matter by the payment of the

fees due for the period covered by such violation and an additional

sum, not in excess of $25, to be fixed by the Secretary of Agriculture or his authorized representative. Such payment shall be

deposited in the Treasury of the United States in the same manner

as regular license fees.

(b) APPLICATION; FEES; CREATION OF PERISHABLE AGRICULTURAL

COMMODITIES ACT FUND ; AVAILABILITY OF FUND FOR ADMINISTRATIVE EXPENSES ; BUDGET REQUIREMENTS.

Any person desiring any such license shall make application to

the Secretary. The Secretary may by regulation prescribe the

information to be contained in such application. Upon the filing of

the application, and annually thereafter, the applicant shall pay

a fee not to exceed $25, which shall be deposited in the Treasury

of the United States as a special fund, without fiscal year limitation, to be designated as the "Perishable Agricultural Commodities Act fund'', which shall be available for all expenses necessary

to the administration of this chapter and chapters 20 and 25 of

this title: Provided, That financial statements prescribed by the

Director of the Bureau of the Budget for the last completed fiscal

year, and as estimated for the current and ensuing fiscal years,

shall be included in the budget as submitted to the Congress

annually. (June 10, 1930, ch. 436, § 3, 46 Stat. 533; Aug. 20,

1937, ch. 719, § 5, 50 Stat. 726 ; June 15, 1950, ch. 254, § 1, 64

Stat. 217; July 30, 1956, ch. 786, § 2 (a), 70 Stat. 726.)

§ 499d. Same; issuance and refusal,

(a) ISSUANCE OF LICENSE; AUTHORITY EXERCISED THEREUNDER;

TERMINATION.

Whenever an applicant has paid the prescribed fee the Secretary, except as provided in subdivision (b) of this section, shall

issue to such applicant a license, which shall entitle the licensee

to do business as a commission merchant and/or dealer and/or

broker unless and until it is suspended or revoked by the Secretary

in accordance with the provisions of this chapter, or is automatically suspended under section 499g (d) of this title, but said

license shall autom^atically terminate on any anniversary date

thereof unless the annual fee has been paid : Provided, That notice

of the necessity of paying the annual fee shall be mailed at least

thirty days before the anniversary date : Provided further. That

if the annual fee is not paid by the anniversary date the licensee

may obtain a renewal of that license at any time within thirty

days by paying the fee provided in section 499c (b), plus $5

". . . which shall be deposited in the Perishable Agricultural

Commodities Act fund provided for by section 499c (b) of this

title."

(b) REFUSAL OF LICENSE ; GROUNDS ; EFFECT OF GIVING BOND.

The Secretary shall refuse to issue a license to an applicant

(1) if he finds that, the applicant has previously been responsible

in whole or in part for any violation of the provisions of the

chapter for which a license of the applicant, or the license of any

37
partnership, association, or corporation in which the applicant

held any office or, in the case of a partnership had any share

or interest, was revoked under the provisions of section 499h of

this title; or (2) if at any time within two years he has found

after notice and hearing that said applicant was responsible in

whole or in part for any flagrant or repeated violation of the

provisions of section 499b of this title; or (3) if he finds, in case

the applicant is a partnership, association, or corporation, that

any individual holding office, or in the case of a partnership, having any interest or share in the applicant, has previously been

responsible in whole or in part for any violation of the provisions

of the chapter for which the license of such individual, or of any

partnership, association, or corporation in which such person held

any office, or in the case of a partnership, had any share or interest,

was revoked under the provisions of section 499h of this title;

or (4) if at any time within two years he has found after notice

and hearing, in case the applicant is a partnership, association,

or corporation, that any individual holding any office or, in the

case of a partnership, having any interest or share in the applicant

was responsible in whole or in part for any flagrant or repeated

violation of the provisions of section 499b of this title; or (5) if

he finds that the applicant, subject to his right of appeal under

section 499g (c) of this title, has failed, except in case of bankruptcy, to pay within the time limit provided therein any reparation order which has been issued, within two years, against him

as an individual, or against a partnership of which he was a

member, or an association or corporation in which he held any

office, or, in case the applicant is a partnership, association, or

corporation, that any individual holding any office, or, in the case

of a partnership, having any interest or share in the applicant,

subject to his right of appeal under section 499g (c) of this title,

has failed, except in the case of bankruptcy, to pay within the

time limit provided therein any reparation order which has been

issued, within two years, against him as an individual or against a

partnership of which he was a member, or an association or corporation in which he held any office. Notwithstanding all of the foregoing provisions of this paragraph, the Secretary, in the case of

such applicant, may issue a license if the applicant furnishes a

bond or other satisfactory assurance that his business will be

conducted in accordance with the provisions of the chapter and

that he will pay all reparation orders which may previously

have been issued against him for violations, or which may be

issued against him within two years following the date of the

license, subject to his right of appeal under section 499g (c)

of this title, but such license shall not be issued before the expiration of one year from the date of revocation of license or from

the date of the Secretary's finding that the applicant has been

responsible, in whole or in part, for any flagrant or repeated

violation of section 499b of this title. Such bond shall be in an

amount sufficient in the judgment of the Secretary of Agriculture to insure payment of such reparation orders :

(c) REVOCATION OF LICENSE BECAUSE OF EMPLOYMENT OF PERSON

WHOSE LICENSE HAD BEEN REVOKED.

The Secretary shall refuse to issue a license to an applicant if he

38
finds after notice and hearing that at any time within two years

said applicant has been found guilty in a Federal court of having

violated the provisions of sections 491-497 of this title, or of having

violated section 499n (b) of this title, or, in case the applicant is

a partnership, that any member of the partnership was found

guilty within two years of having violated the provisions of sections 491-497 of this title, or section 499n (b) of this title, or, if the

applicant is an association or corporation, that any officer or

any person holding a responsible position therein has been found

within two years to have been guilty of violating the provisions

of sections 491-497 of this title, or section 499n (b) of this

title ;

(d) WITHHOLDING LICENSE PENDING INVESTIGATION.

The Secretary may withhold the issuance of a license to an applicant, for a period not to exceed thirty days pending an investigation, for the purpose of determining (a) whether the applicant is

unfit to engage in the business of a commission merchant, dealer,

or broker because the applicant, or in case the applicant is a

partnership, any general partner, or in case the applicant is a

corporation, any officer or holder of more than 10 per centum of

the stock, prior to the date of the filing of the application engaged

in any practice of the character prohibited by this Act or was

convicted of a felony in any State or Federal court, or (b) whether

the application contains any materially false or misleading sta;tement or involves any misrepresentation, concealment, or withholding of facts respecting any violation of the Act by any officer,

agent, or employee of the applicant. If after investigation the

Secretary believes that the applicant should be refused a license,

the applicant shall be given an opportunity for hearing within

sixty days from the date of the application to show cause why

the license should not be refused. If after the hearing the Secretary

finds that the applicant is unfit to engage in the business of a

commission merchant, dealer, or broker because the applicant,

or in case the applicant is a partnership, any general partner, or

in case the applicant is a corporation, any officer or holder of

more than 10 per centum of the stock, prior to the date of the filing

of the application engaged in any practice of the character prohibited by this Act or was convicted of a felony in any State

or Federal court, or because the application contains a materially

false or misleading statement made by the applicant or by its

representative on its behalf, or involves a misrepresentation, concealment, or withholding of facts respecting any violation of the

Act by any officer, agent, or employee, the Secretary may refuse

to issue a license to the applicant.

(e) EFFECT OF BANKRUPTCY

The Secretary may refuse to issue à license to any applicant if

he finds that the applicant, or in case the applicant is a partnership, any general partner, or in case the applicant is a corporation, any officer or holder of more than 10 per centum of the stock,

has, within three years prior to the date of the application, been

adjudicated or discharged as a bankrupt, or was a general partner

of a partnership or officer or holder of more than 10 per centum

of the stock of a corporation adjudicated or discharged as a

39
bankrupt, unless the applicant furnishes a bond of such nature and

amount as may be determined by the Secretary or other assurance

satisfactory to the Secretary that the business of the applicant will

be conducted in accordance with this Act. (June 10, 1930, ch. 436,

§ 4, 46 Stat. 533; Apr. 13, 1934, ch. 120, §§ 4-7, 48 Stat. 585, 586;

June 19, 1936, ch. 602, § 2, 49 Stat. 1533; Aug. 20, 1937, ch. 719,

§ 6, 50 Stat. 726; June 15,1950, ch. 254, § 2, 64 Stat. 218; July 30,

1956, ch. 786, § 2 (b), § 3, § 4, 70 Stat. 726).

§499e. Liability to persons injured.

(a) AMOUNT OP DAMAGES

If any commission merchant, dealer, or broker violates any

provision of section 499b of this title he shall be liable to the

person or persons injured thereby for the full amount of damages sustained in consequence of such violation.

(b) REMEDIES.

Such liability may be enforced either (1) by complaint to the

Secretary as hereinafter provided, or (2) by suit in any court of

competent jurisdiction; but this section shall not in any way

abridge or alter the remedies now existing at common law or by

statute, and the provisions of this chapter are in addition to such

remedies. (June 10,1930, ch. 436, § 5, 46 Stat. 534; Aug. 20, 1937,

ch. 719, § 7, 50 Stat. 728.)

§ 499f. Complaint and investigation.

(a) PETITION TO SECRETARY OF AGRICULTURE; TIME OF MAKING;

CONTENTS; SERVICE; ANSWER.

Any person complaining of any violation of any provision of section 499b of this title by any commission merchant, dealer, or

broker may, at any time within nine months after the cause of action accrues, apply to the Secretary by petition, which shall

briefly state the facts, whereupon, if, in the opinion of the Secretary, the facts therein contained warrant such action, a copy of the

complaint thus made shall be forwarded by the Secretary to

the commission merchant, dealer, or broker, who shall be called

upon to satisfy the complaint, or to answer it in writing, within

a reasonable time to be prescribed by the Secretary.

(b) COMPLAINT TO SECRETARY REQUESTING INVESTIGATION OF

VIOLATIONS ; BY WHOM MADE.

Any officer or agency of any State or Territory having jurisdiction over commission merchants, dealers, or brokers in such State

or Territory and any employee of the United States Department

of Agriculture or any interested person may file, in accordance

with rules and regulations of the Secretary, a complaint of any

violation of any provision of this chapter by any commission merchant, dealer, or broker and may request an investigation of such

complaint by the Secretary.

(c) SERVICE OF COMPLAINT; HEARING.

If there appear to be, in the opinion of the Secretary, any

reasonable grounds for investigating any complaint made under

this section, the Secretary shall investigate such complaint and

may, if in his opinion the facts warrant such action, have said

complaint served by registered mail or otherwise on the person

40
concerned and afford such person an opportunity for a hearing

thereon before a duly authorized examiner of the Secretary in any

place in which the said person is engaged in business : Provided,

That in complaints wherein the amount claimed as damages does

not exceed the sum of $500, a hearing need not be held and proof in

support of the complaint and in support of respondent's answer

may be supplied in the form of depositions or verified statements

of fact.

(d) DETERMINATION BY SECRETARY OF VIOLATIONS.

After opportunity for hearing on complaints where the damages

claimed exceed the sum of $500 has been provided or waived and

on complaints where damages claimed do not exceed the sum of

$500 not requiring hearing as provided herein, the Secretary

shall determine whether or not the commission merchant, dealer,

or broker has violated any provision of section 499b of this title.

(e) COMPLAINTS BY NONRESIDENTS; BOND FOR COSTS AND FEES.

In case a complaint is made by a nonresident of the United

States, the complainant shall be required, before any formal action

is taken on his complaint, to furnish a bond in double the amount

of the claim conditioned upon the payment of costs, including

a reasonable attorney's fee for the respondent if the respondent shall prevail, and any reparation award that may be issued by

the Secretary of Agriculture against the complainant on any

counter claim by respondent : Provided, That the Secretary shall

have authority to waive the furnishing of a bond by a complainant who is a resident of a country which permits the filing

of a complaint by a resident of the United States without the

furnishing of a bond. (June 10, 1930, ch. 436, § 6, 46 Stat. 534;

Apr. 13, 1934, ch. 120, §§ 8-10, 48 Stat. 586, 587; Aug. 20, 1937,

ch. 719, §§ 8, 9, 50 Stat. 728.)

§ 499g. Reparation order.

(a) DETERMINATION BY SECRETARY OF AGRICULTURE OF AMOUNT

OF DAMAGES ; ORDER FOR PAYMENT.

If after a hearing on a complaint made by any person under

section 499f of this title or without hearing as provided in section

499f of this title, paragraphs (c) and (d), or upon failure of the

party complained against to answer a complaint duly served within

the time prescribed, or to appear at a hearing after being duly

notified, the Secretary determines that the commission merchant,

dealer, or broker has violated any provision of section 499b of

this title, he shall, unless the offender has already made reparation to the person complaining, determine the amount of damage,

if any, to which such person is entitled as a result of such violation and shall make an order directing the offender to pay to such

person complaining such amount on or before the date fixed in

the order. If, after the respondent has filed his answer to the

complainant, it appears therein that the respondent has admitted

liability for a portion of the amount claimed in the complaint as

damages, the Secretary under such rules and regulations as he

shall prescribe, unless the respondent has already made reparation to the person complaining, may issue an order directing the

respondent to pay to the complainant the undisputed amount on

or before the date fixed in the order, leaving the respondent's

41
liability for the disputed amount for subsequent determination.

The remaining disputed amount shall be determined in the same

manner and under the same procedure as it would have been

determined if no order had been issued by the Secretary with

respect to the undisputed sum ;

(b) FAILURE TO COMPLY WITH ORDER OF SECRETARY ; SUIT IN FEDERAL COURT TO ENFORCE LIABILITY; ORDER OF SECRETARY AS

EVIDENCE ; COSTS AND FEES.

If any commission merchant, dealer, or broker does not pay

the reparation award within the time specified in the Secretary's order, the complainant, or any person for whose benefit such order was made, may within three years of the date of

the order file in the district court of the United States for the

district in which he resides or in which is located the principal

place of business of the commission merchant, dealer, or broker,

or in any State court having general jurisdiction of the parties,

a petition setting forth briefly the causes for which he claims

damages and the order of the Secretary in the premises. The

orders, writs, and processes of the district courts may in these

cases run, be served, and be returnable anywhere in the United

States. Such suit in the district court shall proceed in all respects

like other civil suits for damages, except that the findings and

orders of the Secretary shall be prima facie evidence of the facts

therein stated, and the petitioner shall not be liable for costs in

the district court, nor for costs at any subsequent state of the

proceedings, unless they accrue upon his appeal. If the petitioner

finally prevails, he shall be allowed a reasonable attorney's fee,

to be taxed and collected as a part of the costs of the suit ;

(c) APPEAL FROM REPARATION ORDER; PROCEEDINGS.

Either party adversely affected by the entry of a reparation

order by the Secretary may, within thirty days from and after the

date of such order, appeal therefrom to the district court of the

United States for the district in which said hearing was held:

Provided, That in cases handled without a hearing in accordance

with paragraphs (c) and (d) of section 499f of this title or in

which a hearing has been waived by agreement of the parties,

appeal shall be to the district court of the United States for the district in which the party complained against is located. Such appeal

shall be perfected by the filing of a notice thereof together with a

petition in duplicate which shall recite prior proceedings before the

Secretary, and shall state the grounds upon which petitioner relies

to defeat the right of the adverse party to recover the damages

claimed, with the clerk of said court with proof of service thereof

upon the adverse party, together with a bond in double the amount

of the reparation award conditioned upon the payment of the

judgment entered by the court plus interest and costs, including

a reasonable attorney's fee for the appellee, if the appellee shall

prevail. The clerk of court shall immediately forward a copy

thereof to the Secretary of Agriculture, who shall forthwith prepare, certify, and file in said court a true copy of the Secretary's

decision, findings of fact, conclusions, and order in said case, together with copies of the pleadings upon which the case was

heard and submitted to the Secretary. Such suit in the district

court shall be a trial de novo and shall proceed in all respects like

42
other civil suits for damages, except that the findings of fact and

order or orders of the Secretary shall be prima facie evidence of

the facts therein stated. Appellee shall not be liable for costs in

said court if appellee prevails he shall be allowed a reasonable

attorney's fee to be taxed and collected as a part of his costs.

Such petition and pleadings certified by the Secretary upon which

decision was made by him shall upon filing in the district court

constitute the pleadings upon which said trial de novo shall proceed

subject to any amendment allowed in that court;

(d) SUSPENSION OF LICENSE FOR FAILURE TO OBEY REPARATION

ORDER OR APPEAL,

Unless the licensee against whom a reparation order has been

issued shows to the satisfaction of the Secretary within five

days from the expiration of the period allowed for compliance

with such order that he has either taken an appeal as herein

authorized or has made payment in full as required by such

order his license shall be suspended automatically at the expiration of such five-day period until he shows to the satisfaction of the Secretary that he has paid the amount therein specified

with interest thereon to date of payment: Provided, That if

on the appeal the appellee prevails or if the appeal is dismissed

the automatic suspension of license shall become effective at the

expiration of ten days from the date of the judgment on the

appeal unless prior thereto the judgment of the court has been

satisfied. (June 10, 1930, ch. 436, § 7, 46 Stat. 534; Apr. 13, 1934,

ch. 120, §§ 11-13, 48 Stat. 587, 588; June 19, 1936, ch. 602

§ 3, 49 Stat. 1534; Aug. 20, 1937, ch. 719, § 10, 50 Stat. 728; June

23,1938, ch. 599, 52 Stat. 953 ; May 14,1940, ch. 196, 54 Stat. 214.)

§ 499h. Grounds for suspension or revocation of license-

(a) AUTHORITY OF SECRETARY.

Whenever (a) the Secretary determines, as provided in section

499f of this title, that any commission merchant, dealer, or broker

has violated any of the provisions of section 499b of this title, or

(b) any commission merchant, dealer, or broker has been found

guilty in a Federal court of having violated section 499n (b) of

this title, the Secretary may publish the facts and circumstances

of such violation and/or, by order, suspend the license of such

offender for a period not to exceed ninety days, except that, if the

violation is flagrant or repeated, the Secretary may, by order,

revoke the license of the offender ;

(b) EFFECT OF SUSPENSION OR REVOCATION OF LICENSE OF EMPLOYEE.

The Secretary may, after thirty days' notice and an opportunity

for a hearing, suspend or revoke the license of any commission

merchant, dealer, or broker who, after the date given in such

notice, continues to employ in any responsible position any individual whose license has been revoked or is under suspension or

who was responsibly connected with any firm, partnership, association, or corporation whose license has been revoked or is under

suspension. Employment of an individual whose license has been

revoked or is under suspension for failure to pay a reparation

award or who was responsibly connected with any firm, partner43
ship, association, or corporation whose license has been revoked

or is under suspension for failure to pay a reparation award after

one year following the revocation or suspension of any such license

may be permitted by the Secretary upon the filing by the employing

licensee of a bond, of such nature and amount as may be determined by the Secretary, or other assurance satisfactory to the

Secretary that its business will be conducted in accordance with

the provisions of this Act.

(c) FRAUD IN PROCUREMENT.

If, after a license shall have been issued to an applicant, the

Secretary believes that the license was obtained through a false

or misleading statement in the application therefor or through a

misrepresentation, concealment, or withholding of facts respecting any violation of this chapter by any officer, agent, or employee,

he may, after thirty days' notice and an opportunity for a hearing,

revoke said license, whereupon no license shall be issued to said

applicant or any applicant in which the person responsible for

such false or misleading statement or misrepresentation, concealment, or withholding of facts is financially interested, except under

the conditions set forth in section 499d (b) of this title.

(d) INJUNCTION.

In addition to being subject to the penalties provided by section

499c (a) of this title, any commission merchant, dealer, or broker

who engages in or operates such business without a valid and

effective license from the Secretary shall be liable to be proceeded

against in any court of competent jurisdiction in a suit by the

United States for an injunction to restrain such defendant from

further continuing so to engage in or operate such business, and,

if the court shall find that the defendant is continuing to engage

in such business without a valid and effective license, the court

shall issue an injunction to restrain such defendant from continuing to engage in or to operate such business without such license.

(June 10, 1930, ch. 436, § 8, 46 Stat. 535; Apr. 13, 1934, ch. 120,

§ 14, 48 Stat. 588; Aug. 20, 1937, ch. 719, § 11, 50 Stat. 730; July

30,1956, ch. 786, § 6, 70 Stat. 727.)

§499i. Accounts, records, and memoranda; duty of licensees to

keep; contents; suspension of license or violation of duty.

Every commission merchant, dealer, and broker shall keep such

accounts, records, and memoranda as fully and correctly disclose

all transactions involved in his business, including the true ownership of such business by stockholding or otherwise. If such accounts, records, and memoranda are not so kept, the Secretary

may publish the facts and circumstances and/or, by order, suspend

the license of the offender for a period not to exceed ninety days.

(June 10,1930, ch. 436, § 9, 46 Stat. 535.)

§499j. Orders; when in effect; continuance in force; suspension,

modification and setting aside; penalty.

Any order of the Secretary under this chapter other than an

order for the payment of money shall take effect within such reasonable time, not less than ten days, as is prescribed in the order,

and shall continue in force until his further order, or for a speci44
fied period of time, accordingly as it is prescribed in the order,

unless such order is suspended, modified, or set aside by the Secretary or is suspended, modified, or set aside by a court of competent

jurisdiction. Any such order of the Secretary, if regularly made,

shall be final, unless before the date prescribed for its taking

effect application is made to a court of competent jurisdiction by

the commission merchant, dealer, or broker against whom such

order is directed to have such order set aside or its enforcement,

operation, or execution suspended or restrained. (June 10, 1930,

ch. 436, § 10, 46 Stat. 535.)

§ 499k. Injunctions; application of injunction laws governing

orders of Interstate Commerce Commission.

For the purposes of this chapter the provisions of all laws

relating to the suspending or restraining of the enforcement,

operation, or execution, or the setting-aside, in whole or in part,

of the orders of the Interstate Commerce Commission are made

applicable to orders of the Secretary under this chapter and to any

person subject to the provisions of this chapter. (June 10, 1930,

ch. 436, § 11, 46 Stat. 535.)

§ 4991. Violation ; report to Attorney General; proceedings in

Federal courts; costs.

The Secretary may report any violation of this chapter for

which a civil penalty is provided to the Attorney General of the

United States, who shall cause appropriate proceedings to be commenced and prosecuted in the proper courts of the United States

without delay. The costs and expenses of such proceedings shall

be paid out of the appropriation for the expenses of the courts of

the United States. (June 10, 1930, ch. 436, § 12, 46 Stat. 536.)

§ 499m. Investigation of complaints; procedure, penalties, etc.

(a) INVESTIGATION OF COMPLAINTS BY SECRETARY OF AGRICULTURE; INSPECTION OF ACCOUNTS, RECORDS, AND MEMORANDA;

PENALTY FOR REFUSING INSPECTION.

The Secretary or his duly authorized agents shall have the right

to inspect such accounts, records, and memoranda of any commission merchant, dealer, or broker as may be material (1) in the

investigation of complaints under this Act, or (2) to the determination of ownership, control, packer, or State, country, or region

of origin in connection with commodity inspections, or (3) to

ascertain whether section 499i of this Act is being complied with,

and if any such commission merchant, dealer, or broker refuses

to permit such inspection, the Secretary may publish the facts

and circumstances and/or, by order, suspend the license of the

offender until permission to make such inspection is given. The

Secretary or his duly authorized agents shall have the right to

inspect any lot of any perishable agricultural commodity covered

by this Act, and if any commission merchant, dealer, or broker

having ownership of or control over such lot fails or refuses to

authorize or allow such inspection, the Secretary may, after thirty

days' notice and an opportunity for a hearing, publish the facts

and circumstances and/or, by order, suspend the license of the

offender for a period not to exceed ninety days.

45
(b) HEARINGS; SUBPOENAS; OATHS; WITNESSES; EVIDENCE.

The Secretary, or any officer or employee designated by him for

such purpose, may hold hearings, sign and issue subpoenas, administer oaths, examine witnesses, receive evidence, and require

by subpoena the attendance and testimony of witnesses and the

production of such accounts, records, and memoranda as may be

material for the determination of any complaint under this chapter.

(c) DISOBEDIENCE TO SUBPOENAS; REMEDY; CONTEMPT.

In case of disobedience to a subpoena, the Secretary or any of

his examiners may invoke the aid of any court of the United

States in requiring the attendance and testimony of witnesses and

the production of accounts, records, and memoranda. Any district

court of the United States within the jurisdiction of which any

hearing is carried on may, in case of contumacy or refusal to

obey a subpoena issued to any person, issue an order requiring

the person to appear before the Secretary or his examiner or to

produce accounts, records, and memoranda if so ordered, or to give

evidence touching any matter pertinent to any complaint; and

any failure to obey such order of the court shall be punished by

the court as a contempt thereof.

(d) DEPOSITIONS ; PRODUCTION OF ACCOUNTS, RECORDS AND MEMORANDA.

The Secretary may order testimony to be taken by deposition in

any proceeding or investigation or incident to any complaint

pending under this chapter at any stage thereof. Such depositions

may be taken before any person designated by the Secretary and

having power to administer oaths. Such testimony shall be reduced to writing by the person taking the deposition or under his

direction and shall then be subscribed by the deponent. Any person

may be compelled to appear and depose and to produce accounts,

records, and memoranda in the same manner as witnesses may be

compelled to appear and testify and produce accounts, records, and

memoranda before the Secretary or any of his examiners.

(e) FEES AND MILEAGE OF WITNESSES.

Witnesses summoned before the Secretary or any officer or employee designated by him shall be paid the same fees and mileage

that are paid witnesses in the courts of the United States, and

witnesses whose depositions are taken and the persons taking

the same shall severally be entitled to the same fees as are paid

for like service in the courts of the United States.

(f) INCRIMINATING NATURE OF EVIDENCE AS EXCUSE FOR FAILURE

OF WITNESS TO TESTIFY OR PRODUCE.

No person shall be excused from attending, testifying, answering

any lawful inquiry, or deposing or from producing any documentary evidence, before the Secretary or any officer or employee

designated by him, in obedience to the subpoena of the Secretary

or any such officer or employee, in any cause or proceeding, based

upon or growing out of any alleged violation of this chapter, or

upon the taking of any deposition herein provided for, upon the

ground or for the reason that the testimony or evidence, documentary or otherwise, required of him may tend to incriminate

46
him or subject him to a penalty or forfeiture. But no natural

person shall be prosecuted or subjected to any penalty or forfeiture

for or on account of any transaction, matter, or thing, concerning

which he is compelled under oath so to testify, or produce evidence,

documentary or otherwise, before the Secretary or any officer or

employee designated by him, in obedience to the subpoena of the

Secretary, or any such officer or employee, or upon the taking of

any such deposition, or in any such cause or proceeding : Provided,

That no person so testifying shall be exempt from prosecution and

punishment for perjury committed in so testifying. (June 10,

1930, ch. 436, § 13, 46 Stat. 536 ; July 30,1956, ch. 786, § 6, 70 Stat.

727.)

§ 499n. Inspection of perishable agricultural commodities.

(a) EMPLOYMENT OF INSPECTORS; FEES AND EXPENSES; INSPECTION CERTIFICATE AS EVIDENCE.

The Secretary is authorized, independently and in cooperation

with other branches of the Government, State, or municipal agencies and/or any person, whether operating in one or more jurisdictions, to employ and/or license inspectors to inspect and certify,

without regard to the filing of a complaint under this chapter, to

any interested person the class, quality, and/or condition of any

lot of any perishable agricultural commodity when offered for

interstate or foreign shipment or when received at places where

the Secretary shall find it practicable to provide such service,

under such rules and regulations as he may prescribe, including

the payment of such fees and expenses as will be reasonable and

as nearly as may be to cover the cost for the service rendered:

Provided, That fees for inspections made by a licensed inspector,

less the percentage thereof which he is allowed by the terms of

his contract of employment with the Secretary as compensation

for his services, shall be deposited into the Treasury of the United

States as miscellaneous receipts ; and fees for inspections made

by an inspector acting under a cooperative agreement with a State,

municipality, or other person shall be disposed of in accordance

with the terms of such agreement: Provided further, That expenses for travel and subsistence incurred by inspectors shall be

paid by applicant for inspection to the United States Department

of Agriculture to be credited to the appropriation for carrying

out the purposes of this chapter: And provided further. That oflicial inspection certificates for fresh fruits and vegetables issued

by the Secretary of Agriculture pursuant to any law shall be received by all officers and all courts of the United States, in all

proceedings under this chapter, and in all transactions upon contract markets under sections l-17a of this title as prima facie

evidence of the truth of the statements therein contained ;

(b) ISSUANCE OF FRAUDULENT CERTIFICATES; PENALTIES.

Whoever shall falsely make, issue, alter, forge, or counterfeit,

or cause or procure to be falsely made, issued, altered, forged, or

counterfeited, or willingly aid, cause, procure, or assist in, or be a

party to the false making, issuing, altering, forging, or counterfeiting of any certificate of inspection issued under authority of this

chapter, sections 491-497 of this title, or any Act making appropriations for the Department of Agriculture ; or shall utter or pub47
lish as true or cause to be uttered or published as true any such

false, forged, altered, or counterfeited certificate, for a fraudulent

purpose, shall be guilty of a misdemeanor and upon conviction

shall be punished by a fine of not more than $500 or by imprisonment for a period of not more than one year, or both, at the discretion of the court. (June 10, 1930, ch. 436, § 14, 46 Stat. 537 ;

Apr. 13, 1934, ch. 120, § 15, 48 Stat. 588; Aug. 20, 1937, ch. 719,

§ 12, 50 Stat. 730.)

§ 499o. Rules, regulations, and orders by Secretary of Agriculture ;

appointment, removal, and compensation of officers and employees; expenditures; appropriations; abrogation of inconsistent statutes.

The Secretary may make such rules, regulations, and orders as

may be necessary to carry out the provisions of this chapter and

may cooperate with any department or agency of the Government,

any State, Territory, District, or possession, or department, agency, or political subdivision thereof, or any person; and shall have

the power to appoint, remove, and fix the compensation of such

officers and employees not in conñict with existing law, and make

such expenditures for rent outside the District of Columbia, printing, binding, telegrams, telephones, law books, books of reference,

publications, furniture, stationery, office equipment, travel, and

other supplies and expenses, including reporting services, as shall

be necessary to the administration of this chapter in the District

of Columbia and elsewhere, from the Perishable Agricultural

Commodities Act fund provided for by Section 499c (b) of this

Title and any supplement or supplements to such fund, and as

may be appropriated for by Congress ; and there is authorized to

be appropriated out of any money in the Treasury not otherwise

appropriated, such sums as may be necessary for such purposes.

This chapter shall not abrogate nor nullify any other statute,

whether State or Federal, dealing with the same subjects as this

chapter; but it is intended that all such statutes shall remain in

full force and effect except insofar only as they are inconsistent

herewith or repugnant hereto. (June 10, 1930, ch. 436, § 15, 46

Stat. 537; June 15, 1950, chap. 254, § 3, 64 Stat. 218.)

§ 499p. Liability of licensees for acts and omissions of agents.

In construing and enforcing the provisions of this chapter, the

act, omission, or failure of any agent, officer, or other person acting for or employed by any commission merchant, dealer, or

broker, within the scope of his employment or office, shall in every

case be deemed the act, omission, or failure of such commission

merchant, dealer, or broker as that of such agent, officer, or other

person. (June 10, 1930, ch. 436, § 16, 46 Stat. 538.)

§499q. Invalidity of separate provisions of chapter; effect on

remainder.

If any provision of this chapter or the application thereof to

any person or circumstances is held invalid, the validity of the

remainder of the chapter and of the application of such provision

to other persons and circumstances shall not be affected thereby.

(June 10, 1930, ch. 436, § 17, 46 Stat. 538.)

48
§ 499r. Citation of chapter.

This chapter may be cited as the "Perishable Agricultural Commodities Act, 1930." (June 10,1930, ch. 436, § 18, 46 Stat. 538.)

§ 499s. Depositing appropriations in fund.

Any unexpended balances of appropriations for the current

fiscal year, and any subsequent apppropriations, made to carry

out this Chapter and Chapters 20 and 25 of this title referred to

in Section 499c (b) of this title, may be deposited in the Perishable

Agricultural Commodities Act fund. (June 10, 1930, ch. 436, § 19,

as added June 15,1950, ch. 254, § 4, 64 Stat. 218.)

Export Standards for Apples and Pears

(7 U.S.C. 581-589)

§ 581. Standards of export; establishment; shipping without

certificate forbidden; hearings.

It shall be unlawful for any person to ship or oifer for shipment

or for any carrier, or any steamship company, or any person to

transport or receive for transportation to any foreign destination,

except as provided in this chapter, any apples and/or pears in

packages which are not accompanied by a certificate issued under

authority of the Secretary of Agriculture showing that such

apples or pears are of a Federal or State grade which meets the

mmimum of quality established by the Secretary for shipment in

export. The Secretary is authorized to prescribe, by regulations,

the requirements, other than those of grade, which the fruit must

meet before certificates are issued. The Secretary shall provide

opportunity, by public hearing or otherwise, for interested persons

to examine and make recommendation with respect to any standard of export proposed to be established or designated, or regulation prescribed, by the Secretary for the purposes of this chapter.

(June 10,1933, ch. 59, § 1, 48 Stat. 123.)

§ 582. Notice of establishment of standards; shipments under contracts made before adoption of standards.

The Secretary shall give reasonable notice through one or more

trade papers of the effective date of standards of export estabhshed or designated by him under this chapter: Provided, That

any apples or pears may be certified and shipped for export in

fulfillment of any contract made within six months prior to the

date of such shipment if the terms of such contract were in accordance with the grades and regulations of the Secretary in effect

at the time the contract was made. (June 10, 1933, ch. 59, § 2, 48

ötat. LÁó,)

§ 583. Foreign standards; certification of compliance.

^ Where the government of the country to which the shipment

IS to be made has standards or requirements as to condition of

apples or pears, the Secretary may in addition to inspection and

certification for compliance with the standards established oi

desi^ated hereunder inspect and certify for determination as to

compliance with the standards or requirements of such foreign

49
government and may provide for special certificates in such cases.

(June 10, 1933, ch. 59, § 3, 48 Stat. 124.)

§ 584. Shipments of less than carload lots; exemptions.

Apples or pears in less than carload lots as defined by the Secretary may, in his discretion, be shipped to any foreign country

without complying with the provisions of this chapter. (June 10,

1933, ch. 59, § 4, 48 Stat. 124.)

§ 585. Fees for inspection and certification; certificates as prima

facie evidence.

For inspecting and certifying the grade, quality and/or condition of apples and/or pears, the Secretary shall cause to be collected a reasonable fee which shall as nearly as may be cover the

cost of the service rendered; Provided^ That when cooperative

arrangements satisfactory to the Secretary, or his designated

representative, for carrying out the purposes of this chapter cannot be made the fees collected hereunder in such cases shall be

available until expended to defray the cost of the service rendered,

and in such cases the limitations of the amounts expended for the

purchase and maintenance of motor-propelled passenger-carrying

vehicles shall not be applicable : Provided further, That certificates

issued by the authorized agents of the United States Department

of Agriculture shall be received in all courts of the United States

as prima facie evidence of the truth of the statements therein

contained. (June 10, 1933, ch. 59, § 5, 48 Stat. 124.)

§ 586. Refusal of certificates for violations of laws; penalties for

violations.

After opportunity for hearing the Secretary is authorized to

refuse the issuance of certificates under this chapter for periods

not exceeding ninety days to any person who ships or offers for

shipment any apples and/or pears in foreign commerce in violation of any of the provisions of this chapter. Any person or any

common carrier or any transportation agency knowingly violating

any of the provisions of this chapter shall be fined not less than

$100 nor more than $10,000 by a court of competent jurisdiction.

(June 10, 1933, ch. 59, § 6, 48 Stat. 124.)

§ 587. Rules and regulations; cooperation with other agencies,

compensation of officers and employees; effect on other laws

relating to same subject matter.

The Secretary may make such rules, regulations, and orders

as may be necessary to carry out the provisions of this chapter,

and may cooperate with any department or agency of the Government, any State, Territory, District, or possession, or department,

agency, or political subdivision thereof, or any person, whether

operating in one or more jurisdictions; and shall have the power

to appoint, remove, and fix the compensation of such officers and

employees not in conflict with existing law, and make such expenditures for rent outside the District of Columbia, printing, binding,

telegrams, telephones, law books, books of reference, publications,

furniture, stationery, office equipment, travel, and other supplies

and expenses, including reporting services, as shall be necessary

50
to the administration of this chapter in the District of Columbia

and elsewhere, and as may be appropriated for by Congress. This

chapter shall not abrogate nor nullify any other statute, whether

State or Federal, dealing with the same subjects as this chapter ;

but it is intended that all such statutes shall remain in full force

and effect except insofar as they are inconsistent herewith or

repugnant hereto. (June 10, 1933, ch. 59, § 7, 48 Stat. 124.)

§ 588. Separability clause.

If any provision of this chapter or the application thereof to

any person or circumstances is held invalid, the validity of the

remainder of the chapter and of the application of such provision

to other persons and circumstances shall not be affected thereby.

(June 10, 1933, ch. 59, § 8, 48 Stat. 124.)

§ 589. Definitions.

When used in this chapter—

(1) The term "person'* includes individuals, partnerships, corporations, and associations.

(2) The term "Secretary of Agriculture" means the Secretary

of Agriculture of the United States.

(3) Except as provided herein, the term "foreign commerce"

means commerce between any State, or the District of Columbia,

and any place outside of the United States or its possessions.

(4) The term "apples and/or pears" means fresh whole apples

or pears, whether or not they have been in storage. (June 10,

1933, ch. 59, § 9, 48 Stat. 124.)

Standard Containers Act of 1916

(15 U.S.C. 251-256)

§ 251. Standards for Climax baskets.

Standards for Climax baskets for grapes and other fruits and

vegetables shall be the two-quart basket, four-quart basket, and

twelve-quart basket, respectively :

(a) The standard two-quart Climax basket shall be of the

following dimensions : Length of bottom piece, nine and one-half

inches; width of bottom piece, three and one-half inches; thickness of bottom piece, three-eighths of an inch ; height of basket,

three and seven-eighths inches, outside measurement ; top of basket, length eleven inches and width five inches, outside measurement. Basket to have a cover five by eleven inches, when a

cover is used.

(b) The standard four-quart Climax basket shall be of the

following dimensions: Length of bottom piece, twelve inches;

width of bottom piece, four and one-half inches; thickness of

bottom piece, three-eighths of an inch; height of basket, four

and eleven-sixteenths inches, outside measurement ; top of Jbasket,

length fourteen inches, width six and one-fourth inches, outside

measurement. Basket to have cover six and one-fourth inches by

fourteen inches, when cover is used.

(c) The standard twelve-quart Climax basket shall be of the

following dimensions: Length of bottom piece, sixteen inches;

51
width of bottom piece, six and one-half inches ; thickness of bottom piece, seven-sixteenths of an inch; height of basket, seven

and one-sixteenth inches, outside measurement; top of basket,

length nineteen inches, width nine inches, outside measurement.

Basket to have cover nine inches by nineteen inches, when cover

is used.

The standards for Climax baskets for mushrooms shall be

those set forth above, except that a one-pound Climax basket

of the following dimensions shall be standard for mushrooms

when plainly stamped or marked on the side of the basket with

the words *'for mushrooms only''; length of bottom piece, seven

and three-fourths inches ; width of bottom piece, three and threesixteenths inches ; thickness of bottom piece, three-eighths of an

inch ; height of basket, three and five-eighths inches ; top of basket,

length, nine and three-eighths inches; width, four and threeeighths inches, all outside measurements. Basket to have a cover

four and three-eighths by nine and three-eighths inches when

cover is used. (Aug. 31, 1916, ch. 426, § 1, 39 Stat. 673 ; June 11,

1934, ch. 447, § 1, 48 Stat. 930.)

§ 252. Standard basket or container for small fruits and vegetables.

The standard basket or other container for small fruits, berries,

and vegetables shall be of the following capacities, namely dry

one-half pint, dry pint, dry quart, or multiples of the dry quart.

(a) The dry half pint shall contain sixteen and eight-tenths

cubic inches.

(b) The dry pint shall contain thirty-three and six-tenths cubic

inches.

(c) The dry quart shall contain sixty-seven and two-tenths

cubic inches. (Aug. 31, 1916, ch. 426, § 2, 39 Stat. 673.)

§253. Failure to conform to standards; penalty; exception.

It shall be unlawful to manufacture for shipment, or to sell for

shipment, or to ship from any State or Territory of the United

States or the District of Columbia to any other State or Territory

of the United States or the District of Columbia, any Climax

baskets or other containers for small fruits, berries, or vegetables,

whether filled or unfilled, which do not conform to the provisions

of Sections 251-256 of this Title, or to use in any such shipment

for any commodity other than mushrooms the one-pound Climax

basket provided for in section 251 of this title; and any person

guilty of a willful violation of any of the provisions of sections

251-256 of this title shall be deemed guilty of a misdemeanor and,

upon conviction thereof, shall be fined in any sum not exceeding

$25 : Provided, That nothing herein contained shall apply to the

manufacture, sale, or shipment of Climax baskets, baskets, or other

containers for small fruits, berries, and vegetables when intended

for export to foreign countries when such Climax basket, baskets,

or other containers for small fruits, berries, and vegetables accord

with the specifications of the foreign purchasers or comply with

the law of the country to which shipment is made or to be made.

(Aug. 31, 1916, ch. 426, § 3, 39 Stat. 674; June 11, 1934, ch. 447,

§ 2, 48 Stat. 930.)

52
§ 254. Examination and test by Department of Agriculture; rules

and regulations.

The examination and test of Climax baskets, baskets, or other

containers for small fruits, berries, and vegetables, for the purpose

of determining whether such baskets or other containers comply

with the provisions of section 251-256 of this title shall be made

by the Department of Agriculture, and the Secretary of Agriculture shall establish and promulgate rules and regulations allowing

such reasonable tolerances and variations as may be found necessary. (Aug. 31,1916, ch. 426, § 4, 39 Stat. 674.)

§ 255. Duties of United States attorney.

It shall be the duty of each United States attorney to whom

satisfactory evidence of any violation of sections 251-256 of this

title is presented to cause appropriate proceedings to be commenced and prosecuted in the proper court of the United States

for the enforcement of the penalties as in such case provided in

said sections. (Aug. 31, 1916, ch. 426, § 5, 39 Stat. 674.)

§ 256. Guaranty of manufacturer of baskets or containers as

defined.

No dealer shall be prosecuted under the provisions of sections

251-6 of this title when he can establish a guaranty signed by the

manufacturer, wholesaler, jobber, or other party residing within

the United States from whom such Climax baskets, baskets, or

other containers, as defined in said sections, were purchased, to

the effect that said Climax baskets, baskets, or other containers

are correct within the meaning of said sections. Said guaranty,

to afford protection, shall contain the name and address of the

party or parties making the sale of Climax baskets, baskets, or

other containers to such dealer, and in such case said party or

parties shall be amenable to the prosecutions, fines, and other

penalties which would attach in due course to the dealer under

the provisions of this said section. (Aug. 31, 1916, ch. 426, § 6,

39 Stat. 674.)

Standard Containers Act of 1928

(15 U.S.C. 257, 257a-257i)

§ 257. Standard hampers and round stave baskets.

The standard hampers and round stave baskets for fruits and

vegetables shall be of the following capacities : one-eighth bushel,

one-fourth bushel, three-eighths bushel, one-half bushel, fiveeighths bushel, three-fourths bushel, one bushel, one-and-onefourth bushels, one-and-one-half bushels, and two bushels, which,

respectively, shall be of the cubic content set forth in this section.

For the purposes of this subchapter a bushel, standard dry measure, has a capacity of two thousand one hundred and fifty and

forty-two one-hundredths cubic inches.

(a) The standard one-eighth-bushel hamper or round stave

basket shall contain two hundred and sixty-eight and eight-tenths

cubic inches.

(b) The standard one-fourth-bushel hamper or round stave

basket shall contain five hundred and thirty-seven and six-tenths

cubic inches.

53
(bb) The standard three-eighths bushel hamper or round stave

basket shall contain eight hundred and six and four-tenths cubic

inches.

(c) The standard one-half-bushel hamper or round stave basket

shall contain one thousand and seventy-five and twenty-one onehundredths cubic inches.

(cc) The standard ñve-eighths-bushel hamper or round stave

basket shall contain one thousand three hundred and forty-four

cubic inches,

(d) The standard three-fourths-bushel hamper or round stave

basket shall contain one thousand six hundred and twelve and

eight-tenths cubic inches.

(e) The standard one-bushel hamper or round stave basket

shall contain two thousand one hundred and fifty and forty-two

one-hundredths cubic inches.

(f) The standard one-and-one-fourth-bushel hamper or round

stave basket shall contain two thousand six hundred and eightyeight cubic inches.

(g) The standard one-and-one-half bushel hamper or round

stave basket shall contain three thousand two hundred and twentyfive and sixty-three one-hundredths cubic inches.

(h) The standard two-bushel hamper or round stave basket

shall contain four thousand three hundred and eighty-four onehundredths cubic inches. (May 21, 1928, ch. 664, § 1, 45 Stat. 685;

June 28,1954, ch. 406, § 1, 68 Stat. 301).

§ 257a. Standard splint baskets.

The standard splint baskets for fruits and vegetables shall be

the four-quart basket, eight-quart basket, twelve-quart basket,

sixteen-quart basket, twenty-four quart basket, and thirty-two

quart basket, standard dry measure. For the purposes of sections

257-257Í of this title a quart standard dry measure has a capacity

of sixty-seven and two-tenths cubic inches.

(a) The four-quart splint basket shall contain two hundred and

sixty-eight and eight-tenths cubic inches.

(b) The eight-quart splint basket shall contain five hundred and

thirty-seven and six-tenths cubic inches.

(c) The twelve-quart splint basket shall contain eight hundred

and six and four-tenths cubic inches.

(d) The sixteen-quart splint basket shall contain one thousand

and seventy-five and twenty-one one-hundredths cubic inches.

(e) The twenty-four quart splint basket shall contain one thousand six hundred and twelve and eight-tenths cubic inches.

(f) The thirty-two quart splint basket shall contain two thousand one hundred and fifty and forty-two one-hundredths cubic

inches. (May 21, 1928, ch. 664, § 2, 45 Stat. 685.)

§ 257b. Regulations to provide for reasonable variations in hampers

and baskets; covers so attached as not to reduce capacity.

The Secretary of Agriculture shall in his regulations under

sections 257-2571 of this title prescribe such tolerances as he may

find necessary to allow in the capacities for hampers, round stave

baskets, and splint baskets set forth in sections 257 and 257a of

this title in order to provide for reasonable variations occurring in

the course of manufacturing and handling. If a cover be used

54
upon any hamper or basket mentioned in this subchapter, it shall

be securely fastened or attached' in such a manner, subject to the

regulations of the Secretary of Agriculture, as not to reduce the

capacity of such hamper or basket below that prescribed therefor.

(May 21, 1928, ch. 664, § 3, 45 Stat. 686.)

§257c. Approval of manufacturers' dimension specifications by

Secretary of Agriculture.

No manufacturer shall manufacture hampers, round stave baskets, or splint baskets for fruits and vegetables unless the dimension specifications for such hampers, round stave baskets, or splint

baskets shall have been submitted to and approved by the Secretary of Agriculture, who is directed to approve such specifications

if he finds that hampers, round stave baskets, or splint baskets

for fruits and vegetables made in accordance therewith would

not be deceptive in appearance and would comply with the provisions of sections 257 and 257a of this title. (May 21, 1928, ch

664 § 4, 45 Stat. 686.) y y >

§257d. Violations; what constitutes; punishment; guaranty

agains prosecution.

It shall be unlawful to manufacture for sale or shipment, to

offer for sale, to sell, to offer for shipment, or to ship, hampers,

round stave baskets, or splint baskets for fruits or vegetables,

either filled or unfilled, or parts of such hampers, round stave

baskets, or splint baskets that do not comply with this subchapter :

Provided, That sections 257-257Í of this title shall not apply to

Climax baskets, berry boxes, and till baskets which comply with

the provisions of sections 251-256 of this title, and the regulations

thereunder. Any individual, partnership, association, or corporation that violates this section shall be deemed guilty of a misdemeanor and upon conviction thereof shall be punished by a fine

of not exceeding $500 : Provided further, That no person shall be

prosecuted under the provisions of said sections 257-257Í of this

title when he can establish a guaranty signed by the manufacturer, wholesaler, shipper, or other party residing within the

United States from whom the hampers, round stave baskets, or

splint baskets, as defined in said sections were purchased, to the

effect that said hampers, round stave baskets, or splint baskets

are correct, within the meaning of said sections. Said guaranty,

to afford protection, shall contain the name and address of the

party or parties making the sale of the hampers, round stave

baskets, or splint baskets to such person, and in such case such

party or parties making such sale shall be amenable to the prose^

cution, fines, and other penalties which would attach in due course

under the provisions of said sections to the person who made

the purchase. (May 21, 1928, ch. 664, §5, 45 Stat. 686.)

