^

if-ñé^ AGRICULTURAL SIARKETDÍG SERVICE=J

VijapirgSi STATES DEPARTMENT OF AGRICULTURE

/

3

/ COMPILATION OF STATUTES

RELATING TO

Research, Statistics, and Reports

Service and Regulatory Work, and

Food Distribution

AS OF MNUARY 1, 1961. :> w

;

HORARY

OCT 4 -1961

^ COMPILED UNDER THE DIRECTION

OF THE GENERAL COUNSEL u

1

AGRICULTURE HANDBOOK NO. 201V

Supersedes 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.

Growth Through Agncultural Progress

.c^

Washington, D.C. September 1961

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

Washington 25, D.O. - Price 75 cents

CONTENTS AND SYNOPSES

Pag€

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.

PART I

RESEARCH, STATISTICS, AND REPORTS

Agricultural Marketing Act of 1929 ._ i

(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.

Agricultural Marketing Act of 1946 2

(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.

Agricultural Research:

(A) Agricultural Experiment Stations 7

(7 U.S.C. 361a-361d)

Provides for appropriations for research into the problems of agriculture conducted through the States, by allotments to all States on

the basis of their rural populations and through contributions to research

projects at State agricultural experiment stations.

(B) Bankhead-Jones Act 10

(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 landgrant colleges.

(7 U.S.C. 427i(e))

Provides appropriation for research under contract.

(C) Grants for Support of Scientific Research 12

(42 U.S.C. 1891-1893)

Authorizes Federal agencies to make grants to support basic scientific

research, to vest in research institutions title to equipment bought with

Federal funds for such research, and to require an annual report on

all such research grants.

Cotton Statistics and Estimates:

(A) Act of March 3, 1927 12

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

Authorized collection and publication of statistics or estimates concerning cotton "carryover" and publication of estimates of the crop

111
Page

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

on the cotton crop.

(B) Act of April 2, 1924 16

(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.

Federal Reports Act of 1942 18

(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.

Monthlv Crop Report 21

(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.

Disclosure of Crop Information 21

(18 U.S.C. 1902)

Provides criminal penalties for any Federal employee who, having

information affecting the market value of any product, knowingly discloses information that was required to be withheld until a fixed time,

or who speculates in such a product before the information is made

public.

Parity Determination: Agricultural Adjustment Act of 1938 21

(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 II.

Peanut Statistics 23

(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.

Tobacco Statistics 25

(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.

Turpentine and Rosin Statistics 27

(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.

PART II

SERVICE AND REGULATORY

AGREEMENTS AND ORDERS, GRADING AND INSPECTIONS

Agricultural Marketing Agreement Act of 1937 29

(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.

IV
Fase

(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 regulatiing 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 misrepresentation with respect to such services. (See

page 4.)

COTTON

Cotton Futures Act 50

(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

hut 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 ofiñcial

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.

United States Cotton Standards Act 58

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

(a) Provides for establishment, preparation, distribution and use of

official cotton standards.

(b) Authorizes contracts with cooperatives for classing cotton and

payment for services.

(c) Provides for a cotton classing service by the Department of Agriculture for the public on a fee basis.

(d) Provides for the licensing of cotton classers.

(e) 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.

FEES, REIMBURSEMENTS, AND RECORDS

Cooperative Contributions 63

(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 circumstances (5 U.S.C.

564).
Page

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).

Department of Agriculture Organic Act of 1944 64

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

Fees for Services Rendered 64

(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.

Inspection Services—Reimbursements 65

(5 U.S.C. 576)

Authorizes payment for overtime performed by employees performing

inspection or quarantine services relating to imports or exports.

FRUITS AND VEGETABLES

Export Standards for Apples and Pears 65

(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.

Export Standards for Grapes and Plums 67

(7 U.S.C. 591-599)

Prohibits shipment or transportation of specified fruits 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.

Perishable Agricultural Commodities Act, 1930 70

(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.

Produce Agency Act _ _ _ 84

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

Prohibits destruction or dumping by commission merchants.

Standard Containers Act of 1916- _ _ .. 85

(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.

VI
Page

Standard Containers Act of 1928 87

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

Prescribes capacities of standard hampers, round stave baskets and

splint baskets for fruits and vegertables and prohibits manufacture or

sale of such articles which do not conform.

Standards for Apples in Commerce 91

(21 U.S.C. 20-23)

Establishes standard grades for apples shipped in interstate commerce

and requires all barrels containing graded apples to carry the grade,

type, and source of the apples.

GRAIN AXD SEED

Federal Seed Act 92

(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.

International Wheat Agreement Act of 1949 HI

(7 U.S.C. 1641)

Authorizes the exportation of wheat and wheat flour according to the

terms of the "International Wheat Agreement."

Rye Seed Imports 112

(Presidential Proclamation 3306)

Proclamation limiting the import of rye, rye flour, and rye meal.

United States Grain Standards Act H"^

(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.

viî
LIVESTOCK AND LIVESTOCK PRODUCTS

Page

Federal Trade Commission Act 119

(15 U.S.C. 46, 48-50)

Established the powers of the Federal Trade Commission, authorizing

investigations and requiring corporations to file certain reports; required

Federal departments to furnish the FTC with information on corporations; required corporations to open their files to FTC examination

upon a subpoena signed by a commission member, and provided authority for the FTC to order the production of documents or witnesses; and

provided penalties for a witness's refusal to answer, for falsifying

evidence, for a failure to file corporate reports, or for any FTC employee's revealing of privileged information.

Humane Slaughter Act 122

(7 U.S.C. 1901-1906)

Establishes the use of humane methods of slaughter as a policy of the

United States.

National Wool Act of 1954 125

(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 CJommodity 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 approval 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.

Packers and Stockyards Act, 1921 128

(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 rate 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.

Vlll
Page

(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.

(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) Directsthe Secretary to issue licensesto applicants who comply with

requirements of the regulations unless he finds, after opportunity for a

hearing, that the apolicant 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 145

(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

The Naval Stores Act 145

(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.

POULTRY AND POULTRY PRODUCTS

Poultry Products Inspection Act 148

(21 U.S.C. 451-469)

Provides for the compulsory inspection of poultry and poultry products

by the United States Department of Agriculture.

TOBACCO

The Tobacco Inspection Act 158

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

(a) Authorizes (i) the promulgation and establishment of Ofl5cial 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) emplo3dng and licensing of persons as samplers to take ofläcial

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 163

(7 U.S.C. 51&-517)

Prohibits exportation of tobacco seed or live tobacco plants unless

such action is in pursuance of a written permit by the Secretary.

IX
WAREHOUSING AND TRANSPORTATION

Page

Agricultural Adjustment Act of 1938 164

(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 I.—Research,

Statistics, and Reports).

United States Warehouse Act 164

(7 U.S.C. 241-272)

(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) 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 apphcation,

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 hcenses

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.

PART III

FOOD DISTRIBUTION

Agricultural Trade With Foreign Countries:

(A) Agricultural Trade Development and Assistance Act of 1954 173

(7 U.S.C. 1691-1736)

Authorizes (1) sale of defined surplus commodities in excess of the

usual marketings 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 friendlv governments or through relief agencies.

(B) Mutual Security Act of 1954 188

(22 U.S.C. 1022)

Authorizes funds for shipment of surplus agricultural commodities.
Pag«

Commodity Set-Aside 189

(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.

Domestic Disposition of Surplus Commodities:

(A) Agricultural Act of 1949 191

(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 193

(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 194

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

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

means in connection with tlie establishment, maintenance, operation

and expansion of nonprofit school lunch programs.

Price Support of Agricultural Commodities:

Agricultural Act of 1949 198

(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 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 parasjraph ((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) Requires 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 utihzation of the services and facilities of the Commodity Credit Corporation and making advance payments to it in

carrying out Section 32 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 supphes.

XI
Page

Section 32 and Related Statutes:

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

extant legislation are grouped here and identified as (A), (B), (C), (D),

(E), (F),and(G).

(A) Section 32 209

(7 U.S.C. 612c)

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:

(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 indemnities 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.

(B) Fishery Products 210

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

Authorizes use of Section 32 funds for the following purposes:

(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) Retransfer 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, pertinentsections are set out in the text of this compilation (p. 211).

(C) Act of June 28, 1937 212

(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.

(D) Agricultural Act of 1949 213

(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.

(E) Agricultural Act of 1956 213

(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.

(F) Administrative Expenses 213

(7 U.S.C. 1392b)

Limits the sums to be paid for Federal and State administrative expenses (excluding county and local committees) under the Agricultural

Adjustment Act of 1938 and the Soil Conservation and Domestic Allotment Act to 3 percent of the total sum appropriated, and to 4 percent of

the sum appropriated for the Agricultural Adjustment Act; and requires

that the salaries paid to local and county committees be publicly displayed.

xii
Page

(G) Appropriation and Apportionment of Funds . 214

(31 U.S.C. 665)

Prohibits the expenditure of funds or creation of obligations in excess

of appropriations or apportionments, unless authorized by law, required by emergencies, or necessary for welfare of individuals, and

exempting price support, surplus removal, and section 32 funds from the

requirements of apportionment.

Special Milk Program __ 218

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

Authorizes the expenditure of certain amounts of tlie funds of the Commodity Credit Corporation to increase the consumption of fluid milk by

children.

PART IV

MISCELLANEOUS

Capper-Volstead Act 219

(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 adminisstrative procedure to establish the facts and an order directing the

association to cease and desist.

Defense Production Act of 1950 220

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

A comprehensive statute to provide for national defense and national

security.

Department of Agriculture and Farm Credit Administration Appropriation

Act, 1961 235

(Public Law 86-532, 74 Stat. 232, approved June 29, 1960)

Provides for appropriations to carry out programs of the Agricultural

Marketing Service.

Department of Agriculture Organic Act of 1944 237

(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.

Department of Agriculture Organic Act of 1956 238

(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 Civil Defense Act 238

(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.

Oaths, Witnesses, and Records 254

(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.

Reorganization Plan No. 2 of 1953 254

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

Authorizes the Secretary to delegate authorities, functions, etc.

Index 257

XUl

COMPILATION OF STATUTES

Relating to Research, Statistics, and Reports, Service and

Regulatory Work, and Food Distribution

as of January 1, 1961

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.)

PART I

RESEARCH, STATISTICS, AND REPORTS

Agricultural Marketing Act of 1929

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

§1141j. Miscellaneous provisions.

(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 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.)
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

eighty-four 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 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 coimtries, 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 effecuating 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 imder 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, 60Stat. 1087.)
§ 1622. Duties of Secretary relating to agricultural products.

The Secretary of Agriculture is directed and authorized—

(a) DETERMINATION OF METHODS or PROCESSING, PACKING, 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 äIARKETS.

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 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 agriciütural products.

591897—61-
(h) INSPECTION AND CERTIFICATION OF PRODUCTS IN INTERSTATE COMLiERCE ; 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 ojficial 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, memorandimi, 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 ASSEIVIBLING, 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, processiug, transportation, storage, distribution, and handling of agricultural products.

(j) IMPROVEMENT OF TRANSPORTATION FACILITIES AND RATES.

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 Conmiission, 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) DE\T:LOPMENT 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

manner and to the best interest of the producersthereof.

(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. (August 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 a^cultural

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.

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 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

shaU 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 fimds, 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, storing, 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 31 and section 5 of Title 41 shall not be applicable to contracts

or agreements made under the authority of this section. 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 unexpected 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 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.)

Agricultural Research

Agricultural Experiment Stations

(7 U.S.C. 361a-361d)

§361a (Section 1).^ Congressional declaration of purpose; definitions.

It is the policy of Congress to continue the agricultural research

at State agricultural experiment stations which has been encouraged

^ Section numbers in parentheses are the sections of the appropriate PubUe

Laws.
and supported by the Hatch Act of 1887, the Adams Act of 1906, the

Pumell Act of 1925, the Bankhead-Jones Act of 1935, and title I,

section 9, of that Act as added by the Act of August 14,1946, and Acts

amendatory and supplementary thereto, and to promote the efficiency

of such research by a codification and simplification of such laws. As

used in sections 361a-361i of this title, the terms "State" or

"States'' are defined to include the several States, and Puerto

Eico. As used in sections 361a-361i of this title, the term "State agricultural experiment station" means a department which shall have

been established, under direction of the college or university or agricultural departments of the college or university in each State in

accordance with sections 301-305, 307, and 308 of this title; or such

other substantially equivalent arrangements as any State shall determine. (Mar. 2,1887, ch. 314, § 1, 24 Stat. 440 ; Aug. 11,1955, ch. 790,

§ 1,69 Stat. 671.)

§361b (Section 2). Congressional statement of policy; research,

investigations and experiments.

It is further the policy of the Congress to promote the efficient

production, marketing, distribution, and utilization of products of

the farm as essential to the health and welfare of our peoples and to

promote a sound and prosperous agriculture and rural life as indispensable to the maintenance of maximum employment and national

prosperity and security. 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 segments of our economy. It shall be the object and dutj of

the State agricultural experiment stations through the expenditure

of the appropriations hereinafter authorized to conduct original and

other researches, investigations, and experiments bearing directly on

and contributing to the establishment and maintenance of a permanent and effective agricultural industry of the United States, including

researches basic to the problems of agriculture in its broadest aspects,

and 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, as may

be deemed advisable, having due regard to the varying conditions and

needs of the respective States. (Mar. 2,1887, ch. 314, § 2, 24 Stat. 440 ;

Aug. 11,1955, ch. 790, § 1, 69 Stat. 671.)

§361c (Section 3). Appropriations and allotments of grants.

(a) AUTHORIZATION.

There are authorized to be appropriated for the purposes of sections

361a-361i of this title such sums as Congress may from time to time

determine to be necessary.

(b) ALLOTMENTS TO STATES.

Out of such sums each State shall be entitled to receive annually a

sum of money equal to and subject to the same requirements as to use

for marketing research projects as the sums received from Federal

appropriations for State agricultural experiment stations for the

fiscal year 1955, except that amounts heretofore made available from

the fund known as the "Regional research fund, OiSce of Experiment

Stations" shall continue to be available for the support of cooperative

regional projects as defined in subsection (c) (3) of this section, and

8
the said fund shall be designated "Eegional research fund, State agricultural experiment stations," and the Secretary of Agriculture shall

be entitled to receive annually for the administration of sections 361a361i of this title, a sum not less than that available for this purpose

for the fiscal year ending June 30,1955 : Provided^ That if the appropriations hereunder available for distribution in any fiscal year are less

than those for the fiscal year 1955 the allotment to each State and the

amounts for Federal administration and the regional research fund

shall be reduced in proportion to the amount of such reduction.

( c ) ALLOTMENT OF ADDITIONAL SUMS.

Any sums made available by the Congress in addition to those provided for in subsection (b) of this section for State agricultural experiment station work shall be distributed as follows :

1. Twenty per centum shall be allotted equally to each State;

2. Not less than 52 per centum of such sums shall be allotted to

each State, as follows: One-half in an amount which bears the

same ratio to the total amount to be allotted as the rural population of the State bears to the total rural population of all the

States as determined by the last preceding decennial census current at the time each such additional sum is first appropriated ;

and one-half in an amount which bears the same ratio to the total

amount to be allotted, as the farm population of the State bears

to the total farm population of all the States as determined by

the last preceding decennial census current at the time such additional sum is first appropriated ;

3. Not more than 25 per centum shall be allotted to the States

for cooperative research in which two or more State agricultural

experiment stations are cooperating to solve problems that concern the agriculture of more than one State. The funds available

for such purposes, together with funds available pursuant to subsection (b) of this section for like purpose shall be designated as

the "Eegional research fund. State agricultural experiment stations", and shall be used only for such cooperative regional projects as are recommended by a committee of nine persons elected

by and representing the directors of the State agricultural experiment stations, and approved by the Secretary of Agriculture.

The necessary travel expenses of the committee of nine persons

in performance of their duties may be paid from the fund established by this paragraph ;

4. Not less than 20 per centum of any sums appropriated pursuant to this subsection for distribution to States shall be used by

State agricultural experiment stations for conducting marketing

research projects approved by the Department of Agriculture;

5. Three per centum shall be available to the Secretary of

Agriculture for administration of sections 361a-361i of this title.

(d) ALLOTMENT OF AMOUNTS IN EXCESS OF $9O,OOO.

Of any amount in excess of $90,000 available under sections 361a361i of this title for allotment to any State, exclusive of the regional

research funds, State agricultural experiment stations, no allotment

and no payments thereof shall be made in excess of the amount which

the State makes available out of its own funds for research and for

the establishment and maintenance of facilities necessary for the prosecution of such research : And provided further^ That if any State fails
to make available for such research purposes for any fiscal year a sum

equal to the amount in excess of $90,000 to which it may be entitled for

such year, the remainder of such amount shall be withheld by the

Secretary of Agriculture.

(e) DEFINITION OF "ADMINISTRATION."

"Administration" as used in this section shall include participation

in planning and coordinating cooperative regional research as defined

in subsection (c) 3 of this section.

(f) ADJUSTMENT OF PAYMENTS.

In making payments to States, the Secretary of Agriculture is

authorized to adjust any such payment to the nearest dollar. (Mar.

2, 1887, ch. 314, § 3, 24 Stat. 441; Aug. 11, 1955, ch. 790, § 1, 69 Stat.

671.)

§361d (Section 4). Use of funds.

Moneys appropriated pursuant to sections 361a-361i of this title

shall also be available, in addition to meeting expenses for research

and investigations conducted under authority of section 361b of this

title, for printing and disseminating the results of such research, retirement of employees subject to the provisions of section 331 of this

title, administrative planning and direction, and for the purchase

and rental of land and the construction, acquisition, alteration, or repair of buildings necessary for conducting research. The State agricultural experiment stations are authorized to plan and conduct any

research authorized imder section 361b of this title in cooperation

with each other and such other agencies and individuals as may contribute to the solution of the agricultural problems involved, and moneys

appropriated pursuant to sections 361a-361i of this title shall be available for paying the necessary expenses of planning, coordinating, and

conducting such cooperative research. (Mar. 2, 1887, ch. 314, § 4, 24

Stat. 441 ; Aug. 11,1955,ch. 790, § 1,69 Stat. 672.)

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

10
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 ma¡7 take place at anj^ stage

m their production, distribution, processmg, 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 a^icultural 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 tliis 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.)

§ 427i(e). Research under contract.

Appropriations for research work in the Department of Agriculture shall be available for accomplishing such purposes by contract

through the means provided in subsection (a) of this section.

(June 29, 1935, ch. 338, § 10, as added Aug. 14, 1946, ch. 966, title I,

§ 101, 60 Stat. 1085, and amended July 28, 1954, ch. 591, 68 Stat. 574.) j ^ . .

11
Grants for Support of Scientific Research

(42 U.S.C. 1891-1893)

§ 1891 (Section 1). Authorization to make grants.

The head of each agency of the Federal Government, authorized to

enter into contracts for basic scientific research at nonprofit institutions of higher education, or at nonprofit organizations whose primary

purpose is the conduct of scientific research, is authorized, where it is

deemed to be in furtherance of the objectives of the agency, to make

grants to such institutions or organizations for the support of such

basic, scientific research. (Public Law 85-934, § 1, September 6,

1958, 72Stat. 1793.)

§1892 (Section 2). Same; title to equipment.

Authority to make grants or contracts for the conduct of basic or

applied scientific research at nonprofit institutions of higher education, or at nonprofit organizations whose primary purpose is the conduct of scientific research, shall include discretionary authority, where

it is deemed to be in furtherance of the objectives of the agency, to vest

in such institutions or organizations, without further obligation to the

Government, or on such other terms and conditions as the agency

deems appropriate, title to equipment purchased with such grant or

contract funds. (Public Law 85-934, § 2, Sept. 6,1958, 72 Stat. 1793.)

§1893 (Section 3). Annual report to Congress; contents.

Each agency or department of the Federal Government exercising

authority granted by this chapter shall make an annual report on or

before June 30th of each year to the appropriate committees of both

Houses of Congress. Such report shall set forth therein, for the preceding year, the number of grants made pursuant to the authority provided in section 1891 of this title, the dollar amount of such grants, and

the institutions in which title to equipment was vested pursuant to

section 1892 of this title. (Public Law 85-934, 8 3, Sept. 6, 1958,

72 Stat. 1793.)

Cotton Statistics and Estimates

Act of March 3, 1927

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

§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 publislied 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 deliveiy imder

12
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 $oOO 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 (Section 3). 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 length 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 or by certified mail,

and the registry receipt or receipt for certified mail 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 misdemeaner 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; June 11, 1960, Public Law

86-50r,§l(3),74Stat.200.)

13
§ 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, eh.

75, 50Stat.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 cotton-growing 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.)

§473c—1. (Section 3c-l.) Offenses in relation to sampling of

cotton for classification.

It shall be unlawful—

(a) for any person sampling cotton for classification under sections 471-474 of this title knowingly to sample cotton improperly,

or to identify cotton samples improperly, or to accept money or other

consideration, directly or indirectly, for any neglect or improper performance of duty as a sampler;

(b) for any person to influence improperly or to attempt to influence improperly or to forcibly assault, resist, impede, or interfere

with any sampler in the taking of samples for classification under

sections 471-474 of this title :

(c) for any person knowingly to alter or cause to be altered a

sample taken for classification under sections 471-474 of this title by

any means such as trimming, peeling, or dressing the sample, or by

removing any leaf, trash, dust, or other material from the sample for

the purpose of misrepresenting the actual quality of the bale from

which the sample was taken :

(d) for any person knowingly to cause, or attempt to cause, the

issuance of a false or misleadino- certificate or memorandum of classification under sections 471-474 of this title by deceptive baling,

14
handling, or sampling of cotton, or by any other means, or by submitting samples of such cotton for classification knowing that the

cotton has been so baled, handled, or sampled ;

(e) for any person knowingly to submit more than one sample

from the same bale of cotton for classification under sections 471-474

of this title, except a second sample submitted for review classification ;

(f) for any person knowingly to operate or adjust a mechanical

cotton sampler in such a manner that a representative sample is not

drawn from each bale; and

(g) for any person knowingly to violate any regulation of the

Secretary of Agriculture relatmg to the sampling of cotton made

pursuant to section 473c of this title. (Mar. 3,1927, ch. 337, § 3c—1, as

added July 5,1960, Public Law 86-588, 74 Stat. 328.)

§473c—2. (Section 3c-2.) Same; penalties.

Any person violating any provision of section 473c—1 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. (Mar. 3, 1927, ch. 337, § 3c-2, as added July 5, 1960, Public

Law 86-588, 74 Stat. 329.)

§ 473c—3. (Section 3c-3). Liability of principal for act of agent.

In construing and enforcing the provisions of sections 471^74 of

this title, the act, omission, or failure of any agent, officer, or other

person acting for or employed by an individual, 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 individual,

association, partnership, corporation, or firm, as well as that of the

person. (Mar. 3, 1927, ch. 337 § 3c-3, as added July 5, 1960, Public

Law 86-588,74 Stat. 329. )

§ 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.l3L)

§ 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

15
be necessary for such purposes. (Mar. 3, 1927, ch. 337, § 4, 44 Stat.

1373.)

§475. (Section 1). Cotton crop reports.

The Secretary of Agriculture shall cause to be issued as of the first

of each month during the cotton growing and harvesting season from

August to December inclusive, reports describing the condition and

progress of the crop and stating 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 11 o'clock

antemeridian of the eighth day following that to which the respective

reports relate. When such date of release falls on Sunday, a le^al holiday, or other day which pursuant to statute or Executive order is a nonworkday in the Department of Agriculture at Washington generally,

the report shall be issued at 11 oxlock 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 first hand knowledge of the condition 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; May 29, 1958, Public Law 85-430,

§2,72 Stat. 149.)

§476 (Section 1). 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 estimated acreage of cotton planted, to be followed on August

1 with an estimate of the acreage for harvest and on December 1

with an estimate of the harvested acreage. (May 27, 1912, ch. 135,

37 Stat. 118; Mar. 3, 1927, ch. 337, §6, 44 Stat. 1374; Public Law

85^30, May 29,1958, § 1,72 Stat. 149 ).

Act of April 2, 1924

(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 gimied; 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.)

16
§ 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 spindles, 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 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 Conmierce at Washington generally the reports shall be issued at eleven o'clock antemeridian

of the nextsucceeding workday. (Apr. 2,1924, ch. 80, § 6, 43 Stat. 32 ;

June 18, 1929, ch. 28, 8 21, 46 Stat. 26; June 28, 1949, ch. 256, §2,

63 Stat. 278.)

17
Federal Reports Act of 1942

(5 U.S.C. 139-1390

§ 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 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 OF THE DIRECTOR OF THE BUREAU OF 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 OF 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.

^Vhile 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.

18
(d) DETERMINATION FOR NECESSITY OF INFORMATION ; 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 m writing. To

the extent, if any, that the 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

ofsuch 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 2,4, 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 139-139f of this title shall not apply to the obtaining or releasing of information by the Bureau of Internal Eevenue, 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,§3,56Stat.l078.)

§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

m 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 author-

(591897—61 3 19
ity 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 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 or 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 reiiulations as may

be necessary to carry out the provisions of sections 139-lor)f of this

title. (Dec. 24, 1942, ch. 811, § 6, nc 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 sliall 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, 5ß 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 riirht, privilege,

20
priority, allotment, or immunity, except when the right, privilege,

priority, allotment, or immunity, is legally conditioned on facts which

would be revealed by the information requested. (Dec. 24, 1942, ch.

811, §8, 56 Stat. 1080.)

Monthly Crop Report

(7 U.S.C. 411a)

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

Secretary of Agriculture.

The monthly crop report, T\'hich 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.)

Disclosure of Crop Information

(18 U.S.C. 1902)

§ 1902. Disclosure of crop information and speculation thereon.

Whoever, being an officer, employee or person acting for or on

behalf of the United States or any department or agency thereof,

and having by virtue of his office, employment or position, become

possessed of information which might influence or affect the market

value of any product of the soil grown within the United States,

which information is by law or by the rules of such department or

agency required to be withheld from publication until a fixed time,

willfully imparts, directly or indirectly, such information, or any part

thereof, to any person not entitled under the law of the rules of the

department or agency to receive the same ; or, before such information

is made public through regular official channels, directly or indirectly

speculates in any such product by buying or selling the same in any

quantity, shall be fined not more than $10,000 or imprisoned not

more than ten years, or both.

No person shall be deemed guilty of a violation of any such rules,

unless prior to such alleged violation he shall have actual knowledge thereof. (June 25,1948, ch. 645, 62 Stat. 790.)

Parity Determination

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

§130L (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.

21
(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,

Tvages 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

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 agi^cultural 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

21
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 persons dependent

upon other gainful occupation. ''Parity" 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 flow 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 Section 602 and

608e of the Agricultural Marketing Agreement Act of 1937—Part IL)

Peanut Statistics

(7 U.S.C. 951-957)

§951 (Section 1). 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 warehousemen, brokers, cleaners,

shellers, dealers, growers' cooperative associations, crushers, salters,

manufacturers of peanut products, and owners other than the original

producers of peanuts : Provided, 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 Avho

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, Kmmers, Spanish, and imported

23
varieties—as the Secretary shall deem necessary for the purposes of

this chapter. All reports shall be submitted monthly in each year,

except as otherwise prescribed by the Secretary. (June 24, 1936, ch.

745, § 1, 49 Stat. 1898; May 12,1938, ch. 199, § 1, 52 Stat. 348; July 17,

1957, Public Law 85-105, § 1,71 Stat. 306.)

§953 (Section 3). Reports; necessity; by whom made; penalties.

It shall be the duty of each warehouseman, broker, cleaner, sheller,

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

of peanut products, and owner other than the original producer of

peanuts to furnish reports, complete and correct to the best of his

knowledge, on the quantity of peanuts and peanut oil received, processed, shipped, and owned by him or in his possession. Such reports,

when and as requested by the Secretary, shall be furnished within the

time prescribed and in accordance with forms provided by him for the

purpose. Any person required by this chapter, or the regulations

promulgated thereunder, to furnish reports or information, and any

oíRcer, agent, or employee thereof, who shall refuse to give such reports

or information or shall 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 subject to both such fine and imprisonment. (June 24, 1936, ch. 745, § 3, 49 Stat. 1S09; Mav 12, 1938, ch.

19Í), § 3, 52 Stat. 349; July 17, 1957, Public Law 85-105, § 3, 71 Stat.

306.)'

§ 954. Grades and standards for classification.

The Secretary is hereby authorized to establish and promulgate

o:rades 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 nvà\ 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 i)Ower 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, prmting, bindmc:, 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 appro24
priated for by Congress, and there is authorized to be appropriated,

out of any money m the Treasury not otherwise appropriated, such

sums as may be necessary for such purposes. (June 24,1936, ch. 745,

§6,49Stat. 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, g 1, 47 Stat. 662; Aug. 27,

1935, ch. 749, § 1, 49 Stat. 893; May 17, 1932, ch. 190, 47 Stat. 518).

25
§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 obtaining 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 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 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, 8 6,45

Stat. 1080.)

26
§ 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 Secretaiy 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,

45Stat.l080.)

§508. Invalidity of provisions in section 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.)

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 of turpentine and rosin

Produced, held, and used in the domestic and foreign commerce of the

Fnited States. (Aug. 15,1935, ch. 548,49 Stat. 653. )

27

PART II

SERVICE AND REGULATORY

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),50Stat. 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 tlie 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 Avhich it is declared to l^e 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, G23, 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,

g§ 1, 62, 49 Stat. 750, 782; June 3, 1037, 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, r;08c, 608d,

608e-620,623, and 624 of this title, to establish and maintain such minimum standards of quality and maturity and such grading and in29
spection requirements for agricultural commodities enumerated in

section 608c(2) of this title, other than milk and its products, in interstate commerce as will effectuate such orderly marketing of such agricultural conunodities 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 establish and maintain such

orderly marketing conditions for any agricultural commodity enumerated in section 608c(2) of this title as will provide, in the interests

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

to market throughout its normal marketing season to avoid unreasonable fluctuations in supplies and prices. (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, 6q8c, 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, imder 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.

(8) Cumulative remedies. The remedies provided for in this section shall be in addition to, and not exclusive of, any of the remedies

or penalties provided for elsewhere in sections 601-608, 608a, 608b,

608c, 608d, 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 in sections 601-

608, 608a, 608b, 608c, 608d, 608e-620, 623, 624 of this title includes an

individual, partnership, corporation, association, and any other busi30
ness unit. (May 12, 1933, ch. 26, title I, § 8a, as added May 9, 1934,

11:23 a.m., ch. 263, § 4, 48 Stat. 672; Aug. 24, 1935, ch. 041, §§ 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 producéis, 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 applicable 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 miless the Secretary of Agriculture determines, in addition to other findings and determinations

required by sections 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

31
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. Wlienever 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, 608e620,623, 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 de-

•clared 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 conditions, 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 fixin^;, 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 ;

subject in either case, only to adjustments for fa) 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 asso32
dations 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 makmg

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 vrith 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 appropriate deductions therefor from payments to producers, and (ii)

for assurance of, and security for, the payment by handlers for milk

purchased.

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

construed to prevent a cooperative marketing association qualified

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

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

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

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

thereof to its producers in accordance with the contract between

the association and its producers: Provided^ That it shall not sell

milk or its products to any handler for use or consumption in any

market at prices less than the prices fixed pursuant to paragraph

(A) of this subsection for such milk.

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

products in any marketing area shall prohibit or in any manner

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

of any milk or product thereof produced in any production area in

the United States.

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

case of the agricultural commodities and the products thereof, other

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

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

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

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

total quantity of any such commodity or 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

diroctly to burden, obstruct, or affect interstate or foreign com33
merce in such commodity or product thereof, during any specified

period or periods by all handlersthereof.

(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 oi

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, imder a uniform

rule based upon the amounts which each such handler has available

for current shipment, or upon the amounts shipped by each such

handler in such prior period as the Secretary determines to be

representative, or both, to the end that the total quantity of such

commodity, or product, or any grade, size, or quality thereof, to be

marketed in or transported to any or all markets in the current of

interstate or foreign commerce or so as directly to burden,

obstruct, or affect interstate or foreign commerce in such commodity

or product thereof, during any specified period or periods shall be

equitably apportioned among all of the handlers thereof.

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

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

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

of such surplus elimination or control among the producers and

handlers thereof.

(E) Establishing or providing for the establishment of reserve

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

quality thereof, and providing for the equitable distribution of the

net return derived from the sale thereof among the persons beneficially interested therein.

(F) Kequiring 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 foregoino; terms and conditions, orders may contain one

or more of the following :

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

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

during any specified period or periods, which all handlers may

handle in the current of or so as directly to burden, obstruct, or

affect interstate or foreign commerce in hops or any product thereof.

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

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

year permitted to be handled equitably among all producers in the

production area to which the order applies upon the basis of one or

34
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 planting 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^ hov:eve¡\,

That no action taken hereimder shall conflict with the Standard Containers Act of 1916 and the Standard Containers Act of 1928 ;

(I) Establishing or providing for the establishment of marketing

research and development projects desi;[rned 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 th^ 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 ;

(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, with591897—61- 35
in 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 etfective 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 pursuantto section 608b of thistitle,

which regulates the handln m 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 us 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 sucli order have signed such a marketing

agreement : Provided^ Tliat 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 Cahfornia citrus fruits said order must be approved or favored by threefourths 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

a<ireement, 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

aereeinent or order.

(9) Ordei^ 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

36
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 centimi 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 any area producing what is known as

California citrus fruits said order must be approved or favored by

three-fourths of the producers) who, during a representative

period determined by the Secretary, have been engaged, within the

production area specified in such marketing agreement or order,

in the production for market of the commodity specified therein,

or who, during such representative period, have been engaged in

the production of such commodity for sale in the marketing area

specified in such marketing agreement, or order, or

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

produced for market at least two-thirds of the volume of such

commodity produced for market within the production area specified in such marketing agreement or order, or who, during such

representative period, have produced at least two-thirds of the

volume of such commodity sold within the marketing area specified

in such marketing agreement or order.

(10) Manner of regulation and applicability. No order shall

be issued under this section unless it regulates the handling of the

commodity or product covered thereby in the same manner as, and

is made applicable only to persons in the respective classes of

industrial or commercial activity specified in, a marketing agreement upon which a hearing has been held. Xo 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 advertising of any commodity or product covered thereby, nor shall any

marketing agreement contain any provision prohibiting, regulating, or restricting the advertising of any commodity or product

covered by such marketing agreement.

(11) Eegional 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

37
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) Eetailer and producer exemption. (A) Xo 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,

6086-620, 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 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 of 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 there38
from. He shall thereupon be given an opportunity for a hearing upon

such petition, in accordance with regulations made by the Secretary

of Agriculture, Avith 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

comjnodity, specified in such marketing agreement or order, whenever he finds that such termination is favored by a majority of the

producers who, during a representative period determined by the

Secretary, have been engaged in the production for market of the

commodity specified in such marketing agreement or order, within

the production area specified in such marketing agreement or order,

or who, during such representative period, have been engaged in the

production of such commodity for sale within the marketing area

specified in such 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.

39
(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

fijids, 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, tliat the

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

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

conditions which affect market supply and demand for milk and its

products in the marketing area to which the contemplated agreement,

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

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

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

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

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

(19) Producer referendum for approving order. For the purpose

of ascertaining whether the issuance of an order is approved or favored

by producers, as required under the applicable provisions of sections

601-608, 608a, 608b, 608c, 608d, 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 l)e

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 approvino; or favoring is equal to or in

excess of the percentage required under such provision. Nothing in

this subsection shall be construed as limiting representation by cooperative associations as provided in subsection (12) of this section.

(May 12, 1933, ch. 25, title I, § 8c, as added Aug. 24, 1935, ch. 641.

§ 5, 49 Stat. 753, and amended June 25, 1936, ch. 804, 49 Stat. 1921;

June 3, 1937, ch. 296, §§ 1, 2 (d), (e), (f), (k), (1), (m), 50 Stat. Î46,

247; Aug. 5, 1937, ch. 567, 50 Stat. 563; Apr. 13, 1938, ch. 143, §? 1, %

52 Stat. 215; May 31, 1939, ch. 157, 53 Stat. 793; Feb.'lO, 1942, ch. 52,

§§ 2, 3, 56 Stat. 85; Auo^. 1, 1947, ch. 425, §§ 2, 4, 61 Stat. 707, 710;

July 3, 1948, ch. 827, title III, § 302 (b, c)V62 Stat. 1258; June 29,

1949, ch. 273, 63 Stat. 282; Auix. 28, 1954, ch. 1041, title IV, S 401, 68

Stat. 907.) ^ ' 5 5b .

40
§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, GOsb, 608c, 608d, 608e-6ii0,

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 l)een 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) Notwitlistanding 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 sul)ject to an order, which

statements do not identify the information furnished by any pei^on,

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 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. (j\Iay 12,

1933, ch. 25, title I, § 8d, as added Aug. 24, 1035, ch. 641, § 6, 49 Slat.

761, and amended June 3, 1937, ch. 206, § 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

41
produced in the United States the importation into tlie 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 Eico 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 detemiined 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 xVgriculture 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 se^îtion 608c (14) of this title, or to both such forfeiture

and penalty, (^iay 12, 1933, ch. 25, title I, § 8e, as added Aug. 28,

1954, ch. 1041, title IV, § 401(e), 68 Stat. 907, and amended Aug. 31,

1954, ch. 1173, § 3(a), 68 Stat. 1047.)

§610. Administration.

(a) APPOINTMENT OF OFFICERS AND EMPLOYEES ; EXEMPTION FROM CIVIL

SERVICE REGULATIONS ; SALARIES ; EMPOuxDiNG APPROPRIATIONS.

The Secretary of Agriculture may appoint such officers and employees, subject to the provisions of the classification act of 1949 and

such experts, as are necessary to execute the functions vested in him

by sections 601-608, 608a, 608b, 608c, 608d, 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 officer,

employee, or expert of the Agricultural Adjustment Administration,

which the Secretary shall establish in the Department of Agriculture

for the administration of the functions vested in him by said sections:

42
And provided further^ That the State Administrator appointed to

administer said sections in each State shall be appointed by the President, by and with the advice and consent of the Senate. Section 8 of

Title II of the Act entitled ''An Act to maintain the credit of the

United States Government," approved March 20, 1933, to the extent

that it provides for the impomidment of appropriations and 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 COMMITTEES OR ASSOCIATIONS OF PRODUCERS;

HANDLERS' SHARE OF EXPENSES OF AUTHORITY OR AGENCY.

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

more effective administration of the functions vested in him by sections 601-608, 608a, 608b, 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

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 will necessarily be incurred by such

authority or agency, during any period specified by him, for the maintenance and ñmctioning of such authority or agency, other than expenses incurred in receiving, handling, holding, or disposing of any

quantity of milk or products thereof received, handled, held, or disposed of by such authority or agency for the benefit or account of

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

share of the expenses payable by a cooperative association of producers shall be computed on the basis of the quantity of milk or product thereof covered by such order which is distributed, processed, or

shipped by such cooperative association of producers.

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

by the Secretary under sections 601-608, 608a, 608b, 608c, 608d, 608e620, 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 fijid 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

43
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) REGULATIONS; PENALTY FOR VIOLATION.

The Secretary of Agriculture is authorized, with the approval of

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

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

sections 601-608, 608a, 608b, 608c, 608d, 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, 608^620,

623, and 624 of this title shall be applicable to the United States and its

possessions, except the Virgin Islands, American Samoa, the Canal

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

and sugarcane, the President, if he finds it necessary in order to

effectuate the declared policy of said sections, is authorized by proclamation to make the provisions of said sections applicable to the

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

of Guam.

(g) OFFICERS; DEALING OR SPECTJLATIXG IN AGRICULTURAL PRODUCTS;

PENALTIES.

Xo 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 suDsection shall upon

conviction thereof be fined not more than $10,000 or imprisoned not

more than two yeai^, 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,

44
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 : Pro elded^

That information furnished to the Secretary of Agriculture pursuant to section 608d(l) 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 commodit}^ 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 forei;2:n

commerce usual in the handling of the commodity or product where^)y

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

45
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 herem 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, eff. July 4,1946,11 F.R. 7817, 60 Stat. 1352;

Aug. 1,1947, ch. 425, § 3, 61 Stat. 709.)

§ 611. "Basic agricultural commodity" defined ; 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 com, 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 shaU exclude from

the operation of the provisions of sections 601-608, 608a-608c, 608d612, 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 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, 608d-612, 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, tvpe or gerade

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 balarice 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.

46
(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. Tlie 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. 6TK, §§ 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, 608e620, 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, § 1,50 Stat. 246.)

§624. Limitation on imports; authority of President.

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

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

imported into the United States under such conditions and in such

quantities as to render or tend to render ineffective, or materially interfere with, any program or operation undertaken imder 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 tiie 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 bemg 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

47
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 inipose 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 tlie President: And provided further^ That in designating any article or articles, the President may describe them by

pliysical qualities, value, use, or upon such other bases as he shall

determine.

In any case where the Secretary of Agriculture determines and reports to the President with regard to any article or articles that a

condition exists requiring emergency treatment, the President may

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

pending the report and recommendations of the Tariff Commission

and action thereon by the President.

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

therein specified, and such fees shall be treated for administrative

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

imposed by the Tariff Act of 1930, but such fees shall not be considered as duties for the purpose of granting any preferential concession under any international obligation of the United States.

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

manner provided in the case of a proclamation issued pursuant to

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

proclamation may be suspended or terminated by the President

whenever he finds and proclaims that the circumstances requiring

the proclamation or provision thereof no longer exist or may be

modified by the President whenever he finds, and proclaims that

changed circumstances require such modification to carry out the

purposes of this section.

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

shall be final.

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

in a manner inconsistent with the requirements of this section.

(.Afay 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 ofRcer or employee of the

Department of Agriculture as may be designated by him, upon

48
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 consent of all parties, shall arbitrate if the

Secretary has reason to believe that the declared policy of sections

601-608, 608a, 608b, 608c, 608d, 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.

(c) APPROVAL OF AWARD.

No award or agreement resulting from any such arbitration or

mediation shall be eflective 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.)

49
§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, 608^620, 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, 608e-620, 623,

and 624 of this title, sections 671-674 of this title, and other pro-

^âsions of law to which they have been heretofore made apphcable.

(June 3,1937, ch. 296, § 5,50 Stat. 249.)

Cotton

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) EATE.

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 memorandmn 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 in section 4851(a), which does not conform to the requirements of subsec50
tion (a) of this section and has not the necessary stamps aflSxed 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 Ü.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 snail 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 imder 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 investigation, determine

and designate to be such, and of which he shall give public notice.

591897—61- 51
(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 customarilv to reflect 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 m the contract or in the memorandum evidencing

the same.

(3) Provision for delivery of standard grades only. Provide that

the cotton dealt with therein or delivered thereunder shall be of or

withm the grades for which standards are established by the Secre52
tary of Agriculture except grades prohibited from being delivered

on a contract made under this section by paragraph (5) and no other

grade or grades.

(•i) Provisions for settlement on basis of actual commercial differences. Provide that in case cotton of grade other than the basis

pTade 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 tlie 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 seven-eighths of an inch in length

of staple, or cotton of perished staple, or of innnature staple, or cotton that is "gin cut" or reginned, or cotton that is "repacked" or

"false packed" or "mixed packed" or "w^ater packed," shall not be

delivered on, under, or in settlement of such contract.