§257e. Seizure of illegal hampers and baskets; condemnation:

procedure.

Any hamper, round stave basket, or splint basket for fruit or

vegetables, whether filled or unfilled, or parts of such hampers

round stave baskets, or splint baskets not complying with sections 257-257Í of this title, which shall be manufactured for

sale or shipment, offered for sale, sold, or shipped, may be pro55
ceeded against in any district court of the United States within

the district where the same shall be found and may be seized for

confiscation by a process of libel for condemnation. Upon request

the person entitled shall be permitted to retain or take possession

of the contents of such hampers or baskets, but in the absence of

such request, or when the perishable nature of such contents

makes such action immediately necessary, the same shall be

disposed of by destruction or sale, as the court or a judge thereof

may direct. If such hampers, round stave baskets, splint baskets,

or parts thereof be found in such proceeding to be contrary to

said sections, the same shall be disposed of by destruction, except

that the court may by order direct that such hampers, baskets,

or parts thereof be returned to the owner thereof or sold upon

the payment of the costs of such proceedings and the execution

and delivery of a good and sufficient bond to the effect that such

hampers, baskets, or parts thereof shall not be sold or used contrary to law. The proceeds of any sale under this section, less legal

costs and charges, shall be paid over to the person entitled thereto.

The proceedings in such seizure cases shall conform as near as

may be to the proceedings in admiralty, except that either party

may demand trial by jury of any issue or fact joined in such case,

and all such proceedings shall be at the suit and in the name of

the United States. (May 21, 1928, ch. 664, § 6, 45 Stat. 686.)

§ 257f, Hampers and baskets for foreign countries; conformity

to foreign specifications; banana hampers.

Sections 257-257Í of this title shall not prohibit the manufacture

for sale or shipment, offer for sale, sale, or shipment of hampers,

round stave baskets, splint baskets, or parts thereof, to any foreign

country in accordance with the specifications of a foreign consignee or customer not contrary to the law of such foreign country ;

nor shall said sections prevent the manufacture or use of banana

hampers of the shape and character now in commercial use as

shipping containers for bananas. (May 21, 1928, ch. 664, § 7, 45

Stat. 687.)

§ 257g. Duty of United States attorneys to prosecute.

It shall be the duty of each United States attorney to whom

satisfactory evidence of any violation of sections 257-2571 of this

title is presented to cause appropriate proceedings to be commenced and prosecuted in the proper courts of the United States

in his district for the enforcement of the provisions of said sections. (May 21, 1928, ch. 664, § 8, 45 Stat. 687.)

§ 257h. Regulations by Secretary of Agriculture; examination and

tests.

The Secretary of Agriculture shall prescribe such regulations

as he may find necessary for carrying into effect the provisions

of sections 257-257Í, and shall cause such examinations and tests

to be made as may be necessary in order to determine whether

hampers, round stave baskets, and splint baskets, or parts thereof,

subject to said sections, meet its requirements, and may take

samples of such hampers, baskets, or parts thereof, the cost of

which samples, upon request, shall be paid to the person entitled.

(May 21, 1928, ch 664, § 9, 45 Stat. 687.)

56
§257i. Carrying out purposes of statute; authority of Secretary

of Agriculture; cooperation with other agencies; employment

of persons and means; payment of expenses; appropriations.

For carrying out the purposes of sections 257--257Í of this

title the Secretary of Agriculture is authorized to cooperate with

State, county and municipal authorities, manufacturers, dealers,

and shippers, to employ such persons and means, and to pay such

expenses, including rent, printing publications, and the purchase

of supplies and equipment in the District of Columbia and elsewhere, as he shall find to be necessary, and there are authorized

to be appropriated, out of any moneys in the Treasury not otherwise appropriated, such sums as may be necessary for such purposes. (May 21,1928, ch. 664, § 10, 45 Stat. 687.)

Grain and Seed

United States Grain Standards Act

(7 U.S.C. 71-87)

§ 71. Short title of chapter.

This chapter shall be known by the short title of the ''United

States Grain Standards Act." (Aug. 11, 1916, ch. 313, part B, § 1,

39 Stat. 482.) ^ '

§ 72. Definitions; "person"; "interstate or foreign commerce."

The word "person," whenever used in this chapter shall be

construed to import the plural or singular, as the case demands,

and shall include individuals, associations, partnerships, and corporations ; the words "in interstate or foreign commerce," wherever used in this chapter, mean "from any State, Territory, or

District to or through any other State, Territory, or District, or

to or through any foreign country, or within any Territory or

District." (Aug. 11, 1916, ch. 313, part B, § 1, 39 Stat. 482.)

§ 73. Liability of principal for act of agent.

When construing and enforcing the provisions of this chapter,

the act, omission, or failure of any official, agent, or other person

acting for or employed by any association, partnership, or corporation within the scope of his employment or office, shall, in every

case, also be deemed the act, omission, or failure of such association, partnership, or corporation as well as that of the person

(Aug. 11, 1916, ch. 313, part B, § 1, 39 Stat. 482.)

§ 74. Establishment of grain standards by Secretary; promulgation.

The Secretary of Agriculture is authorized to investigate the

handling, grading and transportation of grain and to fix and

establish standards of quality and condition for corn (maize),

wheat, rye, oats, barley, flaxseed, soybeans, and such other grains

as m his judgment the usages of the trade may warrant and

permit, and the Secretary of Agriculture shall have power to alteï

or modify such standards whenever the necessities of the trade

may require. In promulgating the standards, or any alteration

or modification of such standards, the Secretary shall specify the

57
date or dates when the same shall become effective, and shall

give public notice, not less than ninety days in advance of such

date or dates, by such means as he deems proper. (Aug. 11, 1916,

ch. 313, part B, § 2, 39 Stat. 482; July 18, 1940, ch. 636, 54 Stat.

765.)

§ 75. Designation of ofBcial grain standards.

The standards fixed and established as authorized in section 74

of this title shall be known as the official grain standards of the

United States. (Aug. 11, 1916, ch. 313, part B, § 3, 39 Stat. 483.)

§ 76. Compulsory use of official standards; exceptions; inspection

and grading after shipment; appeal.

Whenever standards shall have been fixed and established under

this chapter for any grain no person thereafter shall ship or

deliver for shipment in interstate or foreign commerce any such

grain which is sold, offered for sale, or consigned for sale by

grade unless the grain shall have been inspected and graded by

an inspector licensed under this chapter and the grade by which

it is sold, offered for sale, or consigned for sale be one of the

grade fixed therefor in the official grain standards of the United

States: Provided, That any person may sell, offer for sale, or

consign for sale, ship or deliver for shipment in interstate or

foreign commerce any such grain by sample or by type, or under

any name, description, or designation which is not false or misleading, and which name, description, or designation does not

include in whole or in part the terms of any official grain standard

of the United States : Provided further, That any such grain sold,

offered for sale, or consigned for sale by grade may be shipped or

delivered for shipment in interstate or foreign commerce without

inspection at point of shipment by an inspector licensed under

this chapter, to or through any place at which an inspector licensed

under this chapter is located, subject to be inspected by a licensed

inspector at the place to which shipped or at some convenient

point through which shipped for inspection, which inspection shall

be under such rules and regulations as the Secretary of Agriculture shall prescribe, and subject further to the right of appeal

from such inspection, as provided in section 78 of this title : And

provided further. That any such grain sold, offered for sale, or

consigned for sale by any of the grades fixed therefor in the official

grain standards may, upon compliance with the rules and regulations prescribed by the Secretary of Agriculture, be shipped in

interstate or foreign commerce without inspection from a place

at which there is no inspector licensed under this chapter to a

place at which there is no such inspector, subject to the right of

either party to the transaction to refer any dispute as to the grade

of the grain to the Secretary of Agriculture, who may determine

the true grade thereof. No person shall in any certificate or in

any contract or agreement of sale or agreement to sell by grade,

either oral or written, involving, or in any invoice or bill of lading

or other shipping document relating to, the shipment or delivery

for shipment, in interstate or foreign commerce of any grain for

which standards shall have been fixed and established under this

chapter, describe, or in any way refer to, any of such grain as

being of any grade other than a grade fixed therefor in the official

58
grain standards of the United States. (Aug. 11, 1916, ch. 313,

part B, § 4, 39 Stat. 483.)

§77. Misrepresentation respecting grade; reexamination by Secretary of inspected grain; hearing and publication of findings.

No person, except as permitted in section 76 of this title, shall

represent that any grain shipped or delivered for shipment in

interstate or foreign commerce is of a grade fixed in the official

grain standards other than as shown by a certificate therefor

issued in compliance with this chapter ; and the Secretary of Agriculture is authorized to cause examinations to be made of any

grain for which standards shall have been fixed and established

under this chapter, and which has been certified to conform to

any grade fixed therefor in such official grain standards, or which

has been shipped or delivered for shipment in interstate or foreign

commerce. Whenever, after opportunity for hearing is given to

the owner or shipper of the grain involved, and to the inspector

thereof if the same has been inspected, it is determined by the

Secretary that any quantity of grain has been incorrectly certified

to conform with a specified grade, or has been sold, offered for sale,

or consigned for sale under any name, description, or desi^ation

which is false or misleading, he may publish his findings. (Aug. 11,

1916, ch. 313, part B, § 5, 39 Stat. 483.)

§ 78. Appeal to Secretary from official grading; fees for reinspection; conclusiveness of findings on appeal.

Whenever standards shall have been fixed and established under

this chapter for any grain and any quantity of such grain sold,

offered for sale, or consigned for sale, or which has been shipped,

or delivered for shipment in interstate or foreign commerce shall

have been inspected and a dispute arises as to whether the grade

as determined by such inspection of any such grain in fact conforms to the standard of the specified grade, any interested party

may, either with or without reinspection, appeal the question to

the Secretary of Agriculture, and the Secretary of Agriculture is

authorized to cause such investigation to be made and such tests

to be applied as he may deem necessary and to determine the

true grade : Provided, That any appeal from such inspection and

grading to the Secretary of Agriculture shall be taken before the

grain leaves the place where the inspection appealed from was

made and before the identity of the grain has been lost, under

such rules and regulations as the Secretary of Agriculture shall

prescribe. Whenever an appeal shall be taken or a dispute referred

to the Secretary of Agriculture under this chapter, he shall charge

and assess, and cause to be collected, a reasonable fee, in amount

to be fixed by him, which fee, in case of an appeal, shall be

refunded if the appeal is sustained. All such fees, not so refunded,

shall be deposited and covered into the Treasury as miscellaneous

receipts. The findings of the Secretary of Agriculture as to grade

sig^ned by him or by such officer or officers, agent or agents of

the Department of Agriculture as he may designate, made after

the parties in interest have had opportunity to be heard, shall be

accepted in the courts of the United States as prima facie evidence

of the true grade of the grain determined by him at the time and

59
place specified in the findings. (Aug. 11, 1916, ch. 313, part B,

§ 6, 39 Stat. 484.)

§ 79. License to inspect and grade; State inspectors.

The Secretary of Agriculture may issue a license to any person,

upon presentation to him of satisfactory evidence that such person

is competent, to inspect and grade grain and to certificate the

grade thereof for shipment or delivery for shipment in interstate

or foreign commerce, under this chapter and the rules and regulations prescribed thereunder. No person authorized or employed

by any State, county, city, tov^n, board of trade, chamber of commerce, corporation, society, partnership, or association to inspect

or grade grain shall certify, or otherwise state or indicate in

v^riting, that any grain for shipment or delivery for shipment in

interstate or foreign commerce, which has been inspected or

graded by him, or by any person acting under his authority, is of

one of the grades of the official grain standards of the United

States, unless he holds an unsuspended and unrevoked license

issued by the Secretary of Agriculture: Provided, That in any

State which has, or which may hereafter have a State grain inspection department established by the laws of such State, the Secretary of Agriculture shall issue licenses to the persons duly authorized and employed to inspect and grade grain under the laws of

such State. (Aug. 11, 1916, ch. 313, part B, § 7, 39 Stat. 484.)

§ 80. Revocation and suspension of license.

The Secretary of Agriculture may suspend or revoke any license

issued by him under this chapter whenever, after opportunity for

hearing has been given to the licensee, the Secretary shall determine that such licensee is incompetent or has knowingly or carelessly graded grain improperly or by any other standards than is

authorized under this chapter, or has issued any false certificate

of grade, or has accepted any money or other consideration,

directly or indirectly, for any neglect or improper performance

of duty, or has violated any provisions of this chapter or of the

rules and regulations made thereunder. Pending investigation the

Secretary of Agriculture, whenever he deems necessary, may

suspend a license temporarily without hearing. (Aug. 11, 1916, ch.

313, part B, § 7, 39 Stat. 484.)

§ 81. Disqualification to act as inspector or departmental agent.

No person licensed by the Secretary of Agriculture to inspect or

grade grain or employed by him in carrying out any of the provisions of this chapter shall, during the term of such license or

employment, be interested, financially or otherwise, directly or

indirectly, in any grain elevator or warehouse, or in the merchandising of grain, nor shall he be in the employment of any

person or corporation owning or operating any grain elevator or

warehouse. (Aug. 11, 1916, ch. 313, part B, § 7, 39 Stat. 484.)

§ 82. Records and reports by inspectors.

The Secretary of Agriculture shall require every inspector

under this chapter to keep complete and correct records of all

60
grain graded and inspected by him and to make reports to the

Secretary of Agriculture, in such forms and at such times as he

may require, showing the place of inspection, the date of inspection, the name of the elevator or warehouse, if any, to which the

grain was delivered or from which it was shipped, the kind of

grain, the quantity of each kind, the grade thereof, and such other

information as the Secretary of Agriculture may deem necessary.

(Aug. 11, 1916, ch. 313, part B. § 7, 39 Stat. 484.)

§ 83. Semiannual reports by Secretary.

The Secretary of Agriculture, on each first Tuesday in January

and each first Tuesday in July of each year shall make publication

of a summary of such facts as are ascertained, showing in as great

detail as possible all the facts, including a summary as to the

amount and grade of grain delivered to any elevator or warehouse

and the amount and grade of grain delivered from such elevator

or warehouse, and the estimated amount received on sample or

type by such elevator or warehouse, and the estimated amount

delivered therefrom on sample or type. (Aug. 11, 1916, ch. 313,

part B, § 7, 39 Stat. 484.)

§ 84. Adoption by Secretary of rules and regulations generally.

The Secretary of Agriculture shall, from time to time, make such

rules and regulations as he may deem necessary for the efficient

execution of the provisions of this chapter. (Aug. 11,1916, ch. 313,

part B, § 8, 39 Stat. 485.)

§ 85. Penalty for violations.

Any person who shall knowingly violate any of the provisions

of sections 76 or 79-83 of this title, or any inspector licensed under

this chapter, or any person sampling grain for inspection under

this chapter, who shall knowingly inspect, grade, or sample improperly any grain which has been shipped or delivered for shipment in interstate or foreign commerce, or shall knowingly give

any false or incorrect certificate of grade, or shall accept money or

other consideration, directly or indirectly, for any neglect or improper performance of duty, and any person who shall improperly

influence or attempt to improperly influence any such inspector or

sampler in the performance of his duty, or shall knowingly or

willfully cause, or attempt to cause, the issuance of a false or

incorrect certificate of grade under this chapter by deceptive loading, handling, or sampling of grain, or by submitting grain for inspection knowing that it has been so loaded, handled, or sampled,

or by any other means, shall be guilty of a misdemeanor, and upon

conviction thereof shall be fined not more than $1,000, or be imprisoned not more than one year, or both. (Aug. 11, 1916, ch. 313,

part B, § 9, 39 Stat. 485; Aug. 1, 1956, ch. 812, 70 Stat. 780.)

§ 86. Interference with execution of official duties; punishment.

Every person who forcibly assaults, resists, impedes, or interferes with any officer or employee of the United States Department

of Agriculture in the execution of any duties authorized to be

performed by this chapter or by the rules and regulations made

thereunder shall, upon conviction thereof, be fined not more than

61
$1,000, or be imprisoned not more than one year, or both. (Aug.

11, 1916, ch. 313, part B, § 10, 39 Stat. 485.)

§ 87. Effect of partial invalidity of chapter.

If any clause, sentence, paragraph, or part of this chapter shall,

for any reason, be adjudged by any court of competent jurisdiction

to be invalid, such judgment shall not affect, impair, or invalidate

the remainder thereof, but shall be confined in its operation to

the clause, sentence, paragraph, or part thereof directly involved

in the controversy in which such judgment shall have been rendered. (Aug. 11, 1916, ch. 313, part B, § 11, 39 Stat. 485.)

Federal Seed Act

(7 U.S.C. 1551-1609)

§ 1551. Short title.

This chapter may be cited as the "Federal Seed Act.'' (Aug. 9,

1939, ch. 615, § 1, 53 Stat. 1275.)

§ 1561. Definition of terms.

(a) When used in this chapter—

(1) The term "United States" means the several States, Alaska,

District of Columbia, Hawaii, and Puerto Rico.

(2) The term "person" includes a partnership, corporation,

company, society, or association.

(3) The term "interstate commerce" means—

(A) commerce between any State, Territory, possession, or the

District of Columbia, and any other State, Territory, possession,

or the District of Columbia; or

(B) commerce between points within the same State, Territory,

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

outside thereof; or

(C) commerce within the District of Columbia.

(4) For the purposes of this chapter with respect to labeling

for variety and origin (but not in anywise limiting the foregoing

definition), seeds shall be considered to be in interstate commerce,

or delivered for transportation in interstate commerce, if such

seeds are part of, or delivered for transportation in, that current

of commerce usual in the transportation and/or merchandising of

seeds, whereby such seeds are sent from one State with the

expectation that they will end their transit in another, including,

in addition to cases within the above general description, all cases

where seeds are transported or delivered for transportation to

another State, or for processing or cleaning for seeding purposes

within the State and shipment outside the State of the processed

or cleaned seeds. Seeds normally in such current of commerce shall

not be considered out of such current through resort being had

to any means of device intended to remove transactions in respect

thereto from the provisions of this chapter.

(5) The term "foreign commerce" means commerce between

the United States, its possessions, or any Territory of the United

States, and any foreign country.

(6) (a) The term "district court of the United States" means

any court exercising the powers of a district court of the United

States.

62
(7) The term—

(A) ^'Agricultural seeds''

crop seeds, as follows:

Agropyron cristatum (L.) Beauv.

—Crested wheatgrass.

Agropyron pauciflorum (Schwein.)

Hitchc.—Slender wheatgrass.

Agropyron smithii Rydb.—Bluestem.

Agrostis alba L—Redtop.

Agrostis canina L—Velvet bent.

Agrostis palustris Huds.—Creeping bent.

Agrostis spp.—Bentgrasses.

Avena spp.—Oat.

Beta vulgaris L.—Field beet, excluding sugar beet.

Brassica napus L.—Winter rape.

Bromus inerrnis Leyss.—Smooth

brome.

Chloris gayana Kunth.—Rhodes

grass.

Cynosurus cristatus L.—Crested

dogtail.

Dactylis glomerata L.—Orchard

grass.

Echinochloa crusgalli frumentacea

(R o X b.) Wight.—Japanese millet.

Fagopyrum vulgäre Hill.—Common buckwheat.

Festuca spp.—Fescue.

Gossypium spp.—Cotton.

Hordeum spp.—Barley

Lespedeza sericea (Thumb.) Miq.

—Chinese lespedeza.

Lespedeza stipulacea Maxim.—

Korean lespedeza.

Lespedeza striata (Thumb.) Hook

and Arn.—Common and Kobe lespedeza.

Linum usitatissimum L.—Flax.

Lolium multiflorum Lam.—Italian

ryegrass.

Lolium perenne L.—Perennial ryegrass.

Medicago arabica (L.) All.—Burclover.

Medicago hispida Gaertn.—Burclover.

Medicago lupulina L.—Black medick.

Medicago sativa L.—Alfalfa.

Melilotus alba Desr.—White sweetclover.

Melilotus indica (L.) All.—Sourclover.

Melilotus oiScinalis (L.) Lam.—

Yellow sweetclover.

Melinis minutiflora Beauv.—Molasses grass.

Oryza sativa L.—Rice.

Panicum fasciculatum Swartz.—

Browntop millet.

shall include grass, forage, and field

Panicum miliaceum L.—Proso.

Paspalum dilatatum Poir.—Dallis

grass.

Paspalum notatum Fluegge.—

Bahia grass.

Pennisetum glaucum (L.) R. Br.—

Pearl millet.

Pennisetum purpureum Schumach.

—Napier grass.

Phleum pratense L.—Timothy.

Phalaris arundinacea L.—Reed

canary grass.

Pisum sativum arvense L. (Poir.).

—Field pea, Austrian winter pea.

Poa annua L.—^Annual bluegrass.

Poa compressa L.—Canada bluegrass.

Poa nemoralis L.—Wood bluegrass.

Poa pratensis L.—^Kentucky bluegrass.

Poa trivialis L.—Rough bluegrass.

Sécale céréale L.—Rye.

Setaria itálica (L.) Beauv.—Foxtail, German, Hungarian, or golden

millet.

Soja max (L.) Piper.—Soybean.

Sorghum vulgäre Pers.—Sorghum.

Sorghum vulgäre Sudanese (Piper) Hitchc,—Sudan grass.

Stizolobium utile (Wall.) Piper

and Tracy.—Velvetbean.

Trifolium dubium Sibth.—Suckling

clover.

Trifolium hybridum L. — Alsike

clover.

Trifolium ^ incarnatum L.—Crimson clover.

Trifolium ^ pratense L.—Red

clover.

Trifolium repens L.—White clover.

Triticum spp.—Wheat; spelt;

emmer.

Vicia angustifolia (L.) Reich.—

Narrowleaf vetch.

Vicia atropurpúrea Desf.—Purple

vetch.

Vicia dasycarpa Ten.—Woollypod

vetch.

Vicia monantha Desf.—Monantha

vetch.

Vicia pannonica Crantz.—Hungarian vetch.

Vicia sativa L.—Common vetch.

Vicia villosa Roth.—Hairy vetch.

Vigna sinensis (Torner) Savi.—

Cowpea.

Zea mays L.—Field corn:

Provided, That the Secretary of Agriculture is authorized by

rules and regulations to add to or take from such list of agricui1 So in original, probably should read "Trifolium.**

63
tural seed, when he finds that any seeds are or are not used for

seeding purposes in the United States.

(B) "Vegetable seeds" shall include the seeds of those crops

that are or may be grown in gardens or on truck farms and are or

may be generally known and sold under the name of vegetable

(8) (A) For the purpose of subchapter II of this chapter, the

term "weed seeds" means the seeds or bulblets of plants recognized as weeds either by the law or rules and regulations of—

(i) The State into which the seed is offered for transportation,

or transported; or .

(ii) Alaska, Hawaii, Puerto Rico, or District of Columbia into

which transported, or District of Columbia in which sold.

(B) For the purpose of subchapter III of this chapter, the

term "weed seed" means seeds or bulblets of plants which are

found by the Secretary of Agriculture to be detrimental to the

agricultural interests of the United States, or any part thereof.

(9) (A) For the purpose of subchapter II of this chapter, the

term "noxious-weed seeds" means the seeds or bulblets of plants

recognized as noxious—

(i) by the law or rules and regulations of the State into which

the seed is offered for transportation, or transported ;

(ii) by the law or rules and regulations of Alaska, Hawaii,

Puerto Rico, or the District of Columbia, into which transported,

or District of Columbia in which sold ; or

(iii) by the rules and regulations of the Secretary of Agriculture under this chapter, when after investigation he shall determine that a weed is noxious in the United States or in any specifically designated area thereof.

(B) For the purpose of subchapter III of this chapter, the term

"noxious-weed seeds" means the seeds of Lepidium draba L.,

Lepidium repens (Schrenk) Boiss., Hymenophysa pubescens C. A.,

Mey., white top; Crisium arvense (L.) Scop., Canada thistle; Cuscuta spp. dodder; Agropyron repens (L.) Beauv., quackgrass;

Sorghum halepense (L.) Pers., Johnson grass; Convolvulus arvensis L., bindweed ; Centaurea picris Pall., Russian knapweed ; Sonchus arvensis L., perennial sowthistle ; Euphorbia esula L., leafy

spurge ; and seeds or bulblets of any other kinds which after investigation the Secretary of Agriculture finds should be included.

(10) The term "origin" means the State, Alaska, District of

Columbia, Hawaii, Puerto Rico, or possession of the United States,

or the foreign country, or designated portion thereof, where the

seed was grown.

(11) The term "kind" means one or more related species or

subspecies which singly or collectively is known by one common

name, for example, wheat, oat, vetch, sweetclover, cabbage, cauliflower, and so forth.

(12) The term "variety" means a subdivision of a kind which

is characterized by growth, plant, fruit, seed, or other characters

by which it can be differentiated from other sorts of the same kind,

for example. Marquis wheat. Flat Dutch cabbage, Manchu soybeans, Oxheart carrot, and so forth.

(13) The term "type" means either (A) a group of varieties so

nearly similar that the individual varieties cannot be clearly differentiated except under special conditions, or (B) when used with a

64
variety name means seed of the variety named which may be mixed

with seed of other varieties of the same kind and of similar character, the manner of and the circumstances connected with the

use of the designation to be governed by rules and regulations

prescribed under section 1592 of this title.

(14) The term "germination" means the percentage of seeds

capable of producing normal seedlings under ordinarily favorable conditions (not including seeds which produce weak, malformed, or obviously abnormal sprouts), determined by methods

prescribed under section 1593 of this title.

(15) The term "hard seeds" means the percentage of seeds

which because of hardness or impermeability do not absorb moisture or germinate under prescribed tests but remain hard during

the period prescribed by germination of the kind of seed concerned, determined by methods prescribed under section 1593 of

this title.

(16) The term "inert matter" means all matter not seeds,

and includes among others broken seeds, sterile florets, chaiî,

fungus bodies, and stones, determined by methods prescribed under section 1593 of this title.

(17) The term "pure live seed" for the purpose of subchapter

III of this chapter means that portion of any lot of seed subject

to this chapter that consists of live agricultural or vegetable seed

determined by methods prescribed under section 1593 of this title.

(18) The term "label" means the display or displays of written, printed, or graphic matter upon or attached to the container

of seed.

(19) The term "labeling" includes all labels, and other written,

printed, and graphic representations, in any form whatsoever,

accompanying and pertaining to any seed whether in bulk or in

containers, and includes invoices.

(20) The term "advertisement" means all representations,

other than those on the label, disseminated in any manner or by

any means, relating to seed within the scope of this chapter.

(21) Subject to such tolerances as the Secretary of Agriculture

is authorized to prescribe under the provisions of this chapter—

(A) the term "false labeling" means any labeling which is

false or misleading in any particular;

(B) the term "false advertisement" means any advertisement

which is false or misleading in any particular.

(22) The term "screenings" shall include chaff, sterile florets,

immature seed, weed seed, inert matter, and any other materials

removed in any way from any seeds in any kind of cleaning or

processing and which contain less than 25 per centum of live

agricultural or vegetable seeds.

(23) The term "in bulk" refers to seed when loose either in

vehicles of transportation or in storage, and not to seed in bags

or other containers. (Aug. 9, 1939, ch. 615, title I, § 101, 53 Stat.

1275; June 25, 1948, ch. 646, § 1, 62 Stat. 870; Aug. 1, 1956, ch.

852, §1,70 Stat. 908.)

§1571, Prohibitions relating to interstate commerce in certain

seeds.

It shall be unlawful for any person to transport or deliver for

transportation in interstate commerce—

65
(a) Any agricultural seeds or any mixture of agricultural

seeds for seeding purposes, unless each container bears a label

giving the following information in accordance with rules and

regulations prescribed under section 1592 of this title :

(1) The name of (A) kind, or (B) kind and variety, or (C)

kind and type, for each agricultural seed component present in

excess of 5 per centum of the whole and the percentage by weight

of each : Provided, That such components are expressed in accordance with the category designated under (A), (B),or (C);

(2) Lot number or other identification;

(3) Origin, stated in accordance with paragraph (a) (1) of

this section, of each agricultural seed present which has been

designated by the Secretary of Agriculture as one on which a

knowledge of the origin is important from the standpoint of crop

production, if the origin is known, and if each such seed is present

in excess of 5 per centum. If the origin of such agricultural seed

or seeds is unknown, that fact shall be stated ;

(4) Percentage by weight of weed seeds, including noxiousweed seeds ;

(5) Kinds of noxious-weed seeds and the rate of occurrence of

each, which rate shall be expressed in accordance with and shall

not exceed the rate allowed for shipment, movement, or sale of

such noxious-weed seeds by the law and regulations of the State

into which the seed is oifered for transportation or transported

or in accordance with the rules and regulations of the Secretary

of Agriculture, when under the provisions of section 1561 (a)

(9) (A) (iii) of this title he shall determine that weeds other

than those designated by State requirements are noxious ;

(6) Percentage by weight of agricultural seeds other than

those included under paragraph (a) (1) of this section:

(7) Percentage by weight of inert matter;

(8) For each agricultural seed, in excess of 5 per centum of

the whole, stated in accordance with paragraph (a) (1) of this

section, (A) percentage of germination, exclusive of hard seed,

(B) percentage of hard seed, if present, (C) the calendar month

and year the test was completed to determine such percentages;

(9) Name and address of (A) the person who transports, or

delivers for transportation, said seed in interstate commerce, or

(B) the person to whom the seed is sold or shipped for resale,

together with a code designation approved by the Secretary of

Agriculture under rules and regulations prescribed under section

1592 of this title, indicating the person who transports or delivers

for transportation said seed in interstate commerce ;

(b) Any vegetable seeds, for seeding purposes, in containers,

unless each container bears a label giving the following information in accordance with rules and regulations prescribed under

section 1592 of this title :

(1) Name of kind and variety of seed ;

(2) For seeds which germinate less than the standard last

established by the Secretary of Agriculture, as provided under

section 1593 (c) of this title—

(i) percentage of germination, exclusive of hard seed;

(ii) percentage of hard seed, if present;

(iii) the calendar month and year the test was completed to

determine such percentages;

66
(iv) the words "Below Standard"; and

(3) Name and address of—

(A) The person who transports, or delivers for transportation,

said seed in interstate commerce; or

(B) the person to whom the seed is sold or shipped for resale,

together with a code designation approved by the Secretary of

Agriculture under rules and regulations prescribed under section

1592 of this title, indicating the person who transports or delivers

for transportation said seed in interstate commerce.

(c) Any agricultural or vegetable seed unless the test to determine the percentage of germination required by this section shall

have been completed within a five-month period, exclusive of the

calendar month in which the test was completed, immediately

prior to transportation or delivery for transportation in interstate

commerce : Provided, however, That the Secretary of Agriculture

may by rules and regulations designate: (a) a shorter period for

kinds of agricultural or vegetable seed which he finds under ordinary conditions of handHng will not maintain, during the aforesaid five-month period, a germination within the established limits

of tolerance; or (b) a longer period not to exceed nine months,

exclusive of the calendar month in which the test was completed,

for kinds of agricultural or vegetable seed which he finds under

ordinary conditions of handling will maintain during such longer

period a germination within the established limits of tolerance.

(d) Any agricultural seeds or vegetable seeds having a false

labeling, or pertaining to which there has been a false advertisement, or to sell or offer for sale such seed for interstate shipment

by himself or others.

(e) Seed which is required to be stained under the provisions

of this chapter and the regulations made and promulgated thereunder, and is not so stained.

(f) Seed which has been stained to resemble seed stained in

accordance with the provisions of this chapter and the regulations

made and promulgated thereunder.

(g) Seed which is a mixture of seeds which are required to be

stained or which are stained with different colors under the provisions of this chapter and of the regulations made and promulgated thereunder, or which is a mixture of any seed required to

be stained under the provisions of this chapter and of the regulations made and promulgated thereunder, with seed of the same

kind produced in the United States.

(h) Screenings of any seed subject to this chapter, unless they

are not intended for seeding purposes; and it is stated on the

label, if in containers, or on the invoice if in bulk, that they are

intended for cleaning, processing, or manufacturing purposes, and

not for seeding purposes. (Aug. 9, 1939, ch. 615, title II, S 201

53 Stat. 1279.) > » »

§ 1572. Records.

All persons transporting, or delivering for transportation, in

interstate commerce agricultural seeds shall keep for a period of

three years a complete record of origin, germination and purity

of each lot of agricultural seed offered, and the Secretary of Agriculture, or his duly authorized agents, shall have the right to

inspect such records for the purpose of the effective administra67
tion of this chapter. (Aug. 9, 1939, ch. 615, title II, § 202, 53

Stat. 1281.)

§ 1573. Exemptions.

(a) CARRIER TRANSPORTING SEEDS.

The provisions of sections 1571 and 1572 of this title shall not

apply to any carrier in respect to any seed transported or delivered

for transportation in the ordinary course of its business as a carrier : Provided, That such carrier is not engaged in processing or

merchandising seed subject to the provisions of this chapter; and

such provisions shall not apply to seeds produced by any farmer

on his own premises and sold by him directly to the consumer,

provided such farmer is not engaged in the business of selling

seeds not produced by him: And provided further, That such

seeds produced or sold by him when transported or offered for

transportation to any State, Territory, or District, shall not be

exempted from the provisions of sections 1571 and 1572 of this

title unless said seeds shall be in compliance with the operation

and effect of the laws of such State, Territory, or District, enacted

in the exercise of its police power, to the same extent and in the

same manner as though such seed had been produced, sold, offered

or exposed for sale in such State, Territory, or District, and shall

not be exempted therefrom by reason of being introduced therein

in original packages or otherwise: And provided further, That

such seeds produced or sold by him are in compliance with the

seed laws of the State into which the seed is transported.

(b) SEEDS FOR SEEDING PURPOSES.

The provisions of section 1571 (a) or (b) of this title shall not

apply—

(1) to seed or grain not intended for seeding purposes when

transported or offered for transportation in ordinary channels of

commerce usual for such seed or grain intended for manufacture

or for feeding ; or

(2) to seed intended for seeding purposes when transported

or offered for transportation in interstate comnierce—

(A) if in bulk, in which case, however, the invoice pertaining

to such seed shall bear the various statements required for the

respective seeds under section 1571 (a) and (b) of this title; or

(B) if consigned to a seed cleaning or processing establishment, to be cleaned or processed for seeding purposes : Provided,

That this fact is so stated in the invoice, if in bulk, or on attached

labels, if in containers: Provided further. That any such seed

later to be labeled as to origin and/or variety, and for which

consecutive records are necessary to establish these facts, shall

be labeled as to these items in accordance with rules and regulations prescribed under section 1592 of this title.

(c) EMERGENCY PREVENTING PRESENTATION OF INFORMATION.

When the Secretary of Agriculture finds that, because of the time

interval between seed harvesting and sowing, or because of an

emergency beyond human control, the information required by

this chapter as to the germination, and hard seed of certain kinds

of seeds, cannot be given prior to transportation or delivery for

transportation in interstate commerce, he may promulgate, with

or without a hearing, rules and regulations providing that the

68
provisions of section 1571 (a) and (b) of this title as to the

required labeling for germination and hard seed shall not apply

for such period and to such kinds of seed as he may specify in his

said rules and regulations.

(d) INTERMIXTURE OF UNIDENTIFIED SEEDS.

The provisions of section 1571 (a) and (b) of this title relative

to the labeling of agricultural and vegetable seeds with the percentages of the kind or variety of type of seeds shall not be deemed

violated if there be other seeds in the container or bulk which

could not be, or were not, identified because of their indistinguishability in appearance from the seeds intended to be transported or

delivered for transportation in interstate commerce, provided that

the records of the person charged with the duty under said section

of labeling or invoicing the seeds, kept in accordance with the rules

and regulations of the Secretary of Agriculture, together with

other pertinent facts, disclose that said person has taken all

proper precautions to insure the identity to be that stated. (Aug.

9, 1939, ch. 615, title II, § 203, 53 Stat. 1281.)

§ 1574. Disclaimers and nonwarranties.

The use of a disclaimer or nonwarranty clause in any invoice,

advertising, labeling, or written, printed, or graphic matter, pertaining to any seed shall not constitute a defense, or be used as a

defense in any way, in any prosecution or other proceeding brought

under the provisions of this Act, or the rules and regulations

made and promulgated thereunder. (July 9, 1956, ch. 520, § 2, 70

Stat. 508.)

§ 1575. False advertising.

It shall be unlawful for any person to disseminate, or cause to

be disseminated, any false advertisement concerning seed, by the

United States mails, or in interstate or foreign commerce, in any

manner or by any means, including radio broadcasts: Provided,

however, That no person, advertising agency, or medium for the

dissemination of advertising, except the person who transported,

delivered for transportation, sold, or offered for sale seed to which

the false advertisement relates, shall be liable under this section

by reason of disseminating or causing to be disseminated any

false advertisement, unless he or it has refused, on the request

of the Secretary of Agriculture, to furnish the Secretary the name

and post-office address of the person, or advertising agency, residing in the United States, who caused, directly or indirectly, the

dissemination of such advertisement. (Aug. 9, 1939, ch. 615, title

II, § 205, 53 Stat. 1282.)

§ 1581. Prohibitions relating to importations.

(a) The importation into the United States is prohibited of—

(1) any seed containing 10 per centum or more of any agricultural or vegetable seeds if any such seed is adulterated or unfit

for seeding purposes, or is required to be stained and is not so

stained, under the terms of this subchapter, or the labeling of

which is false or misleading in any respect;

(2) screenings of any seeds subject to subchapter III of this

chapter (except that this shall not apply to screenings of wheat,

69
oats, rye, barley, buckwheat, field corn, sorghum, broomcorn, ñax,

millet, proso, soybeans, cowpeas, field peas, or field beans, which

are not imported for seeding purposes and are declared for cleaning, processing, or manufacturing purposes, and not for seeding

purposes) ;

(3) any seed containing 10 per centum or more of the seeds of

alfalfa or red clover, which has been stained prior to being offered

for entry in a manner that does not permit compliance with the

provisions of this subchapter and the regulations made and promulgated thereunder. (Aug. 9, 1939, ch. 615, title III, § 301,

53 Stat. 1282.)

§ 1582. Procedure relating to importations; disposal of refuse;

exceptions.

(a) The Secretary of the Treasury shall deliver to the Secretary

of Agriculture, subject to joint rules and regulations prescribed

under section 1592 of this title, samples of seed and screenings

which are being imported into the United States, or offered for

import, giving notice thereof to the consignee, and if it appears

from the examination of such samples that any seed or screenings

offered to be imported into the United States are subject to the

provisions of this subchapter and do not comply with the provisions of this subchapter, or if the labeling of such seed is false

or misleading in any respect, such seed or screenings shall be

refused admission, and the Secretary of the Treasury shall refuse

delivery to the consignee, who may appear, however, before the

Secretary of Agriculture and show cause why the seed or screenings should be admitted. Seed or screenings refused admission and

not exported by the consignee within twelve months from the date

of notice of such refusal shall be destroyed in accordance with

joint rules and regulations prescribed under section 1592 of this

tile : Provided, That the Secretary of the Treasury may deliver to

the consignee such seed or screenings pending examination and

decision in the matter or for staining, if it be seed which is

required to be stained, or for cleaning, on the execution of a

redelivery bond for such amount as may be necessary under

joint rules and regulations prescribed under section 1592 of this

title, and on refusal to return such seed or screenings for any

cause to the custody of the Secretary of the Treasury, when demanded, for the purpose of excluding such seed or screenings from

the country, or for any other purpose, said consignee shall forfeit

the full amount of the bond as liquidated damages : And provided

further, That all charges for storage, cartage, and labor on the

seed or screenings which are refused admission or delivery, shall

be paid by the owner or consignee, and in default of such payment

shall constitute a lien against future importation made by such

owner or consignee.

(b) The refuse from any seeds or screenings which are allowed

to be cleaned under bond shall be destroyed in accordance with

joint rules and regulations prescribed under section 1592 of this

title.

(c) The provisions of this subchapter shall not apply—

(1) when seed is shipped in bond through the United States, or

(2) when the Secretary of Agriculture finds that a substantial

proportion of the importations of any kind of seed is used for

70
other than seeding purposes, and he provides by rules and regulations that seed of such kind not imported for seeding purposes

shall be exempted from the provisions of the chapter: Provided,

That importations of such kinds of seed shall be accompanied by

a declaration setting forth the use for which imported when and

as required under joint rules and regulations prescribed under

section 1592 of this title. (Aug. 9, 1939, ch. 615, title III, § 302,

53 Stat. 1283.)

§ 1583. Adulterated seed.

Seed subject to the provisions of section 1581 of this title is

adulterated if any kind of such seed contains more than 5 per

centum by weight of seed or seeds of another kind or kinds of

similar appearance: Provided, That the mixture of the seed of

white and alsike clover, or red clover and alsike clover, shall not

be deemed to be adulterated, and that other seed mixtures of

similar kinds of seeds of similar appearance shall not be deemed

to be adulterated when the Secretary of Agriculture finds and

prescribes by order that the importation of such seed mixtures

for planting is not detrimental to the user of such seeds (Aug. 9.

1939, ch. 615, title III, § 303, 53 Stat. 1283.)

§ 1584. Seed unfit for seeding purposes.

Seed subject to the provisions of section 1581 of this title is unfit

for seeding purposes—

(a) If any such seed contains noxious-weed seed at a rate in

excess of—

^ (1) one noxious-weed seed in each ten grams of the seed of

timothy, orchard grass, bromegrass, crested wheatgrass, slender

wheatgrass, ryeo^rass, sweetclover, alfalfa, millet, rape, flax,

clovers, and species of Agrostis, Festuca, or Poa, or any kind of

seed of a size and weight similar to or less than those named ;

(2) one noxious-weed seed in each twenty-five grams of the

seed of sorghum, Sudan grass, and buckwheat, or any kind of

seed of a size and weight greater than the seeds referred to in

(a) (1), but less than seeds referred to in (a) (3) of this section;

(3) one noxious-weed seed in each one hundred grams of the

seed of wheat, oats, rye, barley, vetches, and corn, or any seed of

a size and weight similar to or greater than such seed.

(b) If any such seed contains more than 2 per centum by weight

of weed seeds; or

(c) If any such seed contains less than 75 per centum of pure

live seed, or if any component of such seed present to the extent

of 10 per centum or more contains less than 75 per centum of live

seed; Provided, That when the Secretary of Agriculture shall find

that any such seed or any kind of seed present to the extent of

10 per centum or more cannot be produced to contain 75 per

centum of pure, live seed, he may set up such standard from time

to time for pure, live seed as he finds can be produced. ÍAuff 9

1939, ch. 615, title III, § 304, 53 Stat. 1284.) ^ ^* '

§ 1585. Certain seeds required to be strained.

ijf^l ^^J,®^^^ containing 10 per centum or more of the seeds of

alfalfa and/or red clover, subject to the provisions of section 1581

71
of this title, shall be stained in such manner and to such extent

as the Secretary of Agriculture by regulation may prescribe and,

when practicable, the color produced by such stain shall indicate

the country or region of origin.

(b) Whenever the Secretary of Agriculture, after public hearing, determines that seed of alfalfa or red clover from any foreign

country or region is not adapted for general agricultural use in

the United States, he shall publish such determination. On and

after the expiration of ninety days after the date of such publication, and until such determination is revoked, 10 per centum or

more of the seeds in each container of such alfalfa or red clover

seed, or any seed containing 10 per centum or more of such alfalfa

or red clover seed, shall be stained a red color, in accordance v^ith

such regulations as the Secretary of Agriculture may prescribe.

(c) Whenever the origin of the seed of alfalfa or of red clover

present in excess of 10 per centum in any seed subject to section

1581 of this title is unestablished, 10 per centum of the seed in

each container shall be stained a red color.

(d) Whenever the seeds of alfalfa or of red clover of different

origins are present in excess of 10 per centum in any seed subject

to section 1581 of this title, and different colors are required by

reason of such different origins, 10 per centum of the seed in each

container shall be stained red.

(e) Whenever any seed required to be stained under the provisions of this chapter is commingled with seed of the same kind

grown in the United States, the seed in each container thereof

shall be stained 10 per centum red. (Aug. 9, 1939, ch. 615, title

III, § 305, 53 Stat. 1284.)

§ 1586. Certain acts prohibited.

It shall be unlawful for any person—

(a) To sell or offer for sale—

(1) any seed for seeding purposes if imported under this subchapter for other than seeding purposes;

(2) any screenings of any seeds for seeding purposes if imported under this subchapter for other than seeding purposes;

(3) any seed which is prohibited entry under the provisions of

this chapter ; ,, , ^ . -,

(4) any seed which has been stained to resemble seed stained

in accordance with the provisions of this chapter and the rules

and regulations made and promulgated thereunder;

(5) any seed stained under the provisions of this chapter and

the rules and regulations made and promulgated thereunder, when

mixed with seed of the same kind produced in the United States;

(6) any seed stained with different colors;

(7) any seed stained under the provisions of this chapter, the

labeling of which states that such seed is adapted.

(b) To change the proportion of seeds stained under the provisions of this chapter and the rules and regulations made and

promulgated thereunder, or to alter, modify conceal, or remove in

any manner or by any means the color of such stained seeds.

(Aug. 9, 1939, ch. 615, title III, § 306, 53 Stat. 1285.)

§ 1591. Delegation of duties.

Any duties devolving upon the Secretary of Agriculture by

72
virtue of the provisions of this chapter may with Uke force and

effect be executed by such officer or officers, agent or agents, of

the Department of Agriculture as the Secretary may designate for

the purpose. (Aug. 9, 1939, ch. 615, title IV, § 401, 53 Stat. 1285.)

§ 1592. Rules and regulations.

(a) The Secretary of Agriculture shall make such rules and

regulations as he may deem necessary for the effective enforcement

of this chapter, except as otherwise provided in this section.

(b) The Secretary of the Treasury and the Secretary of Agriculture shall make, jointly or severally, such rules and regulations

as they may deem necessary for the effective enforcement of

subchapter III of this chapter.

(c) Prior to the promulgation of any rule or regulation under

this chapter, due notice shall be given by pubKcation in the Federal

Register of intention to promulgate and the time and place of a

public hearing to be held with reference thereto, and no rule or

regulation may be promulgated until after such hearing. Any rule

or regulation shall become effective on the date fixed in the

promulgation, which date shall be not less than thirty days after

publication in the Federal Register, and may be amended or

revoked in the manner provided for its promulgation. (Aug. 9,

1939, ch. 615, title IV, § 402, 53 Stat. 1285.)

§ 1593. Standards, tests, tolerances.

(a) The sampling, analyses, tests, or examinations of seeds

made in connection with the administration of this chapter shall

be made by methods set forth by rules and regulations prescribed

under section 1592 of this title.

(b) The Secretary of Agriculture is authorized and directed to

make and promulgate by rules and regulations, reasonable tolerances as to the percentages and rates of occurrence required to

be stated or required by this chapter.

(c) For the purpose of section 1571 (b) of this title, the Secretary of Agriculture is authorized and directed to investigate,

determine, establish, and promulgate from time to time such

reasonable standards of germination for each kind of vegetable

seed as will in his judgment best protect crop production. (Aug.

9, 1939, ch. 615, title IV, § 403, 53 Stat. 1285).

§ 1594. Prohibition against alterations.

No person shall detach, alter, deface, or destroy any label provided for in this chapter or the rules and regulations made and

promulgated thereunder by the Secretary of Agriculture, or alter

or substitute seed in a manner that may defeat the purpose of

this chapter. (Aug. 9, 1939, ch. 615, title IV § 404, 53 Stat. 1286.)

§ 1595. Seizure.

(a) Any seed sold, delivered for transportation in interstate

commerce, or transported in interstate or foreign commerce in

violation of any of the provisions of this chapter shall, at the

time of such violation or at any time thereafter, be liable to be

proceeded against on libel of information and condemned in any

73
district court of the United States within the jurisdiction of which

the seed is found.

(b) If seed is condemned by a decree of the court as being in

violation of the provisions of this chapter, it may be disposed of

by the court by—

(1) sale; or

(2) delivery to the owner thereof after he has appeared as

claimant and paid the court costs and fees and storage and other

proper expenses and executed and delivered a bond with good and

sufficient sureties that such seed will not be sold or disposed of

in any jurisdiction contrary to the provisions of this chapter and

the rules and regulations made and promulgated thereunder, or

the laws of such jurisdiction; or

(3) destruction.

(c) If such seed is disposed of by sale, the proceeds of the sale,

less the court costs and fees and storage and other proper expenses, shall be paid into the Treasury as miscellaneous receipts,

but such seed shall not be sold or disposed of in any jurisdiction

contrary to the provisions of this chapter and the rules and regulations made and promulgated thereunder, or the laws of such

jurisdiction.