(6) Pro\âsions 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 tlie contract as to weight ; that, on the fifth business day

prior to delivery, the person making the tender shall <j:ive 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 parties to such contract, or

their privies, as prima facie evidence of the true classification of

the cotton involved.

(b) INCORPORATION OF coNnmoNS IN CONTRACTS.

The provision of subsection (a) (3) , (4) , (5) , (6) , and (7) shall

be deemed fully incorporated into any such contract if there be

53
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 Kevenue 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 commercird 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 frovided 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) INCX)RPORATION 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

Srior to the time the same is signed, the phrase "Subject to Internal

Revenue Code, section 4864."

(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

54
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) CoNDmoNS.

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.

Speciiy 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.)

§4872. Collection and enforcement.

(a) RULES 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 Secretxiry or his

delegate shall require all persons coming within its provisions to keep

55
such records and statements of account, and may require such persons

to make such returns verified under oath or otherwise, as will fully

itnd 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 sucli

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.

^Vhen 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, 1951,

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 imder 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 offense to which his testimony relates. (Aug. 16, 1954, 9:45

a.m., Ë.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

x>f cotton for future delivery, nor shall the payment of any tax imposed by this subchapter be held to prohibit any State or municipality

from imposing a tax on the same transaction. (Aug. 16, 1954, 9:45

u.m., E.D.T., ch. 736, 68A Stat. 586.)

§4876. Reports of Secretary of Agriculture.

^ The Secretaiy 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.)

56
§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. Wl^^enever 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

instruments 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) Nonpayment 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

(2) 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 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

57
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.736,68AStat.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 such 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.

(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 in the context, and the term

"or his delegate" when used in connection with any other official of

the United States shall be similarly construed.

United States Cotton Standards Act

(7 U.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.)

58
§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.)

§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 Agriculture, or by licensed cotton

classifiers. (Mar. 4, 1933, ch. 284, §2, 47 Stat. 1621.)

§52. Use of nonofficial 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 regula59
lions 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

necessar}', 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 classification 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

o^^ ^^\\^^ ^^'^^^ 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

specihed m the order of the Secretary of Agriculture, become effective

tor the purposes of the United States Cotton Futures Act, constituting

60
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, condenmation, 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 vrith the sale of cotton

purchased for the preparation of the copies, mentioned in section 56

of this title and condenmed 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 Ihe

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.)

61
§ 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 Imowingly 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 Uns

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 influence improperly smj 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.

1519.)

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

For the purpose 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

62
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.)

§ 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.)

Fees, Reimbursements, and Records

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.)

§ 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

63
applicable appropriation. (Sept. 21, 1944, ch. 412, title VII, §711,

58 Stat. 743.)

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 tests of food 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.)

Fees for Services Rendered

(5 Ü.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 utility 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 official business of the Govermnent, shall be self-sustaining to the

full extent possible, and the head of each Federal agency is authorized by reííulation (which, in the case of agencies in the executive

branch, shall be as uniform as practicable and subject to such policips

as the President may prescribe) to prescribe therefor such fee,

charge, or price, of any, as he shall determine, in case none exists,

or redetermme, in case of an existing one, to be fair and equitable

64
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 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,

§501,65Stat.290.)

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 mspection

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. ^f^, 1950, ch. 815, 64

Stat. 561.)

Fruits and Vegetables

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 offer 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 minimum 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.)

65
§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 established

or designated by him under this chapter : Provided^ That any apples or

pears may be certified and shijpped 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 Stat. 123.)

§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 or designated hereunder

inspect and certify for determination as to compliance with the standards or requirements of such foreign government and may provide

for special certificates in such cases. (June 10, 1933, ch. 69, § 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, cL

59, § 4, 48 Stat. 124.)

§585. Fees for inspection and certification; certificates as prima

facie evidence.

For inspection 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 Hmitations of the amounts expended for the purchase and maintenance

of motor-propelled passenger-carrying veliicles 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 violation 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.)

66
§587. Rules and regulations; cooperation with other agencies,

compensation of officers and employees; effect on other laws

relating to same subject matter.

Tlie 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 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.)

Export Standards for Grapes and Plums

(7 U.S.C. 591-599)

§591 (Section 1). Standards of Export; establishment; shipping

without certificate forbidden; hearings.

That it shall be unlawful for any person to ship or offer 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 Act, any grapes or plums in packages which

are not accompanied by a certificate issued under authority of the

Secretary showing that such grapes or plums are of a Federal or State

591897—^1 6 67
grade which meets the minimum of quality established by the Secretary for shipment in export. The Secretary is authorized to prescribe, by regulations, the requirements, other than those of grades,

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 Act.

(Public Law 86-687, § 1, Sept. 2,1960, 74 Stat. 734.)

§592 (Section 2). 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 Act : Provided^ That any grapes or

plums may be certified and shipped for export in fulfillment of any

contract made within two 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. (Public Law 86-687, § 2, Sept. 2,1960,74 Stat. 734.)

§ 593 (Section 3). 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 grapes and

çlums the Secretary may in addition to inspection and certification

for compliance with the standards established or designated hereunder inspect and certify for determination as to compliance with the

standards or requirements of such foreign government and may provide for special certificates in such cases. (Public Law 86-687, §3,

Sept. 2, 1960, 74 Stat. 734.)

§ 594 (Section 4). Exemption of minimum quantities.

The Secretary may, by regulation, exempt from compliance with

the provisions of this Act the shipment of such minimmn quantities

of grapes and plums to any foreign coimtry as he may prescribe.

(Public Law 86-687, § 4, Sept. 2,1960,74 Stat. 734.)

§595 (Section 5). Fees for inspection and certification; certificates as prima facie evidence.

For inspecting and certifying the grade, quality, or condition of

grapes or plmns 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 Act cannot be made the fees collected hereunder

m such cases shall be available imtil expended to defray the cost

of the service rendered, and in such cases the limitations on the

amounts expended for the purchase and maintenance of motor-propelled passenger-carrying vehicles shall not be applicable: Provided

further, T\\^t certificates issued by the authorized agents of the

United States Department of As^riculture shall be received in all

courts of the United States as prima facie evidence of the truth of

statements therein contained. (Public Law 86-687, § 5, Sept. 2,

68
§596 (Section 6). Refusal of certificates for violations of law;

penalties for violations.

After opportunity for hearing the Secretary is authorized to refuse the issuance of certificates under this Act for periods not exceeding ninety days to any person who ships or offers for shipment

any grapes or phims in foreign commerce in violation of any of the

provisions of this Act. Any person or any common carrier or any

transportation agency violating any of the provisions of this Act shall

be fined not less than $100 nor more than $10,000 by a court of competent jurisdiction. (Public Law 86-687, § 6, Sept. 2, 1960, 74 Stat.

734.)

§597. (Section 7). Rules and regulations; cooperation with other

agencies; compensation of officers and employees; effect on

other laws.

The Secretary may make such rules, regulations, and orders, and

require such reports, as may be necessary to carry out the provisions

of this Act, 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, bindmg, 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 Act in the District of Columbia and

elsewhere, and as may be appropriated for by Congress. This Act

shall not abrogate nor nullify any other statute, whether State or

Federal, dealing with the same subjects as this Act ; 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. (Public

Law 86-687, § 7, Sept. 2,1960,74 Stat. 735.)

S 598 (Section 8). Separability of provisions.

If any provision of the Act or the application thereof to any person or circumstances is held invalid, the validity of the remainder of

the Act and of the application of such provision to other persons and

•circumstances shall not be affected thereby. (Public Law 86-687, § 8,

Sept. 2,1960,74 Stat. 735.)

§ 599 (Section 9). Definitions.

That when used in this Act—

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

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

(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 "grapes" means vinifera species table grapes, European type, whether or not they have been in storage.

(5) The term "plums" means both European and Japanese type,

whether or not they have been in storage, but does not mean Italian69
type prunes, nor damson-type plums. (Public Law 86-687, §9, Sept

2,1960,74Stat.735.)

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 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 imder 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

m that commodity whereby such commodity and/or the products

70
of such commodity are sent from one State with the expectation

that they will end their transit, after purchase, in another, mcluding

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, ck

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, for

a fraudulent purpose, any false or misleading statement in comiection

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, ^ade, 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

71
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 contamed 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. 5So;

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 REQTJIKED; PENALTY FOR FALLURE 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 representative, 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 fimd, 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 ensuinof fiscal years, shall be included in the budget as

submitted to the Congrpss 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; Ju]y 30, 1056, ch. 78G, § 2(a), 70 Stat. 726.)

72
§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 automatically 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) KEFUSAL 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 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 m the

case of bankruptcy, to pay within the time limit provided therein any

73
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

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 statement 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 m case the applicant is a partnership, any general partner,

or m case the applicant is a corporation, any officer or holder of more

74
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 oy 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 a license to any applicant if he

jßnds 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 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 OF 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) EEMEDIES.

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 opmion 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,

75
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

frounds for investigating any complaint made under this section, the

ecretary 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 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 or

DAMAGES ; ORDER FOR PAYIVIENT.

If after a hearing on a complaint made by any person under section 499f of this title or without hearing as provided in section

76
499f of this title, paragraphs (c) and (d), or upon failure of the

partj^ 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 wliich 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 liability for the disputed amount for subsequent determination.

The remainmg 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

ivhich 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 com77
plained against is located. Such appeal shall be perfected by tin?

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 the court shall immediately forward

a copy thereof to the Secretary of Agriculture, who shall forth\\ith

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 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 OBET 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 day 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) AUTHORPTY 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

m a Federal court of having violated section 499n(b) of this title,

the Secretary may publisli 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

78
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, partnership, 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 Secretar}^ 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.)

§4991. 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 owner79
ship 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.4:36,§9,46Stat.535.)

§499j. Orders; when in effect; continuance in force; suspension^

modification and setting aside; penalty.

Any order of the Secretary under this chapter othe^r 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 imtil his further order, or for a specified 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 imder 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 find

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 MEZilORANDA ; 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

80
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 xVct, 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 thelicense

of the offender for a period not to exceed ninety days.

(b) HEARINGS ; SUBPOENAS ; OATHS ; WITNESSES ; E\TDENCE.

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 imder 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 pertment

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 oath. 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

81
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 him or subject him to a penalty

or forfeiture. But no natural person shall be prosecuted or suDJected

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 official 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.

Wlioever 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

82
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 publish 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 $r)00 or by imprisonment for a period of not more than

one year, or both, at the discretion of the court. (June 10, 1ÍK]0,

ch. 436, § 14, 46 Stat. 537; Apr. 13, 1934, ch. 120, § 15, 48 Stat. 588;

Aug. 20,1037, 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 aepai-tment 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, printinir, binding, telegrams, telephones, law books, books of reference, publications,

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

and expenses, includintr 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 otlierwise appropriated, such sums as

may bo necessary for such purposes. This chapter shall not abrogate nor nullify any other statute, whether State or Federal, dealinij:

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

thev are inconsistent herewith or répugnant hereto. (June 10, 1*930,

ch. 436, g 15, 46 Stat. 537; June 15, 1950, chap. 254, § 3, 04 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 l^e deemed

the act, omission, or failure of such commission merchant, dealer, or

broker as that of such aident, officer, or other person. (June 10, 1930,

ch.436,gl6,46Stat.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

^^f the chapter and of the application of such provision to other perrj'JlsOT—61- 83
sons and circumstances shall not be affected thereby. (June 10,1930,

ch.436,§l7,46Stat.5:38.)

§499r. Citation of chapter.

This chapter may be cited as the 'Terishable 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 appropriations, 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.)

Produce Agency Act

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

§ 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 destroj^ 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

84
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.)

§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

apphcability 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.)

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 basket, 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.

85
(c) The standard twelve-quart Climax basket shall be of the following dimensions: Length of bottom piece, sixteen inches; width

of bottom piece, six and one-half inches ; tliickness of bottom piece,

seven-sixteenths of an inch ; heiglit of basket, seven and one-sixteenth

inches, outside measurement; top of basket, lengt-h 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 three-sixteenths 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 three-eií2:hths inches, all outside measurements. Basket to have a cover four and three-eighths by nine and

three-eighths inches when cover is used. (Aug. ol, 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 onehalf pint, dry pint, diy 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 sixt^^-seven and two-tenths cubic

inches. (Aug. 31,1916, ch. 426, § 2,39 Stat. 073.)

§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 vegotables, 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-poimd 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 tliereof, 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 forei,G:n

countries when such Climax basket, baskets, or other containers for

small fruits, berries, and vegetables accord with the specifications

of the foreign purchasers or complv with the law of the country

to which shipment is made or to be made. (Aug. ol, 1916, ch. 42r^,

§ 3, 39 Stat. 674 ; June 11,1934, ch. 447, § 2,48 Stat. 030.)

86
§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, five-eighths

bushel, three-fourths bushel, one bushel, one-and-one-fourth 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-lumdredths cubic

inches.

(a) The standard one-eighth-bushel hamper or round stave basket

shall contain two hundred and sixty-eight and eight-tenths cubic

mches.

(b) The standard one-fourth-bushel hamper or round stave basket

shall contain five hundred and thirty-seven and six-tenths cubic inches.

87
(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 five-eiahths-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 eighttenths cubic inches.

(e) The standard one-bushel hamper or round stave basket shall

contain two thousand one hundred and fifty and forty-two onehundredths 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 twenty-five 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 one-hundredths

cubic inches. (May 21, 1928, ch. 644, § 1, 45 Stat. 685 ; June 28,1954,

ch.406,§l,68Stat.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-^2571

of this title a quart standard dry measure has a capacity of sixtyseven and two-tenths cubic inches.

(a) The four-quart splint basket shall contain two hundred and

sixth-eiirht 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 twent^^-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 257-257Í 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 upon any

88
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,§3,45Stat.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.)

§257d. Violations; what constitutes; punishment; guaranty

against 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

257-2571 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 prosecution, 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 257-2571

of this title, which shall be manufactured for sale or shipment, offered

for sale, sold, or shipped, may be proceeded 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 con89
demnation. Upon request tlie pei*son 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 proceediiiiis and the execution and delivery of a good

and sufficient bond to tlie effect that such hampers, baskets, or parts

thereof shall not be sold or used contrary to law. The proceeds of

any sale mider this section, less legal costs and charges, shall be paid

over to the person entitled thereto. The proceedings in such seizure

cases shuU 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 257-2571 of this title shall not prohibit the manufacture

for sale or shipment, offer for sale, sale, or sliipment 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; examinationand

tests.

The Secretary of Agriculture shall prescribe such regulations as he

may find necessary for carrying into effect the provisions of sections

257-2571, 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.)

§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 257-2571 of this title the

i^ecretary of Agriculture is authorized to cooperate with State, county

90
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. {^lay 21, 1928, ch. 664, § 10, 45

Stat. 687.)

Standards for Apples in Commerce

(21 U.S.C. 20-23)

§20 (Section 2). Apples in interstate commerce; standard grades.

The standard gi-ades for apples when packed in barrels which shall

be shipped or delivered for shipment in interstate or foreign coramerce, or which shall be sold or offered for sale within the District of

Columbia or the Territories of the United States shall be as follows:

Apples of one variety, which are well-grown specimens, hand picked,

of good color for the variety, normal shape, practically free from

insect and fungous injury, bruises, and other defects, except such as

are necessarily caused in the operation of packing, or apples of one

variety which are not more than 10 per centum below the ioregoing

specifications shall be ''Standard grade minimum size two and onehalf inches", if the minimum size of the apples is two and one-half

inches in transverse diameter; 'V^tandard grade minimum size two

^nd one-fourth inches", if the minimum size of the apples is two and

one-fourth inches in transverse diameter; or ''Standard grade

minimum size two inches", if the minimum size of the apples is two

inches in transverse diameter. (Aug. 3, 1912, ch. 273, § i', 37 Stat. 250.)

§21 (Section 3). Same; branding grades on barrels.

The barrels in which apples are packed in accordance with the provisions of section 20-23 of this title may be branded in accordance

with the provisions of section 20 of this title. Aug. 3, 1912, ch. 273,

§3,37 Stat. 251.)

§22 (Section 5). Same; barrels misbranded.

Barrels packed with apples shall be deemed to be misbranded within

the meaning of sections 20-23 of this title—

First. If a barrel bears any statement, design, or device indicating

that the apples contained therein are ''Standard" grade and the

apples when packed do not conform to the requirements prescribed by

section 20 of this title.

Second. If the barrel bears any statement, design, or device indicating that the apples contained therein are "Standard" grade and

the barrel fails to bear also a statement of the name of the variety,

the name of the locality where grown, and the name of the packer

or the person by whose authority the apples were packed and the

barrel marked. (Aug. 3,1912, ch. 273, § 5, 37 Stat. 251.)

§23 (Section 6). Same, penalty for violations.

Any person, firm or corporation, or association who shall knowmgly pack or cause to be packed apples in barrels or who shall

knowingly sell or offer for sale such barrels in violation of the provisions of sections 20-22 of this title shall be liable to a penalty of $1

and costs for each such barrel so sold or offered for sale, to be re91
covered at the suit of the United States in any court of the United

States having jurisdiction. (Aug. 3, 1912, ch. 273, § 6, 37 Stat. 251.)

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 (Section 101). Definition of terms.

(a) When used in this chapter—

(1) The term "United States'' means the several States, the District of Columbia, 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 or 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,

(b) Omitted.

(7) The term—

(A) "Agricultural seeds" shall include grass, forage, and field

crop seeds, as follows :

Agropyron cristatum (L.) Beauv.- Agrostis canina L.-Velvet bent.

Crested wheatgrass. Agrostis palustris Huds.-Creeping

Agropyron pauciflorum (Schwein.) bent.

Hitchc.-Slender wheatgrass. Agrostis spp.-Bentgrasses.

Agropyron smithii Rydb.-Bluestem. Avena spp.-Oat.

Agrostis alba L.-Redtop. Beta vulgaris L.-Field beet.

92
Brassica napus L.-Winter rape.

Bromus inermis Leyss.-Smooth

brome.

Chloris gayana Kunth.-Rhodes grass.

Cynosurus cristatus L.-Crested dogtail.

Dactylis glomerata L.-Orchard grass.

Echinochloa crusgalli frmnentacea

(Roxb.) Wright-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.-Bur-clover.

Medicago lupulina L.-Blaek medick.

Medicago sativa L.-Alfalfa.

Melilotus alba Desr.-White sweetclover.

Melilotus indica (L.) All.-Sourclover.

Melilotus officinalis (L.) Lam.-Yellow

sweetclover.

Melinis minutiflora Beauv.-Molasses

grass. Oryza sativa L.-Rice.

Panicum fasciculatum S w a r t z.-

Brown-top millet.

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 agricultural seed,

when he finds that any seeds are or are not used for seeding purpose-s

m 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 tlie name of vegetable

seeds.

(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

93
(ii) Alaska, Hawaii, Puerto Rico, Guam, 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 seeds" means seeds or bulblets of plants wliich 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, Guam, or the District of Columbia, into which

transported, or District of Columbia in which sold ; or

(iii) by the mies and regulations of the Secretary of Agriculture under this chapter, when after investigation he shall

determine that a weed is noxious in the United otates 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: Cirsium 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., Eussian 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 Eico, 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 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 designaîl^.!^^^. ?.^^^^^^^^ ^y ^^^^s and regulations prescribed under section

1592 of this title.

(14) The term "germination" means the percentage of seeds capable ot producing normal seedlings under ordinarily favorable conditions (not including seeds which produce weak, malformed, or ob94
viously 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 for 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, chaff, 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 se<;tion 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

thun 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.

(24) The term "treated" means given an application of a substance

or subjected to a process designed to reduce, control, or repel disease

organisms, insects or other pests which attack seeds or seedlings growing therefrom.

(1^5) The term "seed certifying agency" means (A) an agency

authorized under the laws of a State, Territory, or possession, to

officially certify seeds, or (B) an agency of a foreign country determined by the Secretary of Agriculture to adhere to procedure and

standards for seed certification comparable to those adhered to generally by seed certifying agencies under (A). (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: Aug. 1, 1958, Public Law

85-581, §§1>3,72 Stat 476.)

95
§ 1562 (Section 102). False representations as certified or registered seed.

Any labeling, advertisement, or other representation subject to this

chapter which represents that any seed is certified or registered seed

shall be deemed to be false in this respect unless (a) it has been determined by a seed certifying agency that such seed was produced, processed, and packaged, and conformed to standards of purity as to

kind or variety, in compliance with the rules and regulations of such

agency pertaining to such seed; and (b) the seed bears an official

label issued for such seed by a seed certifying agency stating that the

seed is certified or registered. (Aug. 9, 1939, ch. 615, title I, § 102,

as added Aug. 1, 1958, Public Law 85-581, §4, 72 Stat. 476.)

§ 1571 (Section 201). Prohibitions relating to interstate commerce

in certain seeds.

It shall be unlawful for any person to transport or deliver for

transportation in interstate commerce—

(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 thistitle :

(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 v/eight of weed seeds, including noxious-weed

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 offered for transportation or transported or in accordance

with tlie 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;

• \\ ^^^^^i^^^g^ by weight of agricultural seeds other than those

included under paragraph (a) (1) of this section ;

(À :^^^^^^tage by weight of inert matter ;

(8) For ejich agricultural seed, in excess of 5 per centum of the

whole, stated m accordance with paragraph (a)(1) of this section,

and each kind of variety or type of agricultural seed shown in the

wîai''^/ ^^ ^""^'f'^ ^^ ^ proportion of 5 per centum or less of the

whole, (A) percentage of germination, exclusive of hard seed, (B)

96
percentage of hard seed, if present, and (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 conmierce, 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 conmierce ;

(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 each kind and variety of seed and if two or more

kinds or varieties are present, the percentage of each ;

(2) For each variety of vegetable seed which germinates 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;

(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 conmierce.

(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^ hoivever^ 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 handling will not maintain, during the foresaid fivemonth period, a germination within the established limits of tolerance; or (b) a longer period not to exceed nme 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.

97
(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

thereimder, or which is a mixture of any seed required to be stained

imder 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, imless 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.

(i) Any agricultural seeds or any mixture thereof or any vegetableseeds or any mixture thereof, for seeding purposes, that have been

treated, unless each container thereof bears a label giving the following information and statements in accordance with rules and regulations prescribed imder section 1592 of thistitle :

(1) A word or statement indicating that the seeds have been

treated ;

(2) The commonly accepted coined, chemical (generic), or abbreviated chemical name of any substance used in such treatment;

(3) If the substance used in such treatment in the amount remaining with the seeds is harmful to humans or other vertebrate animals,,

an appropriate caution statement approved by the Secretary of Agriculture as adequate for the protection of the public, such as "Do not

use for food or feed or oil purposes"; Provided^ That the caution

statement for mercurials and similarly toxic substances, as defined

in said iniles and regulations, shall be a representation of a skull and

crossbones and a statement such as "This seed has been treated with

POISOX", in red letters on a background of distinctly contrastingcolor; and

(4) A description of any process used in such treatment, approved

by the Secretary of Agriculture as adequate for the protection of the

public. (Aug. 9, 1939, ch. 615, title II, § 201, 53 Stat. 1279; Aug. 1^

1958, Public Law 85-581, §§ 5-8, 72 Stat. 476.)

§ 1572 (Section 202). 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 such agricultural seeds, and all persons transporting, or delivering

for transportation, in interstate commerce, vegetable seeds shall keep

for a period of three years a complete record of germination and

variety of such vegetable seeds. The Secretary of Agriculture, or

his duly authorized agents, shall have the right to inspect such records

for the purpose of the effective administration of this chapter.

(Aug. 9,1939, ch. 615, title II, § 202, 53 Stat. 1281 ; Aug. 1,1958, PublicLaw 85-581, § 9, 72 Stat. 477.) ' 6 »

98
§1573 (Section 203). 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 ot 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 oi

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 NOT FOR SEEDING PURPOSES.

The provisions of section 1571 (a), (b), or (i) of this title shall

not apply—

(1) to seed or ffrain not intended for seeding purposes when transported or offered tor 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 commerce—

(A) if in bulk, in which case, however, the invoice or other

records accompanying and pertaining to such seed shall bear the

various statements required for the respective seeds under section

1571 (a), (b),and (i) of this title; or

(B) if in containers and in quantities of twenty thousand

pounds or more: Provided^ That (i) the omission from each container of the information required under section 1571 (a), (b),

and (i) of this title is with the knowledge and consent of the

consignee prior to the transportation or delivery for transportation of such seed in interstate commerce, (ii) each container shall

have stenciled upon it or bear a label containing a lot designation, and (iii) the invoice or other records accompanying and

pertaining to such seed shall bear the various statements required for the respective seeds under section 1571 (a), (b), and

(i) of this title; or

(C) if consigned to a seed cleaning or processing establishment, to be cleaned or processed for seeding purposes; Provided^

That (i) this fact is so stated in the invoice or other records accompanying and pertaining to such seed if the seed is in bulk or

if the seed is in containers and in quantities of twenty thousand

pounds or more, (ii) this fact is so stated on attached labels if

591S97—61 8 99
the seed is in containers and in quantities less than twenty

thousand pounds, and (iii) any such seed later to be labeled as

to origin and/or variety shall be labeled as to origin and/or

variety 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, camiot 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 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 mies 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 or 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 ; Aug. 1, 1958, Public Law

85-581, §10, 72 Stat. 477).

§ 1574 (Section 204). Disclaimers, limited warranties and nonwarranties.

The use of a disclaimer, limited warranty, or nonwarranty clause

in any invoice, advertising, labeling, or written, printed, or graphic

matter, pertaining to any seed shall not constitute a defense, or oe used

as a defense in any way, in any prosecution or other proceeding

brought under the provisions of this chapter, or the rules and regulations made and promulgated thereunder. Nothing in this section is

intended to preclude the use of a disclaimer, limited warranty, or nonwarranty clause as a defense in any proceeding not brought under this

chapter. (Aug. 9, 1039, ch. 615, title II, § 204, 53 Stat. 1282: July 9,

1956, ch. 520, § 2, 70 Stat. 508; Aug. 1, 1958, Public Law 85-581, § 11,

72 Stat. 478.)

§ 1575. False advertising.

It shall be unlawful for any person to disseminate, or cause to be

dissemmated, 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 transpor100
tation, 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 (Section 301). 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 this subchapter (except that

this shall not apply to screenings of wheat, oats, rye, barley, buckwheat, field corn, sorghum, broomcorn, flax, 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.

(4) any seed containing 10 per centum or more of any vegetable

seeds unless the invoice pertaining to such seed and any other labeling

of such seed bear the name of each kind and variety of vegetable seed

present. (Aug. 9, 1939, ch. 615, title III, § 301, 53 Stat. 1282; Aug.

1, 1958, Public Law 85-581, § 12, 72 Stat. 478.)

§ 1582 (Section 202). Procedure relating to importations; disposal

of refuse; exceptions.

(a) The Secretary of the Treasury shall deliver to the Secretar\^

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 owner or 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 owner or consignee, who

may appear, however, before the Secretary of Agi^iculture and show

cause why the seed or screenings should be admitted. Seed or screenings refused admission and not exported by the owner or 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 title : Provided^ That the Secretary of the

Treasury may authorize the delivery of seed or screenings which are

being imported or offered for import to the owner or consignee thereof,

pending decision as to the admission of such seed or screenings and

101
for staining, cleaning, labeling, or other reconditioning if required

to bring such seed or screeninL'^s into compliance with the provisions

of this chapter, upon the execution by such owner or consignee of a

good and sufficient bond conditioned upon redelivery of the seed or

screenings upon demand unless redelivery is waived because the seed

is reconditioned to bring it into compliance with this chapter or is

destroyed under Government supervision under this chapter, and

providing for the payment of such liquidated damages in the event of

default as may be required pursuant to regulations of the Secretar}'

of the Treasury : And provided further^ That all expenses incurred

by the United States (including travel, per diem or subsistence, and

salaries of officers or employees of the United States) in connection

with the supervision of staining, cleaning, labeling, other reconditioning, or destruction, of seed or screenings under this subchapter shall

be reimbursed to the United States by the owner or consignee of the

seed or screenings, and such reimbursements shall be recredited to the

appropriation from which the expenses were paid, the amount of

such expenses to be determined in accordance witli joint regulations

under section 1592 of this chapter, and all expenses in connection

with the storage, cartage, and labor on tlie seed or screenings which

are refused admission or delivery, shall be paid by the o\ATier or consignee, and in default of such payment shall constitute a lien against

future importations made by such owner or consignee.

(b) The refuse from any seeds or screenings which are allowed to

be cleaned under bond shall be destroved in accordance with joint

rules and regulations prescribed under section 159ii of this title.

(c ) The provisions of this subchapter shall not apply—

(1) when seed is shipped in bond tlirough 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 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: Prodded^ 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.

(d) The provisions of this subchapter prohibiting the importation of seed that is adulterated or unfit for seeding purposes shall

not apply—

(1) when seed grown in the United States is returned from a

foreign country without havino- been admitted into the commerce of

any foreign country: Provided. That there is satisfactory proof as

provided for in the joint rules and regulations prescribed under

section 1592 of this title, that the seed was grown in the United

States and was not admitted into the commerce of a foreign country

and was not commingled with other seed, or

(2) when seed is imported for sowinir for experimental or breeding

purposes and not for sale: Provided, That declarations are filed, and

nnportations are limited in quantity, as provided for in the rules and

regulations prescribed under section 1592 of tliis title, to assui-e that

the importations are for experimental or breeding purposes. (Aug. 9,

1939, ch. r;i5, title III, § 302, 53 Stat. 1283; Au.-. 1, 1958, Public Law

.^5-581, §§ 13, 14, 72 Stat. 4Ts, 479.)

102
§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 appetirance 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 ixrams of the seed of timothy,

orchard grass, bromegrass, crested wheatgrass, slender wheatgrass,

ryegrass, 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 weiirlit

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. (Aug. 9, 1939, ch. 615, title III, § 304, 53

Stat. 1284.)

§ 1585. Certain seeds required to be stained.

(a) Any seed containing 10 per centum or more of the seeds of alfalfa and/or red clover, subject to the provisions of section 1581 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

103
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 with such regulations as the Secretary of

Agriculture may prescribe.

(c) AVhenever 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 unestabhshed, 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) Wlienever 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 (Section 306). 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.

(c) To make any false or misleading representation with respect

to any seed subject to this subchapter being imported into the United

States or offered for import : Provided. That this subsection shall not

be deemed violated by any person if the false or misleading representation is the name of a variety indistinguishable in appearance

from the seed being imported or offered for import and the records

and other pertinent facts reveal that such person relied in good faith

upon representations with respect to the name of the indistinguishable

variety made by the shipper of the seed. (Aug. 9, 1939, ch. 615, title

III, § 306, 53 Stat. 1285; Aug. 1, 1958, Public Law 85-581, § 15, 72

Stat. 479.)

104
§ 1591. Delegation of duties.

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.

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

in of this chapter.

(c) Prior to the promulgation of any rule or regulation under this

chapter, due notice shall be given by publication 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.

Xo 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 district court

of the United States within the jurisdiction of which the seed is found.

105
{})) 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 tlie provisions of this chapter and the rules and

regulations made and promulgated thereunder, or tlie 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 -Imll 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 tlie United States. (Auir. 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 S2,000.

(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, societv, 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

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

106
such contemplated proceeding. (Auir. 9, 1939, ch. 615, title IV^

§408,53Stat. 1286.)

§1599. Cease and desist proceedings.

(a) HEARING.

Whenever the Secretary of Agriculture has reason to believe

that any person has violated or is violai iiii^ 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 thLs 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

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

107
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, toirether

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 takino: 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. (AUíT. 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

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

108
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,§411,53Stat.l288.)

§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, ceaseand-desist proceedings, or proceedings for the enforcement of a ceaseand-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 officer 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 office 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 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. (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

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.)

109
§ 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 Secretarv^ 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 wliich 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 necessar}^ 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 ( olumbia 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, titleIV, § 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 therebv. (Auff. 9, 1939, ch.

615, title IV, §418,53 Stat. lL>i:M).) . v 5 ^

§ 1609. Repeals.

Sections 111-116 of this title are herebv repealed on the one

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

110
effect, shall remain with the same full force and effect as if promuliated imder this chapter. (Aug. 9, 1939, ch. 615, title IV, § 419,

53 Stat. 1290.)

International Wheat Agreement Act of 1949

(7 U.S.C. 1641)

§ 1641 (Section 2). Availability of wheat for export; utilization of

funds and facilities; prices; appropriations.

Tlie President is authorized, acting through the Commodity Credit

Corporation, to make available or cause to be made available, notwithstanding the provisions of any other law, such quantities of wheat

and wheat-flour and at such prices as are necessary to exercise the

rights, obtain the benefits, and fulfill the obligations of the United

States under the International Wheat Agreement of 1949 signed by

Australia, Canada, France, the United States, Uruguay, and certain

wheat importing countries, along with the agreements (the agreements of 1953, the International Wheat Agreement, 1956, and the

International Wheat Agreement 1959, signed by the United States

and certain other countries) revising and renewing such Agreement

of 1949 for periods through July 31, 1962 (hereinafter collectively

called the "International Wheat Agreement"). Nothing in this chapter shall be construed to preclude the Secretary of -apiculture, in

carrying out programs to encourage the exportation of agricultural

commodities and products thereof pursuant to section 612c of this

title, from utilizing funds available for such programs in such manner

as, either separately or jointly with the Commodity Credit Corporation, to exercise the rights, obtain the benefits, and fulfill all or any

?art of the obligations of the United States under the International

l^heat Agreement or to preclude the Commodity Credit Corporation

in otherwise carrying out wheat and wheat-flour export programs as

authorized by law. Nothing contained in this chapter shall limit the

duty of the Commodity Credit Corporation to the maximum extent

practicable consistent with the fulfillment of the Corporation's purposes and the effective and efficient conduct of its business to utilize

the usual and customary channels, facilities, and arrangements of

trade and commerce in making available or causing to be made available wheat and wheat-flour under this chapter. The pricing provisions of section 1510(e) of Title 22 and section 7l3a-9 of Title 15,

shall not be applicable to domestic wheat and wheat-flour supplied

to countries which are parties to the International AVheat Agreement

and credited to their guaranteed purchases thereunder on and after

August 1, 1949, and up to and including June 30,1950. Where prices

m excess of the International Wheat Agreement prices have been

paid for such wheat and wheat-flour financed by the Economic Cooperation Administration on or after August 1, 1949, and up to and

including June 30, 1950, the Secretary of Agriculture or Commodity

Credit Corporation is authorized to reimburse the Economic Cooperation Administration for such excess amounts. Funds realized from

such reimbursement shall revert to the respective appropriation or

appropriations from which funds were expended for the procurement

of such wheat and wheat-flour. There are authorized to be appropriated such sums as may be necessary to make payments to the Com111
modity Credit Corporation of its estimated or actual net costs of

carrying out its functions hereunder. Such net costs in connection

with the International Wheat Agreement, 1959, shall include those

with respect to all transactions which qualify as conmiercial purchases

(as defined in such agreement) from the United States by importm«;:

member countries. The Commodity Credit Corporation is authorized

in carrying out its functions under this chapter to utilize, in advance

of such appropriations or payments, any assets available to it. (Oct.

27, 1949, ch. 772, § 2, 63 Stat. 945, Aug. 1, 1953, ch. 306, § 1, 67 Stat.

358 ; Aug. 3, 1956, ch. 911, § 1, 70 Stat. 966 ; Sept. 21,1959, Public Law

86-336, 73 Stat. 600.)

Rye Seed Imports

(Presidential Proclamation 3306)

WHEKEAS, pursuant to section 22 of the Agricultural Adjustment Act, as amended (7 U.S.C. 624), the Secretary of Agriculture

advised me that there was reason to believe that rye, rye flour, and

rye meal are practically certain to be imported into the United States

under such conditions and in such quantities as to render or tend to

render ineffective, or materially interfere with, the price-support program midertaken by the Department of Agriculture with respect to

rye pursuant to sections 301 and 401 of the Agricultural Act of 1949,

as amended, or to reduce substantially the amount of products processed in the United States from domestic rye with respect to which

such program of the Department of Agriculture is being undertaken :

and

WHEREAS, on June 23, 1959, I caused the United States Tariff

Commission to make an investigation under section 22 with respect

to this matter; and

WHEREAS, the Tariff Commission has made such investigation

and has reported to me its findings and reconmiendations made in connection therewith; and

WHEREAS, on the basis of the investigation and report of the

Tariff Commission, I find that rye, rye flour, and rye meal, in the

aggregate, are practically certain to be imported into the United

States under such conditions and in such quantities as to interfere

materially with, and to tend to render ineffective, the price-support

program with respect to rye, and to reduce substantially the amount

of products processed in the United States from domestic rye with

respect to which the price-support program is being undertaken; and

WHEREAS I find and declare that the imposition of the quantitative limitations hereinafter proclaimed is shown by such investigation of the Tariff Commission to be necessary in order that the entry,

or withdrawal from warehouse, for consumption, of rye, rye flour, and

rye meal will not render ineffective, or materially interfere with, such

price-support program; and

WHEREAS I find that the quantitative limitations hereinafter

proclaimed will not reduce the permissible total quantitv of rye, rye

flour, and rye meal entered to proportionately less than 50 per centum

of the average annual quantity of rye, rye flour, and rye meal entered

durmg the representative period July 1, 1950, to June 30, 1953, inclusive; and

112
WHEREAS the allocation of the quotas among foreign supply

countries as hereinafter prescribed will assure an equitable distribution of the imports of rye, rye flour, and rye meal entered hereunder,

based upon the proportion of imports for consumption that such foreign countries supplied during the representative period :

NOW THEREFORE, I, DWIGHT D. EISENHOWER, President of the United States of America, acting under and by virtue of

the authority vested in me by section 22 of the Agricultural Adjustment Act, as amended, do hereby proclaim—

1. That for the period commencing August 5, 1959, and ending

August 31,1959, the total aggregate quantity of rye, rye flour, and rye

meal entered shall not exceed 6,741,268 pounds, of which not more

than 518 pounds may be in the form of rye flour or rye meal;

2. That for the ten-month period commencing September 1, 1959,

and ending June 30, 1960, the total aggregate quantity of rye, rye

flour, and rye meal entered shall not exceed 77,399,736 pounds, of

which not more than 5,939 pounds may be in the form of rye flour or

rye meal;

3. That for the twelve-month period commencing July 1, 1960, and

ending June 30, 1961, the total aggregate quantity of rye, rye flour,

and rye meal entered shall not exceed an amount determined by the

Secretary of the Treasury as soon as practicable after June 30, 1960,

to be the equivalent of 186,000,000 pounds less the amount, if any, by

which entries during the period July 1, 1959, to June 30, 1960, exceeded 186,000,000 pounds : Provided^ That the amount so determined

shall not be less than 92,879,683 pounds, and that of the amount so determined by the Secretary of the Treasury, not more than 0.00806 per

centum may be in the form of rje flour or rye meal ;

4. That of the 6,741,268 pounds specified in paragraph 1, not more

than 6,606,443 shall be the product of Canada and not more than

134,825 shall be the product of other foreign countries; that of the

77,399,736 pounds specified in paragraph 2, not more than 75,851,741

shall be the product of Canada and not more than 1,547,995 shall be

the product of other foreign countries ; that of the amount to be determined under paragraph 3, not more than 98 per centum shall be

the product of Canada and not more than 2 per centum shall be the

product of other foreign countries.

The provisions of this proclamation shall not apply to certified or

registered seed rye for use for seeding and crop-improvement purposes, in bags tagged and sealed by an ofläcially recognized seedcertifying agency of the country of production, if—

(a) the individual shipment amounts to 100 bushels (of 56 pounds

each) or less, or

(b) the individual shipment amounts to more than 100 bushels (of

56 pounds each) and the written approval of the Secretary of Agriculture or his designated representative is presented at the time of

entry, or bond is furnished in a form prescribed by the Commissioner

of Customs in an amount equal to the value of the merchandise as set

forth in the entry, plus the estimated duty as determined at the time

of entry, conditioned upon the production of such Avritten approval

within six months from the date of entry.

As used in this proclamation, the term '^entered'' means "entered, or

withdrawn from warehouse, for consumption.''

113
IN WITNESS WHEREOF, I have hereunto set my hand and

caused the Seal of the United States of America to be aflGLxed.

DONE at the City of Washington this fourth day of August in the

year of our Lord nineteen hundred and fifty-nine, and of the Independence of the United States of America the one hundred and

eighty-fourth.

[SEAL] [S] DWIGHT D. EISENHOWER

By the President:

[S] DOUGLAS DILLON,

Acting Secretary of State»

(3 CFR 1959 Supplement)

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; "persons" ; "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 Agi^iculture 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 in his judgment

the usages of the trade may warrant and permit, and the Secretary of

Agriculture shall have power to alter 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 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, g 2, 39 Stat. 482; July 18,1940, ch. 636,

54 Stat. 70.").)

114
§75. Designation of official 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 light 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 shipçing 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 grain standards

of the United States. (Aug. 11, 1016, ch. 313, part B, § 1:, 39

Stat. 483.) V ^ '

§ 77. Misrepresentation respecting grade ; reexamination by Secretary of inspected grain ; hearing and publication of findings.

No person, except as permitted in section TO 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

591897—61 9 115
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 designation which is false or misleading, he

may publish his findings. (Aug. 11, 1916, ch. 313, part B, 8 5, 39

Stat. 483.)

§ 78 (Section 6). Appeal to Secretary from official grading; fees

for reinspection ; conclusiveness of findings on appeal.

"\\lienever 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. The 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 Secretary of Agriculture is authorized

to pay employees assigned to perform appeal inspections for all

overtime, night, or holiday work at such rates as he may determine

and t^ accept from persons. Government agencies and departments,

and Government corporations for whom such work is performed

reimbursement for any sums paid for such work. The findings of the

Secretary of Agriculture as to grade, signed by him or by such

oflicer or officers, agent or agents, of the Department of Agriculture as

lie 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 tacie evidence of the true grade of the gram determined by

¿^\io ^^ ^^^ ^^^ P^^^^ specified in the findings. (Auff. 11,1916,

2^*4 ' 35^)' ^ ^' ^^ ^^^^' ^^^' ^'^^'^^ ^^^ 85-509, July 11, 1958,

116
§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 tliis chapter and the rules and regulations prescribed

thereunder. No person authorized or employed by any State, county,

city, town, board of trade, chamber of commerce, corporation, society,

partnership, or association to inspect or grade grain shall certify, or

otherwise state or indicate in writing, 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 gi-ain 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 opportmiity 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 dut}^, or has violatecl 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 gram 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

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

117
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

iimount 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 mcorrect 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

$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 mvahd, such judgment shall not affect, impair, or invalidate

the remamder thereof, but shall be confined in its operation to

U8
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.)

Livestock and Livestock Products

Federal Trade Commission Act

(15 U.S.C. 46, 48-50)

§46 (Section 6). Additional powers of commission.

The commission shall also have power—

(a) INVESTIGATION OF CORPORATIONS.

To gather and compile information concerning, and to investigate

from time to time the organization, business, conduct, practices, and

management of any corporation engaged in commerce, excepting

banks and common carriers subject to the Act to regulate commerce,

and its relation to other corporations and to individuals, associations,

and partnerships.

(b) EEPORTS BY CORPORATIONS.