(d) The proceedings in such libel cases shall conform, as nearly

as may be, to the proceedings in admiralty, except that either

party may demand trial by jury of any issue of fact joined in any

such case ; and such proceedings shall be at the suit of and in the

name of the United States. (Aug. 9, 1939, ch, 615, title IV, § 405,

53 Stat. 1286.)

§ 1596. Penalties.

(a) Any person who knowingly, or as a result either of gross

negligence or of a failure to make a reasonable effort to inform

himself of the pertinent facts, violates any provision of this Act or

the rules and regulations made and promulgated thereunder shall

be deemed guilty of a misdemeanor and, upon conviction thereof,

shall pay a fine of not more than $1,000, for the first offense, and

upon conviction for each subsequent offense not more than $2,000.

(b) Any person who violates any provision of this Act or the

rules and regulations made and promulgated thereunder shall forfeit to the United States a sum, not less than $25 or more than

$500, for each such violation, which forfeiture shall be recoverable

in a civil suit brought in the name of the United States. (July 9,

1956, ch. 520, § 1, 70 Stat. 508.)

§ 1597. Agent's acts as binding principal.

When construing and enforcing the provisions of this chapter,

the act, omission, or failure of any officer, agent, or other person

acting for or employed by any person, partnership, corporation,

company, society, or association, shall in every case be also deemed

to be the act, omission, or failure of such person, partnership, corporation, company, society, or association, as well as that of the

person employed. (Aug. 9, 1939, ch. 615, title IV, § 407, 53 Stat.

1286.)

§ 1598. Notice of intention to prosecute.

Before any violation of this chapter is reported by the Secretary

74
of Agriculture to any United States attorneys for institution of a

criminal proceeding, the person against whom such proceeding is

contemplated shall be given appropriate notice and an opportunity

to present his views, either orally or in writing, with regard to

such contemplated proceeding. (Aug. 9, 1939, ch. 615, title IV,

§ 408, 53 Stat. 1286.)

§ 1599. Cease and desist proceedings,

(a) HEARING.

Whenever the Secretary of Agriculture has reason to believe

that any person has violated or is violating any of the provisions

of this chapter or the rules and regulations made and promulgated

thereunder, he shall cause a complaint in writing to be served upon

the person, stating his charges in that respect, and requiring the

person to attend and testify at a hearing at a time and place

designated therein, at least thirty days after the service of such

complaint ; and at such time and place there shall be afforded the

person a reasonable opportunity to be informed as to the evidence

introduced against him (including the right of cross-examination),

and to be heard in person or by counsel and through witnesses,

under such rules and regulations as the Secretary of Agriculture

may prescribe. At any time prior to the close of the hearing the

Secretary of Agriculture may amend the complaint; but in case

of any amendment adding new provisions the hearing shall, on

the request of the person, be adjourned for a period not exceeding

fifteen days.

(b) REPORT OF SECRETARY OF AGRICULTURE.

If, after such hearing, the Secretary of Agriculture finds that

the person has violated or is violating any provisions of the chapter

or rules and regulations covered by the charges, he shall make a

report in writing in which he shall state his findings as to the facts,

and shall issue and cause to be served on the person an order

requiring such person to cease and desist from continuing such

violation. The testimony taken at the hearing shall be reduced to

writing and filed in the records of the Department of Agriculture.

(c) AMENDMENT OF REPORT.

Until a transcript of the record in such hearing has been filed

in a court of appeals, as provided in section 1600 of this title, the

Secretary of Agriculture at any time, upon such notice and in such

manner as he deems proper, but only after reasonable opportunity

to the person to be heard, may amend or set aside the report or

order, in whole or in part.

(d) SERVICE.

Complaints, orders, and other processes of the Secretary of

Agriculture under this section may be served by anyone duly

authorized by the Secretary of Agriculture, either (1) by delivering a copy thereof to the person to be served, or to a member of

the partnership to be served, or to the president, secretary, or

other executive officer or a director of the corporation to be served ;

or (2) by leaving a copy thereof at the principal office or place of

business of such person, partnership, or corporation; or (3) by

registering and mailing a copy thereof addressed to such person,

partnership, or corporation at his or its last known principal office

75
or place of business. The verified return by the person so serving

said complaint, order, or other process setting forth the manner of

said order shall be proof of the same, and the return post-office

receipt for said complaint, order, or other process registered and

mailed as aforesaid shall be proof of the service of the same.

(Aug. 9, 1939, ch. 615, title IV, § 409, 53 Stat. 1287.)

§ 1600. Appeal to court of appeals.

An order made under section 1599 of this title shall be final and

conclusive unless within thirty days after the service the person

appeals to the court of appeals for the circuit in which such person

resides or has his principal place of business by filing with the

clerk of such court a written petition praying that the Secretary's

order be set aside or modified in the manner stated in the petition,

together with a bond in such sum as the court may determine,

conditioned that such person will pay the costs of the proceedings

if the court so directs.

The clerk of the court shall immediately cause a copy of the

petition to be delivered to the Secretary, and the Secretary shall

forthwith prepare, certify, and file in the court a full and accurate

transcript of the record in such proceedings, including the complaint, the evidence, and the report and order. If before such

transcript is filed, the Secretary amends or sets aside his report

or order, in whole or in part, the petitioner may amend the petition within such time as the court may determine, on notice to the

Secretary.

At any time after such transcript is filed the court, on application of the Secretary, may issue a temporary injunction restraining, to the extent it deems proper, the person and his officers,

directors, agents, and employees from violating any of the provisions of the order pending the final determination of the appeal.

The evidence so taken or admitted, duly certified and filed as

aforesaid as a part of the record, shall be considered by the court

as the evidence in the case. The proceedings in such cases in the

court of appeals shall be made a preferred cause and shall be

expedited in every way.

The court may affirm, modify, or set aside the order of the

Secretary.

If the court determines that the just and proper disposition of

the case requires the taking of additional evidence, the court shall

order the hearing to be reopened for the taking of such evidence,

in such manner and upon such terms and conditions as the court

may deem proper. The Secretary may modify his findings as to

the facts, or make new findings, by reason of the additional evidence so taken, and he shall file such modified or new findings and

his recommendation, if any, for the modification or setting aside

of his order, with the return of such additional evidence.

If the court of appeals affirms or modifies the order of the

Secretary, its decree shall operate as an injunction to restrain

the person and his officers, directors, agents, and employees from

violating the provisions of such order or such order as modified.

(Aug. 9,1939, ch. 615, title IV, § 410, 53 Stat. 1287.)

§ 1601. Enforcement of order.

If any person against whom an order is issued under section

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1599 of this title fails to obey the order, the Secretary of Agriculture, or the United States, by its Attorney General, may apply

to the court of appeals of the United States, within the circuit

where the person against whom the order was issued resides or has

his principal place of business, for the enforcement of the order,

and shall certify and file with its application a full and accurate

transcript of the record in such proceedings, including the complaint, the evidence, the report, and the order. Upon such filing of

the application and transcript the court shall cause notice thereof

to be served upon the person against whom the order was issued.

The evidence to be considered, the procedure to be followed, and

the jurisdiction of the court shall be the same as provided in

section 1600 of this title for applications to set aside or modify

orders.

The proceedings in such cases shall be made a preferred cause

and shall be expedited in every way. (Aug. 9, 1939, ch. 615, title

IV, § 411, 53 Stat. 1288.)

§ 1602. Separability of proceedings.

The institution of any one of the proceedings provided for in

sections 1595, 1596, 1599-1601 of this title shall not bar institution

of any of the others, except that action shall not be instituted

under both subsections 1596 (a) and (b) of this title for the same

cause of action. Nothing in this chapter shall be construed as requiring the Secretary of Agriculture to recommend prosecution,

or institution of civil penalty proceedings, libel proceedings,

cease-and-desist proceedings, or proceedings for the enforcement

of a cease-and-desist order, for minor violations of this chapter or

the rules and regulations made and promulgated thereunder whenever he believes that the public interest will be adequately served

by suitable written notice or warning. (July 9, 1956, ch. 520, § 3,

70 Stat. 508.)

§ 1603. Power to examine; witness fees and mileage.

(a) In carrying on the work herein authorized, the Secretary of

Agriculture, or any ofiicer or employee designated by him for such

purpose, shall have power to hold hearings, administer oaths, sign

and issue subpoenas, examine witnesses, take depositions, and

require the production of books, records, accounts, memoranda,

and papers, and have access to ofiice and warehouse premises.

Upon refusal by any person to appear, testify, or produce pertinent books, records, accounts, memoranda, and papers in response

to a subpoena, or to permit access to premises, the proper United

States district court shall have power to compel obedience thereto.

(b) Witnesses summoned before the Secretary or any ofiicer or

employee designated by him shall be paid the same fees and mileage that are paid witnesses in the courts of the United States, and

witnesses whose depositions are taken and the persons taking the

same shall severally be entitled to the same fees as are paid for

like service in the courts of the United States. (Aug. 9, 1939, ch.

615, title IV, § 413, 53 Stat. 1289.)

§ 1604. Publication.

After judgment by the court, or the issuance of a cease-anddesist order, in any case arising under this chapter, notice thereof

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shall be given by publication in such manner as may be prescribed

in the rules and regulations made and promulgated under this

chapter. (Aug. 9, 1939, ch. 615, title IV, § 414, 53 Stat. 1289.)

§ 1605. Authorization for appropriations.

(a) There is hereby authorized to be appropriated, out of any

money in the Treasury not otherwise appropriated, such sums as

may be necessary for administering this chapter.

(b) Funds appropriated for carrying into effect the purpose

of this chapter shall be available for allotment by the Secretary

of Agriculture to the bureaus and offices of the Department of

Agriculture and for transfer to other departments and agencies

of the Government which the Secretary of Agriculture may call

upon to assist or cooperate in carrying out such purposes or for

services rendered or to be rendered in connection therewith.

Appropriations made under this authorization, within the limit

prescribed in such appropriations, may be expended for the share

of the United States in the expense of the International Seed

Testing Congress in carrying out plans for correlating the work

of the various adhering governments on problems relating to seed

analyses or other subjects which the Congress may determine to

be necessary in the interest of international seed trade. (Aug. 9,

1939, ch. 615, title IV, § 415, 53 Stat. 1289; Sept. 21, 1944, ch. 412,

title VII, § 701 (b), 58 Stat. 741.)

§ 1606. Authorization for expenditures.

The Secretary of Agriculture is authorized to make such expenditures for rent, outside of the District of Columbia, printing,

binding, furniture, stationery, office and laboratory equipment,

travel, and other supplies, including reporting services, such research necessary to develop methods of processing, bulking, blending, sampling, testing, and merchandising seeds necessary to the

administration of this chapter and other necessary expenses in

the District of Columbia and elsewhere, and as may be appropriated for by the Congress. (Aug. 9,1939, ch. 615, title IV, § 416,

53 Stat. 1289.)

§ 1607. Cooperation with other agencies.

The Secretary of Agriculture is authorized to cooperate with

any other department or agency of the Federal Government; or

with any State, Territory, District, or possession, or department,

agency, or political subdivision thereof; or with any producing,

trading, or consuming organization, whether operating in one or

more jurisdictions, in carrying out the provisions of this chapter.

(Aug. 9, 1939, ch. 615, title IV, § 417, 53 Stat. 1289).

§ 1608. Separability of provisions.

If any provision of this chapter, or the application thereof to

any person or circumstance, is held invalid, the remainder of the

chapter, and the application of such provisions to other persons

or circumstances, shall not be affected thereby. (Aug. 9, 1939, ch.

615, title IV, § 418, 53 Stat. 1290.)

§ 1609. Repeals.

Sections 111-116 of this title are hereby repealed on the one

78
hundred and eightieth day after the passage of this chapter. Provided, however, That the notices with respect to imported alfalfa

and red clover seed promulgated by the Secretary of Agriculture

under the authority of sections 111-116 of this title, and now in

effect, shall remain with the same full force and effect as if

promulgated under this chapter. (Aug. 9, 1939, ch. 615, title IV,

§ 419, 53 Stat. 1290.)

Livestock and Livestock Products

Packers and Stockyards Act, 1921

(7 U.S.C. 181-229)

§ 181. Short title of chapter.

This chapter may be cited as the "Packers and Stockyards Act,

1921.'' (Aug. 15, 1921, ch. 64, § 1, 42 Stat. 159.)

§ 182. "Person"; "Secretary''; "meat food products''; "livestock";

"livestock products"; "commerce"; defined.

When used in this chapter—

(1) The term "person'' includes individuals, partnerships, corporations, and associations;

(2) The term "Secretary" means the Secretary of Agriculture;

(3) The term "meat food products" means all products and

byproducts of the slaughtering and meat-packing industry—if

edible;

(4) The term "livestock" means cattle, sheep, swine, horses,

mules, or goats—whether live or dead ;

(5) The term "livestock products" means all products and

byproducts (other than meats and meat food products) of the

slaughtering and meat-packing industry derived in whole or in

part from livestock ; and

(6) The term "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. (Aug. 15,1921, ch. 64, § 2(a), 42 Stat. 159.)

§ 183. When transaction deemed in commerce; "State" defined.

For the purpose of this chapter (but not in anywise limiting the

definition in Section 182 of this title) a transaction in respect to

any article shall be considered to be in commerce if such article is

part of that current of commerce usual in the livestock and meatpacking industries, whereby livestock, meats, meat food products,

livestock products, dairy products, poultry, poultry products, or

eggs, are sent from one State with the expectation that they will

end their transit, after purchase, in another, including, in addition

to cases withm the above general description, all cases where

purchase or sale is either for shipment to another State, or for

slaughter of livestock within the State and the shipment outside

the State of the products resulting from such slaughter. Articles

normally in such current of commerce shall not be considered out

of such current through resort being had to any means or device

79
intended to remove transactions in respect thereto from the provisions of this chapter. For the purpose of this section the word

"State" includes Territory, the District of Columbia, possession

of the United States, and foreign nation. (Aug. 15, 1921, ch. 64,

§ 2, (b) 42 Stat. 159.)

§ 191. "Packer^' defined.

When used in this chapter—

The term "packer" means any person engaged in the business

(a) of buying livestock in commerce for purposes of slaughter,

or (b) of manufacturing or preparing meats or meat food products for sale or shipment in commerce, or (c) of manufacturing

or preparing livestock products for sale or shipment in commerce,

or (d) of marketing meats, meat food products, livestock products, dairy products, poultry, poultry products, or eggs, in commerce ; but no person engaged in such business of manufacturing

or preparing livestock products or in such marketing business

shall be considered a packer unless—

(1) Such person is also engaged in any business referred to in

clause (a) or (b) above, or unless

(2) Such person owns or controls, directly or indirectly,

through stock ownership or control or otherwise, by himself or

through his agents, servants, or employees, any interest in any

business referred to in clause (a) or (b) above, or unless

(3) Any interest in such business of manufacturing or preparing livestock products, or in such marketing business is owned

or controlled, directly or indirectly, through stock ownership or

control or otherwise, by himself or through his agents, servants,

or employees, by any person engaged in any business referred to

in clause (a) or (b) above, or unless

(4) Any person or persons jointly or severally, directly or indirectly, through stock ownership or control or otherwise, by

themselves or through their agents, servants, or employees, own

or control in the aggregate 20 per centum or more of the voting

power or control in such business of manufacturing or preparing

livestock products, or in such marketing business and also 20 per

centum or more of such power or control in any business referred

to in clause (a) or (b) above. (Aug. 15, 1921, ch. 64, § 201, 42

Stat. 160.)

§ 192. Unlawful practices enumerated.

It shall be unlawful for any packer or any live poultry dealer or

handler to :

(a) Engage in or use any unfair, unjustly discriminatory, or

deceptive practice or device in commerce ; or

(b) Make or give, in commerce, any undue or unreasonable

preference or advantage to any particular person or locality in

any respect whatsoever, or subject, in commerce, any particular

person or locality to any undue or unreasonable prejudice or disadvantage in any respect whatsoever ; or

(c) Sell or otherwise transfer to or for any other packer, or

any live poultry dealer or handler, or buy or otherwise receive

from or for any other packer or any live poultry dealer or handler

any article for the purpose or with the effect of apportioning the

80
supply in commerce between any such packers, if such apportionment has the tendency or effect of restraining commerce or of

creating a monopoly in commerce; or

(d) Sell or otherwise transfer to or for any other person, or

buy or otherwise receive from or for any other person, any article

for the purpose or with the effect of manipulating or controlling

prices in commerce, or of creating a monopoly in the acquisition

of, buying, selling, or dealing in, any article in commerce, or of

restraining commerce ; or

(e) Engage in any course of business or do any act for the

purpose or with the effect of manipulating or controlling prices

in commerce, or of creating a monopoly in the acquisition of,

buying, selHng, or dealing in, any article in commerce, or of

restraining commerce ; or

(f) Conspire, combine, agree, or arrange with any other person

(1) to apportion territory for carrying on business in commerce,

or (2) to apportion purchases or sales of any article in commerce,

or (3) to manipulate or control price in commerce; or

(g) Conspire, combine, agree, or arrange with any other person to do, or aid or abet the doing of, any act made unlawful by

subdivisions (a), (b), (c), (d), or (e). (Aug. 15, 1921, ch. 64,

§ 202, 42 Stat. 161; Aug. 15, 1921, ch. 64, § 503, as added Aug.

14,1935, ch. 532, 49 Stat. 649.)

§193. General procedure before Secretary for violations; complaint; hearing; intervention; report and order; service of

process.

(a) Whenever the Secretary has reason to believe that any

packer has violated or is violating any provision of sections 191-

195 of this title, he shall cause a complaint in writing to be

served upon the packer, stating his charges in that respect, and

requiring the packer to attend and testify at a hearing at a

time and place designated therein, at least thirty days after the

service of such complaint; and at such time and place there shall

be afforded the packer a reasonable opportunity to be informed

as to the evidence introduced against him (including the right

of cross-examination), and to be heard in person or by counsel

and through witnesses, under such regulations as the Secretary

may prescribe. Any person for good cause shown may on application be allowed by the Secretary to intervene in such proceeding,

and appear in person or by counsel. At any time prior to the close

of the hearing the Secretary may amend the complaint ; but in case

of any amendment adding new charges the hearing shall, on the

request of the packer, be adjourned for a period not exceeding

fifteen days.

(b) If, after such hearing, the Secretary finds that the packer

has violated or is violating any provisions of sections 191-195 of

this title covered by the charges, he shall make a report in writing in which he shall state his findings as to the facts, and shall

issue and cause to be served on the packer an order requiring

such packer to cease and desist from continuing such violation.

The testimony taken at the hearing shall be reduced to writing

and filed in the records of the Department of Agriculture.

(c) Until a transcript of the record in such hearing has been

filed m a court of appeals of the United States, as provided in

81
section 194 of this title, the Secretary at any time, upon such notice

and in such manner as he deems proper, but only after reasonable

opportunity to the packer to be heard, may amend or set aside

the report or order, in whole or in part.

(d) Complaints, orders, and other processes of the Secretary

under this section may be served in the same manner as provided

in section 45 of Title 15. (Aug. 15, 1921, ch. 64, § 203, 42 Stat.

161.)

§ 194. Conclusiveness of order; appeal and review; temporary and

final injunction.

ia) An order made under section 193 of this title shall be final

and conclusive unless within thirty days after service the packer

appeals to the court of appeals for the circuit in which he has his

principal place of business, by filing with the clerk of such court a

written petition praying that the Secretary's order be set aside or

modified in the manner stated in the petition, together with a bond

in such sum as the court may determine, conditioned that such

packer will pay the costs of the proceedings if the court so directs.

(b) The clerk of the court shall immediately cause a copy of

the petition to be delivered to the Secretary, and the Secretary

shall forthwith prepare, certify, and file in the court a full and

accurate transcript of the record in such proceedings, including

the complaint, the evidence, and the report and order. If before

such transcript is filed the Secretary amends or sets aside his

report or order, in whole or in part, the petitioner may amend

the petition within such time as the court may determine, on

notice to the Secretary.

(c) At any time after such transcript is filed the court, on

application of the Secretary, may issue a temporary injunction

restraining, to the extent it deems proper, the packer and his

officers, directors, agents, and employees, from violating any of

the provisions of the order pending the final determination of

the appeal.

(d) The evidence so taken or admitted, duly certified and filed

as aforesaid as a part of the record, shall be considered by the

court as the evidence in the case. The proceedings in such cases in

the court of appeals shall be made a preferred cause and

shall be expedited in every way.

(e) The court may affirm, modify, or set aside the order of

the Secretary.

(f) If the court determines that the just and proper disposition of the case requires the taking of additional evidence, the

court shall order the hearing to be reopened for the taking of

such evidence, in such manner and upon such terms and conditions as the court may deem proper. The Secretary may modify

his findings as to the facts, or make new findings, by reason of

the additional evidence so taken and he shall file such modified

or new findings and his recommendations, if any, for the modification or setting aside of his order, with the return of such additional

evidence.

(g) If the court of appeals affirms or modifies the order

of the Secretary, its decree shall operate as an injunction to

restrain the packer, and his officers, directors, agents, and em82
ployees from violating the provisions of such order or such order

as modified.

(h) The court of appeals shall have exclusive jurisdiction to

review, and to affirm, set aside, or modify, such orders of the

Secretary, and the decree of such court shall be final except that it

shall be subject to review by the Supreme Court of the United

States upon certiorari, as provided in section 347 of Title 28, if

such writ is duly applied for within sixty days after entry of the

decree. The issue of such writ shall not operate as a stay of the

decree of the court of appeals, insofar as such decree operates as

an injunction unless so ordered by the Supreme Court. (Aug. 15,

1921, ch. 64, §204, 42 Stat. 162; June 7,1934, ch. 426, 48 Stat. 926;

June 25, 1948, ch. 646, § 32 (a), 62 Stat. 991; May 24, 1949, ch.

139, § 127, 63 Stat. 107.)

§ 195. Punishment for violation of order.

Any packer, or any officer, director, agent, or employee of a

packer, who fails to obey any order of the Secretary issued under

the provisions of section 193 of this title, or such order as

modified—

(1) After the expiration of the time allowed for filing a petition

in the court of appeals to set aside or modify such order, if no

such petition has been filed within such time ; or

(2) After the expiration of the time allowed for applying for

a writ of certiorari, if any such order, or such order as modified,

has been sustained by the court of appeals and no such writ has

been applied for within such tim.e ; or

(3) After such order, or such order as modified, has been

sustained by the courts as provided in section 194 of this title;

shall on conviction be fined not less than $500 nor more than

$10,000, or imprisoned for not less than six months nor more

than five years, or both. Each day during which such failure

continues shall be deemed a separate oifense. (Aug. 15, 1921, ch.

64, § 205, 42 Stat. 163; June 25, 1948, ch. 646, § 32(a), 62 Stat.

991 ; May 24,1949, ch. 139, § 127, 63 Stat. 107.)

§201. "Stockyard owner^'; "stockyard services''; "market

agency''; "dealer"; defined.

(a) The term "stockyard owner'' means any person engaged

in the business of conducting or operating a stockyard ;

(b) The term "stockyard services" means services or facilities

furnished at a stockyard in connection with the receiving, buying, or selling on a commission basis or otherwise, marketing,

feeding, watering, holding, delivery, shipment weighing, or handhng in commerce, of livestock;

(c) The term "market agency" means any person engaged in

the business of (1) buying or seUing in commerce livestock at a

stockyard on a commission basis or (2) furnishing stockyard

services ; and

(d) The term "dealer" means any person, not a market agency,

engaged in the business of buying or selling in commerce livestock at a stockyard, either on his own account or as the employee or agent of the vendor or purchaser. (Aug. 15, 1921, ch.

64, § 301, 42 St^t. X63.)

83
§ 202. "Stockyard" defined; determination by Secretary as to particular yard.

(a) When used in sections 201-203 and 205-217 (a) of this

title the term "stockyard" means any place, establishment, or

facility commonly known as stockyards, conducted or operated for

compensation or profit as a public market, consisting of pens, or

other inclosures, and their appurtenances, in which live cattle,

sheep, swine, horses, mules, or goats are received, held, or kept

for sale or shipment in commerce. Sections 201-203, 205-217 (a)

of this title shall not apply to a stockyard of which the area

normally available for handling livestock, exclusive of runs, alleys,

or passageways, is less than twenty thousand square feet.

(b) The Secretary shall from time to time ascertain, after such

inquiry as he deems necessary, the stockyards which come within

the foregoing definition, and shall give notice thereof to the stockyard owners concerned, and give public notice thereof by posting

copies of such notice in the stockyard, and in such other manner

as he may determine. After the giving of such notice to the stockyard owner and to the public, the stockyard shall remain subject

to the provision of sections 201-203 and 205-217 (a) of this title

until like notice is given by the Secretary that such stockyard no

longer comes within the foregoing definition. (Aug. 15, 1921, ch.

64, § 302, 42 Stat. 163.)

§ 203. Registration of stockyard dealer or market agency; penalty

for failure to register.

After the expiration of thirty days after the Secretary has given

public notice that any stockyard is within the definition of section

202 of this title by posting copies of such notice in the stockyard,

no person shall carry on the business of a market agency or dealer

at such stockyard unless he has registered with the Secretary

under such rules and regulations as the Secretary may prescribe,

his name and address, the character of business in which he is

engaged, and the kinds of stockyard services, if any, which he

furnishes at such stockyard. Whoever violates the provisions of

this section shall be liable to a penalty of not more than $500 for

each such offense and not more than $25 for each day it continues,

which shall accrue to the United States and may be recovered in a

civil action brought by the United States. (Aug. 15, 1921, ch. 64,

§ 303, 42 Stat. 163.)

§ 204. Bond and suspension of registrants.

Hereafter the Secretary may require reasonable bonds from

every market agency and dealer, under such rules and regulations

as he may prescribe, to secure the performance of their obligations,

and whenever, after due notice and hearing, the Secretary finds

any registrant is insolvent or has violated any provisions of said

Act he may issue an order suspending such registrant for a reasonable specified period. Such order of suspension shall take effect

within not less than five days, unless suspended or modified or set

aside by the Secretary or a court of competent jurisdiction. (July

12, 1943, ch. 215, § 1, 57 Stat. 422.)

§ 205. General duty as to services.

It shall be the duty of every stockyard owner and market agency

84
to furnish upon reasonable request, without discrimination, reasonable stockyard services at such stockyard: Provided, That in

any State where the weighing of livestock at a stockyard is conducted by a duly authorized department or agency of the State, the

Secretary, upon application of such department or agency, may

register it as a market agency for the weighing of livestock received in such stockyard, and upon such registration such department or agency and the members thereof shall be amenable to all

the requirements of this chapter ; and upon failure of such department or agency or the members thereof to comply with the orders

of the Secretary under this chapter he is authorized to revoke the

registration of such department or agency and to enforce such

revocation as provided in section 216 of this title. (Aug. 15, 1921,

ch. 64, § 304, 42 Stat. 164; May 5,1926, ch. 240, 44 Stat. 397.)

§ 206. Rates and charges generally; discrimination.

AH rates or charges made for any stockyard services furnished

at a stockyard by a stockyard owner or market agency shall be

just, reasonable, and nondiscriminatory, and any unjust, unreasonable, or discriminatory rate or charge is prohibited and declared

to be unlawful. (Aug. 15,1921, ch. 64, § 305, 42 Stat. 164.)

§207. Schedule of rates; filing and exhibition; change in rates;

suspension; penalties.

(a) Within sixty days after the Secretary has given public

notice that a stockyard is within the definition of section 202 of

this title, by posting copies of such notice in the stockyard, the

stockyard owner and every market agency at such stockyard shall

file with the Secretary, and print and keep open to public inspection

at the stockyard, schedules showing all rates and charges for the

stockyard services furnished by such person at such stockyard.

If a market agency commences business at the stockyard after the

expiration of such sixty days such schedules must be filed before

any stockyard services are furnished.

(b) Such schedules shall plainly state all such rates and charges

in such detail as the Secretary may require, and shall also state

any rules or regulations which in any manner change, aiïect, or

determine any part or the aggregate of such rates or charges, or

the value of the stockyard services furnished. The Secretary may

determine and prescribe the form and manner in which such

schedules shall be prepared, arranged, and posted, and may from

time to time make such changes in respect thereto as may be

found expedient.

(c) No changes shall be made in the rates or changes so filed

and published, except after ten days' notice to the Secretary and

to the public filed and published as aforesaid, which shall plainly

state the changes proposed to be made and the time such changes

will go into effect; but the Secretary may for good cause shown,

allow changes on less than ten days' notice, or modify the requirements of this section in respect to publishing, posting, and filing

of schedules, either in particular instances or by a general order

applicable to special or peculiar circumstances or conditions.

(d) The Secretary may reject and refuse to file any schedule

tendered for filing which does not provide and give lawful notice

85
of its effective date, and any schedule so rejected by the Secretary

shall be void and its use shall be unlawful.

(e) Whenever there is filed with the Secretary any schedule,

stating a new rate or charge, or a new regulation or practice

affecting any rate or charge, the Secretary may either upon complaint or upon his own initiative without complaint, at once, and

if he so orders without answer or other formal pleading by the

person filing such schedule, but upon reasonable notice, enter upon

a hearing concerning the lawfulness of such rate, charge, regulation, or practice, and pending such hearing and decision thereon

the Secretary, upon filing with such schedule and delivering to

the person filing it a statement in writing of his reasons for such

suspension, may suspend the operation of such schedule and

defer the use of such rate, charge, regulation, or practice, but

not for a longer period than thirty days beyond the time when

it would otherwise go into effect ; and after full hearing, whether

completed before or after the rate, charge, regulation, or practice

goes into effect, the Secretary may make such order with reference thereto as would be proper in a proceeding initiated after it

had become effective. If any such hearing cannot be concluded

within the period of suspension the Secretary may extend the time

of suspension for a further period not exceeding thirty days, and

if the proceeding has not been concluded and an order made at

the expiration of such thirty days, the proposed change of rate,

charge, regulation, or practice shall go into effect at the end of

such period.

(f) After the expiration of the sixty days referred to in subsection (a), no person shall carry on the business of a stockyard

owner or market agency unless the rates and charges for the

stockyard services furnished at the stockyard have been filed and

published in accordance with this section and the orders of the

Secretary made thereunder ; nor charge, demand, or collect a

greater or less or different compensation for such services than

the rates and charges specified in the schedules filed and in effect

at the time ; nor refund or remit in any manner any portion of

the rates or charges so specified (but this shall not prohibit a cooperative association of producers from bona fide returning to its

members, on a patronage basis, its excess earnings on their livestock, subject to such regulations as the Secretary may prescribe) ;

nor extend to any person at such stockyard any stockyard services

except such as are specified in such schedules.

(g) Whoever fails to comply with the provisions of this section

or of any regulation or order of the Secretary made thereunder

shall be liable to a penalty of not more than $500 for each such

offense, and not more than $25 for each day it continues, which

shall accrue to the United States and may be recovered in a civil

action brought by the United States.

(h) Whoever willfully fails to comply with the provisions of

this section or of any regulation or order of the Secretary made

thereunder shall on conviction be fined not more than $1,000, or

imprisoned not more than one year, or both. (Aug. 15, 1921, ch.

64, § 306, 42 Stat. 164.)

§ 208. Unreasonable or discriminatory practices generally.

It shall be the duty of every stockyard owner and market agency
to establish, observe, and enforce just, reasonable, and nondiscriminatory regulations and practices in respect to the furnishing

of stockyard services, and every unjust, unreasonable, or discriminatory regulation or practice is prohibited and declared to

be unlawful. (Aug. 15, 1921, ch. 64, § 307, 42 Stat. 165.)

§209. Liability to individuals for violations; enforcement generally.

(a) If any stockyard owner, market agency, or dealer violates

any of the provisions of sections 205, 206, 207, or 208 of this title,

or of any order of the Secretary made under sections 201-203 and

205-217 (a) of this title, he shall be hable to the person or persons

injured thereby for the full amount of damages sustained in consequence of such violation.

(b) Such liability may be enforced either (1) by complaint to

the Secretary as provided in section 210 of this title, or (2) by

suit in any district court of the United States of competent jurisdiction; but this section shall not in any way abridge or alter

the remedies now existing at common law or by statute, but the

provisions of this chapter are in addition to such remedies. (Auff

15, 1921, ch. 64, § 308, 42 Stat. 165.)

§210. Proceedings before Secretary for violations generally;

action to enforce order of Secretary.

(a) Any person complaining of anything done or omitted to be

done by any stockyard owner, market agency, or dealer (hereinafter m this section referred to as the "defendant") in violation

of the provisions of sections 205, 206, 207, or 208 of this title or

SL^o-.^^^^^" ^* *^^ Secretary made under sections 201-203 and

205-217 (a) of this title, may, at any time within ninety days after

the cause ^of action accrues, apply to the Secretary by petition

which shall briefly state the facts, whereupon the complaint thus

made shall be forwarded by the Secretary to the defendant, who

shall be called upon to satisfy the complaint, or to answer it in

writing, withm a reasonable time to be specified by the Secretary

If the defendant within the time specified makes reparation for

the injury alleged to be done he shall be relieved of liability to

complainant only for the particular violation thus complained of

IÍ the defendant does not satisfy the complaint within the time

specified, or there appears to be any reasonable ground for investigating the complaint, it shall be the duty of the Secretary to

investigate the matters complained of in such manner and by such

means as he deems proper.

(b) The Secretary, at the request of the livestock commissioner

board of agriculture, or other agency of a State or Territory

having jurisdiction over stockyards in such State or Territory

shall investigate any complaint forwarded by such agency in like

manner and with the same authority and powers as in the case of a

complaint made under subsection (a).

(c) The Secretary may at any time institute an inquiry on his

own motion, m any case and as to any matter or thing concerning

which a complaint is authorized to be made to or before the Secretary, by any provision of sections 201-203, and 205-217 (a) of

this title, or concerning which any question may arise under any

87
of the provisions of sections 201-203 and 205-217 (a) of this title,

or relating to the enforcement of any of the provisions of sections

201-203 and 205-217 (a) of this title. The Secretary shall have

the same power and authority to proceed with any inquiry instituted upon his own motion as though he had been appealed to

by petition, including the power to make and enforce any order or

orders in the case or relating to the matter or thing concerning

which the inquiry is had, except orders for the payment of money.

(d) No complaint shall at any time be dismissed because of

the absence of direct damage to the complainant.

(e) If after hearing on a complaint the Secretary determines

that the complainant is entitled to an award of damages, the

Secretary shall make an order directing the defendant to pay to

the complainant the sum to which he is entitled on or before a

day named.

(f) If the defendant does not comply with an order for the

payment of money within the time limit in such order, the complainant, or any person for whose benefit such order was made,

may within one year of the date of the order file in the district

court of the United States for the district in which he resides or

in which is located the principal place of business of the defendant

or in any State court having general jurisdiction of the parties,

a petition setting forth brieñy the causes for which he claims

damages, and the order of the Secretary in the premises. Such

suit in the district court shall proceed in all respects like other

civil suits for damages except that the findings and orders of the

Secretary shall be prima facie evidence of the facts therein

stated, and the petitioner shall not be liable for costs in the district court nor for costs at any subsequent stage of the proceedings

unless they accrue upon his appeal. If the petitioner finally prevails, he shall be allowed a reasonable attorney's fee to be taxed

and collected as a part of the costs of the suit. (Aug. 15, 1921, ch.

64, § 309, 42 Stat. 165.)

§ 211. Order of Secretary as to charges or practices; prescribing

rates and practices generally.

Whenever after full hearing upon a complaint made as provided

in section 210 of this title, or after full hearing under an order for

investigation and hearing under an order for investigation and

hearing made by the Secretary on his own initiative, either in

extension of any pending complaint or without any complaint

whatever, the Secretary is of the opinion that any rate, charge,

regulation, or practice of a stockyard owner or market agency,

for or in connection with the furnishing of stockyard services, is

or will be unjust, unreasonable, or discriminatory, the Secretary—

(a) May determine and prescribe what will be the just and

reasonable rate or charge, or rates or charges, to be thereafter

in such case observed as both the maximum and minimum to be

charged, and what regulation or practice is or will be just, reasonable, and nondiscriminatory to be thereafter followed; and

(b) May make an order that such owner or operator (1) shall

cease and desist from such violation to the extent to which the

Secretary finds that it does or will exist; (2) shall not thereafter

pubhsh, demand, or collect any rate or charge for the furnishmg

of stockyard services more or less than the rate or charge so

88
prescribed; and (3) shall conform to and observe the regulation

or practice so prescribed. (Aug. 15, 1921, ch. 64, § 310, 42 Stat.

166; Aug. 10,1939, ch. 663, 53 Stat. 1351.)

§ 212. Prescribing rates and practices to prevent discrimination

between intrastate and interstate commerce.

Whenever in any investigation under the provisions of sections

201-203 and 205-217 (a) of this title, or in any investigation instituted by petition of the stockyard owner or market agency concerned, which petition is hereby authorized to be filed, the Secretary after full hearing finds that any rate, charge, regulation,

or practice of any stockyard owner or market agency, for or in

connection with the buying or selling on a commission basis or

otherwise, receiving, marketing, feeding, holding, delivery, shipment, weighing, or handling, not in commerce, of livestock, causes

any undue or unreasonable advantage, prejudice, or preference as

between persons or localities in intrastate commerce in livestock

on the one hand and interstate or foreign commerce in livestock on

the other hand, or any undue, unjust, or unreasonable discrimination against interstate or foreign commerce in livestock, which is

forbidden and declared to be unlawful, the Secretary shall prescribe the rate, charge, regulation, or practice thereafter to be

observed, in such manner as, in his judgment, will remove such

advantage, preference, or discrimination. Such rates, charges,

regulations, or practices shall be observed while in effect by the

stockyard owners or market agencies parties to such proceeding

affected thereby, the law of any State or the decision or order of

any State authority to the contrary notwithstanding. (Aug. 15.

1921, ch. 64, § 311, 42 Stat. 167.)

§ 213. Prevention of unfair, discriminatory, or deceptive practices.

(a) It shall be unlawful for any stockyard owner, market

agency, or dealer to engage in or use any unfair, unjustly discriminatory, or deceptive practice or device in connection with the

receiving, marketing, buying, or selling on a commission basis or

otherwise, feeding, watering, holding, delivery, shipment, weighing, or handling, in commerce at a stockyard, of livestock.

(b) Whenever complaint is made to the Secretary by any person, or whenever the Secretary has reason to believe, that any

stockyard owner, market agency, or dealer is violating the provisions of subsection (a), the Secretary after notice and full

hearing may make an order that he shall cease and desist from

continuing such violation to the extent that the Secretary finds

that it does or will exist. (Aug. 15, 1921, ch. 64, § 312, 42 Stat.

167.)

§ 214. When orders effective generally.

Except as otherwise provided in this chapter all orders of the

Secretary under sections 201-203 and 205-17 (a) of this title,

other than orders for the payment of money, shall take effect

within such reasonable time, not less than five days, as is prescribed in the order, and shall continue in force until his further

order, or for a specified period of time, according as is prescribed

in the order, unless such order is suspended or modified or set aside

89
by the Secretary or is suspended or set aside by a court of competent jurisdiction. (Aug. 15,1921, ch. 64, § 313, 42 Stat. 167.)

§ 215. Failure to obey orders generally; punishment.

(a) Any stockyard owner, market agency, or dealer who knowingly fails to obey any order made under the provisions of sections

211, 212, or 213 of this title shall forfeit to the United States the

sum of $500 for each offense. Each distinct violation shall be a

separate offense, and in case of a continuing violation each day

shall be deemed a separate offense. Such forfeiture shall be re- .

coverable in a civil suit in the name of the United States.

(b) It shall be the duty of the various United States attorneys,

under the direction of the Attorney General, to prosecute for the

recovery of forfeitures. The costs and expenses of such prosecution

shall be paid out of the appropriation for the expenses of the

courts of the United States. (Aug. 15, 1921, ch. 64, § 314, 42 Stat.

167. Act of June 25, 1948, ch. 646, § 1, 62 Stat. 909.)

§ 216. Court proceedings to enforce orders; injunction.

If any stockyard owner, market agency, or dealer fails to obey

any order of the Secretary other than for the payment of money

while the same is in effect, the Secretary, or any party injured

thereby, or the United States by its Attorney General, may apply

to the district court for the district in which such person has his

principal place of business for the enforcement of such order. If

after hearing the court determines that the order was lawfully

made and duly served and that such person is in disobedience of

the same, the court shall enforce obedience to such order by a writ

of injunction or other proper process, mandatory or otherwise, to

restrain such person, his officers, agents, or representatives from

further disobedience of such order or to enjoin upon him or them

obedience to the same. (Aug. 15, 1921, ch. 64, § 315, 42 Stat. 167.)

§ 217. Proceedings for suspension of orders.

For the purposes of sections 201--203 and 205-217 (a) of this

title, the provisions of all laws relating to the suspending or restraining the enforcement, operation, or execution of, or the

setting aside in whole or in part the orders of the Interstate Commerce Commission, are made applicable to the jurisdiction, powers,

and duties of the Secretary in enforcing the provisions of sections

201-203 and 205-217 (a) of this title, and to any person subject

to the provisions of sections 201-203 and 205-217 (a) of this title.

(Aug. 15, 1921, ch. 64, § 316, 42 Stat. 168.)

§ 217a. Brand inspection fees by registered market agencies.

(a) The Secretary may, upon written application made to him,

and if he deems it necessary, authorize the charging and collection, at any stockyard subject to the provisions of this chapter,

by any department or agency of any State in which branding or

marking or both branding and marking livestock as a means of

estabUshing ownership prevails by custom or statute, or by a

duly organized livestock association of any such State, of a reasonable and nondiscriminatory fee for the inspection of brands,

90
marks, and other identifying characteristics of livestock originating in or shipped from such State, for the purpose of determining

the ownership of such livestock. No charge shall be made under

any such authorization until the authorized department, agency,

or association has registered as a market agency. No more than

one such authorization shall be issued with respect to such inspection of livestock originating in or shipped from any one State.

If more than one such application is filed with respect to such

inspection of livestock originating in or shipped from any one

State, the Secretary shall issue such authorization to the applicant

deemed by him best qualified to perform the proposed service, on

the basis of (1) experience, (2) financial responsibility, (3) extent

and efficiency of organization, (4) possession of necessary records,

and (5) any other factor relating to the ability of the applicant to

perform the proposed service. The Secretary may receive and consider the recommendations of the commissioner, secretary, or

director of agriculture, or other appropriate officer or agency of a

State as to the qualifications of any applicant in such State. The

decision of the Secretary as to the applicant best qualified shall

be final.

(b) The provisions of sections 201-203 and 205~217a of this

title relating to the filing, publication, approval, modification, and

suspension of any rate or charge for any stockyard service shall

apply with respect to charges authorized to be made under this

section.

(c) Charges authorized to be made under this section shall be

collected by the market agency or other person receiving and disbursing the funds received from the sale of livestock with respect

to the inspection of which such charge is made, and paid by it

to the department, agency, or association performing such service.

(d) The Secretary may, if he deems it to be in the public interest, suspend, and after hearing, revoke any authorization and

registration issued under any other provision of law. The order

of the Secretary suspending or revoking any such authorization

and registration shall not be subject to review. (Aug. 15, 1921

ch. 64, title III, § 317, as added June 19, 1942, ch. 421, 56 Stat!

§218. Unfair, deceptive, and fraudulent practices; necessity to

curb.

The handling of the great volume of live poultry required as an

article of food for the inhabitants of large centers of population is

attendant with various unfair, deceptive, and fraudulent practices

and devices, resulting in the producers sustaining sundry losses

and receiving prices far below the reasonable value of their live

poultry in comparison with prices of other commodities and in

unduly and arbitrarily enhancing the cost to the consumers. Such

practices and devices are an undue restraint and unjust burden

upon interstate commerce and are a matter of such grave concern

to the industry and to the public as to make it imperative that steps

be taken to free such commerce from such burden and restraint

and to protect producers and consumers against such practices and

devices. (Aug. 15, 1921, ch. 64, § 501, as added Aug. 14, 1935, ch.

532, 49 Stat. 648.) '

91
§ 218a. Designation of cities and markets where unfair practices

exist; licenses required; application for and issuance by Secretary of Agriculture; penalty for dealing without license,

(a) The Secretary of Agriculture is authorized and directed to

ascertain from time to time and to designate the cities where such

practices and devices exist to the extent stated in section 218 of

this title and the markets and places in or near such cities where

live poultry is received, sold, and handled in sufficient quantity

to constitute an important influence on the supply and price of

live poultry and poultry products. On and after the effective

date of such designation, which shall be publicly announced by

the Secretary by pubhcation in one or more trade journals or in

the daily press or in such other manner as he may determine

to be adequate for the purpose approximately thirty days prior

to such date, no person other than packers as defined in section

191 of this title and railroads shall engage in, furnish, or conduct

any service or facility in any such designated city, place, or

market in connection with the receiving, buying, or selling, on a

commission basis or otherwise, marketing, feeding, watering,

holding, delivering, shipping, weighing, unloading, loading on

trucks, trucking, or handUng in commerce of live poultry without

a license from the Secretary of Agriculture as herein authorized

valid and effective at such time. Any person who violates any

provision of this subsection shall be subject to a fine of not more

than $500 or imprisonment of not more than six months, or both.

(b) Any person desiring a license shall make application to

the Secretary, who may by regulation prescribe the information

to be contained in such application. The Secretary shall issue a

license to any applicant furnishing the required information

unless he finds after opportunity for a hearing that such applicant

is unfit to engage in the activity for which he has made application

by reason of his having at any time within two years prior to his

application engaged in any practice of the character prohibited by

this chapter or because he is financially unable to fulfill the obligations that he would incur as a licensee. (Aug. 15, 1921, ch. 64,

§ 502, as added Aug. 14, 1935, ch. 532, 49 Stat. 648.)

§ 218b. "Live poultry dealer" defined.

The term "live poultry dealer" means any person engaged in the

business of buying or selling live poultry in commerce for purposes

of slaughter either on his own account or as the employee or agent

of the vendor or purchaser. (Aug. 15, 1921, ch. 64 § 503, as added

Aug. 14, 1935, ch. 532, 49 Stat. 649.)

§ 218c. Application of other provisions of chapter to sections 218-

218d.

The provisions of sections 206-217 and 221, 222, 223, and 224

of this title shall be applicable to licensees with respect to services

and facilities covered by sections 218-218d of this title and the

rates, charges, and rentals therefor except that the schedules of

rates, charges, and rentals shall be posted in the place of business

of the licensee as prescribed in regulations made by the Secretary.

(Aug. 15, 1921, ch. 64, § 504, as added Aug. 14, 1935, ch. 532, 49

Stat. 649.)

92
§ 2l8d. Suspension and revocation of licenseigi.

Whenever the Secretary determines, after opportunity for a

hearing, that any licensee has violated or is violating any of the

provisions of sections 218-218d of this title, he may publish the

facts and circumstances of such violation and by order suspend the

license of such offender for a period not to exceed ninety days and

if the violation is flagrant or repeated he may by order revoke the

license of the offender. (Aug. 15, 1921, ch. 64, § 505, as added

Aug. 14, 1985, ch. 532, 49 Stat. 649.)

§221. Accounts and records of business; punishment for failure

to keep.

Every packer or any live poultry dealer or handler, stockyard

owner, market agency, and dealer shall keep such accounts, records,

and memoranda as fully and correctly disclose all transactions involved in his business, including the true ownership of such business by stockholding or otherwise. Whenever the Secretary finds

that the accounts, records, and memoranda of any such person do

not fully and correctly disclose all transactions involved in his

business, the Secretary may prescribe the manner and form in

which such accounts, records, and memoranda shall be kept, and

thereafter any such person who fails to keep such accounts,

records, and memoranda in the manner and form prescribed or

approved by the Secretary shall upon conviction be fined not more

than $5,000, or imprisoned not more than three years, or both.

(Aug. 15, 1921, ch. 64, § 401, 42 Stat. 168; Aug. 15, 1921, ch. 64,

§ 503, as added Aug. 14, 1935, ch. 532, 49 Stat. 649.)

§ 222. Federal Trade Commission powers adopted for enforcement

of chapter.

For the efficient execution of the provisions of this chapter, and

in order to provide information for the use of Congress, the provisions, including penalties) of sections 46, 48, 49, and 50 of Title

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

the Secretary in enforcing the provisions of this chapter and to

any person subject to the provisions of this chapter, whether or

not a corporation. The Secretary, in person or by such agents as

he may designate, may prosecute any inquiry necessary to his

duties under this chapter in any part of the United States. (Aug.

15, 1921, ch. 64, § 402, 42 Stat. 168; Aug. 15, 1921, ch. 64, § 503,

as added Aug. 14,1935, ch. 532, 49 Stat. 649.)

§ 223. Responsibility of principal for act or omission of agent.

When construing and enforcing the provisions of this chapter,

the act, omission, or failure of any agent, officer, or other person

acting for or employed by any packer or any live poultry dealer

or handler, stockyard owner, market agency, or dealer, within

the scope of his employment or office, shall in every case also be

deemed the act, omission, or failure of such packer, stockyard

owner, market agency, or dealer, as well as that of such agent,

officer, or other person. (Aug. 15, 1921, ch. 64, § 403, 42 Stat. 168;

Aug. 15, 1921, ch. 64, § 503, as added Aug. 14, 1935, ch. 532, 49

Stat. 649.)

93
§ 224. Attorney General to institute court proceedings for enforcement.

The Secretary may report any violation of this chapter to the

Attorney General of the United States, who shall cause appropriate

proceedings to be commenced and prosecuted in the proper courts

of the United States without delay. (Aug. 15, 1921, ch. 64, § 404,

42 Stat. 168; Aug. 15, 1921, ch. 64, § 503, as amended Aug. 14,

1935, ch. 532, 49 Stat. 649.)

§ 225. Laws unaffected.

Nothing contained in this chapter, except as otherwise provided

herein, shall be construed—

(a) To prevent or interfere with the enforcement of, or the

procedure under, the provisions of sections 1-27, 61-65 of Title 15,

or the provisions of chapter 1, Title 49, or

(b) To alter, modify, or repeal such sections or any part or

parts thereof, or

(c) To prevent or interfere with any investigation, proceeding, or prosecution begun and pending on August 15, 1921. (Aug.

15, 1921, ch. 64, § 405, 42 Stat. 168.)

§ 226. Powers of Interstate Commerce Commission unaffected.

Nothing in this chapter shall affect the power or jurisdiction

of the Interstate Commerce Commission, nor confer upon the

Secretary concurrent power or jurisdiction over any matter within

the power or jurisdiction of such commission. (Aug. 15, 1921, ch.

64, § 406, 42 Stat. 169.)

§ 227. Powers of Federal Trade Commission restricted.

So long as this chapter remains in effect, the Federal Trade Commission shall have no power or jurisdiction so far as relating to

any matter which by this chapter is made subject to the jurisdiction of the Secretary except when the Secretary of Agriculture, in the exercise of his duties hereunder, shall request of

the said Federal Trade Commission that it make investigations

and report in any case. (Aug. 15,1921, ch. 64, § 406, 42 Stat. 169.)

§ 228. General authority of Secretary as to rules, regulations, and

expenditures.

The Secretary may make such rules, regulations, and orders as

may be necessary to carry out the provisions of this chapter and

may cooperate with any department or agency of the Grovernment

any State, Territory, District, or possession, or department,

agency, or political subdivision thereof, or any person; and shall

have the power to appoint, remove, and fix the compensation of

such officers and employees, not in conflict with existing law, and

make such expenditures for rent outside the District of Columbia,

printing, telegrams, telephones, law books, books of reference,

periodicals, furniture, stationery, office equipment, travel and other

supplies and expenses as shall be necessary to the administration

of this chapter in the District of Columbia and elsewhere, and as

may be appropriated for by Congress, and there is authorized to

be appropriated, out of any money in the Treasury not otherwise

appropriated, such sums as may be necessary for such purpose.

(Aug. 15, 1921, ch. 64, § 407, 42 Stat. 169.)

94
§ 229. Effect of partial invalidity.

If any provision of this chapter or the application thereof to any

person of circumstances is held invalid, the validity of the remainder of the chapter and of the application of such provision

to other persons and circumstances shall not be affected thereby.

(Aug. 15,1921, ch. 64, § 408, 42 Stat. 169.)

Wool Standards Act

(7 U.S.C. 415b-d)

§ 415b. Wool standards; appropriation of certain funds.

There is hereby authorized to be appropriated for expenditure

by the Secretary of Agriculture, for the purposes stated in section

415c of this title, all funds collected by suit, or otherwise, pursuant

to appropriations for the completion of the work of the domestic

wool section of the War Industries Board, and for enforcing Government regulations for handling the wool clip of 1918 as established by the wool division of said board, pursuant to the Executive

order dated December 31, 1918, transferring such work to the

Bureau of Markets, now a part of the Bureau of Agricultural

Economics of the Department of Agriculture, and for continuing

as far as practicable the distribution among the growers of the

wool clip of 1918 of all sums collected or recovered with or without

suit by the Government from all persons, firms, or corporations

which handled any part of the wool chp of 1918, which he finds it

impracticable to distribute among said growers, provided that not

to exceed $50,000 may be expended in any fiscal year. (May 17,

1928, ch. 602, § 1, 45 Stat. 593.)

§415c. Same; use made of funds; charge for wool grading and

forms of grades.

The funds referred to in section 415b of this title may be used

for the purpose of acquiring and diffusing among the people of

the United States useful information relative to the standardization, grading, preparation for market, marketing, utilization,

transportation, handling, and distribution of wool, and of approved

methods and practices relative thereto, including the demonstration and promotion of the use of grades for wool in accordance

with standards therefor which the Secretary of Agriculture is

hereby authorized to establish. Said funds may be used for the

grading of wool, and for such grading or other service rendered

under Sections 415b and 415d of this Title reasonable fees may be

charged, and Provided further, That after May 17, 1928, reasonable charges may be made for practical forms of grades for wool.

(May 17,1928, ch. 602, § 2, 45 Stat. 593.)

§ 415d. Same; rules and regulations; deposit of receipts.

The Secretary of Agriculture may make such rules and regulations as he deems advisable for carrying out any of the provisions

of sections 415b and 415c of this title. All receipts under sections

415b~415d of this title shall be deposited in the Treasury to the

credit of miscellaneous receipts. (May 17, 1928, ch. 602, § 3,

45 Stat. 594.)

95
Naval Stores

The Naval Stores Act

(7 U.S.C. 91-99)

§ 91. Short title of chapter.

For convenience of reference, this chapter may be designated

and cited as "The Naval Stores Act." (Mar. 3, 1923, ch. 217, § 1,

42 Stat. 1435.)

§ 92. Definitions.

When used in this chapter—

(a) "Naval stores" means spirits of turpentine and rosm.

(b) "Spirits of turpentine" includes gum spirits of turpentine

and wood turpentine. . .. ^ j. j..

(c) "Gum spirits of turpentine" means spirits of turpentine

made from gum (oleoresin) from a living tree.

(d) "Wood turpentine" includes steam distilled wood turpentine and destructively distilled wood turpentine.

(e) "Steam distilled wood turpentine" means wood turpentine

distilled with steam from the oleoresin within or extracted from

the wood. , ^. „ -,

(f) "Destructively distilled wood turpentine" means wood turpentine obtained in the destructive distillation of the wood.

(g) "Rosin" includes gum rosin and wood rosin.

(h) "Gum rosin" means rosin remaining after the distillation

of steam distilled wood turpentine.

(j) "Package" means any container of naval stores, and includes barrel, tank, tank car, or other receptacle.

(k) "Person" includes partnerships, associations, and corporations, as well as individuals.

(1) The term "commerce" means commerce between any btate,

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. (Mar. 3, 1923, ch. 217, § 2, 42 Stat.

1435.)

§ 93. Establishment of official naval stores standards.

For the purposes of this chapter the kinds of spirits of turpentine defined in subdivisions (c), (e) and (f) of section 92 of this

title and the rosin types, prepared prior to March 3, 1923, and

recommended under existing laws, by or under authority of the

Secretary of Agriculture, are hereby made the standards for naval

stores until otherwise prescribed as hereinafter provided. The

Secretary of Agriculture is authorized to establish and promulgate

standards for naval stores for which no standards are herein

provided, after at least three months' notice of the proposed

standard shall have been given to the trade, so far as practicable,

and due hearings or reasonable opportunities to be heard shall

have been afforded those favoring or opposing the same. No such

standard shall become effective until after three months from the

date of the promulgation thereof. Any standard made by this

96
chapter or established and promulgated by the Secretary of

Agriculture in accordance therewith may be modified by said

Secretary whenever, for reasons and causes deemed by him sufficient, the interests of the trade shall so require, after at least

six months' notice of the proposed modifications shall have been

given to the trade, so far as practicable, and due hearings or

reasonable opportunities to be heard shall have been afforded

those favoring or opposing the same ; and no such modifications so

made shall become effective until after 6 months from the date

when made.

The various grades of rosin, from highest to lowest, shall be

designated, unless and until changed, as hereinbefore provided,

by the following letters, respectively: X, WW, WG, N, M, K, I, H,

G, F, E, D, and B, together with the designation "gum rosin"

or "wood rosin", as the case may be.

The standards herein made and authorized to be made shall

be known as the "Official Naval Stores Standards of the United

States," and may be referred to by the abbreviated expression

"United States Standards", and shall be the standards by which

all naval stores in commerce shall be graded and described. (Mar.

3, 1923, ch. 217, § 3, 42 Stat. 1435.)

§ 94. Supplying duplicates of standards; examination, etc., of naval

stores and certification thereof.

The Secretary of Agriculture shall provide, if practicable, any

interested persons with duplicates of the official naval stores

standards of the United States upon request accompanied by tender

of satisfactory security for the return thereof, under such regulations as he may prescribe. The Secretary of Agriculture shall

examine, if practicable, upon request of any interested person, any

naval stores and shall analyze, classify, or grade the same on tender

of the cost thereof as required by him, under such regulations as

he may prescribe. He shall furnish a certificate showing the analysis, classification, or grade of such naval stores, which certificate

shall be prima facie evidence of the analysis, classification, or

grade of such naval stores and of the contents of any package

from which the same may have been taken, as well as of the correctness of such analysis, classification, or grade and shall be

admissible as such in any court. (Mar. 3, 1923, ch. 217, S 4 42

Stat. 1436.) ^ ^ ^ ^

§ 95. Prohibition of acts deemed injurious to commerce in naval

stores.

The following acts are hereby declared injurious to commerce

in naval stores and are hereby prohibited and made unlawful :

(a) The sale in commerce of any naval stores, or of anything

offered as such, except under or by reference to United States

Standards.

(b) The sale of any naval stores under or by reference to

United States standards which is other than what it is represented

to be.

(c) The use in commerce of the word "turpentine" or the word

"rosin," singly or with any other word or words, or of any compound, derivative, or imitation of either such word, or of any

97
misleading word, or of any word, combination of words, letter,

or combination of letters, provided herein or by the Secretary of

Agriculture to be used to designate naval stores of any kind or

grade, in selling, offering for sale, advertising, or shipping anything other than naval stores of the United States standards.

(d) The use in commerce of any false, misleading, or deceitful means or practice in the sale of naval stores or of anything

offered as such. (Mar. 3,1923, ch. 217, § 5, 42 Stat. 1436.)

§ 96. Punishment for violation of prohibition.

Any person willfully violating any provision of section 95 of this

title shall, on conviction, be punished for each offense by a fine not

exceeding $5,000 or by imprisonment for not exceeding one year,

or both. (Mar. 3,1923, ch. 217, § 6, 42 Stat. 1436.)

§ 97. Purchase and analysis by Secretary of samples of spirits of

turpentine to detect violations; reports to Department of

Justice; publication of results of analysis, etc.

The Secretary of Agriculture is hereby authorized to purchase

from time to time in open market samples of spirits of turpentine

and of anything offered for sale as such for the purpose of analysis,

classification, or grading and of detecting any violation of this

chapter. He shall report to the Department of Justice for appropriate action any violation of this chapter coming to his knowledge.

He is also authorized to publish from time to time results of any

analysis, classification, or grading of spirits of turpentine and

of anything offered for sale as such made by him under any

provision of this chapter. (Mar. 3, 1923, ch. 217, § 7, 42 Stat.

1436.)

§ 98. Appropriation for and expenses in enforcement of chapter.

There are hereby authorized to be appropriated, out of any

moneys in the Treasury not otherwise appropriated, such sums as

may be necessary for the administration and enforcement of this

chapter, and within the limits of such sums the Secretary of Agriculture is authorized to employ such persons and means and make

such expenditures for printing, telegrams, telephones, books of

reference, periodicals, furniture, stationery, office equipment, travel and supplies, and all other expenses as shall be necessary in the

District of Columbia and elsewhere. (Mar. 3, 1923, ch. 217, § 8,

42 Stat. 1436.)

§ 99. Effect of partial invalidity of chapter.

If any provision of this chapter or the application thereof to any

person or circumstances is held invalid, the validity of the remainder of the chapter and of the application of such provision to

other persons and circumstances shall not be affected thereby.

(Mar. 3, 1923, ch. 217, § 9, 42 Stat. 1437.)

98
Tobacco

The Tobacco Inspection Act

(7 U.S.C. 511-511q)

§ 511. Definitions.

When used in this chapter—

(a) "Person" includes partnerships, associations, and corporations, as well as individuals.

(b) "Secretary" means the Secretary of Agriculture of the

United States.

(c) "Inspector" means any person employed, licensed, or authorized by the Secretary to determine and certify the type, grade,

condition, or other characteristics of tobacco.

(d) "Sampler" means any person employed, licensed, or authorized by the Secretary to select, tag, and seal official samples

of tobacco.

(e) "Weigher" means any person employed, licensed, or authorized by the Secretary to weigh and certify the weight of tobacco.

(f) "Tobacco" means tobacco in its unmanufactured form.

(g) "Auction market" means a market or place to which tobacco is delivered by the producers thereof, or their agents, for

sale at auction through a warehouseman or commission merchant.

(h) Words in the singular form shall be deemed to import

the plural form when necessary.

(i) "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 purposes of this chapter (but not in any wise

limiting the foregoing definition) a transaction in respect to

tobacco shall be considered to be in commerce if such tobacco is

part of that current of commerce usual in the tobacco industry

whereby tobacco or products manufactured therefrom are sent

from one State with the expectation that they will end their

transit, after purchase, in another, including, in addition to cases

within the above general description, all cases wher§ purchase or

sale is either for shipment to another State or for manufacture

within the State and the shipment outside the State of the products

resulting from such manufacture. Tobacco normally in such current of 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 this

chapter. For the purpose of this paragraph the word "State" includes Territory, the District of Columbia, possession of the United

States, and foreign nations. (Aug. 23, 1935, ch. 623, § 1, 49 Stat.

731.)

§ 511a. Purpose of chapter.

Transactions in tobacco involving the sale thereof at auction as

commonly conducted at auction markets are affected with a public

interest; such transactions are carried on by tobacco producers

99
generally and by persons engaged in the business of buying

and selling tobacco in commerce; the classification of tobacco

according to type, grade, and other characteristics affects the

prices received therefor by producers; without uniform standards of classification and inspection the evaluation of tobacco

is susceptible to speculation, manipulation, and control, and unreasonable fluctuations in prices and quality determinations occur

which are detrimental to producers and persons handling tobacco

in commerce; such fluctuations constitute a burden upon commerce and make the use of uniform standards of classification and

inspection imperative for the protection of producers and others

engaged in commerce and the public interest therein. (Aug. 23,

1935, ch. 623, § 2, 49 Stat. 731.)

§ 511b. Official standards for classiñcation; tentative standards;

modification.

The Secretary is authorized to investigate the sorting, handling,

conditioning, inspection, and marketing of tobacco from time to

time, and to establish standards for tobacco by which its type,

grade, size, condition, or other characteristics may be determined,

which standards shall be the official standards of the United States,

and shall become effective immediately or upon a date specified by

the Secretary: Provided, That the Secretary may issue tentative

standards for tobacco prior to the establishment of official standards therefor, and he may modify any standards established under

authority of this chapter whenever, in his judgment, such action

is advisable. (Aug. 23, 1935, ch. 623, § 3, 49 Stat. 732.)

§ 511c. Same; demonstration; samples; cost.

The Secretary is authorized to demonstrate the official standards; to prepare and distribute, upon request, samples, illustrations, or sets thereof; and to make reasonable charges therefor:

Provided, That in no event shall charges be in excess of the cost

of said samples, illustrations, and services so rendered. (Aug. 23,

1935, ch. 623, § 4, 49 Stat. 732.)

§ 511d. Designation of markets; manner.

The Secretary is authorized to designate those auction markets

where tobacco bought and sold thereon at auction, or the products

customarily manufactured therefrom, moves in commerce. Before

any market is designated by the Secretary under this section he

shall determine by referendum the desire of tobacco growers who

sold tobacco at auction on such market during the preceding

marketing season. The Secretary may at his discretion hold one

referendum for two or more markets or for all markets in a type

area. No market or group of markets shall be designated by the

Secretary unless two-thirds of the growers voting favor it. The

Secretary shall have access to the tobacco records of the Collector

of Internal Revenue and of the several collectors of internal

revenue for the purpose of obtaining the names and addresses of

growers who sold tobacco on any auction market, and the Secretary

shall determine from said records the eligibility of such grower

to vote in such referendum, and no grower shall be eligible to vote

in more than one referendum. After public notice of not less than

thirty days that any auction market has been so designated by the

100
Secretary, no tobacco shall be offered for sale at auction on such

market until it shall have been inspected and certified by an authorized representative of the Secretary according to the standards

established under this chapter, except that the Secretary may temporarily suspend the requirement of inspection and certification

at any designated market whenever he finds it impracticable to

provide for such inspection and certification because competent

inspectors are not obtainable or because the quantity of tobacco

available for inspection is insufficient to justify the cost of such

service : Provided, That, in the event competent inspectors are not

available, or for other reasons, the Secretary is unable to provide

for such inspection and certification at all auction markets within

a type area, he shall first designate those auction markets where

the greatest number of growers may be served with the facilities

available to him. No fee or charge shall be imposed or collected for

inspection or certification under this section at any designated

auction market. Nothing contained in this chapter shall be construed to prevent transactions in tobacco at markets not designated

by the Secretary or at designated markets where the Secretary has

suspended the requirement of inspection or to authorize the Secretary to close any market. (Aug. 23, 1935, ch. 623, § 5, 49 Stat.

732.)

§511e. Sampling and weighing; cost; disposition of moneys received; expenses; purpose of section.

The Secretary, independently or in cooperation with other

branches of the Government, State agencies, or persons, whether

operating in one or more jurisdictions, is authorized to employ

and/or license competent persons as samplers to take oflicial

samples of tobacco, or as weighers to weigh and certify the weight

of tobacco, or as inspectors of tobacco to determine and certify,

upon the request of the owner or other financially interested person, the type, grade, weight, condition, and/or such other facts as

the Secretary may deem necessary.

The Secretary is authorized to fix and collect such fees or

charges in the administration of this section as he may deem reasonable, and the moneys collected, except as provided in this section, shall be deposited in the Treasury of the United States to

the credit of miscellaneous receipts. Fees or charges collected under

an agreement with a State, municipality, or person, or by an individual licensed to inspect or weigh or sample tobacco under this

chapter, may be disposed of in accordance with the terms of such

agreement or license. Charges for expenses for travel and subsistence incurred by inspectors or weighers or samplers employed

by the Secretary when required to be paid by the applicant for

service, may be credited to the appropriation, or any other funds

authorized in this chapter from which they were paid.

This section is intended merely to provide for the furnishing

of services upon request of the owner or other person financially

interested in tobacco to be sampled, inspected, or weighed and

shall not be construed otherwise. (Aug. 23, 1935, ch. 623, § 6,

49 Stat. 732.)

§ 511f. Reinspection and appeal inspection; certificate as evidence.

The Secretary shall provide for such reinspection or appeal

101
inspection of tobacco as he may deem necessary for the confirmation or reversal of certificates issued under this chapter. Each

inspection certificate issued under this chapter, unless invalidated

or superseded in accordance with the regulations of the Secretary,

shall be received in all courts and by all officers and employees of

the United States as prima facie evidence of the truth of the statements therein contained. (Aug. 23,1935, ch. 623, § 7, 49 Stat. 733.)

§ 511g. Placing of grade on warehouse tickets, etc.; form.

Warehousemen shall provide space on warehouse tickets or other

tags or labels used by them for showing the grade of the lot covered

thereby as determined by an authorized tobacco inspector under

this chapter. The Secretary may prescribe, by regulation, the form

in which such certification of grade shall be shown, and may require that a copy of such warehouse ticket, tag, or label shall be

furnished to the Secretary. (Aug. 23, 1935, ch. 623, § 8, 49 Stat.

733.)

§ 511h. Publication of information relating to tobacco.

The Secretary is authorized to collect, publish, and distribute,

by telegraph, mail, or otherwise without cost to the grower, timely

information on the market supply and demand, location, disposition, quality, condition, and market prices for tobacco. (Aug. 23,

1935, ch. 623, § 9, 49 Stat. 733.)

§5111. Offenses.

It shall be unlawful—

(a) For any person to use the words "United States'', "Government", or "Federal", or any abbreviation thereof, in, or in connection with, any statement relating to the grade of tobacco when

such grade is not, in fact, one of the grades for tobacco according

to the standards of the United States.

(b) For any person falsely to make, issue, alter, forge, or

counterfeit, or aid, cause, procure, or assist in or be a party to

the false making, issuing, altering, forging, or counterfeiting of

any certificate, stamp, tag, seal, label, or other writing purporting

to be issued or authorized under this chapter.

(c) For any person, not an authorized inspector under this

chapter, to issue a certificate or report stating the type, grade,

size, or condition of any lot of tobacco to be in accordance with

the standards of the United States therefore which is of such

color, size, arrangement, or wording as to be mistaken for a certificate issued under this chapter, unless such certificate states in

prominent letters in its heading that it is not issued under authority of the United States.

(d) For any person employed, designated, or licensed by the

Secretary as an inspector, sampler, or weigher of tobacco under

this chapter knowingly to inspect, sample, or weigh improperly,

or to issue any false certificate under this chapter, or to accept

money or other consideration, directly or indirectly, for any neglect

or improper performance of duty as an inspector, sampler or

weigher.

(e) For any person improperly to influence or to attempt improperly to influence or forcibly to assault, resist, impede, or in102
terfere with any inspector, sampler, weigher, or other person employed, designated, or licensed by the Secretary in the execution of

his duties under this chapter: Provided, however, That nothing

herein shall operate to prevent the owner of tobacco from appealing or protesting, in accordance with regulations of the Secretary, the grade certified for his tobacco.

(f) For any person falsely to represent or otherwise indicate

that he is authorized by the Secretary to inspect, sample, or weigh

tobacco under this chapter.

(g) For any person to substitute, or attempt to substitute,

following inspection or sampling or weighing under this chapter,

other tobacco for tobacco actually inspected or sampled or weighed,

or in the case of tobacco inspected in auction or warehouses for

any person not so authorized by the Secretary to remove any

certificate of grade from any lot of tobacco prior to the sale of

such lot.

(h) For any person falsely to represent that tobacco has been

inspected, sampled, or weighed under this chapter; or knowingly

to have made any false representation concerning tobacco inspected under this chapter ; or knowing that tobacco is to be offered

for inspection or sampling under this chapter to load, pack, or

arrange such tobacco in such manner as knowingly to conceal

foreign matter or tobacco of inferior grade, quality, or condition ;

or for any person knowing that tobacco has been so loaded, packed,

or arranged, to offer it for inspection or sampling without disclosing such knowledge to the inspector or sampler before inspection or sampling.

(i) For any person willfully to alter an ofíicial sample of tobacco by removing or plucking leaves or otherwise, or for any

person knowing that an official sample of tobacco has been so

altered, thereafter to represent such sample as an official sample.

(Aug. 23, 1935, ch. 623, § 10, 49 Stat. 733.)

§ 511j. Same; publication of facts.

The Secretary is authorized to publish the facts regarding any

violation of this chapter. (Aug. 23, 1935, ch. 623, § 11, 49 Stat.

734.)

§ 511k. Same; penalty.

Any person violating any provision of sections 511d and 511Î

of this title shall be guilty of a misdemeanor and upon conviction

thereof shall be fined not more than $1,000, or imprisoned not

more than one year, or both. (Aug. 23,1935, ch. 623, § 12, 49 Stat.

734.)

§ 5111. Act of agent as that of principal.

In construing and enforcing the provisions of this chapter, the

act, omission, or failure of any agent, officer, or other person acting

for or employed by an association, partnership, corporation, or

firm, within the scope of his employment or-office, shall be deemed

to be the act, omission, or failure of the association, partnership,

corporation, or firm, as well as that of the person. (Aug. 23, 1935,

ch. 623, § 13, 49 Stat. 734.)

103
§ 511m. Regulation; hearings; employees; expenditures; appropriation.

The Secretary is authorized to make such rules and regulations

and hold such hearings as he may deem necessary to effectuate the

purposes of this chapter and may cooperate with any other Department or agency of the Government ; any State, territory, district,

or possession, or department, agency, or pohtical subdivision

thereof ; purchasing and consuming organizations, boards of trade,

chambers of commerce, or other associations of business men or

trade organizations; or any person, whether operating in one or

more jurisdictions in carrying on the work herein authorized; and

he shall have the power to appoint, suspend, remove and fix the

compensation of all ofiicers, employees, and licensees not in conflict

with existing law. The Secretary is authorized to make such expenditures for rent outside of the District of Columbia, printing,

binding, telegrams, telephones, books of reference, publications,

furniture, stationery, office and laboratory equipment, travel,

tobacco for use in preparing and demonstrating standards, and

other supplies and expenses, including reporting services, as shall

be necessary to the administration of this chapter in the District

of Columbia and elsewhere, and as may be appropriated for by

Congress ; and there is hereby authorized to be appropriated, out

of any money in the Treasury not otherwise appropriated, such

sums as may be necessary for administering this chapter. (Aug.

23,1935, ch. 623, § 14, 49 Stat. 734. Oct. 28, 1949, ch. 782, Title XI,

§ 1106(a), 63 Stat. 792.)

§ 511n. Hearings; examination of witnesses; refusal to testify or

produce evidence.

In carrying on the work authorized in this chapter, the Secretary, or any officer or employee designated by him for such

purpose, shall have power to hold hearings, administer oaths, sign

and issue subpoenas, examine witnesses, and require the production of books, records, accounts, memoranda, and papers. Upon refusal by any person to appear, testify, or produce books, records,

accounts, memoranda, and papers in response to a subpoena, the

proper United States district court shall have power to compel

obedience thereto. (Aug. 23, 1935, ch. 623, § 15, 49 Stat. 735.)

§ 51lo. Separability clause.

If any provision of this chapter or the application thereof to any

person or circumstances is held invalid, the validity of the remainder of the chapter and of the application of such provision

to other persons and circumstances shall not be affected thereby.

(Aug. 23, 1935, ch. 623, § 16, 49 Stat. 735.)

§ Slip. Execution of duties of Secretary of Agriculture by designated agents.

Any duties devolving upon the Secretary of Agriculture by

virtue of the provisions of this chapter may with like force and

effect be executed by such officer or officers, agent or agents, of the

Department of Agriculture as the Secretary may designate for

the purpose. (Aug. 23,1935, ch. 623, § 17, 49 Stat. 735.)

104
§ 511q. Short title.

This chapter may be cited as "The Tobacco Inspection Act."

(Aug. 23, 1935, ch. 623, § 18, 49 Stat. 735.)

Tobacco Plant and Seed Exportation Act

(7 U.S.C. 516-517)

§ 516. Exportation of seeds or plants; permits.

It shall be unlawful to export any tobacco seed and/or live

tobacco plants from the United States or any Territory subject

to the jurisdiction thereof, to any foreign country, port, or place,

unless such exportation and/or transportation is in pursuance of a

written permit granted by the Secretary of Agriculture. Such permits shall be granted by the Secretary only upon application

therefor and after proof satisfactory to him that such seed or

plants are to be used for experimental purposes only. (June 5,

1940, ch. 232, § 1, 54 Stat. 231.)

§ 517. Same; penalties.

Any persons violating any of the provisions of section 516 of

this title shall be guilty of a misdemeanor and shall be punished by

a fine of not more than $5,000 or by imprisonment for not more

than one year, or by both such fine and imprisonment. (June 5,

1940, ch. 232, § 2, 54 Stat. 231.)

Warehousing and Transportation

United States Warehouse Act

(7 U.S.C. 241-273)

§ 241. Short title of chapter.

This chapter shall be known by the short title of "United States

Warehouse Act." (Aug. 11,1916, ch. 313, part C, § 1, 39 Stat. 486.)

§242. Terms defined; "warehouse", "person", "warehouseman",

"receipt."

The term "warehouse" as used in this chapter shall be deemed

to mean every building, structure, or other protected enclosure in

which any agricultural product is or may be stored for interstate

or foreign commerce, or, if located within any place under the

exclusive jurisdiction of the United States, in which any agricultural product is or may be stored. As used in this chapter,

"person" includes a corporation or partnership or two or more

persons having a joint or common interest; "warehouseman"

means a person lawfully engaged in the business of storing agricultural products; and "receipt" means a warehouse receipt. (Aug.

11, 1916, ch. 313, part C, § 2, 39 Stat. 486; Feb. 23, 1923, ch. 106,

42 Stat. 1282.)

§ 243. Investigation of warehousing, weighing, classifying, and

certification of agricultural products; inspection of warehouses; prescribing duties of warehousemen.

The Secretary of Agriculture is authorized to investigate the

storage, warehousing, classifying according to grade and other105
wise, weighing, and certification of agricultural products; upon

application to him by any person applying for license to conduct a

warehouse under this chapter, to inspect such warehouse or cause

it to be inspected ; at any time, with or without application to him,

to inspect or cause to be inspected all warehouses licensed under

this chapter ; to determine whether warehouses for which licenses

are applied for or have been issued under this chapter are suitable

for the proper storage of any agricultural product or products; to

classify warehouses licensed or applying for a license in accordance

with their ownership, location, surroundings, capacity, conditions,

and other quahties, and as to the kinds of licenses issued or that

may be issued for them pursuant to this chapter ; and to prescribe,

within the limitations of this chapter, the duties of the warehousemen conducting warehouses licensed under this chapter with

respect to their care of and responsibility for agricultural products

stored therein. (Aug. 11,1916, ch. 313, part C, § 3, 39 Stat. 486.)

§ 244. License to warehouseman generally.

The Secretary of Agriculture, or his designated representative,

is authorized, upon application to him, to issue to any warehouseman a license for the conduct of a warehouse or warehouses in

accordance with this chapter and such rules and regulations as

may be made hereunder : Provided, That each such warehouse be

found suitable for the proper storage of the particular agricultural

product or products for which a license is applied for, and that

such warehouseman agree, as a condition to the granting of the

license, to comply with and abide by all terms of this chapter and

the rules and regulations prescribed hereunder. (Aug. 11, 1916,

ch. 313, part C, § 4, 39 Stat. 486 ; Mar. 2,1931, ch. 366, § 1, 46 Stat.

1463.)

§ 245. Term of license; renewal.

Each license issued under sections 244 and 248 of this title shall

terminate as therein provided, or in accordance with the terms of

this chapter and the regulations thereunder, and may from time

to time be modified or extended by written instrument. (Aug. 11,

1916, ch. 313, part C, § 5, 39 Stat. 486; Feb. 23, 1923, ch. 106, 42

Stat. 1282.)

§ 246. Suspension and revocation of license of warehouseman generally.

The Secretary of Agriculture, or his designated representative,

may, after opportunity for hearing has been aiïorded to the

licensee concerned, suspend or revoke any license to any warehouseman conducting a warehouse under this chapter, for any

violation of or failure to comply with any provision of this chapter

or of the rules and regulations made hereunder, or upon the ground

that unreasonable or exorbitant charges have been made for services rendered. Pending investigation, the Secretary of Agriculture,

or his designated representative, whenever he deems necessary,

may suspend a license temporarily without hearing. (Aug. 11,1916,

ch. 313, part C, § 25, 39 Stat. 490; Mar. 2, 1931, ch. 366, § 8, 46

Stat. 1465.)

§ 247. Bond of applicant for warehouse license; additional bond.

Each warehouseman applying for a license to conduct a ware106
house in accordance with this chapter shall, as a condition to the

granting thereof, execute and file with the Secretary of Agriculture a good and sufficient bond to the United States to secure

the faithful performance of his obligations as a warehouseman

under the terms of this chapter and the rules and regulations

prescribed hereunder, and of such additional obligations as a warehouseman as may be assumed by him under contracts with the

respective depositors of agricultural products in such warehouse.

Said bond shall be in such form and amount, shall have such

surety or sureties, subject to service of process in suits on the

bond within the State, District, or Territory in which the warehouse is located, and shall contain such terms and conditions as the

Secretary of Agriculture may prescribe to carry out the purposes

of this chapter, and may, in the discretion of the Secretary of

Agriculture, include the requirements of fire and/or other insurance. Whenever the Secretary of Agriculture, or his designated

representative, shall determine that a previously approved bond

is, or for any cause has become, insufficient, he may require an

additional bond or bonds to be given by the warehouseman concerned, conforming with the requirements of this section, and

unless the same be given within the time fixed by a written demand therefor the license of such warehouseman may be suspended or revoked. (Aug. 11, 1916, ch. 313, part C, § 6, 39 Stat.

486; July 24, 1919, ch. 26, 41 Stat. 266; Feb. 23, 1923, ch. 106,

42 Stat. 1283; Mar. 2, 1931, ch. 366, § 2, 46 Stat. 1463.)

§ 248. License to person not warehouseman; bond; general duties

of persons so licensed.

The Secretary of Agriculture, or his designated representative,

may, under such rules and regulations as he shall prescribe, issue

a license to any person not a warehouseman to accept the custody

of agricultural products and to store the same in a warehouse or

warehouses owned, operated, or leased by any State, upon condition that such person agrees to comply with and abide by the

terms of this chapter and the rules and regulations prescribed

hereunder. Each person so licensed shall issue receipts for the

agricultural products placed in his custody, and shall give bond,

in accordance with the provisions of this chapter, and the rules

and regulations hereunder affecting warehousemen licensed under

this chapter, and shall otherwise be subject to this chapter, and

such rules and regulations, to the same extent as is provided for

warehousemen licensed hereunder. (Aug. 11, 1916, ch. 313, part C,

§ 9, 39 Stat. 487; Mar. 2,1931, ch. 366, § 4, 46 Stat. 1464.)

§ 249. Action on bond by person injured.

Any person injured by the breach of any obligation to secure

which a bond is given, under the provisions of section 247 or 248

of this title, shall be entitled to sue on the bond in his own name

in any court of competent jurisdiction to recover the damages he

may have sustained by such breach. (Aug. 11,1916, ch. 313, part C,

§ 7, 39 Stat. 487.)

§ 250. Designation as bonded warehouse.

Upon the filing with and approval by the Secretary of Agriculture, or his designated representative, of a bond, in compliance

107
with this chapter, for the conduct of a warehouse, such warehouse

may be designated as bonded hereunder; but no warehouse shall

be designated as bonded under this chapter, and no name or

description conveying the impression that it is so bonded, shall

be used, until a bond, such as provided for in section 247 of this

title, has been filed with and approved by the Secretary of Agriculture, or his designated representative, nor unless the license

issued under this chapter for the conduct of such warehouse remains unsuspended and unrevoked. (Aug. 11,1916, ch. 313, part C,

§ 8, 39 Stat. 487; Mar. 2, 1931, ch. 366, § 3, 46 Stat. 1463.)

§ 251. Fee for inspection of warehouse or for license; disposition

of moneys.

The Secretary of Agriculture, or his designated representative,

may charge, assess, and cause to be collected a reasonable fee for

every examination or inspection of a warehouse under this chapter

when such examination or inspection is made upon application of

a warehouseman, and for each license issued to a warehouseman

or to any person to classify, inspect, grade, sample, and/or weigh

agricultural products stored or to be stored under the provisions

of this chapter, the Secretary of Agriculture, or his designated

representative, may charge, assess, and cause to be collected a

reasonable fee. All such fees shall be deposited and covered into

the Treasury as miscellaneous receipts. (Aug. 11, 1916, ch. 313,

part C, § 10, 39 Stat. 487; Mar. 2,1931, ch. 366, § 5, 46 Stat 1464.)

§ 252. License to classify, grade, or weigh agricultural products.

The Secretary of Agriculture, or his designated representative,

may upon presentation of satisfactory proof of competency, issue

to any person a license to inspect, sample, or classify any agricultural product or products, stored or to be stored in a warehouse

licensed under this chapter, according to condition, grade, or otherwise and to certificate the condition, grade, or other class thereof,

or to weigh the same and certificate the weight thereof, or both

to inspect, sample, or classify and weigh the same and to certificate

the condition, grade, or other class and the weight thereof, upon

condition that such person agree to comply with and abide by the

terms of this chapter and of the rules and regulations prescribed

hereunder so far as the same relate to him. (Aug. 11,1916, ch. 313,

part C, § 11, 39 Stat. 487; Feb. 23, 1923, ch. 106, 42 Stat. 1283;

Mar. 2, 1931, ch. 366, § 6, 46 Stat. 1464.)

§ 253. Suspension and revocation of license to classify, grade, or

weigh.

Any license issued to any person to inspect, sample, or classify,

or to weigh any agricultural product or products under this chapter

may be suspended or revoked by the Secretary of Agriculture, or

his designated representative, whenever he is satisfied, after opportunity aiforded to the licensee concerned for a hearing, that

such licensee has failed to inspect, sample, or classify, or to weigh

any agricultural product or products correctly, or has violated any

of the provisions of this chapter or of the rules and regulations

prescribed hereunder, so far as the same may relate to him, or

that he has used his license or allowed it to be used for any improper purpose whatever. Pending investigation, the Secretary of

108
Agriculture, or his designated representative, whenever he deems

necessary, may suspend a license temporarily without hearing.

(Aug. 11, 1916, ch. 313, part C, § 12, 39 Stat. 487; Feb. 23, 1923,

ch. 106, 42 Stat. 1283; Mar. 2,1931, ch. 366, § 7, 46 Stat. 1464.)

§ 254. Discrimination by warehouseman prohibited.

Every warehouseman conducting a warehouse licensed under

this chapter shall receive for storage therein, so far as its capacity

permits, any agricultural products of the kind customarily stored

therein by him which may be tendered to him in a suitable condition for warehousing, in the usual manner in the ordinary and

usual course of business, without making any discrimination between persons desiring to avail themselves of warehouse facilities.

(Aug. 11, 1916, ch. 313, part C, § 13, 39 Stat. 488.)

§ 255. Deposits of products deemed made subject to chapter.

Any person who deposits agricultural products for storage in a

warehouse licensed under this chapter shall be deemed to have

deposited the same subject to the terms of this chapter and the

rules and regulations prescribed thereunder. (Aug. 11, 1916, ch.

313, part C, § 14, 39 Stat. 488.)

§ 256. Inspection and grading of products stored.

Any fungible agricultural products stored for interstate or

foreign commerce, or in any place under the exclusive jurisdiction

of the United States, in a warehouse licensed under this chapter,

shall be inspected and graded by a person duly prescribed to

grade the same under this chapter. (Aug. 11,1916, ch. 313, part C,

§ 15, 39 Stat. 488; Feb. 23,1923, ch. 106, 42 Stat. 1283.)

§ 257. Standards for agricultural products.

The Secretary of Agriculture is authorized, from time to time,

to establish and promulgate standards for agricultural products

by which their quality or value may be judged or determined:

Provided, That the standards for any agricultural products which

have been, or which in the future may be established by or under

authority or any other Act of Congress shall be, and are hereby,

adopted for the purposes of this chapter as the official standards

of the United States for the agricultural products to which they

relate. (Aug. 11, 1916, ch. 313, part C, § 19, 39 Stat. 489; Feb. 23,

1923, ch. 106, 42 Stat. 1284.)

§ 258. Mingling products stored.

Every warehouseman conducting a warehouse licensed under

this chapter shall keep the agricultural products therein of one

depositor so far separate from agricultural products of other

depositors, and from other agricultural products of the same depositor for which a separate receipt has been issued, as to permit

at all times the identification and redelivery of the agricultural

products deposited ; but if authorized by agreement or by custom,

a warehouseman may mingle fungible agricultural products with

other agricultural products of the same kind and grade, and shall

be severally liable to each depositor for the care and redelivery of

his share of such mass, to the same extent and under the same circumstances as if the agricultural products had been kept separate,

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but he shall at no time while they are in his custody mix fungible

agricultural products of different grades. (Aug. 11, 1916, ch. 313,

part C, § 16, 39 Stat. 488.)

§ 259. Receipts for products stored generally.

For all agricultural products stored for interstate or foreign

commerce, or in any place under the exclusive jurisdiction of the

United States, in a warehouse licensed under this chapter original

receipts shall be issued by the warehouseman conducting the same,

but no receipts shall be issued except for agricultural products

actually stored in the warehouse at the time of the issuance thereof.

(Aug. 11,1916, ch. 313, part C, § 17, 39 Stat. 488.)

§ 260. Contents of receipts.

Every receipt issued for agricultural products stored in a warehouse licensed under this chapter shall embody within its written

or printed terms (a) the location of the warehouse in which the

agricultural products are stored; (b) the date of issue of the

receipt; (c) the consecutive number of the receipt; (d) a statement whether the agricultural products received will be delivered

to the bearer, to a specified person, or to a specified person or his

order; (e) the rate of storage charges; (f) a description of the

agricultural products received, showing the quantity thereof, or,

in case of agricultural products customarily put up in bales or

packages, a description of such bales or packages by marks, numbers, or other means of identification and the weight of such bales

or packages; (g) the grade or other class of the agricultural products received and the standard or description in accordance with

which such classification has been made: Provided, That such

grade or other class shall be stated according to the official standard of the United States applicable to such agricultural products

as the same may be fixed and promulgated under the authority

of law: Provided further, That until such official standards of

the United States for any agricultural product or products have

been fixed and promulgated, the grade or other class thereof may

be stated in accordance with any recognized standard or in accordance with such rules and regulations not inconsistent herewith as may be prescribed by the Secretary of Agriculture; (h)

a statement that the receipt is issued subject to the United States

Warehouse Act and the rules and regulations prescribed thereunder; (i) if the receipt be issued for agricultural products of

which the warehouseman is owner, either solely or jointly or in

common with others, the fact of such ownership; (j) a statement

of the amount of advances made and of liabilities incurred for

which the warehouseman claims a lien: Provided, That if the

precise amount of such advances made or of such liabilities incurred be at the time of the issue of the receipt unknown to

the warehouseman or his agent who issues it, a statement of the

fact that advances have been made or liabilities incurred and the

purpose thereof shall be sufficient; (k) such other terms and

conditions within the limitations of this chapter as may be required by the Secretary of Agriculture; and (1) the signature

of the warehouseman, which may be made by his authorized

agent: Provided, That unless otherwise required by the law of

the State in which the warehouse is located, when requested by

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the depositor of other than fungible agricultural products, a receipt omitting compliance with subdivision (g) of this section

may be issued : Provided, however, That the Secretary of Agriculture may in his discretion require that such receipt have plainly

and conspicuously embodied in its written or printed terms a

provision that such receipt is not negotiable. (Aug. 11, 1916, ch.

313, part C, § 18, 39 Stat. 488; July 24, 1919, ch. 26, 41 Stat. 266;

Feb. 23, 1923, ch. 106, 42 Stat. 1284.)

§ 261. Issuance of further receipt with original outstanding.

While an original receipt issued under this chapter is outstanding and uncanceled by the warehouseman issuing the same no other

or further receipt shall be issued for the agricultural product

covered thereby or for any part thereof except that in the case of

a lost or destroyed receipt a new receipt, upon the same terms

and subject to the same conditions and bearing on its face the

number and date of the receipt in lieu of which it is issued, may

be issued upon compliance with the statutes of the United States

applicable thereto in places under the exclusive jurisdiction of

the United States or upon compliance with the laws of any State

applicable thereto in any place not under the exclusive jurisdiction of the United States : Provided, That if there be in such case

no statute of the United States or law of a State applicable thereto

such new receipts may be issued upon the giving of satisfactory

security in compliance with the rules and regulations made pursuant to this chapter. (Aug. 11, 1916, ch. 313, part C, § 20, 39

Stat. 489.)

§262. Delivery of products stored on demand; conditions to delivery.

A warehouseman conducting a warehouse licensed under this

chapter, in the absence of some lawful excuse, shall, without unnecessary delay, deliver the agricultural products stored therein

upon a demand made either by the holder of a receipt for such

agricultural products or by the depositor thereof if such demand

be accompanied with (a) an offer to satisfy the warehouseman's

lien; (b) an offer to surrender the receipt, if negotiable, with such

indorsements as would be necessary for the negotiation of the

receipt; and (c) a readiness and willingness to sign, when the

products are delivered, an acknowledgment that they have been

delivered if such signature is requested by the warehouseman.

(Aug. 11, 1916, ch. 313, part C, § 21, 39 Stat. 489.)

§ 263. Cancellation of receipt on delivery of product stored.

A warehouseman conducting a warehouse licensed under this

chapter shall plainly cancel upon the face thereof each receipt returned to him upon the delivery by him of the agricultural products for which the receipt was issued. (Aug. 11, 1916. ch. 313

part C, § 22, 39 Stat. 490.)

§264. Records of products stored; reports to Secretary of Agriculture; general compliance with provisions of chapter, rules,

and regulations.

Every warehouseman conducting a warehouse licensed under

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this chapter shall keep in a place of safety complete and correct

records of all agricultural products stored therein and withdrawn

therefrom, of all warehouse receipts issued by him, and of the

receipts returned to and cancelled by him, shall make reports to

the Secretary of Agriculture concerning such warehouse and the

condition, contents, operation, and business thereof in such form

and at such times as he may require, and shall conduct said warehouse in all other respects in compliance with this chapter and the

rules and regulations made thereunder. (Aug. 11, 1916, ch. 313,

part C, § 23, 39 Stat. 490.)

§ 265. Examination of stored products; publication of findings.

The Secretary of Agriculture is authorized to cause examinations to be made of any agricultural product stored in any warehouse licensed under this chapter. Whenever, after opportunity

for hearing is given to the warehouseman conducting such warehouse, it is determined that he is not performing fully the duties

imposed on him by this chapter and the rules and regulations

made thereunder, the Secretary may pubUsh his findings. (Aug.

11, 1916, ch. 313, part C, § 24, 39 Stat. 490.)

§ 266. Publication of general investigation of warehousing, names

and locations of bonded warehouses, and revocation of licenses.

The Secretary of Agriculture from time to time may publish the

results of any investigations made under section 243 of this title

and he shall publish the names and locations of warehouses licensed

and bonded and the names and addresses of persons licensed under

this chapter and list of all licenses terminated under this chapter

and the causes therefor. (Aug. 11, 1916, ch. 313, part C, § 26, 39

Stat. 490.)

§ 267. Examination of books, records, etc., of warehousemen.

The Secretary of Agriculture is authorized through officials,

employees, or agents of the Department of Agriculture designated by him to examine all books, records, papers, and accounts

of warehouses licensed under this chapter and of the warehousemen conducting such warehouses relating thereto. (Aug. 11, 1916,

ch. 313, part C, § 27, 39 Stat. 490.)

§ 268. Rules and regulations by Secretary of Agriculture.

The Secretary of Agriculture shall from time to time make such

rules and regulations as he may deem necessary for the efficient

execution of this chapter. (Aug. 11, 1916, ch. 313, part C, § 28, 39

Stat. 490.)

§ 269. Cooperation with State authorities; authority of Secretary;

operation of existing laws.

In the discretion of the Secretary of Agriculture he is authorized

to cooperate with State officials charged with the enforcement of

State laws relating to warehouses, warehousemen, weighers,

graders, inspectors, samplers, or classifiers; but the power, jurisdiction, and authority conferred upon the Secretary of Agriculture under this chapter shall be exclusive with respect to all

persons securing a license hereunder so long as said license

112
remains in effect. This chapter shall not be construed so as to

limit the operation of any statute of the United States relating

to warehouses or to warehousemen, weighers, graders, inspectors,

samplers, or classifiers now in force in the District of Columbia or

in any Territory or other place under the exclusive jurisdiction of

the United States. (Aug. 11, 1916, ch. 313, part C, § 29, 39 Stat.

490 ; Feb. 23,1923, ch. 106, 42 Stat. 1285 ; Mar. 2,1931, ch. 366, § 9,

46 Stat. 1465.)

§ 270. Punishment generally for violation of provisions of chapter;

reimbursement of owner of products converted.

Every person who shall forge, alter, counterfeit, simulate, or

falsely represent, or shall without proper authority use, any license

issued by the Secretary of Agriculture, or his designated representative, under this chapter, or who shall violate or fail to comply with any provision of section 250 of this title, or who shall

issue or utter a false or fraudulent receipt or certificate, or change

in any manner an original receipt or certificate subsequently to

issuance by a licensee, or any person who, without lawful authority, shall convert to his own use, or use for purposes of securing

a loan, or remove from a licensed warehouse contrary to this

chapter or the regulations promulgated thereunder, any agricultural products stored or to be stored in such warehouse, and for

which licensed receipts have been or are to be issued, shall

be deemed guilty of a misdemeanor, and upon conviction thereof

shall be fined not more than $10,000, or double the value of the

products involved if such double value exceeds $10,000, or imprisoned not more than ten years, or both, in the discretion of

the court, and the owner of the agricultural products so converted, used, or removed may, in the discretion of the Secretary

of Agriculture, be reimbursed for the value thereof out of any

fine collected hereunder, by check drawn on the Treasury at the

direction of the Secretary of Agriculture for the value of such

products to the extent that such owner has not otherwise been

reimbursed. Any person who shall draw with intent to deceive,

a false sample, of, or who shall willfully mutilate or falsely represent a sample drawn under this chapter, or who shall classify,

grade, or weigh frauduently, any agricultural products stored or

to be stored under the provisions of this chapter, shall be deemed

guilty of a misdemeanor, and upon conviction thereof fined not

more than $500, or imprisoned for not more than six months, or

both, in the discretion of the court. (Aug. 11, 1916, ch. 313, part

C, § 30, 39 Stat. 490; Feb. 23, 1923, ch. 106, 42 Stat. 1285; Mar.