To require, by general or special orders, corporations engaged in

commerce, excepting banks and common carriers subject to the Act to

regulate commerce, or any class of them, or any of them, respectively,

to file with the commission in such form as the commission may prescribe annual or special, or both annual and special, reports or answers

in writing to specific questions, furnishing to the commission such

information as it may require as to the organization, business, conduct,

practices, management, and relation to other corporations, partnerships, and individuals of the respective corporations filing such reports or answers in writing. Such reports and answers shall be made

under oath, or otherwise, as the commission may prescribe, and shall

be filed with the commission within such reasonable period as the

commission may prescribe, unless additional time be granted in any

case by the commission.

(c) INVESTIGATION OF COMPLIANCE WITH ANTITRUST DECREES.

Whenever a final decree has been entered against any defendant

corporation in any suit brought by the United States to prevent and

restrain any violation of the antitrust Acts, to make investigation,

upon its own initiative, of the manner in which the decree has been

or is being carried out, and upon the application of the Attorney

General it shall be its duty to make such investigation. It shall transmit to the Attorney General a report embodying its findings and

recommendations as a result of any such investigation, and the report

shall be made public in the discretion of the commission.

(d) INVESTIGATIONS OF VIOLATIONS OF ANTITRUST STATUTES.

Upon the direction of the President or either House of Congress to

investigate and report the facts relating to any alleged violations of

the antitrust Acts by any corporation.

(e) READJUSTMENT OF BUSINESS OF CORPORATIONS VIOLATING ANTITRUST

STATUTES.

Upon the application of the Attorney General to investigate and

make recommendations for the readjustment of the business of any

119
Corporation alleged to be violating the antitrust Acts in order thatthe

corporation may thereafter maintain its organization, management,

and conduct of business in accordance with law.

(f) PUBLICATION OF INFORMATION ; REPORTS.

To make public from time to time such portions of the information

obtained by it hereunder, except trade secrets and names of customers,

as it shall deem expedient in the public interest; and to make annual

and special reports to the Congress and to submit therewith recommendations for additional legislation; and to provide for the publication of its reports and decisions in such form and manner as may

be best adapted for public information and use.

(g) CLASSIFICATION OF CORPORATIONS; REGULATIONS.

From time to time to classify corporations and to make rules and

regulations for the purpose of carrying out the provisions of sections

41-46 and 47-58 of this title.

(h) INVESTIGATIONS OF FOREIGN TRADE CONDITIONS ; REPORTS.

To investigate, from time to time, trade conditions in and with

foreign countries where associations, combinations, or practices of

manufacturers, merchants, or traders, or other conditions, may affect

the foreign trade of the United States, and to report to Congress

thereon, with such recommendations as it deems advisable. (Sept. 26,

1914, ch. 311, § 6,38 Stat. 721.)

§ 48 (Section 8). Information and assistance from departments.

The several departments and bureaus of the Government when directed by the President shall furnish the commission, upon its request,

all records, papers, and information in their possession relating to

any corporation subject to any of the provisions of sections 41-46 and

47-58 of this title, and shall detail from time to time such officials and

employees to the commission as he may direct. (Sept. 26, 1914, ch.

311, §8, 38 Stat. 722.)

§49 (Section 9). Documentary evidence; depositions; witnesses.

For the purposes of sections 41-46 and 47-58 of this title the commission, or its duly authorized agent or agents, shall at all reasonable

times have access to, for the purpose of examination, and the right

to copy any documentary evidence of any corporation being investigated or proceeded ao:ainst; and the commission shaU have power

to require by subpoena the attendance and testimony of witnesses

and the production of all such documentary evidence relating to any

matter under investigation. Any member of the commission may

sign subpoenas, and members and examiners of the conamission may

administer oaths and affirmations, examine witnesses, and receive

evidence.

Such attendance of witnesses, and the production of such documentary evidence, may be required from any place in the United

States, at any designated place of hearing. And in case of disobedience to a subpoena the commission may invoke the aid of any

court of the United States in requiring the attendance and testimony

of witnesses and the production of documentary evidence.

^ Any of the district courts of the United States within the jurisdiction of which such inquiry is carried on may, in case of contumacy

or refusal to obey a subpoena issued to any corporation or other

120
person, issue an order requiring such corporation or other person to

appear before the commission, or to produce documentary evidence

if so ordered, or to give evidence touching the matter in question;

and any failure to obey such order of the court may be punished by

such court as a contempt thereof.

Upon the application of the Attorney General of the United States,

at the request of the commission, the district courts of the United

States shall have jurisdiction to issue writs of mandamus commanding any person or corporation to comply with the provisions of

sections 41-46 and 47-58 of this title or any order of the commission

made in pursuance thereof.

The commission may order testimony to be taken by deposition

in any proceeding or investigation pending under said sections at

any stage of such proceeding or investigation. Such depositions may

be taken before any person designated by the commission 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 docimientary evidence in

the same manner as witnesses may be compelled to appear and testify

and produce documentary evidence before the conmiission as hereinbefore provided.

Witnesses sunmioned before the commission 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 services in the courts of the United States.

No person shall be excused from attending and testifying or from

producing documentary evidence before the commission or in obedience to the subpoena of the commission on the ground or for the reason

that the testimony or evidence, documentary or otherwise, required

of him may tend to criminate 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 may testify, or produce evidence, documentary or otherwise, before the commission in obedience to a subpoena issued by it: Provided, That no natural person so testifying

shall be exempt from prosecution and punishment for perjury committed m so testifying. (Sept. 26, 1914, ch. 311, § 9, 38 Stat. 722.)

§50 (Section 10). Offenses and penalties.

Any person who shall neglect or refuse to attend and testify, or

to answer any lawful inquiry or to produce documentary evidence, if

in his power to do so, in obedience to the subpoena or lawful requirement of the conamission, shall be guilty of an offense and upon conviction thereof by a court of competent jurisdiction shall be punished

by a fine of not less than $1,000 nor more than $5,000, or by imprisonment for not more than one year, or by both such fine and imprisonAny person who shall willfully make, or cause to be made, any

false entry or statement of fact in any report required to be made

under sections 41-46 and 47-58 of this title, or who shall willfully

make, or cause to be made, any false entry in any account, record,

or memorandum kept by any corporation subject to said sections, or

121
who shall willfully neglect or fail to make, or to cause to be made, full,

true, and correct entries in such accounts, records, or memoranda of all

facts and transactions appertaining to the business of such a corporation, or who shall willfully remove out of the jurisdiction of the

United States, or willfully mutilate, alter, or by any other means

falsify any documentary evidence of such corporation, or who shall

willfully refuse to submit to the commission or to any of its authorized

agents, for the purpose of inspection and taking copies, any documentary evidence of such corporation in his possession or within his

control, shall be deemed guilty of an offense against the United States,

and shall be subject, upon conviction in any court of the United

States of competent jurisdiction, to a fine of not less than $1,000 nor

more than $5,000, or to imprisonment for a term of not more than

three years, or to both such fine and imprisonment.

If any corporation required by sections 41-46 and 47-58 of this

title to file any annual or special report shall fail so to do within the

time fixed by the commission for filing the same, and such failure

shall continue for thirty days after notice of such default, the corporation shall forfeit to the United States the sum of $100 for each

and every day of the continuance of such failure, which forfeiture

shall be payable into the Treasury of the United States, and shall

be recoverable in a civil suit in the name of the United States brought

in the district where the corporation has its principal office or in any

district in which it shall do business. It shall be the duty of the

various United States attorneys, under the direction of the Attorney

General of the United States, 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.

Any officer or employee of the commission who shall make public

any information obtained by the commission without its authority,

unless directed by a court, shall be deemed guilty of a misdemeanor,

and, upon conviction thereof, shall be punished by a fine not exceeding $5,000, or by imprisonment not exceeding one year, or by fine

and imprisonment, in the discretion of the court. (Sept. 26, 1914,

ch. 311, § 10, 38 Stat. 723; June 25, 1948, ch. 646, § 1, 62 Stat. 909.)

Humane Slaughter Act

(7 U.S.C. 1901-1906)

§ 1901 (Section 1). Findings and declaration of policy.

The Congress finds that the use of humane methods in the slaughter

of livestock prevents needless suflfering; results in safer and better

working conditions for persons engaged in the slaughtering industry;

brings about improvement of products and economies in slaughtering

operations; and produces other benefits for producers, processors,

and consumers which tend to expedite an orderly flow of livestock

and livestock products in interstate and foreign commerce. It is

therefore declared to be the policy of the United States that the

slaughtermg of livestock and the handling of livestock in connection

with slaughter shall be carried out onlv by humane methods. (Public

Law 85-765, § 1, Aug. 27,1958, 72 Stat.862.)

122
§1902 (Section 2). Humane methods.

No method of slaughtering or handling in connection with slaughtering shall be deemed to comply with the public policy of the United

States unless it is humane. Either of the following two methods of

slaughtering and handling are hereby found to be humane :

(a) in the case of cattle, calves, horses, mules, sheep, swine, and

other livestock, all animals are rendered insensible to pain by a single

blow or gunshot or an electrical, chemical or other means that is

rapid and effective, before being shackled, hoisted, thrown, cast, or

cut; or

(b) by slaughtering in accordance with the ritual requirements

of the Jewish faith or any other religious faith that prescribes a

method of slaughter whereby the animal suffers loss of consciousness

by anemia of the brain caused by the simultaneous and instantaneous

severance of the carotid arteries with a sharp instrument. (Public

Law 85-765, § 2, Aug. 27,1958,72 Stat. 862.)

§ 1903 (Section 3), Limitations on Government procurement and

price support; modification during national emergency;

statement of eligibility.

The public policy declared in this chapter shall be taken into consideration by all agencies of the Federal Government in connection

with all procurement and price support programs and operations and

after June 30,1960, no agency or instrumentality of the United States

shall contract for or procure any livestock products produced or

processed by any slaughterer or processor which in any of its plants

or in any plants of any slaughterer or processor with which it is

affiliated slaughters or handles in connection with slaughter livestock

by any methods other than methods designated and approved by the

Secretary of Agriculture (hereinafter referred to as the Secretary)

pursuant to section 1904 of this title: Provided^ That during the

period of any national emergency declared by the President or the

Congress, the limitations on procurement required by this section may

be modified by the President to the extent determined by him to be

necessary to meet essential procurement needs during such emergency.

For the purposes of this section a slaughterer or processor shall be

deemed to be affiliated with another slaughterer or processor if it controls, is controlled by, or is under common control with, such other

slaughterer or processor. After June 30, 1960, each supplier from

which any livestock products are procured by any agency of the

Federal (jovemment shall be required by such agency to make such

statement of eligibility under this section to supply such livestock

products as, if false, will subject the maker thereof to prosecution,

section 287 of Title 18. (Public Law 85-765, § 3, Aug. 27, 1958, 72

Stat. 862.)

§1904 (Section 4). Methods research: designation of methods;

identification of carcasses; handling.

In furtherance of the policy expressed herein the Secretary is

authorized and directed—

(a) to conduct, assist, and foster research, investigation, and experimentation to develop and determine methods of slaughter and

handling of livestock in connection with slaughter which are practicable with reference to the speed and scope of slaughtering operations

123
and humane with reference to other existing methods and then current

scientific knowledge ;

(b) on or before March 1,1959, and at such times thereafter as he

deems advisable, to designate methods of slaughter and of handling

in connection with slaughter which, with respect to each species of

livestock, conform to the policy stated in this chapter. If he deems

it more effective, the Secretary may make any such designation by

designating methods whicli are not in conformity with such policy.

Designations by the Secretaiy subsequent to Äiarch 1, 1959, shall

l>ecome effective for purposes of section 1903 of this title 180 days after

their publication in the Federal Register;

(c) to provide suitable means of identifying the carcasses of

animals inspected and passed under the ileat Inspection Act that

have been slaughtered in accordance with the public policy declared

in this chapter. Handling in connection with such slaughtering which

necessarily accompanies the method of slaughter described in subsection (b) of this section shall be deemed to comply with the public

policv specified by this section. (Public Law 85-765, §4, Aug. 27.

1958,^72 Stat. 863.)

§1905 (Section 5). Advisory committee; functions; composition;

compensation; meetings; reports.

^ To assist in implementing the provisions of section 1904 of this

title, the Secretary is authorized to establish an advisory committee.

The functions of the Advisory Committee shall be to consult with

the Secretary and other appropriate officials of the Department of

Agriculture and to make recommendations relative to (a) the research

authorized in section 1904 of this title; (b) obtaining the cooperation

of the public, producers, farm organizations, industry groups,

hmnane associations, and Federal and State agencies in the furtherance of such research and the adoption of improved methods; and

(c) the designations required by section 1904 of this title. The Committee shall be composed of twelve members, of whom one shall be an

officer or employee of the Department of Agriculture designated by

the Secretary (who shall serve as Chairman) ; two shall be representatives of national organizations of slaughterers; one shall be a representative of the trade-union movement engaged in packinghouse

work; one shall be a representative of the general public; two shall be

representatives of livestock growers ; one shall be a representative of

the poultry industry; two shall be representatives of national organizations of the humane movement ; one shall be a representative of a

national professional veterinary organization; and one shall be a

person familiar with the requirements of religious faiths with respect

to slaughter. The Department of Agriculture shall assist the (Jommittee with such research personnel and facilities as the Department

can make available. Committee members other than the Chairman

shall not be deemed to be employees of the United States and are not

entitled to compensation but the Secretary is authorized to allow their

travel expenses and subsistence expense in connection with their

attendance at regular or special meetings of the Committee. The

Committee shall meet at least once each vear and at the call of the

Secretary and shall from time to time submit to the Secretary such

reports and recommendations with respect to new or improved

methods as it believes should be taken into consideration by him in

makmg the designations required by section 1904 of this title and the

124
Secretary shall make all such reports available to the public.

(Public Law 85-765, § 5, Aug. 27, 1958, 72 Stat. 863.)

§1906 (Section 6). Exemption of ritual slaughter.

Nothing in this chapter shall be construed to prohibit, abridge, or

in any way hinder the religious freedom of any person or group.

Notwithstanding any other provision of this chapter, in order to

protect freedom of religion, ritual slaughter and the handling or

other preparation of livestock for ritual slaughter are exempted from

the terms of this chapter. For the purposes of this section the term

"ritual slaughter" means slaughter in accordance with section 1902

(b) of this title. (Public Law 85-765, § 6, Aug. 27, 1958, 72 Stat.

864.)

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 Avorld markets. It is declared to be

the pohcy 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 (Section 703). Price supports; time limitation.

The Secretary of Agriculture shall, through the Commodity Credit

Corporation, support the prices of wool and mohair, respectively, to

tlie 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 bediming April 1,1955, and ending March 31, 1962. The support price for shorn wool shall be at

such incentive level as the Secretaiy, 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: ProvidecL That the support price

for shorn wool shall not exceed 110 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 paritj^ for mohair

as for shorn wool. The deviation of mohair support prices shall not

125
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 forsuch marketing year. (Aug. 28,1954, ch. 1041, title VII, § 703, 68 Stat. 910; Aug.

28,1958, Public Law 85-835, title IV, § 401,72 Stat. 994.)

§ 1783 (Section 704). 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 duties 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 shaU 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 pajonent 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 regulation. (Aug. 28, 1954, ch. 1041, title VII, § 704. 68

Stat. 911 ; Aug. 28, 1958, Public Law 85-835, title IV, § 402, 72 Stat

995.)

§ 1784 (Section 705). 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 begmnmg with the fiscal year ending June 30, 1956, an

amount equal to the total of expenditures made by the Corporation

during the precedmg fiscal year and to anv 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 duties collected during the period

January 1, to December 31, both inclusive, preceding the beginmng of

126
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 7l3a-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 ; xVug. 28, 1958,

Public Law 85-835, title IV, § 403, 72 Stat. 905.)

§1785. Determination of price support operations by Secretary.

Except as otherwise provided in this chapter the amomits, 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

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 determmes 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 determmes that at least two-thirds of the

producers who, during a representative period determined by the

127
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 two-thirds 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 VIÍ, § 708, 68 Stat. 912.)

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.

Wlien used in this chapter—

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

Í2) 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 m 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 m Section 182 of this title) a transaction m 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 within the above general description, all cases where

128
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

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. 'Tacker" 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 conamerce, or (d) of marketing meats, meat food products, livestock products, dairy products,

poultry, poidtry 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 (Section 202). Unlawful practices enumerated.

It shall be unlawful with respect to livestock, meats, meat food

products, livestock products in unmanufactured form, poultry, or

poultry products for any packer or any live poultry dealer or

handler to:

(a) Engage in or use any unfair, imjustly discriminatory, or deceptive practice or device in commerce ; or

(b) Make or give, in commerce, any imdue 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

129
(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 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 manipulatino^ or controlling prices

in conmaerce, or of creating a monopoly in the acquisition of, Duying,

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, selling, 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 prices 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)-(d), or (e) of this section. (Aug. 15, 1021, ch. 64, ? 202.

42 Stat. 161; Aug. 15, 1921, ch. 64, § 503, as added Aug. 14, 1935, ch.

532, 49 Stat. 649; Sept. 2, 1958, Public Law 85-909, § 1(1), 72 Stat.

1749.)

§193 (Section 203). 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 addim? new charges

the hearing shall, on the request of the packer, be adjourned for a

period not exceeding fifteen davs.

(b)^ If, after such hearing, the Secretarv 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

130
taken at the hearing shall be reduced to writing and filed in the

records of the Department of Agriculture.

(c) Until the record in such hearing has been filed in a court of

appeals of the United States, as provided in section 10-i of tliis 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;

June 25, 1948, ch. 646, § 32(a), 62 Stat. 991; May 24, 1949, ch. 139,

§127, 63 Stat. 107; Aug. 28, 1958, Public Law 85-791, §6(a),

72 Stat. 944.)

§194 (Section 204). Conclusiveness of order; appeal and review;

temporary and final injunction.

(a) 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

prmcipal 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

thereupon file in the court the record in such proceedings, as provided

in section 2112 of Title 28. If before such record 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 anv time after such petition is filed, the court, on application of the Secretary, may issue a temporary injimction, 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, 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

591897—61 10 131
packer, and his officers, directors, agents, and employees from

violating the provisions of such order or such order as modified.

(h) The court of appeals shall have jurisdiction, which upon the

filing of the record with it shall be exclusive, 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

ill section 1254 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.

(i) Omitted. (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; Aug. 28, 1958,

Public Law 85-791, § 6 (b), (c), 72 Stat. 944.)

§ 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 time ; 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

offense. (Aug. 15, 1921, ch. 64, § 205, 42 Stat. 163: June 25, 1948, ch.

646, § 32(a), 62 Stat. 991; May 24, 1049, ch. 139, § 127, 63 Stat. 107.)

§201 (Section 301). "Stockyard owner''; "stockyard services";

"market agency"; "dealer"; defined.

Wlien used in this chapter—

(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

sellmg on a commission basis or otherwise, marketing, feeding, watering, holding, delivery, shipment, weighing, or handling in commerce,

of livestock ;

(c) The term "market agency'' means any person engaged in the

business of (1) buying or selling in commerce livestock on a commissionba^sor (2) furnishing stockyard services : and

(d) The term "dealer" means any person, not a market agency,

engaged m the business of buying or selling in commerce livestock,

either on his own ac<îount or as the employee or aident of the vendor

or purchaser (Aug. 15,1921, ch. 64, § 301, 42 Stat. 163; Sept. 2,1958,

PublicLaw85-909,§2 1 ,72Stat.l750.) . F ^ '

132
§202 (Section 302). "Stockyard" defined; determination by Secretary as to particular yard,

(a) When used in sections 201-203 and 205-217a of this title the

term ''stockyard" means any place, establisliment, or facility commonly known as stockyards, conducted or operated for compensation

or profit as a public market, consisting of pens, or other enclosures,

and their appurtenances, in which live cattle, sheep, swine, horses,

mules, or goats are received, held, or kept for sale or shipment in

commerce.

(b) The Secretary shall from time to time ascertain, after such

inquiry as he deems necessary, the stockyards which come within the

definition contained in subsection (a) of this section, 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 provisions of sections 201-203 and 205-217a of

this title until like notice is given by the Secretary that such stockyard

no longer comes within the definition contained in subsection (a) of

this section. (Aug. 15, 1921, ch. 64, § 302, 42 Stat. 163; Sept. 2, 1958,

Public Law 85-909, §2(2), 72 Stat. 1750.)

§203 (Section 303). 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 anj^ 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 oÍE stockyard services, if any, which he furnishes at such stockyard. Every other person operating as a market agency or dealer

as defined in section 201 of this title may be required to register in

such manner as the Secretary may prescribe. Wlioever violates the

provisions of this section shall be liable to a penalty of not more than

$500 for each such ofiense 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; Sept. 2, 1958, Public Law 85-909, § 2(3), 72

Stat. 1750.)

§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 uot

less than five days, unless suspended or modified or set aside by the

Secretary or a court of competent iurisdiction. (July 12, 1943, ch.

215, §1,57 Stat. 422.)

133
§ 205. General duty as to services.

It shall be the duty of every stockyard owner and market agency

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 autliorized 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

memlDcrs 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.

240,44Stat. 397.)

§206. Rates and charges generally; discrimination.

All rates or charges made for any stockyard sendees furnished at a

stockyard by a stockyard owner or market agency shall be just, reasonable, and nondiscriminatory, and any unjust, unreasonable, or discriminatorv rate or charge is prohibited and declared to be imlawful.

(Aug. 15, Í921, 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 20Í2 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 serviœs

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, affect, or determine

any part or the aggregate of such rates or charges, or \\\^ 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 mav from time to time make such

changes m 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

xcss than ten days' notice, or modify the requirements of this section

m respect to publishing, posting, and filing of schedules, either in

particular instances or by a general order applicable to special or

pecuJiar circumstances or conditions.