2, 1931, ch. 366, § 10, 46 Stat. 1465.)

§ 271. Employment by Secretary of temporary assistance.

The Secretary of Agriculture is authorized in his discretion, to

employ qualified persons not regularly in the service of the United

States for temporary assistance in carrying out the purposes of

this chapter. (Aug. 11, 1916, ch. 313, part C, § 31, 39 Stat. 491.)

§ 272, Effect of partial invalidity of chapter.

If any clause, sentence, paragraph, or part of this chapter shall,

for any reason, be adjudged by any court of competent jurisdiction

113
to be invalid, such judgment shall not affect, impair, or invalidate

the remainder thereof, but shall be confined in its operation to

the clause, sentence, paragraph, or part thereof directly involved

in the controversy in which such judgment shall have been

rendered. (Aug. 11, 1916, ch. 313, part C, § 32, 39 Stat. 491.)

Agricultural Adjustment Act of 1938

(7 U.S.C. 1291)

§ 1291. Adjustments in freight rates.

(a) COMPLAINTS BY SECRETARY OF AGRICULTURE ; NOTICE OF HEARINGS.

The Secretary of Agriculture is authorized to make complaint

to the Interstate Commerce Commission with respect to rates,

charges, tariffs, and practices relating to the transportation of

farm products, and to prosecute the same before the Commission.

Before hearing or disposing of any complaint (filed by any person

other than the Secretary) with respect to rates, charges, tariffs,

and practices relating to the transportation of farm products, the

Commission shall cause the Secretary to be notified, and, upon

application by the Secretary, shall permit the Secretary to appear

and be heard.

(b) SECRETARY AS PARTY TO PROCEEDINGS.

If such rate, charge, tariff, or practice complained of is one

affecting the public interest, upon application by the Secretary,

the Commission shall make the Secretary a party to the proceedings. In such case the Secretary shall have the rights of a party

before the Commission and the rights of a party to invoke and

pursue original and appellate judicial proceedings involving the

Commission's determination. The liability of the Secretary in any

such case shall extend only to liability for court costs.

(c) UTILIZATION OF RECORDS, SERVICES, ETC., OF DEPARTMENT OF

AGRICULTURE.

For the purposes of this section, the Interstate Commerce Commission is authorized to avail itself of the cooperation, records,

services, and facihties of the Department of Agriculture.

(d) COOPERATION WITH COMPLAINING FARM ASSOCIATIONS.

The Secretary is authorized to cooperate with and assist cooperative associations of farmers making complaint to the Interstate Commerce Commission with respect to rates, charges, tariffs,

and practices relating to the transportation of farm products.

(Feb. 16, 1938, 3 p. m., ch. 30, title II, § 201, 52 Stat. 36.)

Fees, Reimbursements, and Records

Department of Agriculture Organic Act of 1944

(5 U.S.C. 571, 575; 7 U.S.C. 415e)

§ 571. Inspections, analyses, and tests for other Government departments and agencies; reimbursement.

The head of any department or independent establishment of

the Government requiring inspections, analyses, and te§ts of food

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and other products, within the scope of the functions of the

Department of Agriculture and which that Department is unable

to perform within the limits of its appropriations, may, with the

approval of the Secretary, transfer to the Department for direct

expenditure such sums as may be necessary for the performance

of such work. (Sept. 21,1944, ch. 412, title VII, § 702 (a), 58 Stat.

741.)

§ 575. Market-inspection certificates as prima facie evidence.

Market-inspection certificates issued by authorized agents of the

Department of Agriculture shall be received in all courts of the

United States as prima facie evidence of the truth of the statements therein contained. (Sept. 21, 1944, ch. 412, title IV, § 401

(c), 58 Stat. 738.)

§415e. Farm or food products; sale of samples, practical forms,

etc.

The Secretary of Agriculture is authorized to sell samples,

illustrations, practical forms, or sets of the grades recommended

or promulgated by him for farm or food products, under such rules

and regulations as he may prescribe, and the receipts therefrom

shall be deposited in the Treasury to the credit of miscellaneous

receipts. (Sept. 21,1944, ch. 412, title IV, § 401 (a), 58 Stat. 738.)

Cooperative Contributions

(5 U.S.C. 563-564a)

§ 563. Cooperation with State and other agencies; expenditures.

In carrying on the activities of the Department of Agriculture

involving cooperation with State, county, and municipal agencies,

associations of farmers, individual farmers, universities, colleges,

boards of trade, chambers of commerce, or other local associations

of business men, business organizations, and individuals within

the State, Territory, district, or insular possession in which such

activities are to be carried on, moneys contributed from such outside sources, except in the case of the authorized activities of the

Forest Service, shall be paid only through the Secretary of Agriculture or through State, county, or municipal agencies, or local

farm bureaus or like organizations, cooperating for the purpose

with the Secretary of Agriculture. (July 24, 1919, ch. 26, 41 Stat.

270.)

§ 564. Same; salaries of employees of Department.

The officials and the employees of the Department of Agriculture

engaged in the activities described in section 563 of this title and

paid in whole or in part out of funds contributed as provided

therein, and the persons, corporations, or associations making

contributions as therein provided, shall not be subject to the provisions of section 1914 of Title 18; nor shall any official or employee engaged in the cooperative activities of the Forest Service,

or the persons, corporations, or associations contributing to such

activities be subject to such section. (As amended Sept 3 1954

ch. 1263, § 5, 68 Stat. 1227.) '

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§ 564a. Amount and character of cooperation.

Unless otherwise provided by the Department of Agriculture

Organic Act of 1944 or by other statute, the measure and character

of cooperation authorized by said Act on the part of the Federal

Government and on the part of the cooperator shall be such as

may be prescribed by the Secretary, unless otherwise provided for

in the applicable appropriation. (Sept. 21, 1944, ch. 412, title VII,

711, 58 Stat. 743.)

Inspection Services—Reimbursements

(5 U.S.C. 576)

§ 576. Inspection or quarantine services involving overtime furnished upon a reimbursable basis.

The Secretary of Agriculture is authorized to pay employees

of the United States Department of Agriculture performing inspection or quarantine services relating to imports into and exports

from the United States, for all overtime, night, or holiday work

performed by them at any place where such inspection and

quarantine services are performed, at such rates as he may determine, and to accept from persons for whom such work is performed reimbursement for any sums paid out by him for such

work. (Aug. 28, 1950, ch. 815, 64 Stat. 561.)

Fees for Services Rendered

(5 U.S.C. 140)

§ 140. Services as self-sustaining; uniformity; regulations; deposit

in Treasury; effect on other laws.

It is the sense of the Congress that any work, service, publication, report, document, benefit, privilege, authority, use, franchise,

license, permit, certificate, registration, or similar thing of value

or utihty performed, furnished, provided, granted, prepared, or

issued by any Federal agency (including wholly owned Government corporations as defined in the Government Corporation

Control Act of 1945) to or for any person (including groups,

associations, organizations, partnerships, corporations, or businesses) , except those engaged in the transaction of ofiicial business

of the Government, shall be self-sustaining to the full extent

possible, and the head of each Federal agency is authorized by

regulation (which, in the case of agencies in the executive branch,

shall be as uniform as practicable and subject to such policies as

the President may prescribe) to prescribe therefor such fee,

charge, or price, of any, as he shall determine, in case none exists,

or redetermine, in case of an existing one, to be fair and equitable

taking into consideration direct and indirect cost to the Government, value to the recipient, public policy or interest served, and

other pertinent facts, and any amount so determined or redetermined shall be collected and paid into the Treasury as miscellaneous

receipts: Provided, That nothing contained in this section shall

repeal or modify existing statutes prohibiting the collection, fixing

the amount, or directing the disposition of any fee, charge or

price: Provided further, That nothing contained in this section

116
shall repeal or modify existing statutes prescribing bases for calculation of any fee, charge or price, but this proviso shall not

restrict the redetermination or recalculation in accordance with

the prescribed bases of the amount of any such fee, charge or price.

(Aug. 31, 1951, ch. 376, title V, § 501, 65 Stat. 290.)

Agreements and Orders, Grading and Inspections

Agricultural Marketing Agreement Act of 1937

(7 U.S.C. 601, 602, 608a-608e, 610-612, 614, 624, 671-673)

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

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

prices; marketing standards.

It is declared to be the policy of Congress—

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

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

608c, 608d, 608e-620 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. (July

3,1948, ch. 827, Title III, § 302 (a), 62 Stat. 1257.)

(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 in 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, 608e-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. (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.)

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

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

608d, 608e-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

117
its products, in interstate commerce as will effectuate such orderly

marketing of such agricultural commodities as will be in the public

interest. (As amended Aug. 1, 1947, ch. 425, § 1, 61 Stat. 707.)

(4) Through the exercise of the power conferred upon the

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

608d, 608e-620, 623, and 624 of this title, to estabhsh 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. (As amended Aug. 28, 1954, ch. 1041, title IV, § 401, 68

Stat. 906.)

§ 608a. Forfeitures; district courts, etc.

(5) Forfeitures. Any person willfully exceeding any quota or

allotment fixed for him under sections 601-608, 608a, 608b, 608c,

608d, 608e-620, 623, 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,

608e-620, 623, 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, 608d, 608e-620, 623, 624 of

this title. Whenever the Secretary, or such officer 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. ,. .-,,,. . ^1 .

(8) Cumulative remedies. The remedies provided for m 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, 608e-620, 623, 624 of this title or now or

hereafter existing at law or in equity.

(9) "Person" defined. The term "person'' as used m sections

601-608, 608a, 608b, 608c, 608d, 608e-620, 623, 624 of this title

includes an individual, partnership, corporation, association, and

any other business unit. (May 12,1933, ch. 26, title I, § 8a, as added

118
May 9, 1934, 11:23 a. m., eh. 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.)

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

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

608a, 608b, 608c, 608d, 608e-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.)

§ 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 appKcable to processors, associations of producers, and others engaged in the handling of any agricultural

commodity or product thereof specified in subsection (2) of this

section. Such persons are referred to in sections 601-608, 608a,

608b, 608c, 608d, 608e-620, 623, 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 product thereof, 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

119
601-608a, 608b, 608c, 608d, 608e-620, 623, and 624 of this title,

that the issuance of such order is approved 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 per centum 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, 608e-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 said sections with respect to

such commodity.

(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

conditons, and (except as provided in subsection (7) of this section) no others:

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

the purpose for which it is used, and fixing, or providing a method

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 in 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 it is delivered ;

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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 section.

(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 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 market 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 apppropriate 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 its producers: Provided, That it shall

not sell milk or its products to atiy 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:

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

total quantity of any such commodity or products, 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 products, 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

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 therof.

(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) Requiring 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,

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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 the 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

yields 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.

(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,

however, That no action taken hereunder shall conñict 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) 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 any 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;

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(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) and necessary to

effectuate the other provisions of such order.

(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

volume 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

(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 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.

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(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 refusal or failure to sign a marketing agreement

(upon which a hearing has been held) by 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 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, 608e-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 atiy 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 section 601-608, 608a, 608b, 608c, 608d, 608e-620, 623, and

624 of this title prohibiting, regulating, or restricting the adver125
tîsing 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 declared policy of sections

601-608, 608a, 608b, 608c, 608d, 608e-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,

608d, 608e-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 violation as occurred

126
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.

(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 where 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, 608e-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

127
marketing area specified in such 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 purposes of such agreement, order, or amendment, be adjusted to reflect 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 Rearing, 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, 608e--620, 623,

and 624 of this title, the Secretary may conduct a referendum

among producers. The requirements of approval or favor under

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

total number of producers, or the total volume of production, as

the case may be, represented in such referendum, the percentage

approving or favoring is equal to or in excess of the percentage

128
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; 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, 68 Stat. 907.)

§ 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, 608e-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 pursuant to this section shall be kept confidential by all

officers and employees of the Department of Agriculture and only

such information 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 of any

person violating any marketing agreement or any order, together

with a statement of the particular provisions of the marketing

129
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.)

§ 608e. 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, 608e-620, 623,

and 624 have force and effect : Provided further, That whenever

two or more such marketing orders regulating the same agricultural commodity produced in different 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, quality, 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,

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1954, eh. 1041, title IV, § 401 (e), 68 Stat. 907, and amended Aug.

31, 1954, eh. 1172, § 3 (a), 68 Stat. 1047.)

§ 610, Administration.

(a) APPOINTMENT OP OFFICERS AND EMPLOYEES ; EXEMPTION FROM

CIVIL SERVICE REGULATIONS; SALARIES; IMPOUNDING APPROPRIATIONS.

The Seeretary of Agriculture may appoint sueh 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, 608e~

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 ofiicer, 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 : Arid 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 "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 compensations, shall not operate to require such

impoundment under appropriations contained in sections 601-608,

608a, 608b, 608c, 608d, 608e-620, 623, and 624 of this title.

( b) STATE AND LOCAL COM MITTEES OR ASSOCIATIONS OF PRODUCERS ;

HANDLERS' SHARE OF EXPENSES OF AUTHORITY OR AGENCY.

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

for the more effective administration of the functions vested in

him by sections 601-608, 608a, 6ö8b, 608c, 608d, 608e-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 Seeretary under sections 601-608, 608a, 608b, 608c, 608d,

608e-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 Seeretary) 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

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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, 608e-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 in 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 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 through 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) EEGULATIONS ; 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, 608e-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 sections 601-608, 608a, 608b, 608c, 608d, 608e620, 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

132
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, 623, and

624, 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) PROVISIONS OF FEDERAL TRADE COMMISSION ACT ADOPTED;

HEARINGS, BEFORE WHOM HELD; REPORT OF VIOLATIONS TO

ATTORNEY GENERAL.

For the efficient administration of the provisions of sections 608,

608a, 608b, 608c, 608d, 608e-620, 623, and 624 of this title, the

provisions, including penalties, of sections 48, 49, and 50 of Title

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

the Secretary in administering the provisions of sections 601-608,

608a, 608b, 608c, 608d, 608e-620, 623, and 624, of this title, and

to any person subject to the provisions of said sections, whether

or not a corporation. Hearings authorized or required under sections 601-608, 608a, 608b, 608c, 608d, 608e-620, 623, and 624 of

this title 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 sections 608, 608a, 608b, 608c, 608d,

608e-620, 623, and 624 of this title, 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, 608e-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 employees 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,

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That information furnished to the Secretary of Agriculture pursuant to section 608d (1) of this title shall be made available 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 information 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, 608e-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, 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

sections 601-608, 608a, 608b, 608c, 608d, 608e-620, 623, and 624

of this title. As used herein the word ''State" includes Territory,

the District of Columbia, possession of the United 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,

eif. July 4,1946,11 F. R. 7817, 60 Stat. 1352 ; Aug. 1, 1947, ch. 425,

§ 3, 61 Stat. 709.)

§611. "Basic agricultural commodity'* denned; exclusion of commodities.

As used in sections 601-608, 608a-608c, 608d-612, 613-619,

620, 623, 624 of this title, the term "basic agricultural commodity''

means wheat, rye, flax, barley, cotton, field corn, grain sorghums,

hogs, cattle, rice, potatoes, tobacco, peanuts, sugar beets and sugarcane, and milk and its products, and any regional or market classification, type, or grade thereof ; but the Secretary of Agriculture

shall exclude from the operation of the provisions of sections

601-608, 608a-608c, 608d-612, 613-619, 620, 623, 624 of this title,

during any period, any such commodity or classification, type, or

grade thereof if he finds, upon investigation at any time and after

134
due notice and opportunity for hearing to interested parties, that

the conditions of production, marketing, and consumption are

such that during such period sections 601-608, 608a-608c, 608d612, 613-619, 620, 623, 624 of this title can not be effectively

administered to the end of effectuating the declared policy with

respect to such commodity or classification, type or grade thereof.

As used in sections 601-608, 608a-608c, 608d-612, 613-619, 620,

623, 624 of this title, the term "potatoes" means all varieties

included in the species Solanum tuberosum. (May 12, 1933, ch. 25,

title I, § 11, 48 Stat. 38; Apr. 7, 1934, ch. 103, §§ 1, 3 (b), 4, 5, 48

Stat. 528 ; May 9,1934,11:23 a. m., ch. 263, § 1, 48 Stat. 670 ; Aug.

24, 1935, ch. 641, § 61, 49 Stat. 782.)

§ 612. Appropriation; use of revenues; 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, 608e-620, 623,

and 624 of this title and for payments authorized to be made under

section 608 of this title. Such sum shall remain available until

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 any 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 law books

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, 608e-620, 623, 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.)

§ 614. Separability of provisions.

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

608e-620, 623, 624 of this title is declared unconstitutional, or the

applicability thereof to any person, circumstance, or commodity

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

the applicability thereof to other persons, circumstances, or

commodities shall not be affected thereby. (May 12, 1933, ch. 25,

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

135
§ 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 v^ith, any program or operation undertaken

under 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 in 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 entered, or withdrawn from warehouse, for consumption

as he finds and declares shown by such investigation to be necessary in 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: And 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

136
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; August 7, 1953, ch. 348, title

I, § 104, 67 Stat. 472.)

§ 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 and, with the cotisent of all

parties, shall arbitrate if the Secretary has reason to believe that

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

608e-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.

137
(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, 608e-620, 623, and 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 ; as amended July 3,

1948, ch. 827, title III, § 302 (e), 62 Stat. 1258.)

§ 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, 608e-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 sections 601-608, 608a, 608b, 608c, 608d, 608e-620, 623,

and 624 of this title, other than those enumerated in section 1

of Act of June 3, 1937, ch. 296, 50 Stat. 246. 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, 608e-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.)

138
PART C

FOOD DISTRIBUTION

Section 32 and Related Statutes

Section 32

(7 U.S.C. 612c)

§ 612c. Appropriation to encourage exportation and domestic consumption of agricultural products.

There is hereby appropriated for each fiscal year beginning

with the fiscal year ending June 30, 1936, an amount equal to 30

per centum of the gross receipts from duties collected under the

customs laws during the period January 1 to December 31, both

inclusive, preceding the beginning of each such fiscal year. Such

sums shall be maintained in a separate fund and shall be used by

the Secretary of Agriculture only to (1) encourage the exportation

of agricultural commodities and products thereof by the payment

of benefits in connection with the exportation thereof or of indemnities for losses incurred in connection with such exportation or

by payments to producers in connection with the production of

that part of any agricultural commodity required for domestic

consumption; (2) encourage the domestic consumption of such

commodities or products by diverting them, by the payment of

benefits or indemnities or by other means, from the normal channels of trade and commerce or by increasing their utilization

through benefits, indemnities, donations or by other means, among

persons in low-income groups as determined by the Secretary of

Agriculture; and (3) reestablish farmers' purchasing power by

making payments in connection with the normal production of

any agricultural commodity for domestic consumption. Determinations by the Secretary as to what constitutes diversion and what

constitutes normal channels of trade and commerce and what

constitutes normal production for domestic consumption shall be

final.

The sums appropriated under this section shall be expended for

such one or more of the above-specified purposes, and at such

times, in such manner, and in such amounts as the Secretary of

Agriculture finds will effectuate substantial accomplishment of

any one or more of the purposes of this section. Notwithstanding

any other provision of this section, the amount that may be

devoted, during any fiscal year after June 30, 1939, to any one

agricultural commodity or the products thereof in such fiscal

year, shall not exceed 25 per centum of the funds available under

this section for such fiscal year. The sums appropriated under

this section shall be devoted principally to perishable nonbasic

agricultural commodities (other than those receiving price support

139
under section 1446 of this title and their products. The sums

appropriated under this section shall, notwithstanding the provisions of any other law, continue to remain available for the

purposes of this section until expended; but any excess of the

amount remaining unexpended at the end of any fiscal year over

$300,000,000 shall, in the same manner as though it had been

appropriated for the service of such fiscal year, be subject to the

provisions of sections 712 and 713 of Title 31. (Aug. 24, 1935,

ch. 641, § 32,49 Stat. 774 ; Feb. 29,1936, ch. 104, § 2, 49 Stat. 1151 ;

Feb. 16, 1938, 3 p. m. ch. 30, § 203, 52 Stat. 38 ; June 30, 1939,

ch. 253, title I, 53 Stat. 975; July 3, 1948, ch. 827, title III, § 301,

62 Stat. 1257; Oct. 31,1949, ch. 792, title IV, § 411, 63 Stat. 1057;

Jan. 30, 1954, ch. 2, § 5(b), 68 Stat. 7.)

(15 U.S.C. 713C-2, 713C-.3)

§ 713C-2. Purchase and distribution of surplus fishery products.

Any part of the funds not to exceed $1,500,000 per year, created

under and to carry out the provisions of section 612c of Title 7,

may also be used by the Secretary of Agriculture for the purpose

of diverting surplus fishery products (including fish, shellfish,

mollusks, and crustácea) from the normal channels of trade and

commerce by acquiring them and providing for their distribution

through Federal, State, and private relief channels: Provided,

That none of the funds made available to the Secretary of Agriculture under this section and section 713c-3 of this title shall be

used to purchase any of the commodities designated in this section

which may have been produced in any foreign country. The provision of laws relating to the acquisition of materials or supplies

for the United States shall not apply to the acquisition of commodities under this section and section 713c-3 of this title. (Aug. 11,

1939, ch. 696, § 1, 53 Stat. 1411 ; 1940 Reorg. Plan No. Ill, § 5,

eff. June 30, 1940, 5 F. R. 2108, 54 Stat. 1232; 1946 Reorg. Plan

No. 3, § 501, eff. July 16, 1946, 11 F. R. 7877, 60 Stat. 1100.)

§713c-3. Same; promotion of the free flow of domestically produced fishery products.

(a) TRANSFER OP FUNDS.

The Secretary of Agriculture shall transfer to the Secretary

of the Interior each fiscal year, beginning with the fiscal year

commencing July 1, 1954, and ending on June 30, 1957, from

moneys made available to carry out the provisions of section 612c

of title 7, an amount equal to 30 per centum of the gross receipts

from duties collected under the customs laws on fishery products

(including fish, shellfish, mollusks, crustácea, acquatic plants and

animals, and any products thereof, including processed and manufactured products), which shall be maintained in a separate fund

and used by the Secretary of the Interior (1) to promote the free

flow of domestically produced fishery products in commerce by

conducting a fishery educational service and fishery technological,

biological and related research programs, the moneys so transferred to be also available for the purchase or other acquisition,

construction, equipment, operation, and maintenance of vessels or

other facilities necessary for conducting research as provided for

in this section, and (2) to develop and increase markets for

140
fishery products of domestic origin and (3) to conduct any biological, technological, or other research pertaining to American

fisheries.

(d) RETRANSFEE OF FUNDS FOR PURPOSES OF SECTION 713C-2.

The Secretary of the Interior is further authorized to retransfer

any of the funds not to exceed $1,500,000 to be made available

under this section to the Secretary of Agriculture to be used for

the purposes specified in section 713c-2 of this title, and only

such funds as are thus transferred shall be used for the purposes

specified in section 713c-2 of this title with respect to domestically

produced fishery products. (Aug. 11, 1939, ch. 696, § 2, 53 Stat.

1412, amended July 1, 1954, ch. 447, 68 Stat. 376 ; Aug. 8, 1956,

ch. 1036, § 12 (b), 70 Stat. 1124.)

Act of June 28, 1937

(Formerly 15 U.S.C. 713c)

In carrying out the provisions of clause (2) of section 32 of the

Act approved August 24, 1935 (49 Stat. 774), as amended, the

Secretary of Agriculture may transfer to the Federal Surplus

Commodities Corporation, which Corporation is continued, until

June 30, 1945, as an agency of the United States under the direction of the Secretary of Agriculture, such funds, appropriated by

said section, as may be necessary for the purpose of effectuating

clause (2) of said section: Provided, That such transferred funds,

together with other funds of the Corporation, may be used for

purchasing, exchanging, processing, distributing, disposing, transporting, storing, and handling of agricultural commodities and

products thereof and inspection costs, commissions, and other

incidental costs and expenses, without regard to the provisions of

existing law governing the expenditure of public funds and for

administrative expenses, including rent, printing and binding, and

the employment of persons and means, in the District of Columî)ia

and elsewhere, such employment of persons to be in accordance

with the provisions of law applicable to the employment of persons

by the Agricultural Adjustment Administration.

In carrying out clause (2) of section 32, the funds appropriated

by said section may be used for the purchase, without regard to

the provisions of existing law governing the expenditure of public

funds, of agricultural commodities and products thereof, and such

commodities, as well as agricultural commodities and products

thereof purchased under the preceding paragraph of this section,

may be donated for relief purposes. (June 28, 1937, ch. 385, 50

Stat. 323 ; Feb. 16,1938, ch. 30, 3 p.m., § 204, 52 Stat. 38 ; June 27,

1942, ch. 454, 56 Stat. 461.)

Agricultural Act of 1949

(Excerpt. 7 U.S.C. 1424)

§ 1424. Utilization of services and facilities of CCC.

The Secretary, in carrying out programs under section 612c of

this title and section 1755 of title 42, may utilize the services and

facilities of the Commodity Credit Corporation (including but not

limited to procurement by contract), and make advance payments

to it. (Oct. 31,1949, ch. 792, title IV, § 404, 63 Stat. 1054.)

141
Agricultural Act of 1956

(7 U.S.C. 1855)

There is hereby authorized to be appropriated for each fiscal

year, beginning with the fiscal year ending June 30, 1957, the

sum of $500,000,000 to enable the Secretary of Agriculture to

further carry out the provisions of section 612c of this title, subject

to all provisions of law relating to the expenditure of funds

appropriated by such section, except that up to 50 per centum

of such $500,000,000 may be devoted during any fiscal year to

any one agricultural commodity or the products thereof. (May

28, 1956, ch. 327, title II, § 205, 70 Stat. 200.)

Pertinent Provisions of Fish and Wildlife Act

(16 U.S.C. 742a et seq.)

§ 742e. Transfer of functions, personnel, property, facilities,

records, and funds; cooperation with other governmental

agencies.

(a) There shall be transferred to the Secretary of the Interior

all functions of the Secretary of Agriculture, the Secretary of

Commerce, and the head of any other department or agency, as

determined by the Director of the Bureau of the Budget to relate

primarily to the development, advancement, management, conservation, and protection of commercial fisheries ; but nothing in this

section shall be construed to modify the authority of the Department of State or the Secretary of State to negotiate or enter

into any international agreements, or conventions with respect to

the development, management, or protection of any fisheries and

wildlife resources or with respect to international commissions

operating under conventions to which the United States is a party.

(b) There shall be transferred to the Department of the

Interior so much of the personnel, property, facilities, records, and

unexpended balances of appropriations, allocations, and other

funds (available or to be made available) as the Director of the

Bureau of the Budget determines to be necessary in connection

with the exercise of any functions transferred to the Secretary

pursuant to subsection (a) of this section.

(c) The Secretary may request and secure the advice or assistance of any department or agency of the Government in carrying

out the provisions of sections 742a-742j of this title, and any such

department or agency which furnishes advice or assistance to the

Secretary may expend its own funds for such purposes, with or

without reimbursement from the Secretary as may be agreed upon

between the Secretary and the department or agency. (Aug. 8,

1956, ch. 1036, § 6, 70 Stat. 1122.)

§ 742j. Appropriations.

There are authorized to be appropriated such sums as m.ay be

necessary to carry out the provisions of sections 742a-742j of this

title. (Aug. 8,1956, ch. 1036, § 11, 70 Stat. 1124.)

NOTE. This Act also contains these provisions :

Sec. 12. (a) The authorization for the transfer of certain funds

from the Secretary of Agriculture to the Secretary of the Interior

142
and their maintenance in a separate fund as contained in Section

2 (a) of the Act of August 11, 1939, as amended July 1, 1954

(68 Stat. 376), shall be continued for the year ending June 30,

1957, and each year thereafter.

(b) Subsection (e) of section 2 of the aforesaid Act of August

11, 1939, as amended, is hereby amended to read as follows :

" (e) The separate fund created for the use of the Secretary of

the Interior under section 2 (a) of this Act and the annual accruals

thereto shall be available for each year hereafter until expended

by the Secretary/' (15 U.S.C. 713c~3 (e).)

Price Support of Agricultural Commodities

Agricultural Act of 1949

(7 U.S.C. 1421 et seq.)

§1421. Source of price support; authority of Secretary; factors

considered; compliance by producer; time of determining

levels.

(a) The Secretary shall provide the price support authorized

or required herein through the Commodity Credit Corporation and

other means available to him.

(b) Except as otherwise provided in this Act, the amounts,

terms, and conditions of price support operations and the extent

to which such operations are carried out, shall be determined or

approved by the Secretary. The following factors shall be taken

into consideration in determining, in the case of any commodity

for which price support is discretionary, whether a price-support

operation shall be undertaken and the level of such support and,

in the case of any commodity for which price support is mandatory, the level of support in excess of the minimum level prescribed

for such commodity: (1) the supply of the commodity in relation

to the demand therefor, (2) the price levels at which other

commodities are being supported and, in the case of feed grains,

the feed values of such grains in relation to corn, (3) the availability of funds, (4) the perishability of the commodity, (5) the

importance of the commodity to agriculture and the national

economy, (6) the ability to dispose of stocks acquired through a

price support operation, (7) the need for offsetting temporary

losses of export markets, and (8) the ability and willingness of

producers to keep supplies in line with demand.

(c) Compliance by the producer with acreage allotments, production goals and marketing practices (including marketing

quotas when authorized by law), prescribed by the Secretary, may

be required as a condition of eligibility for price support. In

administering any program for diverted acres the Secretary

may make his regulations applicable on an appropriate geographical basis. Such regulations shall be administered (1) in semi-arid

or other areas where good husbandry requires maintenance of a

prudent feed reserve in such manner as to permit, to the extent

so required by good husbandry, the production of forage crops

for storage and subsequent use either on the farm or in feeding

operations of the farm operator, and (2) in areas declared to be

143
disaster areas by the President under sections 1855-1855g of

this title, in such manner as will most quickly restore the normal

pattern of their agriculture.

(d) The level of price support for any commodity shall be

determined upon the basis of its parity price as of the beginning

of the marketing year or season in the case of any commodity

marketed on a marketing year or season baßis and as of January 1

in the case of any other commodity. (Oct. 31, 1949, ch. 792, Title

IV, § 401, 63 Stat. 1054.)

(e) Whenever any price support or surplus removal operation

for any agricultural commodity is carried out through purchases

from or loans or payments to processors, the Secretary shall, to

the extent practicable, obtain from the processors such assurances

as he deems adequate that the producers of the agricultural commodity involved have received or will receive maximum benefits

from the price support or surplus removal operation. (As amended

Aug. 28,1954, ch. 1041, title II, §§ 206, 207, 68 Stat. 901.)

§ 1422. Increase of price support levels.

Notwithstanding any other provision of this Act, price support

at a level in excess of the maximum level of price support otherwise prescribed in this Act may be made available for any agricultural commodity if the Secretary determines, after a public

hearing of which reasonable notice has been given, that price

support at such increased level is necessary in order to prevent

or alleviate a shortage in the supply of any agricultural commodity

essential to the national welfare or in order to increase or maintain

the production of any agricultural commodity in the interest of

national security. The Secretary's determination and the record of

the hearing shall be available to the public. (Oct. 31,1949, ch. 792,

Title IV, § 402, 63 Stat. 1054.)

§ 1423. Adjustment of support prices.

Appropriate adjustments may be made in the support price for

any commodity for differences in grade, type, staple, quality,

location, and other factors. Such adjustments shall, so far as

practicable, be made in such manner that the average support

price for such commodity will, on the basis of the anticipated

incidence of such factors, be equal to the level of support determined as provided in this Act. Middling seven-eighths inch cotton

shall be the standard grade for purposes of parity and price

support. (Oct. 31, 1949, ch. 792, Title IV, § 403, 63 Stat. 1054.)

§ 1424. Utilization of services and facilities of Commodity Credit

Corporation.

The Secretary, in carrying out programs under section 612c of

this title, and section 1755 of Title 42 may utilize the services and

facilities of the Commodity Credit Corporation (including but not

limited to procurement by contract), and make advance payments

to it. (Oct. 31, 1949, ch. 792, Title IV, § 404, 63 Stat. 1054.)

§ 1425. Personal liability of producers for deficiencies.

No producer shall be personally liable for any deficiency arising

from the sale of the collateral securing any loan made under

authority of this Act unless such loan was obtained through

144
fraudulent misrepresentations by the producer. This provision

shall not, however, be construed to prevent the Commodity Credit

Corporation or the Secretary from requiring producers to assume

liability for deficiencies in the grade, quality, or quantity of commodities stored on the farm or delivered by them, for failure

properly to care for and preserve commodities, or for failure or

refusal to deliver commodities in accordance with the requirements

of the program. (Oct. 31, 1949, ch. 792, Title IV, § 405, 63 Stat.

1054.)

§ 1426. Advance announcement of price support levels; variation

of levels.

The Secretary shall, insofar as practicable, announce the level

of price support for field crops in advance of the planting season

and for other agricultural commodities in advance of the beginning

of the marketing year or season (January 1 in the case of commodities not marketed on a marketing year or season basis), but

the level of price support so announced shall not exceed the estimated maximum level of price support specified in this Act, based

upon the latest information and statistics available to the Secretary when such level of price support is announced ; and the level

of price support so announced shall not be reduced if the maximum

level of price support when determined, is less than the level so

announced. (Oct. 31, 1949, ch 792, Title IV, § 406, 63 Stat. 1055.)

§ 1427. Sale of farm commodities; policies and rates of sale; exceptions.

The Commodity Credit Corporation may sell any farm commodity owned or controlled by it at any price not prohibited by this

section. In determining sales policies for basic agricultural commodities or storable non-basic commodities, the Corporation should

give consideration to the establishing of such policies with respect

to prices, terms, and conditions as it determines will not discourage

or deter manufacturers, processors, and dealers from acquiring

and carrying normal inventories of the commodity of the current

crop. The Corporation shall not sell any basic agricultural commodity or storable non-basic commodity at less than 5 per centum

above the current support price for such commodity, plus reasonable carrying charges. The foregoing restrictions shall not apply to

(A) sales for new or byproduct uses; (B) sales of peanuts and

oilseeds for the extraction of oil; (C) sales for seed or feed if such

sales will not substantially impair any price-support program;

(D) sales of commodities which have substantially deteriorated

in quality or as to which there is a danger of loss or waste through

deterioration or spoilage ; (E) sales for the purpose of establishing

claims arising out of contract or against persons who have committed fraud, misrepresentation, or other wrongful acts with respect to the commodity; (F) sales for export; (G) sales of wool;

and (H) sales for other than primary uses. Notwithstanding the

foregoing, the Corporation, on such terms and conditions as the

Secretary may deem in the public interest, shall make available

any farm commodity or product thereof owned or controlled by

it for use in relieving distress (1) in any area in the United States

declared by the President to be an acute distress area because of

unemployment or other economic cause if the President finds that

145
such use will not displace or interfere with normal marketing of

agricultural commodities and (2) in connection with any major

disaster determined by the President to warrant assistance by

the Federal Government under sections 1855-1855g of Title 42,

Except on a reimbursable basis, the Corporation shall not bear

any costs in connection with making such commodity available

beyond the cost of the commodities to the Corporation in store and

the handling and transportation costs in making delivery of the

commodity to designated agencies at one or more central locations

in each State. Nor shall the foregoing restrictions apply to sales

of commodities the disposition of which is desirable in the interest

of the effective and efficient conduct of the Corporation's operations because of the small quantities involved, or because of age,

location or questionable continued storability, but such sales shall

be offset by such purchases of commodities as the Corporation

determines are necessary to prevent such sales from substantially

impairing any price-support program, but in no event shall the

purchase price exceed the then current support price for such

commodities. For the purposes of this section, sales for export

shall not only include sales made on condition that the identical

commodities sold be exported, but shall also include sales made

on condition that commodities of the same kind and of comparable

value or quantity be exported, either in raw or processed form.

(July 10,1954, ch. 469, title III, § 301, 68 Stat. 458; July 29, 1954,

ch. 643, 68 Stat. 583; Jan. 28, 1956, ch. 14, 70 Stat. 6; Oct. 31,

1949, ch. 792, title IV, § 407, 63 Stat. 1055.)

§ 1428. Definitions,

For the purposes of this chapter—

(a) A commodity shall be considered storable upon determination by the Secretary that, in normal trade practice, it is stored for

substantial periods of time and that it can be stored under the

price-support program without excessive loss through deterioration or spoilage or without excessive cost for storage for such

periods as will permit its disposition without substantial impairment of the effectiveness of the price-support program.

(b) A "cooperator" with respect to any basic agricultural commodity shall be a producer on whose farm the acreage planted to

the commodity does not exceed the farm acreage allotment for the

commodity under subchapter II of chapter 35 of this title, or in

the case of price support for corn or wheat to a producer outside

the commercial corn-producing or wheat-producing area, a producer who complies with conditions of eligibility prescribed by

the Secretary. For the purpose of this subsection, a producer shall

not be deemed to have exceeded his farm acreage allotment unless

such producer knowingly exceeded such allotment.

(c) A '*basic agricultural commodity''shall mean corn, cotton,

peanuts, rice, tobacco, and wheat, respectively.

(d) A ^*non-basic agricultural commodity" shall mean any agricultural commodity other than a basic agricultural commodity.

(e) The "supply percentage" as to any commodity shall be the

percentage which the estimated total supply is of the normal supply

as determined by the Secretary from the latest available statistics

of the Department of Agriculture as of the beginning of the

marketing year for the commodity.

146
(f) "Total supply" of any non-basic agricultural commodity for

any marketing year shall be the carry-over at the beginning of

such marketing year, plus the estimated production of the commodity in the United States during the calendar year in which such

marketing year begins and the estimated imports of the commodity

into the United States during such marketing year.

(g) "Carryover" of any non-basic agricultural commodity for

any marketing year shall be the quantity of the commodity on hand

in the United States at the beginning of such marketing year, not

including any part of the crop or production of such commodity

which was produced in the United States during the calendar year

then current. The carryover of any such commodity may also include the quantity of such commodity in processed form on hand

in the United States at the beginning of such marketing year, if

the Secretary determines that the inclusion of such processed

quantity of the commodity is necessary to effectuate the purposes

of this Act.

(h) "Normal supply" of any non-basic agricultural commodity

for any marketing year shall be (1) the estimated domestic consumption of the commodity for the marketing year for which such

normal supply is being determined, plus (2) the estimated exports

of the commodity for such marketing year, plus (3) an allowance

for carryover. The allowance for carryover shall be the average

carryover of the commodity for the five marketing years immediately preceding the marketing year in which such normal supply

is determined, adjusted for surpluses or deficiencies caused by

abnormal conditions, changes in marketing conditions, or the

operation of any agricultural program. In determining normal

supply, the Secretary shall make such adjustments for current

trends in consumption and for unusual conditions as he may deem

necessary.

(i) "Marketing year" for any nonbasic agricultural commodity

means any period determined by the Secretary during which substantially all of a crop or production of such commodity is normally marketed by the producers thereof.

(j) Any term defined in the Agricultural Adjustment Act of

1938 shall have the same meaning when used in this Act. (Oct.

31, 1949, ch. 792, Title IV, § 408, 63 Stat. 1055; as amended Aug.

28, 1954, ch. 1041, Title II § 209, 68 Stat. 901.)

§ 1429. Determinations of Secretary as final and conclusive.

Determinations made by the Secretary under this Act shall be

final and conclusive : Provided, That the scope and nature of such

determinations shall not be inconsistent with the provisions of the

Commodity Credit Corporation Charter Act. (Oct. 31, 1949, ch.

792, Title IV, § 412, 63 Stat. 1057.)

§ 1430. Retroactive effect.

This Act shall not be effective with respect to price support

operations for any agricultural commodity for any marketing

year or season commencing prior to January 1, 1950, except to

the extent that the Secretary of Agriculture shall, without reducing price support theretofore undertaken or announced, elect

to apply the provisions of this Act. (Oct. 31, 1949, ch. 792, Title

IV, § 413, 63 Stat. 1057.)

147
§ 1432. Extension of price support on long staple cotton seeds and

products.

Any price support program in effect on cottonseed or any of its

products shall be extended to the same seed and products of the

cottons defined under section 1347 (a) of this title. (Oct. 31,1949,

ch. 792, title IV, § 420, as added July 17, 1952, ch. 933, § 3 (2),

66 Stat. 259.)

§ 1441. Price support levels.

The Secretary of Agriculture (hereinafter called the "Secretary") is authorized and directed to make available through loans,

purchases, or other operations, price support to cooperators for

any crop of any basic agricultural commodity, if producers have

not disapproved marketing quotas for such crop, at a level not in

excess of 90 per centum of the parity price of the commodity nor

less than the level provided in subsections (a), (b), and (c) of

this section as follows :

The level of support

(a) For tobacco (except as otherwise provided shall be not less

herein), corn, wheat, and rice, if the supply than the following

percentage as of the beginning of the mar- percentage of the

keting year is: parity price:

Not more than 102 90

More than 102 but not more than 104 89

More than 104 but not more than 106 88

More than 106 but not more than 108 87

More than 108 but not more than 110 86

More than 110 but not more than 112 85

More than 112 but not more than 114 84

More than 114 but not more than 116 83

More than 116 but not more than 118 82

More than 118 but not more than 120 81

More than 120 but not more than 122 80

More than 122 but not more than 124 79

More than 124 but not more than 126 78

More than 126 but not more than 128 77

More than 128 but not more than 130 76

More than 130 75

The level of support

shall be not less

(b) For cotton and peanuts, if the supply per- than the following

centage as of the beginning of the market- percentage of the

ing year is: parity price:

Not more than 108 • • 90

More than 108 but not more than 110 89

More than 110 but not more than 112 88

More than 112 but not more than 114 87

More than 114 but not more than 116 86

More than 116 but not more than 118 85

More than 118 but not more than 120 84

More than 120 but not more than 122 83

More than 122 but not more than 124 »^

More than 124 but not more than 125 81

More than 125 but not more than 126 80

More than 126 but not more than 127 7y

More than 127 but not more than 128 7»

More than 128 but not more than 129 7¿

More than 129 but not more than 130 7b

More than 130 ^^

(c) For tobacco, if marketing quotas are in effect, the level of

support shall be 90 per centum of the parity price.

148
(d) Notwithstanding the foregoing provisions of this section—

(1) if the producers have not disapproved marketing quotas

for such crop, the level of support to cooperators shall be 90 per

centum of the parity price for the 1950 crop of any basic agricultural commodity for which marketing quotas or acreage allotments

are in effect;

(2) if producers have not disapproved marketing quotas for

such crop, the level of support to cooperators shall be not less than

80 per centum of the parity price for the 1951 crop of any basic

agricultural commodity for which marketing quotas or acreage

allotments are in effect;

(3) the level of price support to cooperators for any crop of a

basic agricultural commodity, except tobacco, for which marketing

quotas have been disapproved by producers shall be 50 per centum

of the parity price of such commodity; and no price support shall

be made available for any crop of tobacco for which marketing

quotas have been disapproved by producers ;

(4) the level of price support for corn to cooperators outside the

commercial corn-producing area shall be 75 per centum of the level

of price support to cooperators in the commercial corn-producing

area;

(5) price support may be made available to noncooperators at

such levels, not in excess of the level of price support to cooperators, as the Secretary determines will facilitate the effective operation of the program.

(6) Except as provided in subsection (c) of this section and

section 1422 of this title, the level of support to cooperators shall

be not more than 90 per centum and not less than 82y2 per centum

of the parity price for the 1955 crop of any basic agricultural

commodity with respect to which producers have not disapproved

marketing quotas ; within such limits, the minimum level of support shall be fixed as provided in subsections (a) and (b) of this

section.

(7) Where a State is designated under section 1335 (e) of this

title, as outside the commercial wheat-producing area for any crop

of wheat, the level of price support for wheat to cooperators in

such State for such crop of wheat shall be 75 per centum of the

level of price support to cooperators in the commercial wheatproducing area.

(e) Notwithstanding any of the provisions of this Act, section

2 of the Act of July 28,1945 (59 Stat. 506), shall continue in effect.

(f) The provisions of this chapter relating to price support for

cotton shall apply severally to (1) American upland cotton and

(2) extra long staple cotton described in subsection (a) of section

1347 of this title and ginned as required by subsection (e) of section 1347 of this title, except that, notwithstanding any of the

foregoing provisions of this section, the level of support to cooperators for the 1955 and each subsequent crop of extra long

staple cotton, if producers have not disapproved marketing quotas

therefor, shall be the minimum level specified in subsection (b) of

this section for the supply percentage for extra long staple cotton

as of the beginning of the marketing year for the crop. Disapproval by producers of the quota proclaimed under section 1347

of this title shall place into effect the provisions of subsection

(d) (3) of this section with respect to the extra long staple cotton

149
described in subsection (a) of section 1347 of this title. Nothing

contained herein shall affect the authority of the Secretary under

section 1422 of this title to make support available for extra long

staple cotton in accordance with section 1422 of this title. (Oct.

31, 1949, ch. 792, title I, § 101, 63 Stat. 1051 ; July 17, 1952, ch.

933, § 2, 3, (1), 66 Stat. 759; Aug. 28, 1954, ch. 1041, title II,

§§ 201, 202, 68 Stat. 899.)

§ 1442. Price support and acreage requirements for corn and other

feed grains.

(a) CONDITIONS OF ELIGIBILITY.

Notwithstanding any other provision of law, whenever base

acreages are in effect for corn, the Secretary shall require, as a

condition of eligibility for price support on corn, that the producer (1) devote an acreage of cropland (tilled in normal rotation) , at the option of the producer, to either the acreage reserve

program for corn or the conservation reserve program, equal to

15 per centum of such producer's farm base acreage for corn,

and (2) not exceed such farm base acreage for corn: Provided,

That price support may be made available to any producer who

does not meet the foregoing requirements at such level, not in

excess of the level of price support to producers who meet such

requirements, as the Secretary determines will facilitate the effective operation of the price support program. Corn acreage allotments shall not be effective for the 1956 crop.

(b) REFERENDUM OF PRODUCERS OF CORN.

Not later than December 15, 1956, the Secretary shall conduct

a referendum of producers of corn in 1956 in the commercial

corn-producing area to determine whether such producers favor

a price-support program as provided in subsection (c) of this section for the 1957 and subsequent crops in lieu of acreage allotments

as provided in the Agricultural Adjustment Act of 1938, as

amended, and price support as provided in section 1441 of this

title.

(c) RESTRICTION ON ACREAGE ALLOTMENT OF CORN ; PRICE SUPPORT

LEVEL.

Notwithstanding any other provision of law, if two-thirds or

more of the producers voting in the referendum conducted pursuant to subsection (b) of this section favor a price-support

program as provided in this subsection, no acreage allotment of

corn shall be established for the commercial corn-producing area

for any county, or for any farm, with respect to the 1957 and

subsequent crops, and price support made available for such crops

by Commodity Credit Corporation shall be at such level as the

Secretary determines will assist producers in marketing corn m

the normal channels of trade but not encourage the uneconomic

production of corn.

(d) PRICE SUPPORT LEVEL FOR 1956 AND 1957 CROPS OF GRAIN

SORGHUMS, BARLEY, RYE, OATS, AND CORN.

Notwithstanding any other provision of law, (1) the level of

price support for the 1956 crop of grain sorghums, barley, rye,

and oats, respectively, shall be 76 per centum of the parity price

for the commodity as of May 1,1956, (2) the level of price support

for corn produced outside the commercial corn-producing area,

150
for any crop for which base acreages are in effect (except as

provided in (3) below), shall be 82Î/2 per centum of the level of

price support for corn in the commercial corn-producing area to

producers complying with acreage limitation, and (3) if price

support is made available for the 1957 crop of corn in the commercial corn-producing area to producers not complying with

acreage limitations, price support shall be made available for the

1957 crop of grain sorghums, barley, rye, oats, and corn produced

outside the commercial corn-producing area, respectively, at a

level, not less than 70 per centum of the parity price as of the

beginning of the marketing year, determined by the Secretary

to be fair and reasonable in relation to the level at which price

support is made available for corn in the commercial corn-producing area to producers not complying with acreage limitations,

taking into consideration the normal price relationships between

such commodity and corn in the commercial area, the feed value

of such commodity in relation to corn, the supply of such commodity in relation to the demand therefor, and the ability to

dispose of stocks of such commodity acquired through price

support programs. (May 28, 1956, ch. 327, title III, § 308, 70

Stat. 206.)