A ^^\ The Secretary may reject and refuse to file any schedule tendered tor hlmii which does not provide and give lawful notice of its

134
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 uj)on 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, reasonable, or discriminatory regulation

135
or practice is prohibited and declared to be unlawful. (Aug. 15,1921,

ch. 64,§307,42Stat. 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, ¿OG, 207, or 208 of this title, or of any

order of the Secretary made under sections 201-203 and 205-21T(a')

of this title, he shall be liable to the person or persons injured thereby

for the full amount of damages sustained m 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. (Auir. 15, 1921, ch. 64, § 308, 42

Stat. 165.)

§210. Proceedings before Secretary for violations generally;

action to enforce order of Secretary.

(a) Any person com^Dlaining of anything done or omitted to be

done by any stockyard owner, market agency, or dealer (hereinafter

in this section referred to as the "defendant") in violation of the

provisions of sections 205, 206, 207, or 208 of this title, or of an order

of the 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 forwardecl by

the Secretary to the defendant, who shall be called upon to satisfy

the complaint, or to answer it in writing, within 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. If the defendant cloes 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 Territor>% haviniZ

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, in 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 of the provisions of sections 201-203 and 205-2Í7(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

136
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 wliich is located the

principal place of business of the defendant or in any State court

havinp: 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. 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,§309,42Stat. 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, imreasonable, 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 publish, demand, or collect any rate or charge for the furnishing of stockyard

services more or less than the rate or charge so 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.)

137
§212 (Section 311). Prescribing rates and practices to prevent

discrimination between intrastate and interstate commerce.

"^Vhenever in any investigation under the provisions of sections

201-203 and 205-217a of this title, or in any investigation instituted

by petition of the stockyard owner, market agency, or dealer concerned, which petition is authorized to be filed, the Secretary after

full hearing finds that any rate, charge, regulation, or practice of

any stockyard owner, market agency, or dealer, 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 conmierce in livestock on the other hand, or

any undue, unjust, or unreasonable discrimination against interstate

or foreign commerce in livestock, which is hereby 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, market agencies, or dealers

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; Sept. 2,

1958, Public Law 85-909, § 2 (4), 72 Stat. 1750.)

§213 (Section 312). 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, of livestock.

(b) Wlienever 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) of this section, 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; Sept. 2, 1958,

Public Law 85-909, § 2(5), 72 Stat. 1750.)

§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, notless 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, imless such order is

suspended or modified or set aside by the Secretary or is suspended or

set aside by a court of competent jurisdiction. ( Auff. 15, 1921, ch. 64,

§ 313,42 Stat. 167.) v ö , 5

138
§ 215. Failure to obey orders generally ; punishment.

(a) Any stockyard owner, market agency, or dealer \Yho 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 recoverable 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, eh. 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 restraming 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 2(1-203

and 205-2l7(a) of this title, and to any person subject to the provisions of sections 201-203 and 205-217(a) of this title. (Aus:. 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 establishing

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, marks, and

other identifying characteristics of livestock originating in or

shipped from such State, for the purpose of determinmg 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 au139
thorization 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

reiristration shall not be subject to review. (Aug. 15, 1921, ch. 64,

title III, § 317, as added June 19, 1942, ch. 421, 56 Stat. 3T2.)

§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, deceptiver 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 enhancmg 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 aiiainst such practices and

devices. (Au-. 15, 1021, ch. 64, §501, as added Auff. 14, 1935, ch.

532,49 Stat. 648.) ^ ^ ^ ^ , ,

§ 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

ascertani 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

140
to constitute an important influence on the supply and price of live

poultry and poultry products. On and after the eiîective date of such

designation, which shall be publicly announced by the Secretary by

publication 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 handling in commerce of live poultry without a

hcense from the Secretary of Agriculture as herein authorized valid

and effective at such time. Any person who violates any pro\nsion 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 reflation 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 aj^plication 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 AUL^

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 bv the Secretarv. (Aug. 15, 1921, ch. 64,

§ 504, as added Aug. 14,1935, ch. 532,49 Stat! 649. )

§ 218d. Suspension and revocation of licenses.

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, 1935, ch. 532,

49 Stat. 649.)

141
§ 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 maj^ 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 m 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, 49, and 50 of Title 15, are made

applicable to the jurisdiction, powers, and duties of the Secretary in

eniorcin^ the provisions of this chapter and to any person subject to

the provisions of this chapter, whether or not a corporation. Th&

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,

stoclvyard 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.)

§ 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—

142
(a) To prevent or interfere with the enforcement of, or the

procedure under, the provisions of section 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,

eh. 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 (Section 406(b)). Powers of Federal Trade Commission and

Secretary of Agriculture; reports.

(a) The Federal Trade Commission shall have power and jurisdiction over any matter involving meat, meat food products, livestock

products in unmanufactured form, or poultry products, which by tliis

chapter is made subject to the power of jurisdiction of the Secretary,

as follows :

(1) When the Secretary in the exercise of his duties requests of

the Commission that it make investigations and reports in any case.

(2) In any investigation of, or proceeding for the prevention of,

an alleged violation of any Act administered by the Commission,

arising out of acts or transactions involving meat, meat food products,

livestock products in unmanufactured form, or poultry products, if the

Commission determines that effective exercise of its power or jurisdiction with respect to retail sales of any such commodities is or will be

impaired by the absence of power or jurisdiction over all acts or

transactions involving such commodities in such investigation or

proceeding. In order to avoid unnecessary duplication of effort by

the Government and burdens upon the industry, the Commissioner

shall notify the Secretary of such determination, the reasons therefor,

and the acts or transactions involved, and shall not exercise power

or jurisdiction with regard to acts or transactions (other than retail

sales) involving such commodities if the Secretary within ten days

from the date of receipt of the notice notifies the Commission that

there is pending in his Department an investigation of, or proceeding

for the prevention of, an alleged violation of this chapter involving

the same subject matter.

(3) Overall transactions in commerce in margarine or oleomargarine and over retail sales of meat, meat food products, livestock

products in unmanufactured form, and poultry products.

(b) The Federal Trade Commission shall have no power or jurisdiction over any matter which by this chapter is made subject to the

jurisdiction of the Secretary, except as provided in subsection (b)

of this section.

(c) The Secretary of Agriculture shall exercise power or jurisdiction over oleomargarine or retail sales of meat, meat food products,

livestock products in unmanufactured form, or poultry products only

when he determines, in any investigation of, or any proceeding for the

prevention of, an alleged violation of this chapter, that such action is

143
necessary to avoid impairment of his power or jurisdiction over acts

or transactions involving livestock, meat, meat food products, livestock

products in unmanufactured form, poultry or poultry products, other

than retail sales thereof. In order to avoid unnecessary duplication

of effort by the Government and burdens upon the industry, the Secretary shall notify the Federal Trade Commission of such determination,

the I'easons therefor, and the acts or transactions involved, and shall

not exercise power or jurisdiction with respect to acts or transactions

involving oleomargarine or retail sales of meat, meat food products,

livestock products in unmanufactured form, or poultry products if

the Commission within ten days from the date of receipt of such notice

notifies the Secretary that there is pending in the Conunission an

investigation of, or proceeding for the prevention of, an alleged violation of any Act administered by the Commission involving the same

subject matter.

(d) The Secretary of Agriculture and the Federal Trade Commission shall include in their respective annual reports information with

respect to the administration of subsections (a) and (c) of this section.

(Au£r. 15, 1921, ch. 64, § 406(b-^), 42 Stat. 169; Sept. 2. 1958, Public

Law 85-909, § 1(2), 72 Stat. 1749.)

§228 (Section 407). Authority of Secretary as to rules, regulations, and expenditures; appropriations; enforcement.

(a) 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 po^er

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 tliis 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.

(b) The Secretary shall maintain within the Department of Agriculture a separate enforcement unit to administer and enforce sections

191-195 of this title. (Aug. 15,1921, ch. 64, 8 407, 42 Stat. 169 ; Sept.

2, 1958, Public Law 85-909, § 4, 72 Stat. 1750.)

§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. (Auo-. 15, 1921, ch.

64, §408,42 Stat. 169.) ^ v ^ ,

144
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 tlie 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 Goverimient from

all persons, firms, or corporations which handled any part of the wool

clip 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 415b41od of this title shall be deposited in the Treasury to the credit of

miscellaneous receipts. (May IT, 1928, ch. 602, § 3, 45 Stat. 594.)

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.)

145
§ 92. Definitions.

When used in this chapter—

(a) "Naval stores" means spirits of turpentine and rosin.

(b) "Spirits of turpentme" includes gum spirits of turpentine and

wood turpentine.

(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^ "Kosin" 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 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. (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

imder 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 have been given to the trade,

so far as practicable, and due hearings or reasonable opportunities to

be heard shall have been afiorded 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 chapter or established and promulgated by the Secretary of

Aiiriculture in accordance therewith may be modified by said Secretary

whenever, for reasons and causes deemed by him suiBcient, 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 desiirnated, unless and until changed, as hereinbefore provided, by the

followmg letters, respectively: X, ^y^V ^yQ x, M, K, I, H, G, F,

146
E D, and B, together with the designation "gum rosin" or "wood

rosin", asthe 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,

42Stat.l435.)

§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, § 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 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.)

591897—61 11 147
§ 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 anythmg 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 printin^r, 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 remamder

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.)

Poultry and Poultry Products

Poultry Products Inspection Act

(21 U.S.C. 451-469)

§ 451 (Section 2). Legislative findings; authorization of Secretary

to designate major consuming areas.

Wholesome poultry products are an important source of the Nation's total supply of food. Such products are consumed throughout

the Nation and substantial quantities thereof move in interstate and

foreign commerce. Unwholesome and adulterated poultry products

in the channels of interstate or foreign commerce, are injurious to

the public welfare, adversely affect the marketing of wholesome

poultry products, result in sundry losses to producers and destroy

markets for wholesome poultry products. The marketmg of wholesome poultry products is affected with the public interest and directly

affects the welfare of the people. All poultry and poultry products

which have or are required to have inspection under this chapter are

either m the current of interstate or foreign commerce or directly

affect such commerce. That part that enters directly into the current

of interstate or foreign commerce cannot be effectively inspected and

148
regulated without also inspecting and regulating all poultry and

poultry products processed or handled in 9ie same establishment.

The great volume of poultry products required as an article of food

for the inhabitants of large centers of population may directly affect

the movement of poultry and poultry products in interstate commerce.

To protect interstate commerce in poultry and poultry products inspected for wholesomeness, from being adversely burdened, obstructed,

or affected by uninspected poultry or poultry products, major consuming areas where poultry or poultry products are handled or consumed in such volume as to affect the movement of inspected poultry

or poultry products in interstate commerce should be designated by

the Secretary pursuant to the provisions of this chapter. (Public

Law 85-172, § 2, Aug. 28,1957,71 Stat. 441.)

§452 (Section 3). Congressional declaration of policy.

It is declared to be the policy of Congress to provide for the inspection of poultry and poultry products by the inspection service as

herein provided to prevent the movement in interstate or foreign

commerce or in a designated major consuming area of poultry products which are unwholesome, adulterated, or otherwise unfit for

human food. (Public Law 85-172, § 3, Aug. 28, 1957, 71 Stat. 441.)

§453 (Section 4). Definitions.

For purposes of this chapter—

(a) The term "commerce" means commerce between any State,

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

outside thereoi; or between points within the same State or the District of Columbia, but through any place outside thereof; or within

the District of Columbia.

(b) The term "Secretary" means the Secretary of Agriculture.

(c) The term "person" means any individual, partnership, corporation, association, or any other business unit.

(d) The term "poultry" means any live or slaughter domesticated

bird.

(e) The term "poultry product" means any poultry which has been

slaughtered for human food from which the blood, feathers, feet,

head, and viscera have been removed in accordance with rules and

regulations promulgated by the Secretary, any edible part of poultry,

or, miless exempted by the Secretary, any human food product consisting of any edible part of poultry separately or in combination

with other ingredients.

(f) The term "wholesome" means sound, healthful, clean, and

otherwise fit for human food.

(g) The term "unwholesome" means :

(1) Unsound, injurious to health, or otherwise rendered unfit for

human food.

(2) Consisting in whole or in part of any filthy, putrid, or decomposed substance.

(3) Processed, prepared, packed, or held under unsanitary conditions whereby a poultry carcass or parts thereof or any poultry product may have become contaminated with filth or whereby a poultry

P^^^^t inay have been rendered injuriousto health.

(4) Produced in whole or in part from poultry which has died

otherwise than by slaughter.

149
(5) Packaged in a container composed of any poisonous or deleterious substance which may render the contents injurious to health.

(h) The term "adulterated" shall apply to poultry and poultry

products under one or more of the following circumstances :

(1) If they bear or contain any poisonous or deleterious substance

which may render them injurious to health; but, in case the substance

is not an added substance, such poultry and poultry products shall not

be considered adulterated under this clause if the quantity of such

substance in such poultry and poultry products does not ordinarily

render them injurious to health.

(2) If they bear or contain any added poisonous or added deleterious substance, unless such substance is permitted in their production or unavoidable under good manufacturing practices as may

be determined by rules and regulations hereunder prescribed by the

Secretary or other provisions of Federal law limiting or tolerating

the quantity of such added substance on or in such poultry and poultry products : Provided^ That any quantity of such added substance

exceeding the limits so fixed shall also be deemed to constitute

adulteration.

(3) If any substance has been substituted, wholly or in part,

therefor.

(4) If damage or inferiority has been concealed in any manner.

(5) If any valuable constituent has been in whole or in part

omitted or abstracted therefrom.

(6) If any substance has been added thereto or mixed or packed

therewith so as to increase its bulk or weight, or reduce its quality

or strength, or make it appear better or greater value than it is.

(i) The term "inspector" means: (1) an employee or official of the

United States Government authorized by the Secretary to inspect

poultry and poultry products under the authority of this chapter, or

(2) any employee or official of any State government authorized by

the Secretary to inspect poultry and poultry products under authority of this chapter, under an agreement entered into between the

Secretary and the appropriate State agency.

(j) The term "official inspection mark" means the symbol, formulated pursuant to rules and regulations prescribed by the Secretary,

stating that the product was inspected.

(k) The term "inspection service" means the official Government

service within the Department of Agriculture designated by the

Secretary as having the responsibility for carrying out the provisions

of this chapter.

(1) The terms "container" or "package" include any box, can, tin,

cloth, plastic, or any other receptacle, wrapper, or cover.

(m) The term "official establishment" means any establishment as

determined by the Secretary at which inspection of the slaughter of

poultry, or the processing of poultry products, is maintained under

the authority of this chapter.

(n) The term "label" means any written, printed, or graphic material upon the shipping container, if any, or upon the inunediate

container, including but not limited to an individual consumer package, of the poultry product, or accompanying such product.

(o) The term "shipping container" means any container used or

intended for use in packaging the product packed in an inunediate

container.

150
(p) The term "immediate container" includes any consumer package; or any other container in which poultry carcasses or poultry

products, not consumer packaged, are packed. (Public Law 85-172,

§4, Aug. 28,1957,71 Stat. 441.)

§454 (Section 5). Designation of major consuming areas for regulations; hearing; publication.

Upon application by any appropriate State or local official or

agency of a substantial portion of any major consuming area or upon

application by an appropriate local poultry industry group in such

an area, where the Secretary has reason to believe that poultry or

poultry products are handled or consumed in such volume as to affect,

burden, or obstruct the movement of inspected poultry products in

interstate commerce, the Secretary shall conduct a public hearing to

ascertain whether or not it will tend to effectuate the purposes of this

chapter for such area to be subject to the provisions of this chapter.

If after public hearing the Secretary finds that poultry or poultry

products are handled or consumed in such volume as to affect, burden,

or obstruct the movement of inspected poultry products in commerce

and that the designation of such area will tend to effectuate the purposes of this chapter, he shall by order designate such area and prescribe the provisions of this chapter which shall be applicable thereto

and grant such exemptions therefrom as he determines practicable.

Such designation shall not become effective until six months after the

notice thereof is published in the Federal Register. On and after

the effective date of such designation, all poultry and poultry products

processed, sold, received, or delivered in any such area shall be subject

to the provisions of this chapter. (Public Law 85-172, § 5, Aug. 28,

1957,71 Stat. 443.)

§455 (Section 6). Inspection of carcasses in official establishments.

(a) ANTE MORTEM INSPECTION.

For the purpose of preventing the entry into or flow or movement in

commerce or a designated major consuming area of any poultry product which is unwholesome or adulterated, the Secretary shall, where

and to the extent considered by him necessary, cause to be made by

inspectors ante mortem inspection of poultry in any official establishment processing poultry or poultry products for commerce or in, or

for marketing in a designated city or area.

(b) POST MORTEM INSPECTION ; QUARANTINE ; SEGREGATION ; REINSPECTION.

The Secretary, whenever processing operations are being conducted,

shall cause to be made by inspectors post mortem inspection of the

carcass of each bird processed, and at any time such quarantine, segregation, reinspection as he deems necessary of poultry and poultry

products in each official establishment processing such poultry or

poultry products for commerce or in, or for marketing in a designated

city or area.

(c) CONDEMNATION; APPEAL; REPROCESSING.

^ P^^ltry carcasses and parts thereof and poultry products found

to be unwholesome or adulterated shall be condemned and shall, if

110 appeal be taken from such determination of condemnation, be

151
destroyed for human food purposes under the supervision of an

inspector : Provided^ That carcasses, parts, and products, which may

be reprocessing be made not unwholesome and not adulterated, need

not be so condemned and destroyed if so reprocessed under the

supervision of an inspector and thereafter found to be not unwholesome and not adulterated. If an appeal be taken from such determination, the carcasses, parts, or products shall be appropriately marked

and segregated pending completion of an appeal inspection which

appeal shall be at the cost of the appellant if the Secretary determines

that the appeal is frivolous. If the determination of condemnation

is sustained the carcasses, parts, and products shall be destroyed for

human food purposes under the supervision of an inspector. (Public

Law 85-172, § 6, Aug. 28,1957, 71 Stat. 443.)

§ 456 (Section 7). Operation of premises, facilities and equipment.

(a) SANITARY PRACTICES.

Each official establishment slaughtering poultry or processing

poultry products for commerce or in or for marketing in a designated

major consuming area shall have such premises, facilities, and equipment, and be operated in accordance with such sanitary practices, as

are required by regulations promulgated by the Secretary for the

purpose of preventing the entry into or flow or movement in commerce or in a designated major consuming area, of poultry products

which are unwholesome or adulterated.

(b) REFUSAL OF INSPECTION.

The Secretary shall refuse to render inspection to any establishment whose premises, facilities, or equipment, or the operation thereof, fail to meet the requirements of this section. (Public Law 85-172,

§ 7, Aug. 28,1957, 71 Stat. 444.)

§ 457 (Section 8). Labeling.

(a) REQUIREMENTS FOR SHIPPING AND IMMEDIATE CONTAINERS.

Each shipping container of any poultry product inspected under

the authority of this chapter and found to be wholesome and not

adulterated, shall at the time such product leaves the official establishment bear, in distinctly legible form, the official inspection mark and

the approved plant number of the official establishment in which the

contents were processed. Each immediate container of any poultry

Èroduct inspected under the authority of this chapter and found to

3 wholesome and not adulterated shall at the time such product

leaves the official establishment bear, in addition to the official inspection mark, in distinctly legible form, the name of the product, a

statement of ingredients if fabricated from two or more ingredients

including a declaration as to artificial flavors, colors, or preservatives,

if any, the net weight or other appropriate measure of the contents,

the name and address of the processor and the approved plant number

of the official establishment in which the contents were processed.

The name and address of the distributor may be used in lieu of the

name and address of the processor if the approved plant number

is used to identify the official establishment in which the poultry

product was prepared and packed. The Secretary may permit

reasonable variations and grant exceptions from the foregoing labeling requirements in any manner not in conflict with the purposes of

this chapter.

152
(b) FALSE OR MISLEADING LABELING.

The use of any written, printed or graphic matter upon or accompanying any poultry product inspected or required to be inspected

pursuant to the provisions of this chapter or the container thereof

which is false or misleading in any particular is prohibited. No

poultry products inspected or required to be inspected pursuant to

the provisions of this chapter shall be sold or offered for sale by any

person, firm, or corporation under any false or deceptive name; but

established trade name or names which are usual to such products

and which are not false and deceptive and which shall be approved

by the Secretary are permitted. If the Secretary has reason to believe

that any label in use or prepared for use is false or misleading in any

particular, he may direct that the use of the label be withheld unless

it is modified in such manner as the Secretary may prescribe so that

it will not be false or misleading. If the person using or proposing to

use the label does not accept the determination of the Secretary, he

may request a hearing, but the use of the label shall, if the Secretary

so directs, be withheld pending hearing and final determination by

the Secretary. Any such determination by the Secretary shall be

conclusive unless within thirty days after the receipt of notice of

such final determination the person adversely affected thereby appeals

to the United States court of appeals for the circuit in which he

has his principal place of business or to the United States Court of

Appeals for the District of Columbia Circuit. The provisions of

section 194 of Title 7 shall be applicable to appeals taken imder this

section. (Public Law 85-172, §8, Aug. 28, 1957, 71 Stat. 445.)

§458 (Section 9). Prohibited acts.

The following acts or the causing thereof are prohibited :

(a) The processing, sale or offering for sale, transportation, or delivery or receiving for transportation, in commerce or in a designated

major consuming area of any poultry product, unless such poultry

product has been inspected for wholesomeness and unless the shipping

container, if any, and the immediate container are marked in accordance with the provisions of this chapter.

(b) The sale or other disposition for human food of any poultry

or poultry product which has been inspected and declared to be unwholesome or adulterated under this chapter.

(c) Falsely making or issuing, altering, forging, simulating, or

counterfeiting any official inspection certificate, memorandum, mark,

or other identification, or device for making such mark or identification, used in connection with the inspection of poultry or poultry

products under this chapter, or causing, procuring, aiding, assisting

in, or being a party to, such false making, issuing, altering, forging,

simulating, or counterfeiting, or knowingly possessing, without

promptly notifying the Secretary of Agriculture or his representative, uttering, publishing, or using as true, or causing to be uttered,

published, or used as true, any such falsely made or issued, altered,

forged, simulated, or counterfeited official inspection certificate,

memorandum, mark, or other identification, or device for making such

mark or identification, or representing that any poultry or poultryproduct has been officially inspected under the authority of this

chapter when such poultry or poultry product has in fact not been so

mspected.

153
(d) Using in commerce, or in a designated major consuming area,

a false or misleading label on any poultry product.

(e) The use of any container bearing an official inspection mark except for the poultry product in the original form in which it was

inspected and covered by said mark unless the mark is removed, obliterated, or otherwise destroyed.

(f) The refusal to permit access by any duly authorized representative of the Secretary, at all reasonable times, to the premises of

an establishment engaged in processing poultry or poultry products

for conamerce, or in or for marketing in a designated major consuming area, upon presentation of appropriate credentials.

(g) The refusal to permit access to and the copying of any record

as authorized by section 460 of this title.

(h) The using by any person to his own advantage, or revealing,

other than to the authorized representatives of the Government in

their official capacity, or to the courts when relevant in any judicial

proceeding under this chapter, any information acquired under the

authority of this chapter, concerning any matter which as a trade

secret is entitled to protection.

(i) Delivering, receiving, transporting, selling, or offering for

sale or transport for human consumption any slaughtered poultry or

any part thereof, separately or in combination with other ingredients

(other than poultry products as defined in this chapter), in commerce

or from an official establishment or in a designated major consuming

area, except as may be authorized by and pursuant to rules and regulations prescribed by the Secretarv. (Public Law 85-172, § 9, Aug. 28,

1957,7lStat.445.)

§ 459 (Section 10). Compliance by all establishments.

No establishment processing poultry or poultry products for commerce or in or for marketing in a designated major consuming area

shall process any poultry or poultry product except in compliance

with the requirements of this chapter. (Public Law 85-172, § 10,

Aug. 28,1957,71 Stat. 459.)

§460 (Section 11). Records of interstate shipment; access; time

maintained.

For the purpose of enforcing the provisions of this chapter, persons

engaged in the business of processing, transporting, shippmg, or

receiving poultry slaughtered for human comsumption or poultry

products in conamerce or in a designated major consuming area, or

holding such products so received shall maintain records showing,

to the extent that they are concerned therewith, the receipt, delivery,

sale, movement, or disposition of poultry and poultry products and

shall, upon the request of a duly authorized representative of the

Secretary, permit him at reasonable times to have access to and to

copy all such records. Any record required to be maintained by this

section shall be maintained for a period of two years after the transaction, which is the subject of such record, has taken place. (Public

Law 85-172, § 11, Aug. 28, 1957, 71 Stat. 446.)

§461 (Section 12). Penalties.

(a) OFFENSES; LIABILITY OF AGENTS, EIVIPLOYEES, AND EMPLOYERS.

Any person who violates the provisions of section 458, 459, 460, or

466 of this title, shall be guilty of a misdemeanor and shall on

154
conviction thereof be subject to imprisonment for not more than six

months, or a fine of not more than $3,000, or both such imprisonment

and fine; but if such violation is conmiitted after one conviction of

such person under this section has become final such person shall be

subject to imprisonment for not more than one year, or a fine of not

more than $5,000, or both such imprisonment and fine ; but if such

violation is committed after two or more convictions of such person

under this section have become final such person shall be subject to

imprisonment for not more than two years, or a fine of not more than

$10,000, or both such imprisonment and fine. When construing or

enforcing the provisions of said sections the act, omission, or failure

of any person acting for or enaployed by any individual, partnership,

corporation, or association within the scope of his employment or

office shall in every case be deemed the act, omission, or failure of

such individual, partnership, corporation, or association, as well as

of such person.

(b) LIABILITY OF CARRIER.

No carrier shall be subject to the penalties of this chapter, other

than the penalties for violation of section 460 of this title, by reason

of his receipt, carriage, holding, or delivery, in the usual course of

business, as a carrier, of slaughtered poultry or poultry products,

owned by another person unless the carrier has knowledge, or is in

possession of facts which would cause a reasonable person to believe

that such slaughtered poultry or poultry products were not inspected

or marked in accordance with the provisions of this chapter or were

not otherwise eligible for transportation under this chapter. (Public

Law 85-172, § 12, Aug. 28,1957,71 Stat. 446.)

§462 (Section 13). Reporting of violations; notice; opportunity

to present views.

Before any violation of this chapter is reported by the Secretary

to any United States attorney for institution of a criminal proceeding,

the person against whom such proceeding is contemplated shall be

given reasonable notice of the alleged violation and opportunity to

present his views orally or in writing with regard to such contemplated proceeding. Nothing in this chapter shall be construed as

requiring the Secretary to report for criminal prosecution violations

of this chapter whenever he believes that the public interest will be

adequately served and compliance with the chapter obtained by a

suitable written notice or warning. (Public Law 85-172, §13,

Aug. 28,1957, 71 Stat. 447.)

§463 (Section 14). Rules and regulations.

The Secretary shall promulgate such rules and regulations as are

necessary to carry out the provisions of this chapter. (Public Law

85-172, § 14, Aug. 28,1957,71 Stat. 447.)

§464 (Section 15). Exemptions.

(a) PERSONS EXEMPTED.

The Secretary shall, by regulation and under such conditions as to

sanitary standards, practices, and procedures as he may prescribe,

exempt from specific provisions of this chapter—

(1) poultry producers with respect to poultry of their own

raising on their own farms which they sell directly to liousehold

155
consumers or restaurants, hotels, and boarding houses for use in

their own dining rooms or in the preparation of meals for sales

direct to consumers only : Provided^ That such poultry producers

do not engage in buying or selling poultry products other than

those produced from poultry raised on their own farms;

(2) retail dealers with respect to poultry products sold direcently to consumers in individual retail stores, if the only processing operation performed by such retail dealers is the cutting

up ot poultry products on the premises where such sales to consumers are made ;

(3) for such period of time as the Secretary determines that it

would be impracticable to provide inspection and the exemption

will aid in the effective administration of this chapter, any person

engaged in the processing of poultry or poultry products for

commerce and the poultry or poultry products processed by such

person: Provided^ however^ That no such exemption shall continue in effect on and afterJuly 1,1960 ; and

(4) persons slaughtering, processing, or otherwise handling

poultry or poultry products which have been or are to be processed as required by recognized religious dietary laws, to the

extent that the Secretary determines necessary to avoid conflict

with such requirements while still effectuating the purposes of

this chapter.

(b) SUSPENSION OR TERMINATION OF EXEMPTION.

The Secretary may by order suspend or terminate any exemption

imder this section with respect to any person whenever he finds that

such action will aid in effectuating the purposes of this chapter.

(Public Law 85-172, § 15, Aug. 28,1957,71 Stat. 447.)

§465 (Section 16). Violations by exempted persons.

Any person who sells, delivers, transports or offers for sale or transportation in commerce or in a designated major consuming area any

poultry or poultry products which are exempt under section 464 of

this title, and which are unwholesome or adulterated and are intended

for human consumption, shall be guilty of a misdemeanor and shall

on conviction thereof be subject to the penalties set forth in section

461 of this title. (Public Law 85-172, § 16, Aug. 28, 1957, 71 Stat.

448.)

§466 (Section 17). Imports.

(a) COMPLIANCE WTTH STANDARDS AND REGULATIONS; STATUS AFTER

IMPORTATION.

ISTo slaughtered poultry, or parts or products thereof, of any kind

shall be imported into the United States unless they are healthful,

wholesome, fit for human food, not adulterated, and contain no dye,

chemical, preservative, or ingredient which renders them unhealthful,

unwholesome, adulterated, or unfit for human food and unless they

also comply with the rules and regulations made by the Secretary of

Agriculture to assure that imported poultry or poultry products comply with the standards provided for in this chapter. All imported,

slaughtered poultry, or parts or products thereof, shall after entry

into the United States in compliance with such rules and regulations

be deemed and treated as domestic slaughtered poultry, or parts or

156
products thereof, within the meaning and subject to the provisions of

this chapter and the Federal Food, Drug, and Cosmetic Act, and Acts

amendatory of, supplemental to, or in substitution for such chapter

and Act.

(b) RULES AND REGULATIONS; DESTRUCTION AND EXPORTATION OF

REFUSED IMPORTS.

The Secretary of Agriculture is authorized to make rules and regulations to carry out the purposes of this section and in such rules and

regulations the Secretary of Agriculture may prescribe the terms and

conditions for the destruction of all slaughtered poultry, or parts or

products thereof, offered for entry and refused admission into the

United States unless such slaughtered poultry, or parts or products

thereof, be exported bj^ the consignee Avithin the time fixed therefor in

such rules and regulations.

(c) STORAGE, CARTAGE, AND LABOR CHARGES FOR IMPORTS REFUSED

ADMISSION.

All charges for storage, cartage, and labor with respect to any product which IS refused admission pursuant to this section shall be paid

by the owner or consignee, and m default of such payment shall constitute a lien against any other products imported thereafter by or for

such owner or consignee. (Public Law 85-172, § 17, Aug. 28,1957, 71

Stat. 448.)

§467 (Section 18). Jurisdiction and powers of Secretary.

(a) For the purpose of preventing and eliminating burdens on

commerce in poultry and poultry products, the jurisdiction of the Secretary within the scope of this chapter shall be exclusive and poultry

and poultry products shall be exempt from the provisions of the Federal Food, Drug, and Cosmetic Act, as amended, to the extent of the

apphcation or the extension thereto of the provisions of this chapter.

(b) In carrying out the provisions of this chapter, the Secretary

may cooperate with other branches of Government and with State

agencies and may conduct such examinations, investigations, and inspections as he determines practicable through any officer or employee

of a State commissioned by the Secretary for such purpose. (Public

Law 85-172, § 18, Aug. 28,1957,71 Stat. 448.)

§468 (Section 19). Cost of inspection; overtime.

The cost of inspection rendered under the requirements of this

chapter, shall be borne by the United States, except that the cost of

overtime and holiday work performed in establishments subject to the

provisions of this chapter at such rates as the Secretary may determine

shall be borne by such establishments. Sums received by the Secretary

in reimbursement for sums paid out by him for such premium pay work

shall be available without fiscal year limitation to carry out the purposes of this section (Public Law 85-172, § 19, Aug. 28, 1957, 71 Stat. 448.) 5 « 5 *= j 5

§469 (Section 20). Authorization of appropriations.

There is authorized to be appropriated such sums as are necessary

to carry out the provisions of this chapter. (Public Law 85-172, § 20,

Aug. 28,1957,71 Stat. 449.)

157
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 conmiission 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

where 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 BS

commonly conducted at auction markets are affected with a public

interest ; such transactions are carried on by tobacco producers 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,

158
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 puolic interest therein. (Aug.

23,1935,ch. 623, § 2,49 Stat. 731.)

§511b. Official standards for classification; 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 inmaediately 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: Promded^ 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.)

§ Slid. 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 conmierce. 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 twothirds of the growers voting favor it. The Secretary shall have access

to the tobacco records of the Collector of Internal Kevenue 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 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

159
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 íQ

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 official samples of tobacco, or as

weighers to weigli 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 \h.ç> 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 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.)

160
§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.)

§511i. 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 oe issued

or authorized imder 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

mterfere 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 protestmg, 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 mspection or sampling or weighing under this chapter, other

161
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 official 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 Slid and 511i 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.)

§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 political 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 operatinor 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

officers, 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

162
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 tliis 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.)

§511o. 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.)

§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.

.^^y persons violating any of the pro^dsions of section 516 of this

title shall be guilty of a misdemeanor and shall be punished by a fine

591897—61 12 163
of not more than $5,000 or by imprisonment for not more than one

year, or by both such fine and imprisonment. (Jmie 5, 1940, ch 232

§2,54Stat.231.)

Warehousing and Transportation

Agricultural Adjustment Act of 1938

(7 U.S.C. 1291)

§ 1291. Adjustments in freight rates.

(a) COMPLAINTS BY SECRETARY or 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 Conunission

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 facilities 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 Conunerce

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.)

United States Warehouse Act

(7 U.S.C. 241-272)

§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.)

164
§24i 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 otherwise,

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

Ucensed or applying for a license in accordance with their ownership,

location, surroundings, capacity, conditions, and other qualities, 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 responsibihty for agricultural products stored therein. (Aug. 11, 1916, ch.

313,partC,§3,39Stat.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 hcense 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 hcense 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.)

165
§ 246. Suspension and revocation of license of warehouseman generally.

The Secretary of Agriculture, or liis designated representative,

may, after opportunity for hearing has been afforded to the hcensee

concerned, suspend or revoke any license to any warehouseman conducting a warehouse under this chapter, for any violation of or failure

10 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 warehouse

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. Wlienever 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.

Í06, 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 prescrioe, 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.

166
eh. 313, part C, § 9, 39 Stat. 487; Mar. 2, 1931, eh. 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,

sliall 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 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.

366,13,46 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

167
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

afforded 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 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, oh.

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,

parte, §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

comitnerce, 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

imder 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 imder 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. (Auir. H, Vdl%^

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

168
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, 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

nave 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

^^^^ liabilities incurred be at the time of the issue of the receipt

imknown to the warehouseman or his agent who issues it, a statenient of the fact that advances have been made or liabilities incurred and the purpose thereof shall be sufficient; (k) such other

169
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 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 plamly 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.

'Wliile 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 bearmg on its face the number and date of

the receipt in lieu of which it is issued, may be issued upon compUance

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 tliis

chapter, in the absence of some lawful excuse, shall, without unncessary 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 nece^sarv^ 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, S 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.

§ 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 this

170
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 compUance 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 findingsThe 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 publish 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 lists 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.

§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 hereJinder so long as said license remains in effect. This chapter shall not

be construed so as to limit the operation of any statute of the United

^tates relating to warehouses or to warehousemen, weighers, graders,

inspectors, samplers, or classifiers now in force in the District of

171
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 wliO 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 multilate

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

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.)

172
PART III

FOOD DISTRIBUTION

Agricultural Trade With Foreign Countries

Agricultural Trade Development and Assistance Act of 1954

(7 U.S.C. 1691-1736)

§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 tliis

chapter to expand international trade, to encouraj^e 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 10,195-i, ch. 469,

§2,68Stat.45-i.)

§1692 (Section 303). Bartering authority of Secretary; exchange

for strategic materials and materials for other purposes;

cooperation of agencies; assistance to cooperatives.

The Secretary shall, whenever he determines that such action is in

the best interest of the United States, and to the maximum extent

practicable, barter or exchange agricultural commodities owned by

the Conmiodity Credit Corporation for (a) such strategic or other

materials of which the United States does not domestically produce

its requirements and which entail less risk of loss through deterioration or substantially less storage charges as the President may

designate, 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 channels, such barters or exchanges or to

utilize the authority conferred on him by section 7l4b(h) of Title 15

to make such barters or exchanges. In carrying out barters or

exchanges authorized by this section, no restriction shall be placed

173
on the countries of the free world into which surplus agricultural

commodities may be sold, except to the extent that the Secretary shall

find necessary in order to take reasonable precautions to safeguard

usual marketings of the United States and to assure that barters or

exchanges under tliis chapter will not imduly disrupt world prices

of agricultural commodities or replace cash sales for dollars. The

Secretary may permit the domestic processing of raw materials of

foreign origin. The Secretary shall endeavor to cooperate with other

exporting countries in preserving normal patterns of commercial

trade with respect to commodities covered by formal multilateral

international marketing agreements to which the United States is a

party. 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. 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, Sept. 6, 1958, Public Law 85-931, § 6, 72 Stat. 1791.)

§ 1693 (Section 304). Assistance to friendly nations in being independent of Russian trade; prevention of increased availability of commodities to unfriendly nations; transactions with

Russia or Communist China not authorized.

(a) The President shall exercise the authority contained in

sections 1701-1709 of this title (1) to assist friendly nations to be

independent of trade with the Union of Soviet Socialist Republics

and with nations dominated or controlled by the Union of Soviet

Socialist Republics and (2) to assure that agricultural commodities

sold or transferred imder said sections do not result in increased

availability of those or like commodities to unfriendly nations.

(b) Nothing in this chapter and sections 1427 and 1431 of this

title shall be construed as authorizing transactions under section

1701-1709 of this title or sections 1427, 1431, 1692, 1693, and 1694

of this title with the Union of Soviet Socialist Republics or any of

the areas dominated or controlled bj^ the Communist regime in China.

(July 10, 1954, ch. 469, Title III, § 304, 68 Stat. 459: Aug. 13, 1957,

Public Law 85-128, § 1 (6), 71 Stat. 345. )

§ 1694 (Section 305). Identification of packages and containers by

appropriate markings.

All Commodity Credit Corporation stocks donated abroad under

subchapter III of this chapter and section 1431 of this title shall be

clearly identified by appropriate marking on each package or container and insofar as practical in the language of the locality where

such stocks are distributed as being furnished by the people of the

United States of America and where available funds accruing under

subchapter II of this chapter shall be used for this purpose. (Julv 10,

1954, ch. 469, Title III, §305, 68 Stat. 459; Sept. 21, 1959, Piiblic

Law 86-341, Title I, § 10, 73 Stat. 607.)

§ 1695 (Section 306). Distribution of surplus food commodities to

needy persons in United States—authorization ; term of program; cost limitation.

(a) In order to promote tlie general welfare, raise the levels

of health and of nourisliment for persons whose incomes prevent

174
them from enjoying adéquat^ diets, and dispose in a beneficial manner of food commodities acquired by the Commodity Credit Corporation or the Department of Agriculture in carrying out price support

operations or diverted from the normal channels of trade and commerce under section 612c of this title the Secretary of Agriculture (in

this section referred to as the "Secretary") is authorized to promulgate and put into operation a program to distribute to needy persons

in the United States, including needy Indians, tlirough a food stamp

system such surplus food commodities. Such program shall provide

for the distribution of such surplus food commodities only during the

period beginning February 1, 1960, and ending January 31, 1962.

The cost of such program, including the cost to the Federal Government of acquiring, storing, and handling such surplus food commodities, shall not exceed $250,000,000 in any 12-month period beginning February 1 and ending January 31.

DUTIES OF SECRETARY OF AGRICULTURE

(b) In carrying out such program, the Secretary shall—

(1) distribute surplus food made available by the Secretary for

distribution under this program only when requested to do so by a

State or political subdivision thereof ;

(2) issue, or cause to be issued, pursuant to subsection (c) of

this section, food stamps redeemable by eligible needy persons for

such types and quantities of surplus food as the Secretary shall

determine ;

(3) distribute surplus food in commercially packaged form, preferably through normal channels of trade ;

(4) establish standards under which, pursuant to subsection (c)

of this section, the welfare authorities of any State or political subdivision thereof may participate in the food stamp plan for the

distribution of surplus foods to the needy ;

(5) consult the Secretary of Health, Education, and Welfare, and

the Secretary of Labor, in establishing standards for eligibility for

surplus foods and in the conduct of the program generally to assure

achievement of the goals outlined in subsection (a) of this section;

and

(6) make such other rules and regulations as he may deem necessary to carry out the purpose of this section.

ISSUANCE OF FOOD STAMPS; REDEMPTION

(c) The Secretary shall issue, to each welfare department or equivalent agency of a State or political subdivision requesting the distribution of surplus food under subsection (b) (1) of this section, food

stamps for each kind of surplus food to be distributed, in amoimts

based on the total amount of surplus food to be distributed and on the

total number of needy persons in the various States and political

subdivisions eligible to receive such food. The food stamps shall

be issued by each such welfare department or equivalent agency to

needy persons receiving welfare assistance, or in need of welfare

assistance but ineligible because of State or local law, and shall be

redeemable by such needy persons at local distribution points to be

determined by the Secretary under subsection (b) (3) of this section.

175
RECEIPT OF BENEFITS NOT DEEMED INCOME OR RESOURCES UNDER

PROVISIONS OF OTHER LAWS

(d) Receipt by any person of benefits under this section shall not

be deemed to be income or resources under the provisions of the

Social Security Act or any other Federal legislation pertaining to

the security of the aged, blind, disabled, dependent children, unemployed, or other similar groups. Any State or local subdivision

thereof which decreases the cash or other assistance extended to any

person or group as a consequence of the assistance made available

imder this section shall be ineligible for further participation under

this section.

SURPLUS FOODS AVAILABLE FOR DISTRIBUTION

(e) Surplus foods to be distributed under this section shall be

limited to surplus foods acquired imder the Agricultural Act of 1949

or diverted from the normal channels of trade under section 612c of

this title.

DEFINITION OF NEEDY PERSON

(f) For the purposes of this section, a needy person is anyone

receiving welfare assistance (financial or otherwise) from the welfare

department or equivalent agency of any State or political subdivision

thereof, or who is, in the opinion of such agency or agencies, in

need of welfare assistance but is ineligible to receive it because of

State or local law.

REPORT TO CONGRESS

(g) The Secretary of Agriculture in consultation with the Secretary of Health, Education, and Welfare and the Secretary of Labor,

shall make a study of, and shall report to Congress within six months

after September 21, 1959, on the feasibility of, the costs of, and the

problems involved in, extending the scope of the food stamp plan

established by this section to include persons receiving unemplovment

compensation,^ receiving old-age and survivors insurance (social

security) pensions, and other low-income groups not (Jigible to receive

food stamps under this section.

AUTHORIZATION OF APPROPRIATIONS

(h) There are authorized to be appropriated, out of any money in

the Treasury not otherwise appropriated, such sums as may be necessary to carry out the purposes of this section. (July 10, 1954, ch.