§ 1446. Price support levels for designated nonbasic agricultural

commodities.

The Secretary is authorized and directed to make available

(without regard to the provisions of sections 1447-1449 of this

title) price support to producers for tung nuts, honey, milk, butterfat, and the products of milk and butterfat as follows :

(b) The price of tung nuts and honey, respectively, shall be

supported through loans, purchases, or other operations at a

level not in excess of 90 per centum nor less than 60 per centum

of the parity price therefor;

(c) The price of whole milk, butterfat, and the products of such

commodities, respectively, shall be supported at such level not in

excess of 90 per centum nor less than 75 per centum of the parity

price therefor as the Secretary determines necessary in order to

assure an adequate supply. Such price support shall be provided

through loans on, or purchases of, milk and the products of milk

and butterfat, and for the period ending March 31, 1956, surplus

stocks of dairy products owned by the Commodity Credit Corporation may be disposed of by any methods determined necessary

by the Secretary. For the period beginning September 1,1954, and

ending June 30, 1955, not to exceed $50,000,000, and for the fiscal

year ending June 30,1956, not to exceed $60,000,000, and for each

of the two fiscal years in the period beginning July 1, 1956, and

ending June 30, 1958, not to exceed $75,000,000 of the funds of

the Commodity Credit Corporation shall be used to increase the

consumption of fluid milk by children in (1) nonprofit schools of

high-school grade and under; and in (2) nonprofit nursery schools,

child-care centers, settlement houses, summer camps, and similar

nonprofit institutions devoted to the care and training of children

(Oct. 31, 1949, ch. 792, title II, § 201, 63 Stat. 1052 ; Aug. 28, 1954,

ch. 1041, title II, §§ 203 (a), 204 (b), title VII, § 709, 68 Stat.

899, 912; Apr. 2, 1956, ch. 159, § 1 70 Stat. 87; July 20, 1956, ch.

661,70 Stat. 596.) > y ^

151
§ 1446a. Dairy products—availability through Commodity Credit

Corporation.

As a means of increasing the utilization of dairy products,

(including for purposes of this section, milk) upon the certification

by the Administrator of Veterans' Affairs or by the Secretary of

the Army, acting for the military departments under the Department of Defense's Single Service Purchase Assignment for Subsistence, or their duly authorized representatives that the usual

quantities of dairy products have been purchased in the normal

channels of trade—

(a) ADMINISTRATOR OF VETERAN AFFAIRS ; NEEDS ; REPORT TO CONGRESS.

The Commodity Credit Corporation until December 31, 1958,

shall make available to the Administrator of Veterans' Affairs

at warehouses where dairy products are stored, such dairy products acquired under price-support programs as the Administrator

certifies that he requires in order to provide butter and cheese and

other dairy products as a part of the ration in hospitals under his

jurisdiction. The Administrator shall report monthly to the Committees on Agriculture of the Senate and House of Representatives

and the Secretary of Agriculture the amount of dairy products

used under this subsection.

(b) SECRETARY OF THE ARMY; NEEDS; REPORT TO CONGRESS.

The Commodity Credit Corporation until December 31, 1958,

shall make available to the Secretary of the Army, at warehouses

where dairy products are stored, such dairy products acquired

under price-support programs as the Secretary of the Army or

his duly authorized representative certified can be utilized in order

to provide additional butter and cheese and other dairy products

as a part of the ration of the Army, Navy, or Air Force, and as a

part of the ration in hospitals under the jurisdiction of the Department of Defense. The Secretary of the Army shall report

every six months to the Committees on Agriculture of the Senate

and the House of Representatives and the Secretary of Agriculture

the amount of dairy products used under this subsection.

(c) COSTS.

Dairy products made available under this section shall be made

available without charge, except that the Secretary of the Army

or the Administrator of Veterans' Affairs shall pay the Commodity Credit Corporation the costs of packaging incurred in

making such products so available.

(d) DAIRY PRODUCTS AVAILABLE.

The obligation of the Commodity Credit Corporation to make

dairy products available pursuant to the above shall be limited

to dairy products acquired by the Corporation through pricesupport operations and not disposed of under provisions (1) and

(2) of section 1431 of this title. (Oct. 31, 1949, ch. 792, title II,

§ 201, 63 Stat. 1052, as added Aug. 28, 1954, ch. 1041, title II,

§ 204 (d), 68 Stat. 900, and amended Apr. 2,1956, ch. 159 § 3, 70

Stat. 87.)

152
§ 1446b. Policy with regard to dairy products.

The production and use of abundant supplies of high quality

milk and dairy products are essential to the health and general

welfare of the Nation ; a dependable domestic source of supply of

these foods in the form of high grade dairy herds and modern,

sanitary dairy equipment is important to the national defense;

and an economically sound dairy industry affects beneficially the

economy of the country as a whole. It is the policy of Congress

to assure a stabilized annual production of adequate supplies of

milk and dairy products; to promote the increased use of these

essential foods; to improve the domestic source of supply of milk

and butterfat by encouraging dairy farmers to develop efficient

production units consisting of high-grade, disease-free cattle and

modern sanitary equipment; and to stabilize the economy of dairy

farmers at a level which will provide a fair return for their labor

and investment when compared with the cost of things that

farmers buy. (Aug. 28, 1954, ch. 1041, title II, § 204 (a), 68 Stat.

899.)

§ 1446c. Domestic disposal programs for dairy products.

In order to prevent the accumulation of excessive inventories

of dairy products the Secretary of Agriculture shall undertake

domestic disposal programs under authorities granted, in the

Agricultural Adjustment Act of 1938 and the Agricultural Act

of 1949, as amended, or as otherwise authorized by law. (Aug.

28, 1954, ch. 1041, title II, §204 (c), 68 Stat. 900.)

§ 1446d. Price support levels for cottonseed and soybeans.

Whenever the price of either cottonseed or soybeans is supported

under this Act, the price of the other shall be supported at such

level as the Secretary determines will cause them to compete on

equal terms on the market. (Oct. 31, 1949, ch. 792, title II, § 203,

as added May 28, 1956, ch. 327, title VI, § 601 (a), 70 Stat. 212.)

Domestic Disposition of Surplus Commodities

Agricultural Act of 1949

(7 U.S.C. 1431)

§ 1431. Disposition of commodities to prevent waste; eligible

recipients; barter; estimates; reprocessing and other charges.

In order to prevent the waste of commodities acquired through

price-support operations by the Commodity Credit Corporation

before they can be disposed of in normal domestic channels without

impairment of the price-support program or sold abroad at competitive world prices, the Commodity Credit Corporation is authorized, on such terms and under such regulations as the Secretary

may deem in the public interest: (1) upon application, to make

such commodities available to any Federal agency for use in

making payment for commodities not produced in the United

States; (2) to barter or exchange such commodities for strategic

or other materials as authorized by law; (3) in the case of food

commodities to donate such commodities to the Bureau of Indian

Affairs and to such State, Federal, or private agency or agencies

153
as may be designated by the proper State or Federal authority

and approved by the Secretary, for use in the United States in

nonprofit school-lunch programs, in the assistance of needy persons, and in charitable institutions, including hospitals, to the

extent that needy persons are served ; and (4) to donate any such

food commodities in excess of anticipated disposition under clauses

(1), (2), and (3) above to nonprofit voluntary agencies registered with the Committee on Voluntary Foreign Aid of the

Foreign Operations Administration or other appropriate department or agency of the Federal Government and intergovernmental

organizations for use in the assistance of needy persons outside

the United States. In the case of (3) and (4) above the Secretary

shall obtain such assurance as he deems necessary that the recipients thereof will not diminish their normal expenditures for

food by reason of such donation. In order to facilitate the appropriate disposal of such commodities, the Secretary may from time to

time estimate and announce the quantity of such commodities

which he anticipates will become available for distribution under

clauses (3) and (4) above. The Commodity Credit Corporation

may pay, with respect to commodities disposed of under this section, reprocessing, packaging, transporting, handling, and other

charges accruing up to the time of their delivery to a Federal

agency or to the designated State or private agency, in the case

of commodities made available for use within the United States,

or their delivery free alongside ship or free on board export carrier

at point of export, in the case of commodities made available

for use outside the United States. In addition, in the case of food

commodities disposed of under this section, the Commodity Credit

Corporation may pay the cost of processing such commodities into

a form suitable for home or institutional use, such processing to

be accomplished through private trade facilities to the greatest

extent possible. For the purpose of this section the terms "State''

and "United States" include the District of Columbia and any

Territory or possession of the United States. (Oct. 31, 1949, ch.

792, title IV, § 416, 63 Stat. 1058; July 10, 1954, ch. 469, title III,

§ 302, 68 Stat. 458; May 28, 1956, ch. 327, title II, § 212, 70 Stat.

203.)

Agricultural Act of 1956

(7 U.S.C. 1859)

§ 1859. Donation to penal and correctional institutions.

Notwithstanding any other limitations as to the disposal of

surplus commodities acquired through price support operations,

the Commodity Credit Corporation is authorized on such terms and

under such regulations as the Secretary of Agriculture may deem

in the public interest, and upon application, to donate food commodities acquired through price support operations to Federal

penal and correctional institutions, and to State correctional

institutions for minors, other than those in which food service is

provided for inmates on a fee, contract, or concession basis. (May

28, 1956, ch. 327, title II, § 210, 70 Stat. 202.)

154
National School Lunch Act

(42 U.S.C. 1751-1760)

§ 1751. Congressional declaration of policy.

It is declared to be the policy of Congress, as a measure of

national security, to safeguard the health and well-being of the

Nation's children and to encourage the domestic consumption of

nutritious agricultural commodities and other food, by assisting

the States, through grants-in-aid and other means, in providing

an adequate supply of foods and other facilities for the establishment, maintenance, operation, and expansion of nonprofit schoollunch programs. (June 4, 1946, ch. 281, § 2, 60 Stat. 230.)

§ 1752. Appropriations.

For each fiscal year, beginning with the fiscal year ending June

30, 1947, there is authorized to be appropriated out of money in

the Treasury not otherwise appropriated, such sums as may be

necessary to enable the Secretary of Agriculture (hereinafter

referred to as "the Secretary") to carry out the provisions of this

chapter. (June 4, 1946, ch. 281, § 3, 60 Stat. 230.)

§ 1753. Apportionments to States; definition.

The sums appropriated for any fiscal year pursuant to the

authorization contained in section 1752 of this title, excluding

the sum specified in section 1754 of this title, shall be available to

the Secretary for supplying, during such fiscal year, agricultural

commodities and other foods for the school-lunch program in

accordance with the provisions of this chapter. The Secretary

shall apportion among the States during each fiscal year not less

than 75 per centum of the aforesaid funds made available for such

year for supplying agricultural commodities and other foods under

the provisions of this chapter. The total of such apportionments

of funds for use in Puerto Rico, Guam, and the Virgin Islands

shall not exceed 3 per centum of the funds appropriated for

agricultural commodities and other foods for the school-lunch

program; except that in the case of the first apportionments of

funds from any annual or supplemental appropriation (and only

in such case), the apportionment for Puerto Rico, the apportionment for Guam, and the apportionment for the Virgin Islands,

shall be not less than that amount which will result in an allotment per child of school age equal to the allotment per child of

school age in the State (other than Puerto Rico, Guam, and the

Virgin Islands) having the lowest per capita income among the

States participating in such first apportionments. Apportionment

among the States shall be made on the basis of two factors:

(1) The number of school children in the State and (2) the need

for assistance in the State as indicated by the relation of the per

capita income in the United States to the per capita income in the

State. The amount of the initial apportionment to any State shall

be determined by the following method : First, determine an index

for the State by multiplying factors (1) and (2) ; second, divide

this index by the sum of the indices for all the States; and, finally,

apply the figure thus obtained to the total funds to be apportioned.

For the purpose of this section, the number of school children in

155
the State shall be the number of children therein between the ages

of five and seventeen, inclusive; such figures and per capita income figures shall be the latest figures certified by the Department

of Commerce. For the purposes of this chapter, "schooF' means

any public or nonprofit private school of high-school grade or

under and, with respect to Puerto Rico, shall also include nonprofit child-care centers certified as such by the Governor of

Puerto Rico. If any State cannot utilize all funds so apportioned

to it, or if additional funds are available under this chapter for

apportionment among the States, the Secretary shall make further

apportionments to the remaining States in the same manner.

(June 4, 1946, ch. 281, § 4, 60 Stat. 230; July 12, 1952. ch. 699.

§ 1 (a), 66 Stat. 591.) .

§1754. Nonfood assistance; amount; apportionment.

Of the sums appropriated for any fiscal year pursuant to the

authorization contained in section 1752 of this title, $10,000,000

shall be available to the Secretary for the purpose of providing,

during such fiscal year, nonfood assistance for the school-lunch

program pursuant to the provisions of this chapter. The Secretary

shall apportion among the States during each fiscal year the aforesaid sum of $10,000,000, and such apportionment among the

States shall be on the basis of the factors, and in accordance

with the standards, set forth in section 1753 of this title with

respect to the apportionment for agricultural commodities and

other foods. Apportionments of funds for use in Puerto Rico,

Guam, and the Virgin Islands for nonfood assistance shall be

determined subject to the provisions of the third sentence of

section 1753 of this title. (June 4, 1946, ch. 281, § 5, 60 Stat. 231;

July 12, 1952, ch. 699, § 1 (b), 66 Stat. 591.)

§ 1755. Direct expenditures for agricultural commodities and other

foods.

The funds appropriated for any fiscal year for carrying out

the provisions of this chapter, less not to exceed 3^ per centum

thereof made available to the Secretary for his administrative expenses and less the amount apportioned by him pursuant to sections 1753, 1754, and 1759 of this title, shall be available to the

Secretary during such year for direct expenditure by him for

agricultural commodities and other foods to be distributed among

the States and schools participating in the school-lunch program

under this chapter in accordance with the needs as determined

by the local school authorities. The provisions of law contained

in the proviso of section 713c of Title 15, facilitating operations

with respect to the purchase and disposition of surplus agricultural

commodities under section 612c of Title 7, shall, to the extent not

inconsistent with the provisions of this chapter, also be applicable

to expenditures of funds by the Secretary under this chapter.

(June 4, 1946, ch. 281, § 6, 60 Stat. 231.)

§ 1756. Payments to States; matching payments by States.

Funds apportioned to any State pursuant to sections 1753 or

1754 of this title during any fiscal year shall be available for payment to such State for disbursement by the State educational

agency, in accordance with such agreements not inconsistent with

156
the provisions of this chapter, as may be entered into by the

Secretary and such State educational agency, for the purpose of

assisting schools of that State during such fiscal year, in supplying (1) agricultural commodities and other foods for consumption by children and (2) nonfood assistance in furtherance of the

school-lunch program authorized under this chapter. Such payments to any State in any fiscal year during the period 1947

to 1950, inclusive, shall be made upon condition that each dollar

thereof will be matched during such year by $1 from sources

within the State determined by the Secretary to have been expended in connection with the school-lunch program under this

chapter. Such payments in any fiscal year during the period 1951

to 1955, inclusive, shall be made upon condition that each dollar

thereof will be so matched by one and one-half dollars ; and for any

fiscal year thereafter, such payments shall be made upon condition

that each dollar will be so matched by $3. In the case of any State

whose per capita income is less than the per capita income of the

United States, the matching required for any fiscal year shall be

decreased by the percentage which the State per capita income is

below the per capita income of the United States. For the purpose

of determining whether the matching requirements of this section

and section 1759 of this title, respectively, have been met, the reasonable value of donated services, supplies, facilities, and equipment as certified, respectively, by the State educational agency

and in case of schools receiving funds pursuant to section 1759

of this title, by such schools (but not the cost or value of land,

of the acquisition, construction, or alteration of buildings of

commodities donated by the Secretary, or of Federal contributions) , may be regarded as funds from sources within the State

expended in connection with the school-lunch program. The Secretary shall certify to the Secretary of the Treasury from time to

time the amounts to be paid to any State under this section

and the time or times such amounts are to be paid; and the

Secretary of the Treasury shall pay to the State at the time or

times fixed by the Secretary the amounts so certified. (June 4,

1946, ch. 281, § 7, 60 Stat. 232.)

§ 1757. State disbursement to schools; purpose; food costs; limitation.

Funds paid to any State during any fiscal year pursuant to sections 1753 or 1754 of this title shall be disbursed by the State

educational agency, in accordance with such agreements approved

by the Secretary as may be entered into by such State agency and

the schools in the State, to those schools in the State which the

State educational agency, taking into account need and attendance,

determines are eligible to participate in the school-lunch program.

Such disbursement, to any school shall be made only for the purpose of reimbursing it for the cost of obtaining agricultural

commodities and other foods for consumption by children in the

school-lunch program and nonfood assistance in connection with

such program. Such food costs may include, in addition to the

purchase price of agricultural commodities and other foods, the

cost of processing, distributing, transporting, storing, or handling

thereof. In no event shall such disbursement for food to any

school for any fiscal year exceed an amount determined by multi157
plying the number of lunches served in the school in the schoollunch program under this chapter during such year by the maximum Federal food-cost contribution rate for the State, for the

type of lunch served, as prescribed by the Secretary. (June 4,

1946, ch. 281, § 8, 60 Stat. 232.)

§ 1758. Nutritional and other program requirements; donatioii of

agricultural commodities.

Lunches served by schools participating in the school-lunch program under this chapter shall meet minimum nutritional requirements prescribed by the Secretary on the basis of tested nutritional research. Such meals shall be served without cost or at a

reduced cost to children who are determined by local school authorities to be unable to pay the full cost of the lunch. No physical

segregation of or other discrimination against any child shall be

made by the school because of his inability to pay. School-lunch

programs under this chapter shall be operated on a nonprofit basis.

Each school shall, insofar as practicable, utilize in its lunch program, commodities designated from time to time by the Secretary

as being in abundance, either nationally or in the school area, or

commodities donated by the Secretary. Commodities purchased

under the authority of section 612c of Title 7 may be donated by

the Secretary to schools, in accordance with the needs as determined by local school authorities, for utilization in the school-lunch

program under this chapter as well as to other schools carrying

out nonprofit school-lunch programs and institutions authorized

to receive such commodities. (June 4, 1946, ch. 281, § 9, 60 Stat.

233.)

§ 1759. Disbursement to nonprofit private schools; conditions.

If, in any State, the State educational agency is not permitted

by law to disburse the funds paid to it under this chapter to nonprofit private schools in the State, or is not permitted by law to

match Federal funds made available for use by such nonprofit

private schools, the Secretary shall withhold from the funds apportioned to any such State under sections 1753 and 1754 of this title

the same proportion of the funds as the number of children between the ages of five and seventeen, inclusive, attending nonprofit

private schools within the State is of the total number of persons

of those ages within the State attending school. The Secretary

shall disburse the funds so withheld directly to the nonprofit

private schools within said State for the same purposes and

subject to the same conditions as are authorized,or required with

respect to the disbursements to schools within the State by the

State educational agency, including the requirement that any such

payment or payments shall be matched, in the proportion specified

in section 1756 of this title for such State, by funds from sources

within the State expended by nonprofit private schools within the

State participating in the school-lunch program under this chapter. Such funds shall not be considered a part of the funds

constituting the matching funds under the terms of section 1756

of this title. (June 4, 1946, ch. 281, § 10, 60 Stat. 233.)

§ 1760. State accounts and records; inspection and audit; period

of retention; definition.

(a) States, State educational agencies, and schools participat158
ing in the school-lunch program under this chapter shall keep

such accounts and records as may be necessary to enable the

Secretary to determine whether the provisions of this chapter are

being complied with. Such accounts and records shall at all times

be available for inspection and audit by representatives of the

Secretary and shall be preserved for such period of time, not in

excess of five years, as the Secretary determines is necessary.

(b) The Secretary shall incorporate, in his agreements with the

State educational agencies, the express requirements under this

chapter with respect to the operation of the school-lunch program

under this chapter insofar as they may be applicable and such

other provisions as in his opinion are reasonably necessary or

appropriate to effectuate the purposes of this chapter.

(c) In carrying out the provisions of this chapter, neither the

Secretary nor the State shall impose any requirement with respect

to teaching personnel, curriculum, instruction, methods of instruction, and materials of instruction in any school. If a State maintains separate schools for minority and for majority races, no

funds made available pursuant to this chapter shall be paid or

disbursed to it unless a just and equitable distribution is made

within the State, for the benefit of such minority races, of funds

paid to it, under this chapter.

(d) For the purposes of this chapter—

(1) "State" includes any of the forty-eight States and the District of Columbia, Hawaii, Puerto Rico, Alaska, Guam, and the

Virgin Islands.

(2) "State educational agency'' means, as the State legislature

may determine, (a) the chief State school officer (such as the State

superintendent of public instruction, commissioner of education, or

similar officer), or (b) a board of education controlling the State

department of education ; except that in the District of Columbia

it shall mean the Board of Education, and except that for the

period ending June 30, 1948, "State educational agency" may

mean any agency or agencies within the State designated by the

Governor to carry out the functions herein required of a State

educational agency.

(3) "Nonprofit private school" means any private school exempt

from income tax under section 101 (6) of Title 26.

(4) "Nonfood assistance" means equipment used on school

premises in storing, preparing, or serving food for school children.

(June 4, 1946, ch. 281, § 11, 60 Stat. 233; July 12, 1952, ch. 699,

§ 1, (c), 66 Stat. 591.)

Special School Milk Program

(7 U.S.C. 1446(c))

(Excerpt—last sentence.)

For the period beginning September 1, 1954, and ending June

30, 1955, not to exceed $50,000,000, and for the fiscal year ending

June 30, 1956, not to exceed $60,000,000, and for each of the two

fiscal years in the period beginning July 1, 1956, and ending June

30,1958, not to exceed $75,000,000, of the funds of the Commodity

Credit Corporation shall be used to increase the consumption of

fluid milk by children in (1) nonprofit schools of high school grade

159
and under; and in (2) nonprofit nursery schools, child care

centers, settlement houses, summer camps, and similar nonprofit

institutions devoted to the care and training of children. (July 20,

1956, ch. 661, 70 Stat. 596.)

Agricultural Trade Development and Assistance Act of 1954

(7 U.S.C. 1691-1724)

§ 1691. Declaration of policy.

It is declared to be the policy of Congress to expand international trade among the United States and friendly nations, to

facilitate the convertibility of currency, to promote the economic

stability of American agriculture and the national welfare, to

make maximum efficient use of surplus agricultural commodities

in furtherance of the foreign policy of the United States, and to

stimulate and facilitate the expansion of foreign trade in agricultural commodities produced in the United States by providing

a means whereby surplus agricultural commodities in excess of

the usual marketings of such commodities may be sold through

private trade channels, and foreign currencies accepted in payment therefor. It is further the policy to use foreign currencies

which accrue to the United States under this chapter to expand

international trade, to encourage economic development, to purchase strategic materials, to pay United States obligations abroad,

to promote collective strength, and to foster in other ways the

foreign policy of the United States. (July 10, 1954, ch. 469, § 2,

68 Stat. 454.)

§ 1692. Bartering authority of Secretary; exchange for strategic

materials and materials for other purposes; cooperation of

agencies; assistance to cooperatives.

Whenever the Secretary of Agriculture has reason to believe

that, in addition to other authorized methods and means of disposing of agricultural commodities owned by the Commodity

Credit Corporation, there may be opportunity to protect the funds

and assets of the Commodity Credit Corporation by barter or

exchange of such agricultural commodities for (a) strategic materials entailing less risk of loss through deterioration or substantially less storage charges, or (b) materials, goods or equipment required in connection with foreign economic and military

aid and assistance programs, or (c) materials or equipment required in substantial quantities for offshore construction programs, he is directed to use every practicable means, in cooperation with other Government agencies, to arrange and make,

through private trade channels, such barters or exchanges or to

utilize the authority conferred on him by section 714b (h) of

title 15, to make such barters or exchanges. Agencies of the

United States Government procuring such materials, goods or

equipment are directed to cooperate with the Secretary in the

disposal of surplus agricultural commodities by means of barter

or exchange. Strategic materials so acquired by the Commodity

Credit Corporation shall be considered as assets of the Corporation

and other agencies of the Government, in purchasing strategic

160
materials, shall purchase such materials from Commodity Credit

Corporation inventories to the extent available in fulfillment of

their requirements. The Secretary is also directed to assist,

through such means as are available to him, farmers' cooperatives

in effecting exchange of agricultural commodities in their possession for strategic materials. (July 10, 1954, ch. 469, title III,

§ 303, 68 Stat. 459.)

§ 1693. Assistance to friendly nations in being independent of

Russian trade; prevention of increased availability of commodities to unfriendly nations.

The President shall exercise the authority contained in this

chapter and sections 1427 and 1431 of this title (1) to assist

friendly nations to be independent of trade with the U. S. S. R. or

nations dominated or controlled by the U. S. S. R. for food, raw

materials and markets, and (2) to assure that agricultural commodities sold or transferred under this chapter and sections 1427

and 1431 of this title do not result in increased availability of

those or like commodities to unfriendly nations. (July 10, 1954,

ch. 469, title III, § 304, 68 Stat. 459.)

§ 1694. Identification of packages and containers by appropriate

markings.

All Commodity Credit Corporation stocks disposed of under

subchapter III of this chapter and section 1431 of this title shall

be clearly identified by, as far as practical, appropriate marking

on each package or container as being furnished by the people of

the United States of America. (July 10, 1954, ch. 469, title III,

§ 305, 68 Stat. 459.)

§ 1701. Agreements with friendly nations and organizations; conditions.

In furtherance of the policy declared in section 1691 of this

title, the President is authorized to negotiate and carry out agreements with friendly nations or organizations of friendly nations

to provide for the sale of surplus agricultural commodities for

foreign currencies. In negotiating such agreements the President

shall-—

(a) take reasonable precautions to safeguard usual marketings of the United States and to assure that sales under

this chapter and sections 1427 and 1431 of this title will not

unduly disrupt world prices of agricultural commodities;

(b) take appropriate steps to assure that private trade

channels are used to the maximum extent practicable both

with respect to sales from privately owned stocks and from

stocks owned by the Commodity Credit Corporation ;

(c) give special consideration to utilizing the authority

and funds provided by this chapter and sections 1427 and

1431 of this title, in order to develop and expand continuous

market demand abroad for agricultural commodities, with

appropriate emphasis on underdeveloped and new market

areas ;

(d) seek and secure commitments from participating coun161
tries that will prevent resale or transshipment to other countries, or use for other than domestic purposes, of surplus

agricultural commodities purchased under this chapter and

sections 1427 and 1431 of this title without specific approval

of the President; and

(e) afford any friendly nation the maximum opportunity

to purchase surplus agricultural commodities from the United

States, taking into consideration the opportunities to achieve

the declared policy of this chapter and sections 1427 and

1431 of this title and to make effective use of the foreign

currencies received to carry out the purposes of this chapter

and said sections. (July 10, 1954, ch. 469, title I, § 101, 68

Stat. 455.)

§ 1702. Same.

(a) Availability of stocks acquired in price support operations,

privately owned stocks, and funds.

For the purpose of carrying out agreements concluded by the

President under this chapter and sections 1427 and 1431 of this

title, the Commodity Credit Corporation, in accordance with regulations issued by the President pursuant to subsection (b) of

this section, (1) shall make available for sale, under this chapter

and sections 1427 and 1431 of this title, to domestic exporters

surplus agricultural commodities heretofore or hereafter acquired

by the Corporation in the administration of its price-support

operations, and (2) shall make funds available to finance the

sale and exportation of surplus agricultural commodities, whether

from private stocks or from stocks of the Commodity Credit

Corporation. In supplying such commodities to exporters under

this subsection the Commodity Credit Corporation shall not be

subject to the sales price restrictions in section 1427 of this title.

The commodity set-aside established for any commodity under

section 1741 of this title shall be reduced by a quantity equal

to the quantity of such commodity financed under this chapter and

sections 1427 and 1431 of this title, which is exported from private

stocks.

(b) Letters of commitment against funds or guaranties ; establishment of accounts. In order to facilitate and maximize the use

of private channels of trade in carrying out agreements entered

into pursuant to this chapter and sections 1427 and 1431 of this

title, the President may, under such regulations and subject to such

safeguards as he deems appropriate, provide for the issuance of

letters of commitment against funds or guaranties of funds supplied by the Commodity Credit Corporation and for this purpose

accounts may be established on the books of any department,

agency, or establishment of the Government, or on terms and

conditions approved by the Secretary of the Treasury in banking

institutions in the United States. Such letters of commitment,

when issued, shall constitute obligations of the United States and

moneys due or to become due thereunder shall be assignable under

the Assignment of Claims Act of 1940. Expenditures of funds

which have been made available through accounts so established

shall be accounted for on standard documentation required for

expenditures of Government funds. (July 10, 1954, ch. 469, title I,

§ 102, 68 Stat. 455, amended April 25, 1955, ch. 27, 69 Stat. 44.)

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§ 1703. Appropriations for reimbursement of Commodity Credit

Corporation; advance use of other funds; limitation on transactions.

(a) For the purpose of making payment to the Commodity

Credit Corporation to the extent the Commodity Credit Corporation is not reimbursed under section 1705 of this title for commodities disposed of and costs incurred under subchapters II and

III of this chapter, there are authorized to be appropriated such

sums as are equal to (1) the Corporation's investment in commodities made available for export under this subchapter and

subchapter III of this chapter, including processing, packaging,

transportation, and handling costs, (2) all costs incurred by the

Corporation in making funds available to finance the exportation

of surplus agricultural commodities pursuant to this subchapter,

and (3) all Commodity Credit Corporation funds expended for

ocean freight costs authorized under subchapter III of this chapter

for purposes of section 1431 of this title. Any funds or other

assets available to the Commodity Credit Corporation may be used

in advance of such appropriation or payments, for carrying out

the purposes of this chapter and sections 1427 and 1431 of this

title.

(b) Transactions shall not be carried out under this subchapter

which will call for appropriations to reimburse the Commodity

Credit Corporation, pursuant to subsection (a) of this section,

in amounts in excess of $3,000,000,000. This limitation shall not

be apportioned by year or by country, but shall be considered as

an objective as well as a limitation, to be reached as rapidly as

possible so long as the purposes of this chapter and sections 1427

and 1431 of this title can be achieved within the safeguards established. (July 10, 1954, ch. 469, title I, § 103, 68 Stat. 456, amended

Aug. 12, 1955, ch. 873, § 1, 69 Stat. 721 ; May 28, 1956, ch. 327,

title II, §208 (a) 70 Stat. 201; August 3, 1956, ch. 933, § 1, 70

Stat. 988.)

§ 1704. Purposes for which foreign currencies may be used.

Notwithstanding section 724 of title 31, or any other provision

of law, the President may use or enter into agreements with

friendly nations or organizations of nations to use the foreign

currencies which accrue under this subchapter for one or more

of the following purposes:

(a) To help develop new markets for United States agricultural commodities on a mutually benefiting basis;

(b) To purchase or contract to purchase strategic and

critical materials, within the applicable terms of the Strategic

and Critical Materials Stockpile Act, for a supplemental

United States stockpile or such materials as the President

may determine from time to time under contracts, including

advance payment contracts, for supply extending over periods

up to ten years. All strategic and critical materials acquired

under authority of this title shall be placed in the above named

supplemental stockpile and may be additional to the amounts

acquired under authority of the Strategic and Critical Materials Stockpile Act. Materials so acquired shall be released

from the supplemental stockpile only under the provisions

of section 98b of title 50;

163
(c) To procure military equipment, materials, facilities,

and services for the common defense ;

(d) For financing the purchase of goods or services for

other friendly countries;

(e) For promoting balanced economic development and

trade among nations ;

(f) To pay United States obligations abroad ;

(g) For loans to promote multilateral trade and economic

development, made through established banking facilities of

- the friendly nation from which the foreign currency was

obtained or in any other manner which the President may

deem to be appropriate. Strategic materials, services, or

foreign currencies may be accepted in payment of such loans ;

(h) For the financing of international educational exchange activities under the programs authorized by section

1641 (b) (2) of the Appendix to Title 50. In the allocation

of funds as among the various purposes set forth in this

section, a special effort shall be made to provide for the purposes of this subsection, including a particular effort with

regard to: (1) countries where adequate funds are not available from other sources for such purposes, and (2) countries

where agreements can be negotiated to establish a fund with

the interest and principal available over a period of years for

such purposes ;

(i) For financing the translation, publication, and distribution of books and periodicals, including Government publications, abroad : Provided, That not more than $5,000,000 may

be allocated for this purpose during any fiscal year ;

(j) For providing assistance to activities and projects

authorized by section 1448 of Title 22, but no foreign currencies which are available under the terms of any agreement

for appropriation for the general use of the United States

shall be used for the purposes of this subsection without

appropriation therefor :

Provided, however. That section 724 of title 31 shall apply to all

foreign currencies used for grants under subsections (d) and (e)

of this section and for payment of United States obligations involving grants under subsection (f) of this section and to not

less than 10 per* centum of the foreign currencies which accrue

under this title: Provided, however. That the President is authorized to waive such applicability of section 724 of title 31 in any

case where he determines that it would be inappropriate or

inconsistent with the purposes of this subchapter. (July 10, 1954,

ch. 469, title I, § 104, 68 Stat. 456, amended Aug. 26, 1954, ch. 937,

§ 544 (h), (i), as added July 18, 1956, ch. 627, § 11 (a), 70 Stat.

563, and amended Aug. 3, 1956, ch. 933, § 2, 70 Stat. 988.)

§ 1705. Deposit of foreign currencies in special account; reimbursements to Commodity Credit Corporation of sums used by other

agencies.

Foreign currencies received pursuant to this subchapter shall

be deposited in a special account to the credit of the United States

and shall be used only pursuant to section 1704 of this title, and

any department or agency of the government using any of such

currencies for a purpose for which funds have been appropriated

164
shall reimburse the Commodity Credit Corporation in an amount

equivalent to the dollar value of the currencies used. (July 10,

1954, ch. 469, title I, § 105, 68 Stat. 457.)

§ 1706. Definition of "surplus agricultural commodity"; determination of nations with whom agreements shall be negotiated.

As used in this chapter and sections 1427 and 1431 of this title,

"surplus agricultural commodity'' shall mean any agricultural

commodity or product thereof, class, kind, type, or other specification thereof, produced in the United States, either privately or

publicly owned, which is or may be reasonably expected to be in

excess of domestic requirements, adequate carryover, and anticipated exports for dollars, as determined by the Secretary of

Agriculture. The Secretary of Agriculture is also authorized to

determine the nations with whom agreements shall be negotiated,

and to determine the commodities and quantities thereof which

may be included in the negotiations with each country after advising with other agencies of Government affected and within

broad policies laid down by the President for implementing this

chapter and sections 1427 and 1431 of this title. (July 10, 1954,

ch. 469, title I, § 106, 68 Stat. 457, amended Aug. 12, 1955, ch. 873,

§ 2, 69 Stat. 721.)

§ 1707. Definition of "friendly nation."

As used in this chapter and sections 1427 and 1431 of this title,

"friendly nation" means any country other than (1) the U.S.S.R.,

or (2) any nation or area dominated or controlled by the foreign

government or foreign organization controlling the world Communist movement. (July 10, 1954, ch. 469, title I, § 107, 68 Stat.

457.)

§ 1708. Reports to Congress by President.

The President shall make a report to Congress with respect to

the activities carried on under this chapter and sections 1427 and

1431 of this title, at least once each six months and at such other

times as may be appropriate and such reports shall include the

dollar value, at the exchange rates in effect at the time of the sale,

of the foreign currency for which commodities exported pursuant

to section 1702 (a) of this title are sold. (July 10, 1954, ch. 469,

title I, § 108, 68 Stat. 457.)

§ 1709. Termination date for transactions under this subchapter.

No transactions shall be undertaken under authority of this

subchapter after June 30, 1957, except as required pursuant to

agreements theretofore entered into pursuant to this subchapter.

(July 10,1954, ch. 469, title I, § 109, 68 Stat. 457.)

§ 1721. Availability of surplus agricultural commodities for emergency relief of friendly peoples.

In order to enable the President to furnish emergency assistance

on behalf of the people of the United States to friendly peoples in

meeting famine or other urgent or extraordinary relief requirements, the Commodity Credit Corporation shall make available to

the President out of its stocks such surplus agricultural commodities (as defined in section 1706 of this title) as he may

165
request, for transfer (1) to any nation friendly to the United

States in order to meet famine or other urgent or extraordinary

relief requirements of such nation, and (2) to friendly but needy

populations without regard to the friendliness of their government.

(July 10, 1954, ch. 469, title II, § 201, 68 Stat. 457, amended May

28,1956, ch. 327, title II, § 208 (b), 70 Stat. 201 ; Aug. 3, 1956, ch.

933, § 4, 70 Stat. 988.)

§ 1722. Transfer of commodities on a grant basis to assist programs; protection of sales possibilities.

The President may authorize the transfer on a grant basis of

surplus agricultural commodities from Commodity Credit Corporation stocks to assist programs undertaken with friendly governments or through voluntary relief agencies: Provided, That the

President shall take reasonable precaution that such transfers will

not displace or interfere with sales which might otherwise be made.

(July 10, 1954, ch. 469, title II, § 202, 68 Stat. 458.)

§ 1723. Limitation on transfers of commodities; use of agencies,

organizations, and facilities in making transfers; payment of

ocean freight charges.

Not more than $500,000,000 (including the Corporation's investment in the commodities) shall be expended for all such transfers and for other costs authorized by this subchapter. The President may make such transfers through such agencies including

intergovernmental organizations, in such manner, and upon such

terms and conditions as he deems appropriate ; he shall make use

of the facilities of voluntary relief agencies to the extent practicable. Such transfers may include delivery f. o. b. vessels in

United States ports and, upon a determination by the President

that it is necessary to accomplish the purposes of this subchapter

or of section 1431 of this title, ocean freight charges from United

States ports to designated ports of entry abroad may be paid from

funds available to carry out this subchapter on commodities transferred pursuant hereto or donated under said section 1431 of this

title. Funds required for ocean freight costs authorized under this

subchapter may be transferred by the Commodity Credit Corporation to such other Federal agency as may be designated by the

President. (July 10, 1954, ch. 469, title II, § 203, 68 Stat. 458,

amended May 28, 1956, ch. 327, title II, § 208 (c), 70 Stat. 201.)

§ 1724. Termination date for assistance under this subchapter.

No programs of assistance shall be undertaken under the authority of this subchapter after June 30, 1957. (July 10, 1954, ch.

469, title II, § 204, 68 Stat. 458.)

Commodity Set-Aside

(7 U.S.C. 1741-1747)

§ 1741. Maximum and minimum quantities for set-aside; definition.

The Commodity Credit Corporation shall, as rapidly as the

Secretary of Agriculture shall determine to be practicable, set

aside within its inventories not more than the following maximum

quantities and not less than the following minimum quantities of

agricultural commodities or products thereof heretofore or here166
after acquired by it from 1954 and prior years* crops and production in connection with its price support operations :

Maximum Minimum

Commodity quantity quantity

Wheat (bushels) 500,000,000 400,000,000

Upland cotton (bales) 4,000,000 3,000,000

Cottonseed oil (pounds) 500,000,000 0

Butter (pounds) 200,000,000 0

Nonfat dry milk solids (pounds) 300,000,000 0

Cheese (pounds) 150,000,000 0

Such quantities shall be known as the "commodity set-aside'\

(Aug. 28,1954, ch. 1041, title I, § 101, 68 Stat. 897.)

§ 1742. Determination of commodity value for set-aside.

Quantities of commodities shall not be included in the commodity set-aside which have an aggregate value in excess of

$2,500,000,000. The value of the commodities placed in the commodity set-aside for the purpose of this section, shall be the Corporation's investment in such commodities as of the date they are

included in the commodity set-aside, as determined by the Secretary. (Aug. 28,1954, ch. 1041, title I, § 102, 68 Stat. 897.)

§ 1743. Reduction of set-aside.

(a) Such commodity set-aside shall be reduced by disposals

made in accordance with the directions of the President as follows :

(1) Donation, sale, or other disposition for disaster or other

relief purposes outside the United States pursuant to and subject

to the limitations of subchapter III of chapter 41 of this title ;

(2) Sale or barter (including barter for strategic materials)

to develop new or expanded markets for American agricultural

commodities, including but not limited to disposition pursuant to

and subject to the limitations of subchapter II of chapter 41 of this

title;

(3) Donation to school-lunch programs;

(4) Transfer to the national stockpile established pursuant to

sections 98-98h of title 50, without reimbursement from funds

appropriated for the purposes of said sections;

(5) Donation, sale, or other disposition for research, experimental, or educational purposes ;

(6) Donation, sale, or other disposition for disaster relief purposes in the United States or to meet any national emergency

declared by the President ; and

(7) Sale for unrestricted use to meet a need for increased supplies at not less than 105 per centum of the parity price in the

case of agricultural commodities and a price reflecting 105 per

centum of the parity price of the agricultural commodity in the

case of products of agricultural commodities.

The President shall prescribe such terms and conditions for the

disposal of commodities in the commodity set-aside as he determines will provide adequate safeguards against interference with

normal marketings of the supplies of such commodities outside the

commodity set-aside. Strategic materials acquired by the Commodity Credit Corporation under paragraph (2) of this subsection

shall be transferred to the national stockpile established pursuant

to sections 98-98h of title 50, and the Commodity Credit Corpora167
tion shall be reimbursed for the value of the commodities bartered

for such strategic materials from funds appropriated pursuant to

section 98g of title 50. For the purpose of such reimbursement,

the value of any commodity so bartered shall be the lower of the

domestic market price or the Commodity Credit Corporation's investment therein as of the date of such barter, as determined by

the Secretary of Agriculture.

(b) The quantity of any commodity in the commodity set-aside

shall be reduced to the extent that the Commodity Credit Corporation inventory of such commodity is reduced, by natural or other

cause beyond the control of the Corporation, below the quantity

then charged to the commodity set-aside. (Aug. 28, 1954, ch. 1041,

title I, § 103, 68 Stat. 898.)

§ 1744. Sale of commodities in set-aside; exemption from pricing

limitations.

(a) The Corporation shall have authority to sell, without regard

to section 1743 (a) (7) of this title, any commodity covered by

the commodity set-aside for the purpose of rotating stocks or consolidating inventories, any such sale to be offset by purchase of

the same commodity in a substantially equivalent quantity or of a

substantially equivalent value.

(b) Dispositions pursuant to this chapter shall not be subject

to the pricing limitations of section 1427 of this title. (Aug. 28,

1954, ch. 1041, title I, § 104, 68 Stat. 898.)

§ 1745. Computation of carryover.

The quantity of any commodity in the commodity set-aside or

transferred from the set-aside to the national stockpile established

pursuant to sections 98-98h of title 50 shall be excluded from the

computation of "carryover" for the purpose of determining the

price support level for such commodity under the Agricultural Act

of 1949, as amended, and related legislation, but shall be included

in the computation of total supplies for purposes of acreage allotments and marketing quotas under the Agricultural Adjustment

Act of 1938, as amended, and related legislation. Until such time

as the commodity set-aside has been completed, such quantity of

the commodity as the Secretary shall determine between the maximum and minimum quantities specified in section 1741 of this title

shall be excluded from the computations of "carryover" for the

purpose of determining the price support level, but shall be included in the computation of total supplies for purposes of acreage

allotments and marketing quotas, for the 1955 crop of the commodity, notwithstanding that the quantity so excluded may not

have been acquired by the Corporation and included in the commodity set-aside. (Aug. 28, 1954, ch. 1041, title I, § 105, 68 Stat.

898.)

§ 1746. Records and accounts.

The Commodity Credit Corporation shall keep such records and

accounts as may be necessary to show, for each commodity setaside, the initial and current composition, value (in accordance

with section 1742 of this title), current investment, quantity disposed of, method of disposition, and amounts received on disposition. (Aug. 28, 1954, ch. 1041, title I, § 106, 68 Stat. 898.)

168
§ 1747. Appropriations; determination of values; of transferred

commodity.

In order to make payment to the Commodity Credit Corporation

for any commodities transferred to the national stockpile pursuant

to section 1743 (a) (4) of this title, there are authorized to be

appropriated amounts equal to the value of any commodities so

transferred. The value of any commodity so transferred, for the

purpose of this section, shall be the lower of the domestic market

price or the Commodity Credit Corporation's investment therein

as of the date of transfer to the stockpile, as determined by the

Secretary of Agriculture. (Aug. 28, 1954, ch. 1041, title I, § 107,

68 Stat. 898.)

PART D

MISCELIANEOUS

National Wool Act of 1954

(7 U.S.C. 1781-1787)

§ 1781. Declaration of policy.

It is hereby recognized that wool is an essential and strategic

commodity which is not produced in quantities and grades in the

United States to meet the domestic needs and that the desired

domestic production of wool is impaired by the depressing effects

of wide fluctuations in the price of wool in the world markets. It is

declared to be the policy of Congress, as a measure of national

security and in promotion of the general economic welfare, to

encourage the annual domestic production of approximately three

hundred million pounds of shorn wool, grease basis, at prices fair

to both producers and consumers in a manner which will have the

least adverse effects upon foreign trade. ( Aug. 28, 1954, ch. 1041,

title VII, § 702, 68 Stat. 910.)

§ 1782. Price supports; time limitations.

The Secretary of Agriculture shall, through the Commodity

Credit Corporation, support the prices of wool and mohair,

respectively, to the producers thereof by means of loans, purchases, payments, or other operations. Such price support shall be

limited to wool and mohair marketed during the period beginning

April 1, 1955, and ending March 31, 1959. The support price for

shorn wool shall be at such incentive level as the Secretary, after

consultation with producer representatives, and after taking into

consideration prices paid and other cost conditions affecting sheep

production, determines to be necessary in order to encourage an

annual production consistent with the declared policy of this

chapter : Provided, That the support price for shorn wool shall not

169
exceed llô per centum of the parity price therefor. If the support

price so determined does not exceed 90 per centum of the parity

price for shorn wool, the support price for shorn wool shall be at

such level, not in excess of 90 per centum nor less than 60 per

centum of the parity price therefor, as the Secretary determines

necessary in order to encourage an annual production of approximately three hundred and sixty million pounds of shorn wool. The

support prices for pulled wool and for mohair shall be established

at such levels, in relationship to the support price for shorn wool,

as the Secretary determines will maintain normal marketing practices for pulled wool, and as the Secretary shall-determine is

necessary to maintain approximately the same percentage of parity

for mohair as for shorn wool. The deviation of mohair support

prices shall not be calculated so as to cause it to rise or fall more

than 15 per centum above or below the comparable percentage of

parity at which shorn wool is supported. Notwithstanding the foregoing, no price support shall be made available, other than through

payments, at a level in excess of 90 per centum of the parity price

for the commodity. The Secretary shall, to the extent practicable,

announce the support price levels for wool and mohair sufficiently

in advance of each marketing year as will permit producers to

plan their production for such marketing year. (Aug. 28, 1954, ch.

1041, title VII, § 703, 68 Stat. 910.)

§ 1783, Payments utilized as price supports.

If payments are utilized as a means of price support, the payments shall be such as the Secretary of Agriculture determines to

be sufficient, when added to the national average price received

by producers, to give producers a national average return for the

commodity equal to the support price level therefor: Provided,

That the total of all such payments made under this Act shall

not at any time exceed an amount equal to 70 per centum of the

accumulated totals, as of the same date, of the gross receipts from

specific duties (whether or not such specific duties are parts of

compound rates) collected on and after January 1, 1953, on all

articles subject to duty under paragraphs 1101-1122 of section

1001 of title 19. The payments shall be made upon wool and mohair

marketed by the producers thereof, but any wool or mohair produced prior to January 1, 1955, shall not be the subject of payments. The payments shall be at such rates for the marketing year

or periods thereof as the Secretary determines will give producers

the support price level as herein provided. Payments to any producer need not be made if the Secretary determines that the

amount of the payment to the producer or all producers is too

small to justify the cost of making such payments. The Secretary

may make the payment to producers through the marketing agency

to or through whom the producer marketed his wool or mohair:

Provided, That such marketing agency agrees to receive and

promptly distribute the payments on behalf of such producers. In

case any person who is entitled to any such payment dies, becomes

incompetent, or disappears before receiving such payment, or is

succeeded by another who renders or completes the required performance, the payment shall, without regard to any other provisions of law, be made as the Secretary may determine to be

fair and reasonable in all the circumstances and provided by

170
regulation. (Aug. 28, 1954, cli. 1Ô41, title Vlí, § 704, 68 Ötat.

911.)

§ 1784, Reimbursement to Commodity Credit Corporation.

For the purpose of reimbursing the Commodity Credit Corporation for any expenditures made by it in connection with payments

to producers under this chapter, there is appropriated for each

fiscal year beginning with the fiscal year ending June 30, 1956, an

amount equal to the total of expenditures made by the Corporation

during the preceding fiscal year and to any amounts expended in

prior fiscal years not previously reimbursed: Provided, however,

That such amounts appropriated for any fiscal year shall not exceed 70 per centum of the gross receipts from specific duties

(whether or not such specific duties are parts of compound rates)

collected during the period January 1 to December 31, both inclusive, preceding the beginning of each such fiscal year on all

articles subject to duty under paragraphs 1101-1122 of section

1001 of title 19. For the purposes of the appraisal under sections

713a-l to 713a-5 of title 15, the Commodity Credit Corporation

shall establish on its books an account receivable in an amount

equal to any amount expended by Commodity Credit Corporation

in connection with payments pursuant to this chapter which has

not been reimbursed from appropriations made hereunder. (Aug.

28, 1954, ch. 1041, title VII, § 705, 68 Stat. 911.)

§ 1785. Determination of price support operations by Secretary.

Except as otherwise provided in this chapter the amounts, terms,

and conditions of the price support operations and the extent

to which such operations are carried out shall be determined or

approved by the Secretary of Agriculture. The Secretary may, in

determining support prices and rates of payment, make adjustments in such prices or rates for differences in grade, quality,

type, location, and other factors to the extent he deems practicable

and desirable. Determinations by the Secretary under this chapter

shall be final and conclusive. The facts constituting the basis for

any operation, payment, or amount thereof when officially determined in conformity with applicable regulations prescribed by

the Secretary shall be final and conclusive and shall not be reviewable by any other officer or agency of the Government. (Aug. 28,

1954, ch. 1041, title VII, § 706, 68 Stat. 912.)

§ 1786. Definitions.

The term ''marketing year" as used in this chapter means the

12-month period beginning April 1 of each calendar year, or for

either wool or mohair, such other period, or periods for prescribed

areas, as the Secretary may determine to be desirable to effectuate

the purpose of this chapter. (Aug. 28, 1954, ch. 1041, title VII,

§ 707, 68 Stat. 912.)

§ 1787. Agreements, marketing cooperatives, trade associations»

etc., approval; referendum.

The Secretary of Agriculture is authorized to enter into agreements with, or to approve agreements entered into between, marketing cooperatives, trade associations, or others engaged or whose

members are engaged in the handling of wool, mohair, sheep, or

171
goats or the products thereof for the purpose of developing and

conducting on a national, State, or regional basis advertising and

sales promotion programs for wool, mohair, sheep, or goats or the

products thereof. Provision may be made in such agreement to

obtain the funds necessary to defray the expenses incurred thereunder through pro rata deductions from the payments made under

section 1784 of this title to producers within the production area

he determines will be benefited by the agreement and for the

assignment and transfer of the amounts so deducted to the person

or agency designated in the agreement to receive such amounts

for expenditure in accordance with the terms and conditions for

the agreement. No agreement containing such a provision for

defraying expenses through deductions shall become effective

until the Secretary determines that at least two-thirds of the

producers who, during a representative period determined by the

Secretary, have been engaged, within the production area he

determines will be benefited by the agreement, in the production

for market of the commodity who, during such representative

period have produced at least two-thirds of the volume of such

commodity produced within the area which will be benefited by

such agreement, approve or favor such agreement. Approval or

disapproval by cooperative associations shall be considered as

approval or disapproval by the producers who are members of,

stockholders in, or under contract with such cooperative association of producers. The Secretary may conduct a referendum among

producers to ascertain their approval or favor. The requirements

of approval or favor shall be held to be complied with if twothirds of the total number of producers, or two-thirds of the

total volume of production, as the case may be represented in

such referendum, indicate their approval or favor. (Aug. 28,1954,

ch. 1041, title VII, § 708, 68 Stat. 912.)

Capper-Volstead Act

(7 U.S.C. 291, 292)

§ 291. Authorization of associations; powers generally.

Persons engaged in the production of agricultural products as

farmers, planters, ranchmen, dairymen, nut or fruit growers may

act together in associations, corporate or otherwise with or without capital stock, in collectively processing, preparing for market,

handling, and marketing in interstate and foreign commerce,

such products of persons so engaged. Such associations may have

marketing agencies in common; and such associations and their

members may make the necessary contracts and agreements to

effect such purposes: Provided, however, That such associations

are operated for the mutual benefit of the members thereof, as

such producers, and conform to one or both of the following

requirements:

First. That no member of the association is allowed more

than one vote because of the amount of stock or membership

capital he may own therein, or.

Second. That the association does not pay dividends on stock

or membership capital in excess of 8 per centum per annum.

And in any case to the following :

Third. That the association shall not deal in the products of

172
nonmembers to an amount greater in value than such as are

handled by it for members. (Feb. 18, 1922, ch. 57, § 1, 42 Stat.

388.)

§ 292. Monopolizing or restraining trade and unduly enhancing

prices prohibited; remedy and procedure.

If the Secretary of Agriculture shall have reason to believe

that any such association monopolizes or restrains trade in interstate or foreign commerce to such an extent that the price of

any agricultural product is unduly enhanced by reason thereof,

he shall serve upon such association a complaint stating his

charge in that respect, to which complaint shall be attached, or

contained therein, a notice of hearing, specifying a day and place

not less than thirty days after the service thereof, requiring the

association to show cause why an order should not be made directing it to cease and desist from monopolization or restraint of trade.

An association so complained of may at the time and place so

fixed, show cause why such order should not be entered. The

evidence given on such a hearing shall be taken under such rules

and regulations as the Secretary of Agriculture may prescribe,

reduced to writing, and made a part of the record therein. If

upon such hearing the Secretary of Agriculture shall be of the

opinion that such association monopolizes or restrains trade in

interstate or foreign commerce to such an extent that the price

of any agricultural product is unduly enhanced thereby, he shall

issue and cause to be served upon the association an order

reciting the facts found by him, directing such association to

cease and desist from monopolization or restraint of trade. On

the request of such association or if such association fails or

neglects for thirty days to obey such order, the Secretary of Agriculture shall file in the district court in the judicial district in

which such association has its principal place of business a

certified copy of the order and of all the records in the proceeding,

together with a petition asking that the order be enforced, and

shall give notice to the Attorney General and to said association

of such filing. Such district court shall thereupon have jurisdiction

to enter a decree affirming, modifying, or setting aside said order,

or enter such other decree as the court may deem equitable, and

may make rules as to pleadings and proceedings to be had in

considering such order. The place of trial may, for cause or by

consent of parties, be changed as in other causes.

The facts found by the Secretary of Agriculture and recited

or set forth in said order shall be prima facie evidence of such

facts, but either party may adduce additional evidence. The Department of Justice shall have charge of the enforcement of such

order. After the order is so filed in such district court and while

pending for review therein the court may issue a temporary writ

of injunction forbidding such association from violating such

order or any part thereof. The court may, upon conclusion of its

hearing, enforce its decree by a permanent injunction or other

appropriate remedy. Service of such complaint and of all notices

may be made upon such association by service upon any officer

or agent thereof engaged in carrying on its business, or on any

attorney authorized to appear in such proceeding for such association, and such service shall be binding upon such association,

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the officers, and members thereof. (Feb. 18, 1922, ch. 57, § 2,

42 Stat. 388.)

Organic Act of 1944

(7 U.S.C. 396)

Inspection of livestock, hides, animal products, etc.; place; charges;

disposal of funds.

The Secretary of Agriculture upon application of any exporter,

importer, packer, or owner of, or the agent thereof, or dealer in,

livestock, hides, skins, meat, or other animal products may, in

his discretion, cause to be made inspections and examinations at

places other than the headquarters of inspectors for the convenience of said applicants, who may be charged for the expenses of

travel and subsistence incurred for such inspections and examinations, the funds derived from such charges to be deposited in the

Treasury of the United States to the credit of the appropriation

from which the expenses are paid. (Sept. 21, 1944, ch. 412, title I,

§101 (c), 58 Stat. 734.)

Oaths, Witnesses, and Records

(7 U.S.C. 420)

§ 420. Power to administer oaths, examine witnesses, or require

production of books, etc.

In the performance of the duties required of the Bureau of

Agricultural Economics in the administration or enforcement of

provisions of Acts (United States Cotton Futures Act, 39 Statutes

at Large, page 476; United States Grain Standards Act, 39

Statutes at Large, page 482; United States Warehouse Act,

39 Statutes at Large, page 486; Standard Container Act, 39

Statutes at Large, page 673 ; and the Acts making annual appropriations for the Department of Agriculture) relating to the

Department of Agriculture, the Secretary of Agriculture, or any

representative specifically authorized in writing by him for the

purpose, shall have power to administer oaths, examine witnesses

and call for the production of books and papers. (July 24, 1919,

ch. 26, 41 Stat. 267; May 11, 1922, ch. 185, 42 Stat. 532.)

Agricultural Marketing Act of 1929

(12 U.S.C. 1141j(d))

(d) GOVERNMENTAL PUBLICATIONS; PREDICTIONS AS TO COTTON

PRICES PROHIBITED.

The inclusion in any governmental report, bulletin, or other

such publication hereafter issued or published of any prediction

with respect to cotton prices is prohibited. Any officer or employee

of the United States who authorizes or is responsible for the

inclusion in any such report, bulletin, or other publication of any

such prediction, or who knowingly causes the issuance or publication of any such report, bulletin, or other publication containing

any such prediction, shall, upon conviction thereof, be fined not

less than $500 or more than $5,000, or imprisoned for not more

than five years, or both: Provided, That this subdivision shall

not apply to the Governor of the Farm Credit Administration

174
when engaged in the performance of his duties herein provided.

(June 15, 1929, ch. 24, § 15, 46 Stat. 18; March 4, 1931, ch. 520,

§ 3, 46 Stat. 1550; Ex. Ord. No. 6084, Mar. 27, 1933; June 16,

1933, ch. 98, title V, § 55, 48 Stat. 266; June 3, 1935, ch. 164, § 12,

49 Stat. 317.)

Excerpts from Appropriation Act of 1957

(Act of June 4, 1956, 70 Stat. 229, 234, 241)

(a) Limitations on certain apples and cotton statistics.

Marketing research and agricultural estimates: For * * * *.

Provided further, That no part of the funds herein appropriated

shall be available for any expense incident to ascertaining, collating, or publishing a report stating the intention of farmers as

to the acreage to be planted in cotton, or for estimates of apple

production for other than the commercial crop.

(b) Contracting authority for research and service.

Not less than $1,500,000 of the appropriations of the Department for research and service work authorized by the Act of

August 14, 1946 (7 U.S.G. 427, 1621-1629), and the Act of July

28, 1954 (Public Law 545), shall be available for contracting in

accordance with said Acts.

(c) Advisory committee expenses.

Appropriations of the Department available for research and

service work authorized by the Act of August 14, 1946 (7 U.S.C.

427, 1621-1629) shall be available for expenses of any advisory

committee established as provided in title III of said Act to assist

in effectuating the research and service work of the Department.

Organic Act of 1956

(70 stat. 1034)

Travel and per diem expenses of temporary or seasonal employees.

Under such regulations as may be prescribed by the Secretary

of Agriculture, funds available to the Department of Agriculture

may be used for the payment of transportation expenses and per

diem in lieu of subsistence expenses, in accordance with the Travel

Expense Act of 1949, for travel between places of recruitment and

duty, and while at places of duty, of persons appointed for temporary or seasonal services in inspection, classing or grading

agricultural commodities. (Aug. 3, 1956, ch. 950, § 12, 70 Stat.

1034.)

Federal Reports Act of 1942

(5 U.S.C. 139-139f)

§ 139. Declaration of Congressional policy.

It is declared to be the policy of the Congress that information

which may be needed by the various Federal agencies should be

obtained with a minimum burden upon business enterprises (especially small business enterprises) and other persons required to

furnish such information, and at a minimum cost to the Government, that all unnecessary duplication of efforts in obtaining such

information through the use of reports, questionnaires, and other

175
such methods should be eliminated as rapidly as practicable ; and

that information collected and tabulated by any Federal agency

should insofar as is expedient be tabulated in a manner to maximize the usefulness of the information to other Federal agencies

and the public. (Dec. 24, 1942, ch. 811, § 2, 56 Stat. 1078.)

§ 139a. Collection of information.

(a) DUTIES OP THE DIRECTOR OP THE BUREAU OP THE BUDGET.

With a view to carrying out the policy of sections 139-139f of

this title, the Director of the Bureau of the Budget (hereinafter

referred to as the "Director") is directed from time to time (1)

to investigate the needs of the various Federal agencies for

information from business enterprises, from other persons, and

from other Federal agencies; (2) to investigate the methods used

by such agencies in obtaining such information; and (3) to

coordinate as rapidly as possible the information-collecting services of all such agencies with a view to reducing the cost to the

government of obtaining such information and minimizing the

burden upon business enterprises and other persons, and utilizing,

as far as practicable, the continuing organization, files of information and existing facilities of the established Federal departments and independent agencies.

(b) DESIGNATION OP CENTRAL COLLECTION AGENCY.

If, after any such investigation, the Director is of the opinion

that the needs of two or more Federal agencies for information

from business enterprises and other persons will be adequately

served by a single collecting agency, he shall fix a time and place

for a hearing at which the agencies concerned and any other interested persons shall have an opportunity to present their views.

After such hearing, the Director may issue an order designating a

collecting agency to obtain such information for any two or more

of the agencies concerned, and prescribing (with reference to the

collection of such information) the duties and functions of the

collecting agency so designated and the Federal agencies for which

it is to act as agent. Any such order may be modified from time to

time by the Director as circumstances may require, but no such

modification shall be made except after investigation and hearing

as hereinbefore provided.

(c) INDEPENDENT COLLECTION BY AN AGENCY IS PROHIBITED.

While any such order or modified order is in effect, no Federal

agency covered by such order shall obtain for itself any information which it is the duty of the collecting agency designated by

such order to obtain.

(d) DETERMINATION POR NECESSITY OP INPORMATION ; HEARING.

Upon the request of any party having a substantial interest, or

upon his own motion, the Director is authorized within his discretion to make a determination as to whether or not the collection

of any information by any Federal agency is necessary for the

proper performance of the functions of such agency or for any

other proper purpose. Before making any such determination, the

Director may within his discretion, give to such agency and to

other interested persons an adequate opportunity to be heard or

to submit statements in writing. To the extent, if any, that the

176
Director determines the collection of such information by such

agency is unnecessary, either because it is not needed for the

proper performance of the functions of such agency or because

it can be obtained from another Federal agency or for any other

reason, such agency shall not thereafter engage in the collection

of such information.

(e) COOPERATION OF AGENCIES IN MAKING INFORMATION AVAILABLE.

For the purposes of sections 139-139f of this title, the Director

is authorized to require any Federal agency to make available to

any other Federal agency any information which it has obtained

from any person after December 24, 1942, and all such agencies

are directed to cooperate to the fullest practicable extent at all

times in making such information available to other such agencies :

Provided, That the provisions of sections 139-189f of this title

shall not apply to the obtaining or releasing of information by the

Bureau of Internal Revenue, the Comptroller of the Currency, the

Bureau of the Public Debt, the Bureau of Accounts and the

Division of Foreign Funds Control of the Treasury Department:

Provided further, That the provisions of sections 139~139f of

this title shall not apply to the obtaining by any Federal bank

supervisory agency of reports and information from banks as

provided or authorized by law and in the proper performance of

such agency's functions in its supervisory capacity. (Dec. 24,1942,

ch. 811, § 3, 56 Stat. 1078.)

§139b. Unlawful disclosure of information; penalties; release of

information to other agencies.

(a) In the event that any information obtained in confidence

by a Federal agency is released by that agency to another Federal

agency, all the provisions of law (including penalties) which relate

to the unlawful disclosure of any such information shall apply to

the officers and employees of the agency to which such information

is released to the same extent and in the same manner as such

provisions apply to the officers and employees of the agency which

originally obtained such information; and the officers and employees of the agency to which the information is released shall

in addition be subject to the same provisions of law (including

penalties) relating to the unlawful disclosure of such information

as if the information has been collected directly by such agency.

(b) Information obtained by a Federal agency from any person

or persons may, pursuant to sections 139-139f of this title, be

released to any other Federal agency only if (1) the information

shall be released in the form of statistical totals or summaries or

(2) the information as supplied by persons to a Federal agency

shall not, at the time of collection, have been declared by that

agency or by any superior authority to be confidential; or (3) the

persons supplying the information shall consent to the release of

it to a second agency by the agency to which the information was

originally supplied; or (4) the Federal agency to which another

Federal agency shall release the information has authority to

collect the information itself and such authority is supported by

legal provision for criminal penalties against persons failing to

177
supply such information. (Dec. 24, 1942, ch. 811, § 4, 56 Stat.

1079.)

§ 139c. Plans or forms for collecting information; submission to

Director; approval.

No Federal agency shall conduct or sponsor the collection of

information, upon identical items, from 10 to more persons (other

than Federal employees considered as such) unless, in advance of

adoption or revision of any plans or forms to be used in such

collection.

(a) The agency shall have submitted to the Director such plans

or forms, together with copies of such pertinent regulations and

other related materials as the Director shall specify ; and

(b) The Director shall have stated that he does not disapprove

the proposed collection of information. (Dec. 24, 1942, ch. 811,

§ 5, 56 Stat. 1079.)

§ 139d. Rules and regulations.

The Director is authorized to make such rules and regulations

as may be necessary to carry out the provisions of sections 139-

139f of this title. (Dec. 24, 1942, ch. 811, § 6, 56 Stat. 1079.)

§ 139e. Definitions.

As used in sections 139-139f of this title—

(a) The term "Federal agency" means any executive department, commission, independent establishment, corporation owned

or controlled by the United States, board, bureau, division, service,

office, authority, or administration in the executive branch of the

Government ; but such terms shall not include the General Accounting Office nor the governments of the District of Columbia and

of the Territories and possessions of the United States, and the

various subdivisions of such governments.

(b) The term "person" means any individual, partnership,

association, corporation, business trust, or legal representative,

any organized group of persons, any State or Territorial government or branch thereof, or any political subdivision of any State

or Territory or any branch of any such political subdivision.

(c) The term "information" means facts obtained or solicited

by the use of written report forms, application forms, schedules,

questionnaires, or other similar methods calling either (1) for

answers to identical questions from ten or more persons other

than agencies, instrumentalities, or employees of the United States

or (2) for answers to questions from agencies, instrumentalities,

or employees of the United States which are to be used for statistical compilations of general public interest. (Dec. 24, 1942, ch.

811, § 7, 56 Stat. 1079.)

§ 139f. Penalty for failure to furnish information.

Any person failing to furnish information required by any such

agency shall be subject to such penalties as are specifically prescribed by law, and no other penalty shall be imposed either by

way of fine or imprisonment or by the withdrawal or denial of any

right, privilege, priority, allotment, or immunity, except when the

right, privilege, priority, allotment, or immunity, is legally con178
ditíoned on facts which would be revealed by the information

requested. (Dec. 24, 1942, ch. 811, § 8, 56 Stat. 1080.)

Reorganization Plan No. 2 of 1953

(5 U.S.C. 511 et seq.)

Prepared by the President and transmitted to the Senate and the

House of Representatives in Congress assembled, March 25,

1953, pursuant to the provisions of the Reorganization Act

of 1949, approved June 20, 1949, as amended [sections 133z

to 133Z-.15 of this title].

Department of Agriculture

1. Transfer of functions to the Secretary.

(a) Subject to the exceptions specified in subsection (b) of

this section, there are hereby transferred to the Secretary of

Agriculture all functions not now vested in him of all other

officers, and of all agencies and employees, of the Department of

Agriculture.

(b) This section shall not apply to the functions vested by the

Administrative Procedure Act [section 1001 et seq. of this title]

in hearing examiners employed by the Department of Agriculture

nor to the functions of (1) corporations of the Department of

Agriculture, (2) the boards of directors and officers of such corporations, (3) the Advisory Board of the Commodity Credit Corporation, or (4) the Farm Credit Administration or any agency,

officer, or entity of, under, or subject to the supervision of the

said administration.

2. Assistant Secretaries of Agriculture.

Two additional Assistant Secretaries of Agriculture shall be

appointed by the President, by and with the advice and consent

of the Senate. Each such Assistant Secretary shall perform such

functions as the Secretary of Agriculture shall, from time to time,

prescribe and each shall receive compensation at the rate prescribed by law for Assistant Secretaries of executive departments.

3. Administrative Assistant Secretary.

An administrative Assistant Secretary of Agriculture shall be

appointed with the approval of the President, by the Secretary

of Agriculture under the classified civil service, and shall perform

such functions as the Secretary of Agriculture shall, from time

to time, prescribe. The provisions of the item numbered (1) of the

third proviso under the heading "General Provisions" appearing in chapter XI of the Third Supplemental Appropriation Act,

1952, approved June 5, 1952 (66 Stat. 121) [section 517a of this

title], are hereby made applicable to the position of Administrative

Assistant Secretary of Agriculture.

4. Delegation of functions.

(a) The Secretary of Agriculture may from time to time make

such provisions as he shall deem appropriate authorizing the

performance by any other officer, or by any agency or employee,

of the Department of Agriculture of any function of the Secretary,

179
including any function transferred to the Secretary by the provisions of this reorganization plan.

(b) To the extent that the carrying out of subsection (a) of this

section involves the assignment of major functions or major

groups of functions to major constituent organizational units of

the Department of Agriculture, now or hereafter existing, or to

the heads or other officers thereof, and to the extent deemed practicable by the Secretary, he shall give appropriate advance public

notice of delegations of functions proposed to be made by him and

shall afford- appropriate opportunity for interested persons and

groups to place before the Department of Agriculture their views

with respect to such proposed delegations.

(c) In carrying out subsection (a) of this section the Secretary

shall seek to simplify and make efficient the operation of the

Department of Agriculture, to place the administration of farm

programs close to the State and local levels, and to adapt the

administration of the programs of the Department to regional.

State, and local conditions.

5. Incidental transfers.

The Secretary of Agriculture may from time to time effect such

transfers within the Department of Agriculture of any of the

records, property, and personnel affected by this reorganization

plan and such transfers of unexpended balances (available or to

be made available for use in connection with any affected function

or agency) of appropriations, allocations, and other funds of such

Department, as he deems necessary to carry out the provisions

of this reorganization plan; but such unexpended balances so

transferred shall be used only for the purposes for which such

appropriation was originally made. (18 F. R. 3219, 67 Stat. 633.)

Defense Production Act of 1950

(50 U.S.C. 2061-2166)

§ 2061. Short title.

This Act [sections 2061-2166 of the Appendix], divided into

titles, may be cited as "the Defense Production Act of 1950.*' (Sept.

8, 1950, ch. 932, § 1, 64 Stat. 798.)

§ 2062. Declaration of policy.

In view of the present international situation and in order to

provide for the national defense and national security, our

mobilization effort continues to require some diversion of certain

materials and facilities from civilian use to military and related

purposes. It also requires the development of preparedness

programs and the expansion of productive capacity and supply

beyond the levels needed to meet the civilian demand, in order to

reduce the time required for full mobilization in the event of

an attack on the United States.

In order to insure productive capacity in the event of such an

attack on the United States, it is the policy of the Congress to

encourage the geographical dispersal of the industrial facilities of

the United States in the interest of the national defense, and to

discourage the concentration of such productive facilities within

limited geographical areas which are vulnerable to attack by an

180
enemy of the United States. In the construction of any Government-owned industrial facilities, in the rendition of any Government financial assistance for the construction, expansion, or

improvement of any industrial facilities, and in the procurement

of goods and services, under this or any other Act, each department

and agency of the Executive Branch shall apply, under the coordination of the Office of Defense Mobilization, when practicable

and consistent with existing law and the desirability for maintaining a sound economy, the principle of the geographical dispersal

of such facilities in the interest of national defense. Nothing contained in this paragraph shall preclude the use of existing industrial facilities. (As amended June 30,1953, ch. 171, § 2, 67 Stat.

129; Aug. 9, 1955, ch. 655, § 2, 69 Stat. 580; June 29, 1956, ch.

474, § 4, 70 Stat. 408.)

§ 2071. Priority in contracts and orders.

(a) ALLOCATION OF MATERIALS AND FACILITIES.

The President is hereby authorized (1) to require that performance under contracts or orders (other than contracts of

employment) which he deems necessary or appropriate to promote

the national defense shall take priority over performance under

any other contract or order, and, for the purpose of assuring such

priority, to require acceptance and performance of such contracts

or orders in preference to other contracts or orders by any person

he finds to be capable of their performance, and (2) to allocate

materials and facilities in such manner, upon such conditions, and

to such extent as he shall deem necessary or appropriate to promote the national defense.

(b) CRITICAL AND STRATEGIC MATERIALS.

The powers granted in this section shall not be used to control

the general distribution of any material in the civilian market

unless the President finds (1) that such material is a scarce and

critical material essential to the national defense, and (2) that the

requirements of the national defense for such material cannot

otherwise be met without creating a significant dislocation of the

normal distribution of such material in the civilian market to such

a degree as to create appreciable hardship. (As amended June 30,

1953, ch. 171, § 3, 67 Stat. 129.)

§ 2091. Loan guarantees.

(a) PURPOSE OF LOANS; GUARANTEEING AGENCIES.

In order to expedite production and deliveries or services under

Government contracts, the President may authorize, subject to

such regulations as he may prescribe, the Department of the Army,

the Department of the Navy, the Department of the Air Force,

the^ Department of Commerce, and such other agencies of the

United States engaged in procurement for the national defense as

he may designate (hereinafter referred to as "guaranteeing

agencies"), without regard to provisions of law relating to the

making, performance, amendment, or modification of contracts,

to guarantee in whole or in part any public or private financing

institution (including any Federal Reserve bank), by commitment

to purchase, agreement to share losses, or otherwise, against loss

of principal or interest on any loan, discount, or advance, or on

any commitment in connection therewith, which may be made by

181
such financing institution for the purpose of financing any contractor, subcontractor, or other person in connection with the

performance of any contract or other operation deemed by the

guaranteeing agency to be necessary to expedite production and

deliveries or services under Government contracts for the procurement of materials or the performance of services for the national

defense, or for the purpose of financing any contractor, subcontractor, or other person in connection with or in contemplation

of the termination, in the interest of the United States, of any

contract made for the national defense ; but no small business concern (as defined in section 714 (a) (1) of this Act) shall be held

ineligible for the issuance of such a guaranty by reason of alternative sources of supply.

:{: H: »!« Hi H: * He

(As amended June 30, 1953, ch. 171, § 4, 67 Stat. 129,)

§ 2093. Purchase of raw materials and installation of equipment.

(a) PURCHASES FOR USE OR RESALE; DEVELOPMENT OP STRATEGIC

MINERALS AND METALS; AGRICULTURAL COMMODITIES; TERMINATION DATE.

To assist in carrying out the objectives of this Act [sections

2061-2166 of this Appendix], the President may make provision

(1) for purchases of or commitments to purchase metals, minerals,

and other materials, for Government use or resale; and (2) for

the encouragement of exploration, development, and mining of

critical and strategic minerals and metals: Provided, however,

That purchases for resale under this subsection shall not include

that part of the supply of an agricultural commodity which is

domestically produced except insofar as such domestically produced supply may be purchased for resale for industrial uses or

stockpiling, and no commodity purchased under this subsection

shall be sold at less than the established ceiling price for such

commodity (except that minerals and metals shall not be sold at

less than the established ceiling price, or the current domestic

market price, whichever is lower), or, if no ceiling price has been

established, the higher of the following: (i) the current domestic

market price for such commodity, or (ii) the minimum sale price

established for agricultural commodities owned or controlled by

the Commodity Credit Corporation as provided in section 407 of

Public Law 439, Eighty-first Congress [section 1427 of Title 7] :

Provided further, however. That no purchase or commitment to

purchase any imported agricultural commodity shall be made

calling for delivery more than one year after the expiration of this

Act [sections 2061-2166 of this Appendix].

(b) TERMS AND CONDITIONS OF PURCHASE.

Subject to the limitations in subsection (a) of this section,

purchases and commitments to purchase and sales under such

subsection may be made without regard to the limitations of

existing law, for such quantities, and on such terms and conditions,

including advance payments, and for such periods, but not extending beyond June 30,1965, as the President deems necessary, except

that purchases or commitments to purchase involving higher than

established ceiling prices (or if there be no established ceiling

prices, currently prevailing market prices) or anticipated loss on

182
resale shall not be made unless it is determined that supply of the

materials could not be effectively increased at lower prices or on

terms more favorable to the Government or that such purchases

are necessary to assure the availability to the United States of

overseas supplies.

(c) SUBSIDY PAYMENTS ON DOMESTICALLY PRODUCED MATERIALS;

EXCLUSION OF AGRICULTURAL PRODUCTS.

If the President finds—

(1) that under generally fair and equitable ceiling prices for

any raw or nonprocessed material, there will result a decrease in

supplies from high-costs sources of such material, and that the

continuation of such supplies is necessary to carry out the objectives of the act [sections 2061-2166 of this appendix] ; or

(2) that an increase in cost of transportation is temporary in

character and threatens to impair maximum production or supply

in any area at stable prices of any materials;

he may make provision for subsidy payments on any such

domestically produced material other than an agricultural commodity in such amounts and in such manner (including purchases

of such material and its resale at a loss without regard to the

limitations of existing law), and on such terms and conditions, as

he determines to be necessary to insure that supplies from such

high-cost sources are continued, or that maximum production or

supply in such area at stable prices of such materials is maintained,

as the case may be.

(d) TRANSPORTATION, STORAGE, AND PROCESSING.

The procurement power granted to the President by this section

shall include the power to transport and store and have processed

and refined, any materials procured under this section.

(e) INSTALLATION OF EQUIPMENT IN INDUSTRIAL FACILITIES.

When in his judgment it will aid the national defense, the

President is authorized to install additional equipment, facilities,

processes or improvements to plants, factories, and other industrial

facilities owned by the United States Government, and to install

government-owned equipment in plants, factories, and other industrial facilities owned by private persons. (Sept. 8, 1950, ch.

932, title III, § 303, 64 Stat. 801 ; July 31,1951, 7:00 p. m., E. D. T.,

ch. 275, title I, § 103 (a), 65 Stat. 133.)

(f) TRANSFER OF EXCESS MATERIALS TO NATIONAL STOCKPILE.

Notwithstanding any other provision of law to the contrary,

metals, minerals, and materials acquired pursuant to the provisions of this section which, in the judgment of the President, are

excess to the needs of programs under this Act [sections 2061,

2062, 2071-2073, 2091-2094, 2151-2163 and 2164-2166 of this

Appendix], shall be transferred to the national stockpile established pursuant to the Act of June 7, 1939, as amended [sections

98-98h of Title 50], when the President deems such action to be

in the public interest. Transfers made pursuant to this subsection

shall be made without charge against or reimbursement from

funds available under such Act of June 7, 1939 [sections 98-98h

of Title 50], as amended, except that costs incident to such transfer

other than acquisition costs shall be paid or reimbursed from such

funds, and the acquisition co^ts of such metals, minerals, and

183
materials transferred shall be deemed to be net losses incurred by

the transferring agency and the notes payable issued to the Secretary of the Treasury representing the amounts thereof shall be

canceled. Upon the cancellation of any such notes the aggregate

amount of borrowing which may be outstanding at any one time

under section 304 (b) of this Act, as amended [section 2094 (b)

of this Appendix], shall be reduced in an amount equal to the

amount of any notes so canceled.

(g) DEVELOPMENT OF SUBSTITUTES FOR STRATEGIC AND CRITICAL

MATERIALS.

When in his judgment it will aid the national defense, and upon

a certification by the Secretary of Agriculture or the Secretary of

the Interior that a particular strategic and critical material is

likely to be in short supply in time of war or other national emergency, the President may make provision for the development of

substitutes for such strategic and critical materials. (As amended

June 30, 1953, ch. 171, §§ 5, 6, 67 Stat. 130; Aug. 9, 1955, ch. 655,

§ 3, 69 Stat. 580; June 29,1956, ch. 474, § 2, 70 Stat. 408.)

§2094. Utilization and creation of agencies; borrowing from

Treasury; revolving fund; contingent liability of United

States.

(a) For the purposes of sections 302 and 303 [sections 2092 and

2093 of this Appendix], the President is authorized to utilize such

existing departments, agencies, officials, or corporations of the

Government as he may deem appropriate, or to create new agencies

(other than corporations).

(b) Any agency created under this section, and any department,

agency, official, or corporation utilized pursuant to this section is

authorized, subject to the approval of the President, to borrow

from the Treasury of the United States, such sums of money as

may be necessary to carry out its functions under sections 302

and 303 [sections 2092 and 2093 of this Appendix] : Provided,

That the amount borrowed under the provisions of this section by

all such borrowers shall not exceed an aggregate of $2,100,000,000

outstanding at any one time: Provided further, That when any

contract, agreement, loan, or other transaction heretofore or hereafter entered into pursuant to section 302 or 303 [sections 2092

or 2093 of this Appendix] imposes contingent liability upon the

United States, such liability shall be considered for the purposes

of sections 3679 and 3732 of the Revised Statutes, as amended

[section 665 of Title 31 and section 11 of Title 41], as an obligation only to the extent of the probable ultimate net cost to the

United States under such transaction; and the President shall

submit a report to the Congress not less often than once each

quarter setting forth the gross amount of each such transaction

entered into by any agency of the United States Government under

this authority and the basis for determining the probable ultimate

net cost to the United States thereunder. For the purpose of

borrowing as authorized by this subsection, the borrower may issue

to the Secretary of the Treasury its notes, debentures, bonds, or

other obligations to be redeemable at its option before maturity in

such manner as may be stipulated in such obligations. Such obligations shall bear interest at a rate determined by the Secretary of

184
the Treasury, taking into consideration the current average rate

on outstanding marketable obligations of the United States as of

the last day of the month preceding the issuance of the obligations.

The Secretary of the Treasury is authorized and directed to purchase such obligations and for such purpose the Secretary of the

Treasury is authorized to use as a public-debt transaction the

proceeds from the sale of any securities issued under the Second

Liberty Bond Act, as amended, and the purposes for which

securities may be issued under the Second Liberty Bond Act, as

amended, are extended to include any purchases of obligations

hereunder.

(c) Repealed. July 31,1951, 7:00 p. m., E. D. T., ch. 275, title I,

§ 103 (c), 65 Stat. 134.

(Sept. 8, 1950, ch. 932, title III, § 304, 64 Stat. 802; June 2, 1951,

ch. 121, ch. XI, 65 Stat. 61 ; July 31, 1951, 7:00 p. m., E. D. T., ch.

275, title I, § (b, c), 65 Stat. 134.)

§ 2151. Encouragement of small business; allocation of supplies to

business.

(a) It is the sense of the Congress that small-business enterprises be encouraged to make the greatest possible contribution

toward achieving the objectives of this Act [sections 2061-2166

of this Appendix].

(b) In order to carry out this poHcy—

(i) the President shall provide small-business enterprises with

full information concerning the provisions of this Act [sections

2061-2166 of this Appendix] relating to, or of benefit to, such

enterprises and concerning the activities of the various departments and agencies under this Act [said sections] ;

(ii) such business advisory committees shall be appointed as

shall be appropriate for purposes of consultation in the formulation of rules, regulations, or orders, or amendments thereto issued

under authority of this Act [said sections], and in their formation

there shall be fair representation for independent small, for

medium, and for large business enterprises, for different geographical areas, for trade association members and nonmembers,

and for different segments of the industry ;

(iii) in administering this Act [said sections], such exemptions

shall be provided for small-business enterprises as may be feasible

without impeding the accomplishment of the objectives of this

Act [said sections] ; and

(iv) in administering this Act [said sections], special provision

shall be made for the expeditious handling of all requests, applications, or appeals from small business enterprises.

(c) ALLOCATION OF MATERIALS IN CIVILIAN MARKET.

Whenever the President invokes the powers given him in this

Act [sections 2061, 2062, 2071-2073, 2091-2094, 2151-2163 and

2164-2166 of this appendix] to allocate any material in the civilian

market, he shall do so in such a manner as to make available, so

far as practicable, for business and various segments thereof in

the normal channel of distribution of such material, a fair share

of the available civilian supply based, so far as practicable, on the

share received by such business under normal conditions during a

representative period preceding any future allocation of materials:

185
Provided, That the President shall, in the allocation of materials

in the civilian market, give due consideration to the needs of new

concerns and newly acquired operations, undue hardships of individual businesses, and the needs of smaller concerns in an

industry.

(d) DISTRIBUTION OF DEFENSE CONTRACTS.

In order to further the objectives and purposes of this section,

the Office of Defense MobiHzation is directed to investigate the

distribution of defense contracts with particular reference to the

share of such contracts which has gone and is now going to small

business, either directly or by subcontract ; to review the policies,

procedures, and administrative arrangements now being followed

in order to increase participation by small business in the mobilization program; to explore all practical ways, whether by

amendments to laws, policies, regulations, or administrative arrangements, or otherwise, to increase the share of defense procurement going to small business; to get from the departments and

agencies engaged in procurement, and from other appropriate

agencies including the Small Business Administration, their views

and recommendations on ways to increase the share of procurement going to small business ; and to make a report to the President

and the Congress, not later than six months after August 9, 1955,

which report shall contain the following: (i) a full statement of

the steps taken by the Office of Defense Mobilization in making

investigations required by this subsection; (ii) the findings of

the Office of Defense MobiHzation with respect to the share

of procurement which has gone and is now going to small business ;

(iii) a full and complete statement of the actions taken by the

Office of Defense Mobilization and other agencies to increase such

small business share; (iv) a full and complete statement of the

recommendations made by the procurement agencies and other

agencies consulted by the Office of Defense MobiHzation; and (v)

specific recommendations by the Office of Defense Mobilization

for further action to increase the share of procurement going

to small business. (As amended June 30, 1953, ch. 171, § 7, 67

Stat. 130; Aug. 9,1955, ch. 655, §§ 4, 5, 69 Stat. 580.)

§2152. Definitions.

As used in this Act [sections 2061-2166 of this Appendix]

(a) The word "person" includes an individual, corporation,

partnership, association, or any other organized group of persons,

or legal successor or representative of the foregoing, and includes

the United States or any agency thereof, or any other government,

or any of its political subdivisions, or any agency of any of the

foregoing: Provided, That no punishment provided by this Act

[sections 2061-2166 of this Appendix] shall apply to the United

States, or to any such government, political subdivision, or government agency.

(b) The word "materials" shall include raw materials, articles,

commodities, products, supplies, components, technical information, and processes.

(c) The word "facilities" shall not include farms, churches or

other places of worship, or private dwelling houses.

(d) The term "national defense" means programs for military

186
and atomic energy production or construction, military assistance

to any foreign nation, stockpiling, and directly related activity,

(e) The words "wages, salaries, and other compensation'' shall

include all forms of remuneration to employees by their employers

for personal services, including, but limited to, vacation and holiday payments, night shift and other bonuses, incentive payments,

year-end bonuses, employer contributions to or payments ^ of

insurance or welfare benefits, employer contributions to a pension

fund or annuity, payments in kind, and premium overtime payments. (Sept. 8,1950, ch. 932, title VII, § 702, 64 Stat. 815.)

§ 2155. Investigations; records; reports; subpenas; right to counsel.

(a) The President shall be entitled, while this Act [sections

2061-2166 of this Appendix] is in effect and for a period of two

years thereafter, by regulation, subpena, or otherwise, to obtain

such information from, require such reports and the keeping of

such records by, make such inspection of the books, records, and

other writings, premises or property of, and take the sworn testimony of, and administer oaths and affirmations to any person

as may be necessary or appropriate, in his discretion, to the

enforcement or the administration of this Act [said sections]

and the regulations or orders issued thereunder. The President

shall issue regulations insuring that the authority of this subsection will be utilized only after the scope and purpose of the

investigation, inspection, or inquiry to be made have been defined

by competent authority, and it is assured that no adequate and

authoritative data are available from any Federal or other responsible agency. In case of contumacy by, or refusal to obey a

subpena served upon, any person referred to in this subsection,

the district court of the United States for any district in which

such person is found or resides or transacts business, upon

application by the President, shall have jurisdiction to issue an

order requiring such person to appear and give testimony or to

appear and produce documents, or both ; and any failure to obey

such order of the court may be punished by such court as a

contempt thereof.^

(b) No person shall be excused from complying with any requirement under this section or from attending and testifying or

from producing books, papers, documents, and other evidence in

obedience to a subpena before any grand jury or in any court or administrative proceeding based upon or growing out of any alleged

violation of this Act [sections 2061-2166 of this Appendix] on

the ground that the testimony or evidence, documentary or otherwise, required of him may tend to incriminate him or subject

him to penalty or forfeiture; but no natural person shall be

prosecuted or subjected to any penalty or forfeiture in any court,

for or on account of any transaction, matter, or thing concerning

which he is so compelled, after having claimed his privilege

against self-incrimination, to testify or produce evidence, documentary or otherwise, except that such natural person so testifying

shall not be exempt from prosecution and punishment for perjury

committed in so testifying : Provided, That the immunity granted

herein from prosecution and punishment and from any penalty

or forfeiture shall not be construed to vest in any individual any

187
right to priorities assistance to the allocation of materials, or to

any other benefit which is within the power of the President to

grant under any provision of this Act [said sections].

(c) The production of a person's books, records, or other documentary evidence shall not be required at any place other than the

place where such person usually keeps them, if, prior to the return

date specified in the regulations, subpena, or other document

issued with respect thereto, such person furnishes the President

with a true copy of such books, records, or other documentary

evidence (certified by such person under oath to be a true and

correct copy) or enters into a stipulation with the President as

to the information contained in such books, records, or other

documentary evidence. Witnesses shall be paid the same fees and

mileage that are paid witnesses in the courts of the United States.

(d) Any person who willfully performs any act prohibited or

willfully fails to perform any act required by the above provisions

of this section, or any rule, regulation, or order thereunder, shall

upon conviction be fined not more than $1,000 or imprisoned for

not more than one year or both.

(e) Information obtained under this section which the President deems confidential or with reference to which a request

for confidential treatment is made by the person furnishing such

information shall not be published or disclosed unless the President

determines that the withholding thereof is contrary to the interest

of the national defense, and any person willfully violating this

provision shall, upon conviction, be fined not more than $10,000

or imprisoned for not more than one year, or both.

All information obtained by the Office of Price Stabilization

under this section 705, as amended, and not made public prior

to April 30, 1953, shall be deemed confidential and shall not be

published or disclosed, either to the public or to another Federal

agency except the Congress or any duly authorized committee

thereof, and except the Department of Justice for such use as it

may deem necessary in the performance of its functions, unless

the President determines that the withholding thereof is contrary

to the interests of the national defense, and any person willfully

violating this provision shall, upon conviction, be fined not more

than $10,000 or imprisoned for not more than one year, or both.

(f) Any person subpenaed under this section shall have the

right to make a record of his testimony and to be represented by

counsel. (Sept. 8, 1950, ch. 932, title VII, § 705, 64 Stat. 816; July

31, 1951, 7:00 p. m., E. D. T., ch. 275, title I, § 109 (d), 65 Stat.

139; June 30, 1952, 9:36 a. m., E. D. T., ch. 530, title I, § 117,

66 Stat. 306 ; ch. 171, § 9, 67 Stat. 131 ; June 30,1953.)

§2158. Voluntary agreements and programs; exemptions from

antitrust laws and Federal Trade Commission Act; survey

and reports to Congress; termination.

(a) The President is authorized to consult with representatives

of industry, business, financing, agriculture, labor, and other

interests, with a view to encouraging the making by such persons

with the approval by the President of voluntary agreements and

programs to further the objectives of this Act [sections 2061-2166

of this Appendix].

(b) No act or omission to act pursuant to this Act [sections

188
2061-2166 of this Appendix] which occurs while this Act [said

sections] is in effect, if requested by the President pursuant to a

voluntary agreement or program approved under subsection (a)

of this section and found by the President to be in the public

interest as contributing to the national defense shall be construed

to be within the prohibitions of the antitrust laws or the Federal

Trade Commission Act of the United States. Provided, however,

That after August 9, 1955, the exemption from the prohibitions

of the antitrust laws and the Federal Trade Commission Act

[sections 41-58 of Title 15] of the United States shall apply only

(1) to acts and omissions to act requested by the President or

his duly authorized delegate pursuant to duly approved voluntary

agreements or programs relating solely to the exchange between

actual or prospective contractors of technical or other information,

production techniques, and patents or patent rights, relating to

equipment used primarily by or for the military which is being

procured by the Department of Defense or any department thereof,

and the exchange of materials, equipment, and personnel to be

used in the production of such equipment; and (2) to acts and

omissions to act requested by the President or his duly authorized

delegate pursuant to voluntary agreements or programs which

were duly approved under this section before August 9, 1955.

The Attorney General shall review each of the voluntary agreements and programs covered by this section, and the activities

being carried on thereunder, and, if he finds, after such review

and after consultation with the Director of the Office of Defense

Mobilization and other interested agencies, that the adverse effects

of any such agreement or program on the competitive free enterprise system outweigh the benefits of the agreement or program

to the national defense, he shall withdraw his approval in accordance with subsection (d) of this section. This review and determination shall be made within ninety days after August 9, 1955.

A copy of each such request, intended to be within the coverage

of this section, and any modification or withdrawal thereof, shall

be furnished to the Attorney General and the Chairman of the

Federal Trade Commission when made, and it shall be published

in the Federal Register unless publication thereof would, in the

opinion of the President, endanger the national security.

(c) The authority granted in subsection (b) of this section shall

be delegated only (1) to officials who shall for the purpose of such

delegation be required to be appointed by the President by and

with the advice and consent of the Senate, unless otherwise

required to be so appointed, and (2) upon the condition that such

officials consult with the Attorney General and with the Chairman of the Federal Trade Commission not less than ten days

before making any request or finding thereunder, and (3) upon

the condition that such officials obtain the approval of the Attorney

General to any request thereunder before making the request.

For the purpose of carrying out the objectives of title I of this

Act [sections 2071-2074 of this title], the authority granted in

subsection (b) of this section shall not be delegated except to a

single official of the Government.

(d) Upon withdrawal of any request or finding made hereunder,

or upon withdrawal by the Attorney General of his approval of the

voluntary agreement or program on which the request or finding

189
is based, the provisions of this section shall not apply to any

subsequent act or omission to act by reason of such finding or

request.

(e) The Attorney General is directed to make, or request the

Federal Trade Commission to make for him, surveys for the

purpose of determining any factors which may tend to eliminate

competition, create or strengthen monopolies, injure small business, or otherv^ise promote undue concentration of economic power

in the course of the administration of this Act [sections 2061-2166

of this Appendix]. Such surveys, and the reports hereafter required, shall include studies of the voluntary agreements and

programs authorized by this section. The Attorney General shall

submit to the Congress and the President within ninety days after

the approval of this Act [September 8, 1950], and at least once

every three months, reports setting forth the results of such

surveys and including such recommendations as he may deem

desirable.

(f) After the date of enactment of the Defense Production Act

Amendments of 1952 [June 30, 1952], no voluntary program or

agreement for the control of credit shall be approved or carried

out under this section. (Sept. 8, 1950, ch. 932, title VII, § 708,

64 Stat. 818; June 30, 1952, 9:36 a. m., E. D. T., ch. 530, title I,

§ 116 (c), 66 Stat. 305, as amended Aug. 9, 1955, ch. 655, § 6,

69 Stat. 581.)

§2160. Employment of personnel; appointment policies; nucleus

executive reserve; use of confidential information by employees; printing and distribution of reports.

(a) Repealed. June 28,1955, ch. 189, § 12 (c), (1), 69 Stat. 180.

(b) (1) The President is further authorized, to the extent

he deems it necessary and appropriate in order to carry out the

provisions of this Act [sections 2061-2062, 2071-2073, 2091-2094,

2151-2163 and 2164-2166 of this Appendix] and subject to such

regulations as he may issue, to employ persons of outstanding

experience and ability without compensation ;

(2) The President shall be guided in the exercise of the authority provided in this subsection by the following policies:

(i) So far as possible, operations under the Act [said section]

shall be carried on by full-time, salaried employees of the Government, and appointments under this authority shall be to advisory

or consultative positions only.

(ii) Appointments to positions other than advisory or consultative may be made under this authority only when the requirements of the position are such that the incumbent must personally

possess outstanding experience and ability not obtainable on a

full-time, salaried basis.

(iii) In the appointment of personnel and in assignment of

their duties, the head of the department or agency involved shall

take steps to avoid, to as great an extent as possible, any conflict

between the governmental duties and the private interests of such

personnel.

(3) Appointees under this subsection shall, when policy matters

are involved, be limited to advising appropriate full-time salaried

Government officials who are responsible for making policy

decisions.

190
(4) Any person employed under this subsection is hereby

exempted, with respect to such employment, from the operation

of sections 281, 283, 284, 434, and 1914 of Title 18, and section 190

of the Revised Statutes [section 99 of Title 5], except that—

(i) exemption hereunder shall not extend to the negotiation or

execution, by such appointee, of Government contracts with the

private employer of such appointee or with any corporation, joint

stock company, association, firm, partnership, or other entity in

the pecuniary profits or contracts of which the appointee has any

direct or indirect interest ;

(ii) exemption hereunder shall not extend to making any recommendation or taking any action with respect to individual applications to the Government for relief or assistance, on appeal or

otherwise, made by the private employer of the appointee or by

any corporation, joint stock company, association, firm, partnership, or other entity in the pecuniary profits or contracts of which

the appointee has any direct or indirect interest;

(iii) exemption hereunder shall not extend to the prosecution

by the appointee, or participation by the appointee in any fashion

in the prosecution, of any claims against the Government involving

any matter concerning which the appointee had any responsibility

during his employment under this subsection, during the period

of such employment and the further period of two years after

the termination of such employment; and

(iv) exemption hereunder shall not extend to the receipt or

payment of salary in connection with the appointee's Government

service hereunder from any source other than the private employer

of the appointee at the time of his appointment hereunder.

(5) Appointments under this subsection shall be supported by

written certification by the head of the employing department or

agency—

(i) that the appointment is necessary and appropriate in order

to carry out the provisions of the Act [sections 2061-2062, 2071-

2073, 2091-2094, 2151-2163 and 2164-2166 of this appendix] ;

(ii) that the duties of the position to which the appointment

is being made require outstanding experience and ability ;

(iii) that the appointee has the outstanding experience and

ability required by the position; and

(iv) that the department or agency head has been unable to

obtain a person with the qualifications necessary for the position

on a full-time, salaried basis.

(6) The heads of the departments or agencies making appointments under this subsection shall file with the Division of the

Federal Register for publication in the Federal Register a statement including the name of the appointee, the employing department or agency, the title of his position, and the name of his

private employer, and the appointee shall file with such Division

for publication in the Federal Register a statement listing the

names of any corporations of which he is an officer or director

or within sixty days preceding his appointment has been an officer

or director, or in which he owns, or within sixty days preceding

his appointment has owned, any stocks, bonds, or other financial

interests, and the names of any partnerships in which he is, or

was within sixty days preceding his appointment, a partner, and

the names of any other businesses in which he owns, or within

191
such sixty-day period has owned, any similar interest. At the end

of each succeeding six-month period, the appointee shall file with

such Division for publication in the Federal Register a statement

showing any changes in such interests during such period.

(7) At least once every three months the Chairman of the

United States Civil Service Commission shall survey appointments

made under this subsection and shall report his findings to the

President and the Joint Committee on Defense Production and

make such recommendations as he may deem proper.

(8) Persons appointed under the authority of this subsection

may be allowed transportation and not to exceed $15 per diem in

lieu of subsistence while away from their homes or regular places

of business pursuant to such appointment.

(c)The President is authorized, to the extent he deems it necessary and appropriate in order to carry out the provisions of this

Act [sections 2061-2166 of this Appendix] to employ experts

and consultants or organizations thereof, as authorized by section

55a of Title 5. Individuals so employed may be compensated at

rates not in excess of $50 per diem and while away from their

homes or regular places of business they may be allowed transportation and not to exceed $15 per diem in lieu of subsistence and

other expenses while so employed. The President is authorized to

provide by regulation for the exemption of such persons from the

operations of sections 281, 283, 284, 434, and 1914 of Title 18 and

section 99 of Title 5.

(d) The President may utilize the services of Federal, State,

and local agencies and may utilize and establish such regional,

local, or other agencies, and utilize such voluntary and uncompensated services, as may from time to time be needed ; and he is

authorized to provide by regulation for the exemption of persons

whose services are utilized under this subsection from the operation of sections 281, 283, 284, 434, and 1914 of Title 18 and section

99 of Title 5.

(e) The President is further authorized to provide for the

establishment and training of a nucleus executive reserve for

employment in executive positions in Government during periods

of emergency. Members of this executive reserve who are not

full-time Government employees may be allowed transportation

and not to exceed $15 per diem in lieu of subsistence while away

from their homes or regular places of business for the purpose

of participating in the executive reserve training program. The

President is authorized to provide by regulation for the exemption

of such persons who are not full-time Government employees from

the operation of sections 281, 283, 284, 434, and 1914 of Title 18

and section 190 of the Revised Statutes [section 99 of Title 5],

(f) Whoever, being an oflicer or employee of the United States

or any department or agency thereof (including any Member of

the Senate or House of Representatives), receives, by virtue of

his office or employment, confidential information, and (1) uses

such information in speculating directly or indirectly on any

commodity exchange, or (2) discloses such information for the

purpose of aiding any other person so to speculate, shall be fined

not more than $10,000 or imprisoned not more than one year, or

both. As used in this section, the term "speculate*' shall not include

192
a legitimate hedging transaction, or a purchase or sale which is

accompanied by actual delivery of the commodity.

(g) The President, when he deems such action necessary, may

make provision for the printing and distribution of reports, in

such number and in such manner as he deems appropriate, concerning the actions taken to carry out the objectives of this Act [sections 2061-2166 of this Appendix]. (Sept. 8, 1950, ch. 932, title

VII, § 710, 64 Stat. 819; July 31, 1951, 7:00 p. m., E.D.T., ch. 275,

title I, § 109 (f), 65 Stat. 139, as amended June 28, 1955, ch. 189,

§ 12(c) (1), 69 Stat. 180; Aug. 9, 1955, ch. 655, §§ 7, 8, 69

Stat. 583.)

§ 2162. Joint Committee on Defense Production.

(a) There is established a joint congressional committee to

be known as the Joint Committee on Defense Production (hereinafter referred to as the committee), to be composed of ten members

as follows:

(1) Five members who are members of the Committee on

Banking and Currency of the Senate, three from the majority

and two from the minority party, to be appointed by the chairman

of the committee ; and

(2) Five members who are members of the Committee on

Banking and Currency of the House of Representatives, three

from the majority and two from the minority party, to be

appointed by the chairman of the committee.

A vacancy in the membership of the committee shall be filled

in the same manner as the original selection. The committee shall

elect a chairman and a vice chairman from among its members,

one of whom shall be a member of the Senate and the other a

member of the House of Representatives.

(b) It shall be the function of the Committee to make a continuous study of the programs and of the fairness to consumers of

the prices authorized by this Act [sections 2061—2166 of this

Appendix] and to review the progress achieved in the execution

and administration thereof. Upon request, the committee shall

aid the standing committees of the Congress having legislative

jurisdiction over any part of the programs authorized by this Act

[said sections] ; and it shall make a report to the Senate and the

House of Representatives, from time to time, concerning the

results of its studies, together with such recommendations as it

may deem desirable. Any department, official, or agency administering any of such programs shall, at the request of the committee,

consult with the committee, from time to time, with respect to

their activities under this Act [said sections].

(c) The committee, or any duly authorized sub-committee thereof, is authorized to hold such hearings, to sit and act at such times

and places, to require by subpena (to be issued under the signature

of the chairman or vice chairman of the committee) or otherwise

the attendance of such witnesses and the production of such books,

papers, and documents, to administer such oaths, to take such

testimony, to procure such printing and binding, and to make

such expenditures as it deems advisable. The cost of stenographic

services to report such hearings shall not be in excess of 40 cents

per hundred words. The provisions of sections 102 to 104, inclusive, of the Revised Statutes [sections 192-194 of Title 2] shall

193
apply in case of any failure of any witness to comply with any

subpena or to testify when summoned under authority of this

subsection.

(d) The committee is authorized to appoint and, without regard

to the Classification Act of 1949, as amended, fix the compensation

of such experts, consultants, technicians, and organizations thereof, and clerical and stenographic assistants, as it deems necessary

and advisable.

(e) The expenses of the committee under this section, which

shall not exceed $65,000 in any fiscal year, shall be paid from the

contingent fund of the House of Representatives upon vouchers

signed by the Chairman or Vice Chairman.

(f) The Secretary of Commerce shall make a special investigation and study of the production, allocation, distribution, use of

nickel, of its resale as scrap, and of other aspects of the current

situation with respect to supply and marketing of nickel, with

particular attention to, among other things, the adequacy of the

present system of nickel allocation between defense and civilian

users. The Secretary of Commerce shall consult with the Joint

Committee on Defense Production during the course of such

investigation and study with respect to the progress achieved

and the results of the investigation and study, and shall make

an interim report on the results of the investigation and study

on or before August 15, 1956, and shall, on or before December

31, 1956, make a final report on the results of such investigation

and study, together with such recommendations as the Secretary

of Commerce deems advisable. Such reports shall be made to the

Senate (or to the Secretary of the Senate if the Senate is not in

session) and to the House of Representatives (or to the Clerk

of the House of Representatives if the House is not in session.)

(Sept. 8, 1950, ch. 932, title VH, § 712, 64 Stat. 820; June 30,

1952, 9:36 a. m., E.D.T., ch. 530, title I, § 119, 66 Stat. 306; as

amended Aug. 9, 1955, ch. 655, § 9, 69 Stat. 583 ; June 29, 1956,

ch. 474, §§ 3, 5, 70 Stat. 408.)

§ 2166. Termination of Act,

(a) Title I (except section 104), title III, and title VII (except

section 714) of this Act [section 2071-2073, 2091-2094, 2151-

2163, and 2164—2166 of this Appendix], and all authority conferred thereunder, shall terminate at the close of June 30, 1958.

Section 714 of this Act [section 2163a of this Appendix], and all

authority conferred thereunder, shall terminate at the close of

July 31,1953. Section 104, title II, and title VI of this Act [section

2074, 2081 and 2132—2137 of this Appendix], and all authority

conferred thereunder, shall terminate at the close of June 30,

1953. Titles IV and V of this Act [sections 2101-2112 and 2121-

2123 of this Appendix], and all authority conferred thereunder,

shall terminate at the close of April 30, 1953.

(b) Notwithstanding the foregoing—

(1) The Congress by concurrent resolution or the President

by proclamation may terminate this Act [sections 2061-2166 of

this Appendix] prior to the termination otherwise provided therefor.

(2) The Congress may also provide by concurrent resolution

that any section of this Act [said sections] atid all authority

194
conferred thereunder shall terminate prior to the termination

otherwise provided therefor.

(3) Any agency created under this Act [said sections] may

be continued in existence for purposes of liquidation for not to

exceed six months after the termination of the provision authorizing the creation of such agency.

(c) The termination of any section of this Act [sections 2061,

2062, 2071-2073, 2091-2094, 2151-2163 and 2164-2166 of this

Appendix], or of any agency or corporation utilized under this

Act [said section], shall not affect the disbursement of funds

under, or the carrying out of, any contract, guarantee, commitment or other obligation entered into pursuant to this Act [said

sections] prior to the date of such termination, or the taking of

any action necessary to preserve or protect the interests of the

United States in any amounts advanced or paid out in carrying

on operations under this Act [said sections], or the taking of

any action (including the making of new guarantees) deemed

by a guaranteeing agency to be necessary to accomplish the orderly

liquidation, adjustment or settlement of any loans guaranteed

under this Act [sections 2061, 2062, 2071-2073 2091-2094,

2151-2163 and 2164-2166 of this Appendix], including actions

deemed necessary to avoid undue hardship to borrowers in reconverting to normal civilian production; and all of the authority

granted to the President, guaranteeing agencies, and fiscal agents,

under section 301 of this Act [section 2091 of this Appendix] shall

be applicable to actions taken pursuant to the authority contained

in this subsection.

Notwithstanding any other provision of this Act [sections 2061

-2123 and 2132-2166], the termination of title VI [sections

2132-2137 of this Appendix] or any section thereof shall not be

construed as affecting any obligation, condition, liability, or

restriction arising out of any agreement heretofore entered into

pursuant to, or under the authority of, section 602 or section 605

of this Act [section 2132 or 2135 of this Appendix], or any issuance thereunder, by any person or corporation and the Federal

Government or any agency thereof relating to the provision of

housing for defense workers or military personnel in an area

designated as a critical defense housing area pursuant to law.

(d) No action for the recovery of any cooperative payment

made to a cooperative association by a Market Administrator

under an invalid provision of a milk marketing order issued by

the Secretary of Agriculture pursuant to the Agricultural Marketing Agreement Act of 1937 shall be maintained unless such action

is brought by producers specifically named as party plaintiffs to

recover their respective share of such payments within ninety

days after the date of enactment of the Defense Production Act

Amendments of 1952 [June 30, 1952] with respect to any cause

of action heretofore accrued and not otherwise barred, or within

ninety days after accrual with respect to future payments, and

unless each claimant shall allege and prove (1) that he objected

at the hearing to the provisions of the order under which such

payments were made and (2) that he either refused to accept

payments computed with such deduction or accepted them under

protest to either the Secretary or the Administrator. The district

courts of the United States shall have exclusive original jurisdic195
tîon of all such actions regardless of the amount involved. This

subsection shall not apply to funds held in escrow pursuant to

court order. Notwithstanding any other provision of this Act

[sections 2061-2166 of this Appendix], no termination date shall

be applicable to this subsection. (Sept. 8, 1950, ch. 932, title VII,

§ 717, 64 Stat. 822; June 30, 1951, ch. 198, § 1, 65 Stat. 110;

July 31, 1951, 7:00 p. m., E. D. T., ch. 275, title I, §§ 110 (b),

111, 65 Stat. 144; June 30, 1952, 9:36 a. m., E. D. T., ch. 530,

title I, §§ 120, 121 (b), 66 Stat. 306; June 30, 1953, ch. 170,

§ 20, 67 Stat. 126; June 30, 1953, ch. 171 §§ 11, 12, 67 Stat. 131;

June 30, 1955, ch. 251, § 5, 69 Stat. 225; Aug. 9, 1955, ch. 655,

§ 10, 69 Stat. 583; June 29, 1956, ch. 474, § 1, 70 Stat. 408.)

Federal Civil Defense Act

(50 U.S.C. 2251-2297)

§ 2251. Congressional declaration of policy.

It is the policy and intent of Congress to provide a plan of

civil defense for the protection of life and property in the United

States from attack. It is further declared to be the policy and

intent of Congress that this responsibility for civil defense shall

be vested primarily in the several States and their political subdivisions. The Federal Government shall provide necessary coordination and guidance; shall be responsible for the operations of

the Federal Civil Defense Administration as set forth in this Act

[sections 2251-2297 of this Appendix] ; and shall provide necessary assistance as hereinafter authorized. (Jan. 12, 1951, ch. 1228

§ 2, 64 Stat. 1246.)

§ 2252. Definitions.

As used in this Act [sections 2251- 2297 of this Appendix]—

(a) The term "attack" means any attack or series of attacks

by an enemy of the United States causing, or which may cause,

substantial damage or injury to civilian property or persons in

the United States in any manner by sabotage or by the use of

bombs, shellfire, or atomic, radiological, chemical, bacteriological,

or biological means or other weapons or processes ;

(b) The term "civil defense'' means all those activities and

measures designed or undertaken (1) to minimize the effects upon

the civilian population caused or which would be caused by an

attack upon the United States, (2) to deal with the immediate

emergency conditions which would be created by any such attack,

and (3) to effectuate emergency repairs to, or the emergency

restoration of, vital utilities and facilities destroyed or damaged

by any such attack. Such term shall include, but shall not be limited

to, (A) measures to be taken in preparation for anticipated attack

(including the establishment of appropriate organizations, operational plans, and supporting agreements; the recruitment and

training of personnel; the conduct of research; the procurement

and stockpiling of necessary materials and supplies ; the provision

of suitable warning systems ; the construction or preparation of

shelters, shelter areas, and control centers; and, when appropriate

the nonmihtary evacuation of civil population) ; (B) measures to

be taken during attack (including the enforcement of passive

196
defense regulations prescribed by duly established military or

civil authorities; the evacuation of personnel to shelter areas;

the control of traffic and panic ; and the control and use of lighting

and civil communications) ; and (C) measures to be taken following attack (including activities for fire fighting ; rescue, emergency

medical, health and sanitation services; monitoring for specific

hazards of special weapons; unexploded bomb reconnaissance;

essential debris clearance; emergency welfare measures; and

immediately essential emergency repair or restoration of damaged

VItill fiioilities ) *

(c) The term "organizational equipment'* means equipment

determined by the Administrator to be (1) necessary to a civil

defense organization, as distinguished from personal equipment,

and (2) of such a type or nature as to require it to be financed

in whole or in part by the Federal Government. It shall not be

construed to include those items which the local community

normally utilizes in combating local disasters except when required

in unusual quantities dictated by the requirements of the civil

defense plans;

(d) The word "materials" shall include raw materials, supplies,

medicine, equipment, component parts and technical information

and processes necessary for civil defense ;

(e) The word "facilities," except as otherwise provided in this

Act [sections 2251—2297 of this Appendix], shall include buildings, shelters, utilities, and land ;

(f) The term "united States" or "States" shall include the

several States, the District of Columbia, the Territories, and the

possessions of the United States ; and

(g) The term "neighboring countries" shall include Canada

and Mexico. (Jan. 12, 1951, ch. 1228, § 3, 64 Stat. 1246.)

§ 2253. Administrative authority.

For the purpose of carrying out his powers and duties under

this Act [sections 2251-2297 of this Appendix], the Administrator is authorized to—

(a) employ civilian personnel for duty in the United States,

including the District of Columbia, or elsewhere, subject to the

civil service laws, and to fix the compensation of such personnel

in accordance with the Classification Act of 1949, as amended;

and notwithstanding the provisions of any other law, except those

imposing restrictions upon dual compensation, employ, in a civilian

capacity, with the approval of the President, not to exceed twentyfive retired personnel of the armed services on a full- or part-time

basis without loss or reduction of or prejudice to their retired

status ;

(b) employ not more than one hundred such part-time or

temporary advisory personnel (including not to exceed twenty-five

subjects of the United Kingdom and the Dominion of Canada)

as are deemed necessary in carrying out the provisions of this

Act [sections 2251-2297 of this Appendix]. Persons holding other

offices or positions under the United States for which they receive

compensation, while serving as members of such committees, shall

receive no additional compensation for such service. Other members of such committees and other part-time or temporary advisory

personnel so employed may serve without compensation or may

197
receive compensation at a rate not to exceed $50 for each day

of service, as determined by the Administrator;

(c) utilize the services of Federal agencies and, with the

consent of any State or local government, accept and utilize the

services of State and local civil agencies; establish and utilize such

regional and other offices as may be necessary; utilize such

voluntary and uncompensated services by individuals or organizations as may from time to time be needed; and authorize the

States to establish and organize such individuals and organizations

into units to be known collectively as the United States Civil

Defense Corps : Provided, That the members of such corps shall

not be deemed by reason of such membership to be appointees

or employees of the United States ;

(d) notwithstanding any other provisions of law, accept gifts

of supplies, equipment, and facilities; and utilize or distribute

same for civil defense purposes in accordance with the provisions

of this Act [sections 2251-2297 of this Appendix] ;

(e) reimburse any Federal agency for any of its expenditures

or for compensation of its personnel and utilization or consumption of its materials and facilities under this Act [sections 2251-

2297 of this Appendix] to the extent funds are available ;

(f) purchase such printing, binding, and blankbook work from

public, commercial, or private printing establishments or binderies

as he may deem necessary upon orders placed by the Public Printer

or upon waivers issued in accordance with section 12 of the Printing Act approved January 12, 1895, as amended [section 14 of

Title 44] ; and

(g) prescribe such rules and regulations as may be necessary

and proper to carry out any of the provisions of this Act [sections

2251-2297 of this Appendix], and, without being relieved of

his responsibility therefor, perform any of the powers and duties

vested in him through or with the aid of such officials of the

Administration as he may designate. (Jan. 12, 1951, ch. 1228,

title IV, § 401, 64 Stat. 1254; June 28, 1955, ch. 189, § 12(c) (2),

69Stat. 180.)

§ 2254. Exemption from certain employment restrictions.

The authority granted in subsections 401 (b) and (c) [section

2253 (b), (c) of this Appendix] shall be exercised in accordance

w^ith regulations of the President who may also provide by regulation for the exemption of persons employed or whose services are

utilized under the authority of said subsections from the operation

of sections 281, 283, 284, 434, and 1914 of Title 18 and section 190

of the Revised Statutes [section 99 of Title 5]. (Jan. 12, 1951,

ch. 1228, title IV, § 402, 64 Stat. 1255.)

§2255. Security regulations; oath.

(a) The Administrator shall establish such security requirenents and safeguards, including restrictions with respect to access

,0 information and property as he deems necessary. No employee

dî the Administration shall be permitted to have access to information or property with respect to which access restrictions have

been established under this section, until it shall have been determined that no information is contained in the files of the Federal

Bureau of Investigation or any other investigative agency of the

198
Government indicating that such employee is of questionable

loyalty or reliability for security purposes, or if any such information is so disclosed, until the Federal Bureau of Investigation shall have conducted a full field investigation concerning such

person and a report thereon shall have been evaluated in writing

by the Administrator. No such employee shall occupy any position

determined by the Administrator to be of critical importance from

the standpoint of national security until a full field investigation

concerning such employee shall have been conducted by the Civil

Service Commission and a report thereon shall have been evaluated

in writing by the Administrator. In the event such full field

investigation by the Civil Service Commission develops any data

reflecting that such applicant for a position of critical importance

is of questionable loyalty or reliability for security purposes, or if

the Administrator for any other reason shall deem it to be advisable, such investigation shall be discontinued and a report thereon

shall be referred to the Administrator for his evaluation in writing. Thereafter the Administrator may refer the matter to the

Federal Bureau of Investigation for the conduct of a full field

investigation by such Bureau. The result of such latter investigation by such Bureau shall be furnished to the Administrator for

his action.

(b) Each Federal employee of the Administration, except

the subjects of the United Kingdom and the Dominion of Canada

specified in section 401 (b) of this Act [section 2253 (b) of this

Appendix], shall execute the loyalty oath or appointment affidavits

prescribed by the Civil Service Commission. Each person other

than a Federal employee who is appointed to serve in a State or

local organization for civil defense shall before entering upon his

duties, take an oath in writing before a person authorized to

administer oaths, which oath shall be substantially as follows:

"I, , do solemnly swear (or afiirm), that I will

support and defend the Constitution of the United States against

all enemies, foreign and domestic ; that I will bear true faith and

allegiance to the same; that I take this obligation freely, without

any mental reservation or purpose of evasion; and that I will

well and faithfully discharge the duties upon which I am about

to enter.

**And I do further swear (or afiirm) that I do not advocate, nor

am I a member or an affiliate of any organization, group, or combination of persons that advocates the overthrow of the Government of the United States by force or violence ; and that during

such time as I am a member of the (name of civil defense organization), I will not advocate nor become a member or an affiliate of

any organization, group, or combination of persons that advocates

the overthrow of the Government of the United States by force

or violence."

After appointment and qualification for office, the director of

civil defense of any State, and any subordinate civil defense officer

within such State designated by the director in writing, shall be

qualified to administer any such oath within such State under

such regulations as the director shall prescribe. Any person who

shall be found guilty of having falsely taken such oath shall be

punished as provided in section 1621 of title 18. (Jan. 12, 1951,

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eh. 1228, title IV, § 403, 64 Stat. 1255 ; Mar. 5,1952, eh. 78, § 1 (b),

66 Stat. 13.)

§ 2256. Transfer of certain functions, property, and personnel.

The functions, property, and personnel of the Federal Civil

Defense Administration established by Executive Order Numbered

10186, issued December 1, 1950 [set out as a note under 2271 of

this Appendix], are transferred to the Administration established

by this Act [sections 2251-2297 of this Appendix], and the

President may transfer to the Administration such functions,

property, and personnel of the Nationail Security Resources Board

concerned with civil defense activities as he deems necessary to

carry out the purposes of this Act [said sections], (Jan. 12, 1951,

eh. 1228, title IV, § 404, 64 Stat. 1256.)

^ 2257. Utilization of existing facilities.

In performing his duties, the Administrator shall (1) cooperate with the various departments and agencies of the Government ;

(2) utilize to the maximum extent the existing facilities and

resources of the Federal Government, and, with their consent,

the facilities and resources of the States and local political subdivisions thereof, and of other organizations and agencies; and

(3) refrain from engaging in any form of activity which would

duplicate or parallel activity of any other Federal department or

agency unless the Administrator, with the written approval of

the President, shall determine that such duplication is necessary

to accomplish the purposes of this Act [sections 2251-2297 of

this Appendix]. (Jan. 12, 1951, ch. 1228, title IV, § 405, 64 Stat.

1256.)

§ 2258. Reports to Congress.

The Administrator shall annually submit a written report to the

President and the Congress covering expenditures, contributions,

work, and accomplishments of the Administration, pursuant to

this Act [sections 2251-2297 of this Appendix], accompanied by

such recommendations as he shall deem appropriate. (Jan. 12,

1951, ch. 1228, title IV, § 406, 64 Stat. 1256.)

§ 2259. Applicability of sections 2251-2297 of this Appendix.

The provisions of this Act [sections 2251-2297 of this Appendix] shall be applicable to the United States, its States, Territories

and possessions, and the District of Columbia, and their political

subdivisions. (Jan. 12, 1951, ch. 1228, title IV, § 407, 64 Stat.

1256.)

§ 2260. Appropriations and transfers of funds.

There are authorized to be appropriated such amounts as may

be necessary to carry out the provisions of this Act [sections

2251-2297 of this Appendix]. Funds made available for the purposes of this Act [said sections] may be allocated or transferred

for any of the purposes of this Act [said sections], with the

approval of the Bureau of the Budget, to any agency or Government corporation designated to assist in carrying out this Act

[said sections] : Provided, That each such allocation or transfer

200
shall be reported in full detail to the Congress within thirty days

after such allocation or transfer. (Jan. 12, 1951, ch. 1228, title IV,

§ 408, 64 Stat. 1257.)

§ 2262. Atomic Energy Act of 1946 unaffected.

Nothing in this Act [sections 2251-2297 of this Appendix]

shall be construed to amend or modify the provisions of the Atomic

Energy Act of 1946, as amended. (Jan. 12, 1951, ch. 1228, title

IV, § 410, 64 Stat. 1257.)

§ 2263. Investigation of espionage, sabotage, or subversive acts.

Nothing in this Act [sections 2251-2297 of this Appendix]

shall be construed to authorize investigations of espionage, sabotage, or subversive acts by any persons other than personnel of

the Federal Bureau of Investigation. (Jan. 12, 1951, ch. 1228,

title IV, § 411, 64 Stat. 1257.)

§ 2264. Establishment of "Civil defense procurement fund"; uses;

charges against fund.

There is established a working capital of $5,000,000 for the

"Civil defense procurement fund," which is established for the

purpose of financing the procurement, by the Administrator, of

materials or organizational equipment for which financial contributions to the States are otherwise authorized to be made on

a matching basis by subsection (i) of section 2281 of this Appendix. Said fund shall be charged with the purchase price of said

materials or equipment, and shall be paid therefor in advance, or

by reimbursement, in equal amounts from (1) applicable appropriations and (2) funds provided by the States. Such materials

or organizational equipment may be delivered to any State, and

the Federal share of the purchase price of materials or organizational equipment so delivered shall be in lieu of equivalent financial

contributions therefor. (June 2,1951, ch. 121, ch. XI, 65 Stat. 61.)

§ 2271. Federal Civil Defense Administration.

(a) ESTABLISHMENT; APPOINTMENT OF ADMINISTRATOR.

There is established in the executive branch of the Government

a Federal Civil Defense Administration (hereinafter referred to

as the ''Administration'*) at the head of which shall be a Federal

Civil Defense Administrator appointed from civilian life by the

President, by and with the advice and consent of the Senate.

(b) DEPUTY ADMINISTRATOR; APPOINTMENT; DUTIES.

There shall be in the Administration a Deputy Administrator

who shall be appointed from civilian life by the President, by and

with the advice and consent of the Senate. The Deputy Administrator shall perform such functions as the Administrator shall

prescribe and shall act for, and exercise the powers and perform

the duties of, the Administrator during his absence or disability.

(c) ADMINISTRATOR SUBJECT TO PRESIDENTIAL CONTROL.

The Administrator shall perform his functions subject to the

direction and control of the President. (July 31, 1956, ch. 804,

title I, §§ 104 (a), 105, 70 Stat. 736, 737.)

201
§2272. Civil Defense Advisory Administration; establishment;

duties; composition; tenure; meetings; additional advisory

committees; compensation.

(a) There is created a Civil Defense Advisory Council, hereinafter referred to as the Council, which shall advise and consult

with the Administrator with respect to general or basic policy

matters relating to civil defense. The Council shall consist of the

Administrator, who shall be chairman, and twelve additional

members to be appointed by the President, of whom three members

shall be representative of the State governments, three members

shall be representative of the political subdivisions of the States

and the remaining members shall be selected among the citizens of

the United States of broad and varied experience in matters

affecting the public interest, other than officers and employees

of the United States (including any department or agency of

the United States) who, as such, regularly receive compensation

for current services. The following organizations shall be invited

to establish panels of names for the members representative of

the States and the political subdivisions thereof:

The Council of State Governments.

The Governors' Conference.

The American Municipal Association.

The United States Conference of Mayors.

The representatives of the States and the political subdivisions

thereof appointed by the President shall be selected from the

panels established by the above-mentioned organizations. Not

more than a majority of two of the members shall be appointed

to the Council from the same political party. Each member shall

hold office for a term of three years, except that (1) any member

appointed to fill a vacancy occurring prior to the expiration of

the term for which his predecessor was appointed, shall be

appointed for the remainder of such term; and (2) the terms

of office of the members first taking office after January 12, 1951,

shall expire, as designated by the President at the time of appointment, four at the end of one year, four at the end of two years

and four at the end of three years, after January 12, 1951. The

Council shall meet at least once in each calendar year and at such

other times as the Administrator shall determine that its advice

and counsel will be of assistance to the program.

(b) The Administrator may appoint such other advisory committees as are deemed necessary.

(c) The members of the Council and the members of any other

advisory committees, other than the Administrator, may be compensated at rates not in excess of those prescribed in section 401

(b) of this Act [section 2253 (b) of this Appendix]. (Jan. 12,

1951, ch. 1228, title I, § 102, 64 Stat. 1247.)

§ 2281. Functions of Administrator.

The Administrator is authorized, in order to carry out the abovementioned purposes, to—

(a) PREPARATION OF PLANS FOR CIVIL DEFENSE.

Prepare national plans and programs for the civil defense of

the United States, making such use of plans and programs previously initiated by the National Security Resources Board as is

202
feasible ; sponsor and direct such plans and programs ; and request

such reports on State plans and operations for civil defense as

may be necessary to keep the President, the Congress and the

several States advised of the status of civil defense in the United

States;

(b) DELEGATION OF CIVIL DEFENSE RESPONSIBILITIES.

Delegate, with the approval of the President, to the several

departments and agencies of the Federal Government appropriate

civil defense responsibilities, and review and coordinate the civil

defense activities of the departments and agencies with each other

and with the activities of the States and neighboring countries ;

(c) ESTABLISHMENT OF CIVIL DEFENSE COMMUNICATIONS; DISSEMINATION OF WARNINGS.

Make appropriate provision for necessary civil defense communications and for dissemination of warnings of enemy attacks

to the civilian population ;

(d) DEVELOPMENT OF PROTECTIVE MEASURES; SHELTERS; AND

EQUIPMENT.

study and develop civil defense measures designed to afford

adequate protection of life and property, including, but not limited

to, research and studies as to the best methods of treating the

effects of attacks; developing shelter designs and materials for

protective covering or construction ; and developing equipment or

facilities and effecting the standardization thereof to meet civil

defense requirements;

(e) TRAINING PROGRAMS; ESTABLISHMENT OF A COLLEGE AND

TECHNICAL TRAINING SCHOOLS.

Conduct or arrange, by contract or otherwise, for training

programs for the instruction of civil defense officials and other

persons in the organization, operation, and techniques of civil

defense; conduct or operate schools or classes, including the

payment of travel expenses, in accordance with the Travel Expenses Act of 1949, as amended [sections 835-842 of title 5], and

the Standardized Government Travel Regulations, and per diem

allowances, in lieu of subsistence for trainees in attendance or

the furnishing of subsistence and quarters for trainees and instructors on terms prescribed by the Administrator ; atid provide

instructors and training aids as deemed necessary : Provided, That

not more than one national civil defense college and three civil

defense technical training schools shall be established under the

authority of this subsection : Provided further. That the Administrator is authorized to lease real property required for the purpose of carrying out the provisions of this subsection, but shall

not acquire fee title to property unless specifically authorized by

Act of Congress.

(f) DISSEMINATION OF INFORMATION.

Publicly disseminate appropriate civil defense information by

all appropriate means ;

(g) ENCOURAGEMENT OF STATE CIVIL DEFENSE WORK.

Assist and encourage the States to negotiate and enter into

interstate civil defense compacts ; review the terms and conditions

of such proposed compacts in order to assist to the extent feasible

203
in obtaining uniformity therein and consistency with the national

civil defense plans and programs; assist and coordinate the

activities thereunder; aid and assist in encouraging reciprocal

civil defense legislation by the States which will permit the

furnishing of mutual aid for civil defense purposes in the event

of an attack which cannot be adequately met or controlled by a

State or political subdivision thereof threatened with or undergoing an attack : Provided, That a copy of each such civil defense

compact shall be transmitted promptly to the Senate and the House

of Representatives. The consent of the Congress shall be granted

to each such compact, upon the expiration of the first period of

sixty calendar days of continuous session of the Congress following

the date on which the compact is transmitted to it; but only if,

between the date of transmittal and expiration of such sixty-day

period, there has not been passed a concurrent resolution stating

in substance that the Congress does not approve the compact:

Provided, That nothing in this subsection shall be construed as

preventing Congress from withdrawing at any time its consent

to any such compact;

(h) ACQUISITION OF NECESSARY DEFENSE MATERIALS AND FACILITIES.

Procure by condemnation or otherwise, construct, lease, transport, store, maintain, renovate or distribute materials and facilities for civil defense, with the right to take immediate possession

thereof : Provided, That facilities acquired by purchase, donation,

or other means of transfer may be occupied, used, and improved

for the purposes of this Act [sections 2251-2297 of this Appendix], prior to the approval of title by the Attorney General as

required by section 355 of the Revised Statutes, as amended [section 255 of Title 40] : Provided further, That the Administrator

shall report not less often than quarterly to the Congress all

property acquisitions made pursuant to this subsection : Provided

further. That the Administrator is authorized to lease real property required for the purpose of carrying out the provisions of this

subsection, but shall not acquire fee title to property unless specifically authorized by Act of Congress.

(i) FINANCIAL AID TO STATES.

Make financial contributions on the basis of programs or

projects approved by the Administrator, to the States for civil

defense purposes, including, but not limited to the, procurement,

construction, leasing, or renovating of materials and facilities.

Such contributions shall be made on such terms or conditions as

the Administrator shall prescribe, including, but not limited to,

the method of purchase, the quantity, quality, or specifications

of the materials or facilities, and such other factors or care or

treatment to assure the uniformity, availability, and good condition of such materials or facilities: Provided, That, except as

otherwise provided in section 303 (d) of this Act [section 2293

of this Appendix], no contributions shall be made for State or

local personnel and administrative expenses, or for items of

personal equipment for State or local workers, or for the procurement of land : Provided further, That the amounts authorized to

be contributed by the Administrator to each State for organizational equipment shall be equally matched by such State from

204
any source it determines is consistent with its laws: Provided

further, That financial contributions to the States for shelters

and other protective facilities shall be determined by taking the

amount of funds appropriated or available to the Administrator

for such facilities in each fiscal year and apportioning same among

the States in the ratio which the urban population of the critical

target areas (as determined by the Administrator, after consultation with the Secretary of Defense) in each State, at the time

of the determination, bears to the total urban population of the

critical target areas of all of the States : Provided further, That

the amounts authorized to be contributed by the Administrator

to each State for such shelters and protective facilities shall be

equally matched by such State from any source it determines is

consistent with its laws and, if not matched within a reasonable

time, the Administrator may reallocate same to other States on

the formula outlined above : Provided further, That the value of

any land contributed by any State or political subdivision thereof

shall be excluded from the computation of the State share:

Provided further. That the amounts paid to atiy State under this

subsection shall be expended solely in carrying out the purposes

set forth herein and in accordance with the State civil defense

programs or projects approved by the Administrator: Provided

further. That the Administrator shall make no contribution toward

the cost of any program or project for the procurement, construction, or leasing of any facility which (1) is intended for use, in

whole or in part, for any purpose other than civil defense and

(2) is of such kind that upon completion it will, in his judgment,

be capable of producing sufiicient revenue to provide reasonable

assurance of the retirement or repayment of such cost, except

that (subject to the foregoing provisos of this subsection) he

may make contribution to any State toward that portion of the

cost of the construction, reconstruction, or enlargement of any

facility which he shall determine to be directly attributable to the

incorporation in such facility of any feature of construction or

design not necessary for the principal intended purpose thereof

but which is, in his judgment, necessary for the use of such facility

for civil defense purposes. Provided further. That the limitations

upon the making of Federal contributions contained in the second,

third, and fourth provisos of this sentence may be varied for the

Territory of Alaska. Whenever the Administrator, after reasonable notice and opportunity for hearing the State, finds that

there is a failure to expend funds in accordance with the terms

and conditions governing the Federal contribution for such approved programs or projects, the Administrator shall notify such

State that further payments will not be made to the State from

appropriations under this Act [sections 2251-2297 of this Appendix] or from funds otherwise available for the purposes of this

Act [said sections] (or in his discretion from appropriations under

this Act [said sections] or from funds otherwise available for the

purposes of this Act [said sections] for any approved program or

project with respect to which there is such failure to comply)

until he is satisfied that there will no longer be any such failure.

Until he is so satisfied, the Administrator shall either withhold

the payment of any financial contributions to such State, or limit

payments to the program or project with respect to which there

305
is substantial compliance with the terms and conditions governing

the Federal contribution for such program or project: Provided,

That the Administrator shall report not less often than quarterly

to the Congress all contributions made pursuant to this subsection.

(j) SALE AND DISPOSITION OF SURPLUS PROPERTY.

Arrange for the sale or disposal of materials and facilities found

by the Administrator to be unnecessary or unsuitable for civil

defense purposes in the same manner as provided for excess

property in the Federal Property and Administrative Services

Act of 1949, as amended, and any funds received as proceeds

from the sale or other disposition of such materials and facilities

shall be covered into the Treasury as miscellaneous receipts. (Jan.

12, 1951, ch. 1228, title II, § 201, 64 Stat. 1248; Mar. 5, 1952, ch.

78, § 1 (a), 66 Stat. 13; June 25, 1952, ch. 461, 66 Stat. 158; Aug.

2,1956, ch. 888, § 1, 70 Stat. 949.)

§ 2282. Definition of "national defense" or "defense".

The terms "national defense" or "defense" as used in title II

of the Defense Production Act of 1950 [section 2081 of this Appendix] shall be construed to include "civil defense" as defined in

this Act [sections 2251-2297 of this Appendix]. (Jan. 12, 1951,

ch. 1228, title II, § 202, 64 Stat. 1251.)

§ 2283. Mutual aid pacts between States and neighboring countries.

The Administrator shall give all practicable assistance to States

in arranging, through the Department of State, mutual civil

defense aid between the States and neighboring countries. (Jan.

12,1951, ch. 1228, title II, § 203, 64 Stat. 1251.)

§2284. Identity insignia; manufacture, possession, or wearing;

penalties.

The Administrator may prescribe insignia, arm bands, and other

distinctive articles (including designs previously covered under

Letters Patent which were assigned to the United States and held

by the Office of Civilian Defense created by Executive Order Numbered 8757 issued May 20, 1941) which may be manufactured for

or possessed or worn by persons engaged in civil defense activities

pursuant to rules and regulations for the manufacture, possession,

or wearing thereof established by the Administrator. The manufacture, possession, or wearing of any such insignia, arm band,

or other distinctive article otherwise than in accordance with

such rules and regulations shall be unlawful and shall subject such

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

more than one year, or both. (Jan. 12, 1951, ch. 1228, title II,

§ 204, 64 Stat. 1251.)

§ 2285. Real property transactions.

(a) AGREEMENTS BETWEEN ADMINISTRATION AND ARMED SERVICES

COMMITTEES OF CONGRESS.

The Administrator of the Federal Civil Defense Administration,

or his désignée, must come to an agreement with the Committees

on Armed Services of the Senate and the House of Representatives

before entering into any of the following transactions by or for the

use of that administration ;

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(1) An acquisition of fee title to any real property, if the

estimated price is more than $25,000.

(2) A lease of any real property to the United States, if the

estimated annual rental is more than $25,000.

(3) A lease of real property owned by the United States, if

the estimated annual rental is more than $25,000.

(4) A transfer of real property owned by the United States

to another Federal agency or to a State, if the estimated value

is more than $25,000.

(5) A report of excess real property owned by the United States

to a disposal agency, if the estimated value is more than $25,000.

If a transaction covered by clause (1) or (2) [of this subsection] is part of a project, the agreement must be based on

the general plan for that project, including an estimate of the

total cost of the lands to be acquired or leases to be made.

(b) QUARTERLY REPORTS TO ARMED SERVICES COMMITTEES.

The Administrator shall report quarterly to the Committees on

Armed Services of the Senate and the House of Representatives

on transactions described in subsection (a) [of this section] that

involve an estimated value of more than $5,000 but not more than

$25,000.

(c) REAL PROPERTY GOVERNED BY THIS SECTION.

This section applies only to real property in the United States,

Alaska, Hawaii, and Puerto Rico. It does not apply to real property for river and harbor projects or flood-control projects, or

to leases of Government-owned real property for agricultural

or grazing purposes.

(d) RECITAL OF COMPLIANCE IN INSTRUMENT OP CONVEYANCE AS

CONCLUSIVE.

A statement in an instrument of conveyance, including a lease,

that the requirements of this section have been met, or that the

conveyance is not subject to this section, is conclusive. (Aug. 10,

1956, ch. 1041, § 43, 70 A. Stat. 636.)

§ 2291. Sections 2291-2297 of this Appendix eflfective only during

civil defense emergency; proclamation of emergency; termination.

The provisions of this title [sections 2291-2297 of this Appendix] shall be operative only during the existence of a state of

civil defense emergency (referred to hereinafter in this title

[said sections] as "emergency"). The existence of such emergency

may be proclaimed by the President or by concurrent resolution

of the Congress if the President in such proclamation, or the

Congress in such resolution, finds that an attack upon the United

States has occurred or is anticipated and that the national safety

therefor requires an invocation of the provisions of this title

[said sections]. Such emergency also shall exist with respect to

any designated geographic area or areas of the United States

when the President determines that any such attack has been

made upon or is anticipated within such area or areas, and directs

the Administrator to proceed pursuant to the provisions of this

title [said sections] with respect to such area or areas. Any such

emergency shall terminate upon the proclamation of the termination thereof by the Presidetit, or the passage by the Congress of

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a concurrent resolution terminating such emergency. (Jan. 12,

1951, ch. 1228, title III, § 301, 64 Stat. 1251.)

§ 2293. Emergency powers of Administrator.

During the period of such emergency, the Administrator is

authorized to—

(a) exercise the authority contained in section 201 (h) [section

2281 (h) of this Appendix] without regard to the limitation of

any existing law, including the provisions of the Act of June 30,

1932, as amended [section 278a of Title 40], and section 3709 of

the Revised Statutes, as amended [section 5 of Title 41], and

section 3734 of the Revised Statutes, as amended [sections 259

and 269 of Title 40], and the Federal Property and Administrative

Services Act of 1949, as amended ;

(b) sell, lease, transfer, or deliver materials or perform services

for civil defense purposes on such terms and conditions as the

Administrator shall prescribe and without regard to the limitations of existing law : Provided, That any funds received from the

sale or other disposition of materials or for services shall be

deposited to the credit of appropriations currently available and

made pursuant to this Act [sections 2251-2297 of this Appendix]

and shall be available for expenditure for the purposes of such

appropriations ;

(c) coordinate and direct, for civil defense purposes, the relief

activities of the various departments and agencies of the United

States as provided in section 302 hereof [section 2292 of this

Appendix] ;

(d) reimburse any State, including any political subdivisions

thereof, for the compensation paid to and the transportation,

subsistence, and maintenance expenses of any employees while

engaged in rendering civil defense aid outside the State and to

pay fair and reasonable compensation for the materials of the

State government or any political subdivision utilized or consumed

outside of the State, including any transportation costs, in accordance with rules and regulations prescribed by the Administrator.

As used in this subsection, the term "employees" shall include

full- or part-time paid, volunteer, auxiliary, and civil defense

workers subject to the order or control of a State government

or any political subdivision thereof, and such employees shall Hot

be deemed by reason of such reimbursement to be employees or

appointees of the United States ;

(e) provide financial assistance for the temporary relief or aid

of any civilian injured or in want as the result of any attack; and

(f) employ temporarily additional personnel without regard to

the civil service laws and to incur such obligations on behalf of

the United States as may be required to meet the civil defense

requirements of an attack or of an anticipated attack.

During the period of any such emergency, the Administrator

shall transmit quarterly to the Congress a detailed report concerning all action taken pursuant to this section. (Jan. 12, 1951, ch.

1228, title III, § 303, 64 Stat. 1252.)

§ 2294. Government immune from liability for death or personal

injury to employees; benefits employees entitled to.

The Federal Government shall not be liable for any damage to

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property or for any death or personal injury occurring directly

or indirectly as a result of the exercise or performance of, or

failure to exercise or perform, any function or duty, by any

Federal agency or employee of the Government, in carrying out

the provisions of this title [sections 291-297 of this Appendix]

during the period of such emergency. Nothing contained in this

section shall affect the right of any person to receive any benefit

or compensation to v^hich he might otherwise be entitled under

the Federal Employees' Compensation Act, as amended, or any

other Act of Congress providing for any pension or retirement.

(Jan. 12, 1951, ch. 1228, title III, § 304, 64 Stat. 1253.)

§ 2295. Waiver of Administrative Procedure Act.

During the period of such emergency, the functions and duties

exercised under this Act [sections 2251-2297 of this Appendix]

shall be excluded from the operation of the Administrative Procedure Act, except as to the requirements of section 3 thereof

[section 1002 of Title 5]. (Jan. 12, 1951, ch. 1228, title III, § 305,

64 Stat. 1253.)

§ 2296. Compensation for acquisition of nongovernmental property; return of property to owner; disposal of surplus property.

(a) Except in the case of property acquired pursuant to section

201 (h) of this Act [section 2281 (h) of this Appendix] in conformity with the provisions of the Federal Property and Administrative Services Act of 1949, as amended, or through judicial

proceedings for condemnation, the Administrator shall promptly

determine the amount of the compensation to be paid for any

property (other than that of the Federal Government or any department or agency thereof) or the use thereof acquired pursuant

to this Act [sections 2251-2297 of this Appendix], but each such

determination shall be made as of the time it is acquired in

accordance with the provisions for just compensation in the fifth

amendment to the Constitution of the United States. If the person

entitled to receive the amount so determined by the Administrator

as just compensation is unwilling to accept the same as full and

complete compensation for such property or the use thereof, he

shall be paid promptly 75 per centum of such amount and shall

be entitled to recover from the United States, in an action brought

in the Court of Claims, or, without regard to whether the amount

involved exceeds $10,000, in any district court of the United States,

within three years after the date of the Administrator's award,

such additional amount, if any, which, when added to the amount

so paid to him, shall be just compensation.

(b) Whenever the Administrator determines that any real

property acquired by him is no longer needed for the purposes

of this Act [sections 2251-2297 of this Appendix], he shall, if the

original owner desires the return of the property and pays to

the Administrator the fair value thereof, return such property

to such owner. In the event the Administrator and the original

owner do not agree as to the fair value of such property, the fair

value shall be determined by three appraisers, one of whom shall

be chosen by the Administrator, one by the original owner, and

the third by the first two appraisers ; the expenses of such determi209
nation shall be paid in equal <;5hares by the Government and the

original owner.

(c) Whenever the need for the purposes of this Act [sections

2251-2297 of this Appendix] of any personal property acquired

under this Act [said sections] shall terminate, the Administrator

may dispose of such property on such terms and conditions as he

shall deem appropriate, but to the extent feasible and practicable

he shall give to the former owner of any property so disposed

of an opportunity to reacquire it (1) at its then fair value as

determined by the Administrator, or (2) if it is to be disposed

of (otherwise than at a public sale of which he shall give reasonable notice) at less than such value, at the highest price any other

person is willing to pay therefor : Provided, That this opportunity

to reacquire need not be given in the case of fungibles or items

having a fair value of less than $1,000, (Jan. 12, 1951, ch, 1228,

title III, § 306, 64 Stat. 1253.)

§ 2297. Termination of sections 2291-2297 of this Appendix.

The provisions of this title [sections 2291-2297 of this Appendix] shall terminate on June 30, 1958, or on such earlier date as

may be prescribed by concurrent resolution of the Congress. (As

amended June 3, 1954, ch. 253, 68 Stat. 170.)

lîr U. S. GOVERNMENT PRINTING OFFICE: 1957-430757

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