469, Title III, § 306, as added Sept. 21, 1959, Public Law 86-341,

Title I, §11,73 Stat. 608.)

§ 1696 (Section 307). Availability of surplus commodities for distribution to needy families and persons in United States.

Whenever the Secretary of Agriculture determines under section

1706 of this title that any food comodity is a surplus agricultural

commodity, insofar as practicable he shall make such comodity available for distribution to needy families and persons in the United

btates m such quantities as he determines are reasonably necessary

betöre such commodity is made available for sale for foreign currencies under subchapter II of this chapter. (July 10, 1954, ch. 469,

176
Title III, §307, as added, Sept. 21, 1959, Public Law 86-341, Title

I,§12,73Stat.609.)

§ 1697 (Section 308). Disposal of animal fats and edible oils.

Notwithstanding any other provision of law, the Commodity Credit

Corporation is autiiorized—

(1) to dispose of its stocks of animal fats and edible oils or products thereof by donation, upon such terms and conditions as the

Secretary of Agriculture deems appropriate, to nonprofit voluntary

agencies registered with the Department of State, appropriate agenci*es of the Federal Government or international organizations, for

use in the assistance of needy persons outside the United States;

(2) to purchase for donation as provided above such quantities

of animal fats and edible oils and the products thereof as the Secretary determines will tend to maintain the support level for cottonseed

and soybeans without requiring the acquisition of such commodities

under the price support program.

Commodity Credit Corporation may incur such additional costs

with respect to commodities to be donated hereunder as it is authorized to incur with respect to food commodities disposed of imder

section 1431 of this title, and may pay ocean freight charges from

United States ports to designated ports of entry abroad. (July 10,

1954, ch. 469, Title III, § 308, as added Sept. 21, 1959, Public Law

86-341, Title I, § 13,73 Stat. 609.)

§ 1701 (Section 101). 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 or normal patterns of commercial trade

with friendly countries;

(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 countries that

wul 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

177
make effective use of the foreign currencies received to cany out the

purposes of this chapter and said sections. (July 10, 1954, eh. 469

Title I, §101, 68 Stat. 455, Sept. 6, 1958, Public Law 85-931, 8L

72 Stat. 1790.)

§ 1701. Note : Cotton and cotton products.

"In carrying out the provisions of the Agricultural Trade Development and Assistance Act of 1954, as amended, extra long staple cotton

shall be made available for sale pursuant to the provisions of title I

of the Act in the same manner as upland cotton or any other surplus

agricultural conmiodity is made available, and products manufactured

from upland or long staple cotton shall be made available for sale

pursuant to the provisions of title I of the Act as long as cotton is in

surplus supply, and no discriminatory or other conditions shall be

imposed which will prevent or tend to interfere with their sale or

availability for sale under the Act : Provided, That that portion of

the sales price of such products which is financed as a sale for foreign

currency under title I of the Act shall be limited to the estimated

portion of the sales price of such products attributable to the raw

cotton content of such products." (Sept. 6, 1958, Public Law 85-931,

§8,72 Stat. 1792.)

§ 1702 (Section 102). Same—Availability of stocks acquired in

price support operations, privately owned stocks, and funds.

(a) For the purpose of carr} ing out agreements concluded by the

President under tliis 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 naake

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.

LETTERS OF COMMIT^IEXT AGAINST FUXDS OR GUARANTIES; ESTABLISHMENT OF ACCOUNTS.

(b) 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 deenas

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

m banknig 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

178
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, Apr. 25,1955, ch. 27, 69 Stat. 44.)

§1703 (Section 103). 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 conmiodities 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 agTicultural commodities pursuant

to this subchapter and, (3) all Commodity Credit Corporation funds

expended for ocean freight costs authorized under subchapter III of

this chapter (Sections 1721-1724) for purposes of section 1431 of this

title. Any funds or other assets avaliable 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) Agreements shall not be entered into under this subchapter in

any calendar year during the period beginning January 1, 1960, and

ending December 31,1961, which will call for appropriations to reimburse the Commodity Credit Corporation, pursuant to subsection (a)

of this section, in amounts in excess of $1,500,000,000, plus any amount

by which agreements entered into the preceding calendar year have

called or will call for appropriations to reimburse the Commodity

Credit Corporation in amounts less than authorized for such preceding year by this chapter and sections 1427 and 1431 of this title as in

effect during such preceding year. (July 10, 1954, ch. 469, Title I,

§103, 68 Stat. 456; Aug. 12, 1955, ch. 873, § 1, 69 Stat. 721; May 28,

1956, ch. 327, Title II, § 208(a), 70 Stat. 201; Aug. 3, 1956, ch. 933,

§1, 70 Stat. 988; Aug. 13, 1957, Public Law 85-128, § 1(2), 71 Stat.

345; Sept. 6, 1958, Public Law 85-931, §2, 72 Stat. 1790; Sept. 21,

1959, Public Law 86-341, Title I, § 2, 73 Stat. 606.)

§ 1704 (Section 104). 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 purla) To help develop new markets for United States agricultural

commodities on a mutually benefiting basis. From sale proceeds and

loan repayments under this subchapter not less than the equivalent of

5 per centum of the total sales made under this subchapter after September 21,1959, shall be made available in advance for use as provided

oy this subsection over such period of years as the Secretary of Agri591897—61 13 179
culture determines will most effectively carry out the purpose of this

subsection: Provided^ That no such funds shall be allocated under

this subsection after June 30, 1960, except as may be specified, from

time to time, in appropriation acts. Particular regard shall be given

to provide in sale and loan agreements for the convertibility of such

amount of the proceeds thereof as may be needed to carry out the

purpose of this subsection in those countries which are or offer reasonable potential of becoming dollar markets for the United States agricultural commodities. Notwithstanding any other provision of law,

if sufficient foreign currencies for carrying out the purpose of this

subsection in such countries are not otherwise available, agreements

may be entered into with such countries for the sale of surplus agricultural commodities in such amounts as the Secretary of Agricultural determines to be adequate and for the use of the proceeds to

carry out the purpose of this subsection ;

(b) To purchase or contract to purchase, in such amounts as may

be specified from time to time in appropriation acts, strategic or other

materials for a supplemental United States stockpile of such materials as the President may determine from time to time. Such

strategic or other materials acquired under this subsection shall be

placed in the above named supplemental stockpile and shall be released therefrom only under th^ provisions of section 98b of Title 50:

(c) To procure military equipment, materials, facilities, and services for the conmion defense ;

(d) For financing the purchase of goods or services for other

friendly countries;

(e) For promoting balanced economic development and trade

among nations, for which purposes not more than 25 per centum of

the currencies received pursuant to each such agreement shall be

available through and under the procedures established by the Export-Import Bank for loans mutually agreeable to said bank: and the

country with which the agreement is made to United States business

firms and branches, subsidiaries, or affiliates of such firms for business development and trade expansion in such countries and for loans

to domestic or foreign firms for the establishment of facilities for aiding in the utilization, distribution, or otherwise increasing the consumption of, and markets for. United States agricultural products:

Provided^ however^ That no such loans shall be made for the manufacture of any products to be exported to the United States in competition

with products produced in the United States or for the manufacture

or production of any commodity to be marketed in competition with

United States agricultural commodities or the products thereof.

Foreign currencies may be accepted in repayment of such loans.

f 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 and for the financing in such amounts as may

be specified from time to time in appropriation acts of programs for

180
the interchange of persons under section 1446 of Title 22. 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, such special and particular effort

to mclude the setting aside of such amounts from sale proceeds and

loan repayments under this subchapter, not in excess of $1,000,000^ a

year in any one country for a period of not more than five years in

advance, as may be determined by the Secretary of State to be required for the purposes of this subsection ;

(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 ;

(]) 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 ;

(k) To collect, collate, translate, abstract, and disseminate scientific

and technological information and to conduct research and support

scientific activities overseas including programs and projects of

scientific cooperation between the United States and other countries

such as coordinated research against diseases common to all of mankind or unique to individual regions of the globe, and to promote and

support programs of medical and scientinc research, cultural and

educational development, health, nutrition, and sanitation : Provided^

That foreign currencies shall be available for the purposes of this

subsection (in addition to funds otherwise made available for such

purposes) only in such amounts as may be specified from time to

time in appropriation Acts:

(1) For the acquisition by purchase, lease, rental or otherwise, of

sites and buildings and grounds abroad, for United States Government use including offices, residence quarters, conmiunity and other

facilities, and for construction, repair, alteration and furnishing of

^ch buildings and facilities : Provided^ That foreign currencies shall

be available for the purposes of this subsection (in addition to funds

otherwise made available for such purposes) in such amounts as may

be specified from time to time in appropriation acts;

(m) For financing in such amounts as may be specified from time

to tune in appropriation acts (A) trade fair participation and related

^^^j^ties authorized by section 1992 of Title 22, and (B) agricultural

( ^^^^^^^^^^ fair participation and related activities;

(n) For financing under the direction of the Librarian of

t/ongress, in consultation with the National Science Foundation and

other interested agencies, in such amounts as may be specified from

tune to time in appropriation acts, (1) programs outside the United

^ li^^ tbô analysis and evaluation of foreign books, periodicals,

and other materials to determine whether they would provide information of technical or scientific significance in the United States and

Whether such books, periodicals, and other materials are of cultural

181
or educational significance; (2) the registry, indexing, binding,

reproduction, cataloging, abstracting, translating, and dissemination

of books, periodicals, and related materials determined to have such

significance; and (3) the acquisition of such books, periodicals, and

other materials and the deposit thereof in libraries and research

centers in the United States specializing in the areas to which they

relate ;

(o) For providing assistance, in such amounts as may be specified

from time to time in appropriation acts, by grant or otherwise, in the

expansion or operation in foreign countries of established schools,

colleges, or universities founded or sponsored by citizens of the

United States, for the purpose of enabling such educational institutions to carry on programs of vocational, professional, scientific,

technological, or general education;

(p) For supporting workshops in American studies or American

educational techniques, and supporting chairs in American studies;

(q) For assistance to meet emergency or extraordinary relief

requirements other than requirements for surplus food commodities:

Provided^ That not more than a total amount equivalent to $5,000,000

may be made available for this purpose during any fiscal year ;

(r) For financing the preparation, distribution, and exhibiting of

audio-visual informational and educational materials, including Government materials, abroad: Provided^ That not more than a total

amount equivalent to $2,500,000 may be made available for this purpose during any fiscal year, but nothing in this subsection shall hmit

or afliect the use of foreign currencies to finance the preparation,

distribution, or exhibition of such materials in connection with trade

fairs and other market development activities under subsection (a)

of this section ;

Provided^ horoever^ 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 invoMng

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: Provided^ however. That no foreign currencies

shall be available for the purpose of subsection (p) of this section,

except in such amounts as may be specified from time to time in appropriation Acts, and no foreign currencies shall be allocated under any

provision of this chapter and sections 1427 and 1431 of this title after

June 30,1960, for the purposes specified in subsections (k), (p), and

(r) of this section, except in such amounts as may be specified from

time to time in appropriation Acts. (July 10, 1954, ch. 469, Title I,

§ 104, 68 Stat. 456 ; Aug. 26,1954, ch. 937, Title V, § 544, as added July

18, 1956, ch. 627, § 11 (a), 70 Stat. 564; Aug. 3, Í956, ch. 933, § 2, 70

Stat. 988 ; Aug. 13,1957, Public Law 85-128, 8 1 (4), 71 Stat. 345 ; Aug.

14,1957, Public Law 85-141, § 11 (b), 71 Stat. 365 : June 30,1958, Public Law 85^77, ch. V, § 502 (L), 72 Stat. 275; Sept. 6, 1958, Public

Î^TT^ ol"^^^' § ^' '^^ S^^^^- 1^90; July 24, 1959, Public Law 86-108, ch.

}?J'J ^2} y) ' ^^ Stat. 258 ; Sept. 21,1959, Public Law 86-341, Title I,

§§4-9, 73 Stat. 607.)

182
§ 1704a. Same; reports to Congress.

Within sixty days after any agreement is entered into for the use

of any foreign currencies, a full report thereon shall be made to the

Senate and the House of Kepresentatives of the United States and to

the Committees on Agriculture and Appropriations thereof. (Public Law 85-128, §1(5), Aug. 13,1957,71 Stat. 345.)

§ 1704b. Utilization of foreign currencies for construction of military projects; reimbursement of Commodity Credit Corporation.

In carrying out in a foreign country any project authorized by this

Act or any other military construction act heretofore or hereafter

enacted, currencies of such country acquired pursuant to the provisions of this chapter shall, to the extent available and feasible, be

used in lieu of dollars. The Department of Defense shall reimburse

the Commodity Credit Corporation for any foreign currencies so

utilized in carrying out such projects. (Public Law 86-149, Title

IV, § 420, Aug. 10,1959,73 Stat. 324.)

§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 apurpose for which funds have been appropriated 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 hnplementing 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,

inendly nation" means any country other than (1) U.S.S.K., or (2)

any nation or area dominated or controlled by the foreign government

or foreign organization controlling the w orld Communist movement.

(July 10,1954, ch. 469, title I, § 107, 68 Stat. 457.)

183
§ 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 (Section 109). Termination date for transactions under this

subchapter.

No transactions shall be undertaken under authority of this subchapter after December 31,1961, except as required pursuant to agreements theretofore entered into pursuant to this subchapter. (July 10,

1954, ch. 469, Title I, § 109, 68 Stat. 457; Aug. 13, 1957, Public Law

85-128, §1(1), 71 Stat. 345; Sept. 6, 1958, Public Law 85-931, §4,

72 Stat. 1791; Sept. 21, 1959, Public Law 86-341, Title I, § 1, 73 Stat.

606.)

§ 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 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.)

§ 17212 (Section 202). Transfer of commodities on a grant basis

to assist programs; protection of sales possibilities.

In order to facilitate the utilization of surplus agricultural commodities in meeting the requirements of needy peoples, and in order

to promote economic development in under-developed areas in addition to that which can be accomplished under sections 1701-1704 and

1705-1709 of this title, 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; May 14,

1960, Public Law 86-472, ch. VI, § 601(a) (1), 74 Stat. 140.)

§ 1723 (Section 203). Limitation on transfers of commodities; use

of agencies, organizations, and facilities in making transfers;

payment of ocean freight charges.

Not more than $300,000,000 (including the Corporation's investment in such commodities) plus any amount by which transfers made

in the preceding calendar year have called or will call for appropria184
tions to reimburse the Commodity Credit Corporation in amounts

less than could have been expended during such preceding year under

this subchapter as in effect during such preceding year shall be

expended m any calendar year during the period January 1, 1960,

and ending December 31, 1961, 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,

or, in the case of landlocked countries, transportation from United

States ports to designated points 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, and charges for general average contributions arising out of

the ocean transport of commodities transferred pursuant hereto may

be paid from such funds. 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; May 28, 1956, ch. 327, Title II, § 208(c), 70 Stat.

201; Aug. 13,1957, Public Law 85-128, § 1(3), 71 Stat. 345; Sept. 21,

1959, Public Law 86-341, § 3, 73 Stat. 606 ; May 14, 1960, Public Law

86^72, ch. VI, § 601 (b), 74 Stat. 140.)

§ 1724 (Section 204). Termination date for assistance under this

subchapter.

No programs of assistance shall be undertaken under the authority

of this subchapter after December 31, 1961. (July 10, 1954, ch. 469,

Title II, § 204, 68 Stat. 458 ; Aug. 13,1957, Public Law 85-128, §1(1),

71 Stat. 345; Sept. 6, 1958, Public Law 85-931, §5, 72 Stat. 1791;

Sept. 21, 1959, Public Law 86-341, Title I, § 1, 73 Stat. 606.)

§1731 (Section 401). Statement of purpose.

The purpose of this subchapter is to utilize surplus agricultural

commodities and the products thereof produced in the United States

to assist the economic development of friendly nations by providing

long-term credit for purchases of surplus agricultural commodities

for domestic consumption during periods of economic development

so that the resources and manpower of such nations may be utilized

more effectively for industrial and other domestic economic development without jeopardizing meanwhile adequate supplies of agricultural commodities for domestic use. (July 10, 1954, ch. 469, Title

ly §401; as added Sept. 21, 1959, Public Law 86-341, Title I, § 14,

73 Stat. 610.)

§1732 (Section 402). Agreements for delivery of surplus agricultural commodities; period.

. In furtherance of this purpose, the President is authorized to enter

into agreements with friendly nations under which the United States

shall undertake to provide for delivery annually of certain quantities

185
of such surplus agricultural commodities for periods of not to exceed

ten years, pursuant to the terms and conditions set out in this subchapter, providing such commodities are in surplus at the time delivery is to be made. (July 10,1954, ch. 469, Title IV, § 402 ; as added

Sept. 21,1959, Public Law 86-341, Title I, § 14,73 Stat. 610.)

§ 1733 (Section 403). Payments for commodities.

Payment for such commodities shall be in dollars with interest at

such rate as the Secretary may determine but not more than the cost

of the funds to the United States Treasury as determined by the

Secretary of the Treasury, taking into consideration the current

average market yields on outstanding marketable obligations of the

United States having maturity comparable to the maturities of loans

made by the President under this section. Payment may be made in

approximately equal annual amounts over periods of not to exceed

twenty years from the date of the last delivery. (July 10, 1954, ch.

469, Title IV, § 403; as added Sept. 21,1959, Public Law 86-341, Title

I, § 14,73 Stat. 610.)

§ 1734 (Section 404). Duty of Secretary of Agriculture to maximize the sale of commodities.

In carrying out the provisions of this subchapter, the Secretary of

Agriculture shall endeavor to maximize the sale of United States

agricultural commodities taking such reasonable precautions as he

determines necessary to avoid replacing any sales which the Secretary

finds and determines would otherwise be made for cash dollars.

(July 10,1954, ch. 469, Title IV, § 404; as added Sept. 21,1959, Public

Law 86-341, Title I, § 14,73 Stat. 610.)

§ 1735 (Section 405). Agreements for participation in supply and

assistance program.

In entering into such agreements, the Secretary shall endeavor to

reach agreement with other exporting nations of such commodities

for their participation in the supply and assistance program herein

authorized on a proportionate and equitable basis. (July 10, 1959,

ch. 469, Title IV, § 405, as added Sept. 21, 1959, Public Law 86-341,

Title I, §14,73 Stat. 610.)

§ 1736 (Section 406). Applicability of other laws.

In carrying out this subchapter, the provisions of sections 1702,

1703(a), 1706, 1707, and 1708 of this title shall be applicable to the

extent not inconsistent with this subchapter. (July 10,1954, ch. 469,

Title IV, §406; as added Sept. 21, 1959, Public Law 86-341, Title

I, §14,73 Stat. 610.)

Executive Order 10685. Providing for the Administration of the

Agricultural Trade Development and Assistance Act of 1954,

as amended.

By virtue of the authority vested in me by the Agricultural Trade

Development and Assistance Act of 1954, as amended, and by section

301 of title 3 of the United States Code, and as President of the

United States, it is ordered as follows :

SEC. 1. The International Cooperation Administration is hereby

designated as the Federal agency to which funds required for ocean

freight costs authorized under Title II of the Agricultural Trade

186
Development and Assistance Act of 1954, as amended (7 Ü.S.C. 1721-

1724), may be transferred by the Commodity Credit Corporation.

[Omitted are amendments to sections 5 and 6 of Executiv Order

10560.]

DwiGHT D. EISENHOWER

THE WHITE HOUSE

Executive Order 10560. Administration of the Agricultural Trade

Development and Assistance Act of 1954.

By virtue of the authority vested in me by section 301 of title 3 of

the United States Code, 65 Stat. 713, and as President of the United

States, it is ordered as follov^s :

SEC. 1. DEPARTMENT OF AGRICULTURE, (a) Except as otherwise

provided in this order, the fimctions conferred upon the President by

Titles I and IV of the Agricultural Trade Development and Assistance Act of 1954, as amended, are hereby delegated to the Secretary of

Agriculture.

(b) The administration on behalf of the United States of the credit

provisions of agreements entered into pursuant to Title IV of the Act

(including the receiving of payments under agreements) shall be performed by such Federal agency or agencies as shall hereafter be

designated therefor by the President.

SEC 2. FOREIGN OPERATIONS ADMINISTRATION. The functions

conferred upon the President by Title II of the Act are hereby delegated to the Director of the Foreign Operations Administration.

SEC. 3. DEPARTMENT OF STATE, (a) The functions of negotiating and entering into agreements with friendly nations or organizations of friendly nations conferred upon the President by the Act are

hereby delegated to the Secretary of State.

(b) All functions under the Act, however vested, delegated, or

assigned, shall be subject to the responsibilities of the Secretary of

the Secretary of State with respect to the foreign policy of the United

States as such policy relates to the said functions.

(c) The provisions of Part III of Executive Order No. 10476 of

August 1, 1953 (18 F.E. 4537, ff.), are hereby extended and made

applicable to functions provided for in the Act and to united States

agencies and personnel concerned with the administration abroad of

the said functions.

SEC 4. FOREIGN CURRENCIES, (a) There are hereby delegated to

the Director of the Bureau of the Budget ( 1) so much of the functions

conferred upon the President by the Act as consists of fixing from

üme to time the amounts of foreign currencies which accrue imder

Title I of the Act to be used for each of the several purposes described

in paragraphs (a) to (h), inclusive, of section 104 of the Act, and (2)

the function conferred upon the President by the last proviso in section

104 of the Act of waivmg the applicability of section 1415 of the

supplemental Appropriation Act, 1953.

(b) The Secretary of the Treasury is hereby authorized to prescribe

regulations governing the purchase, custody, deposit, transfer, and

sale of foreign currencies received under the Act.

« W The foregoing provisions of this section shall not limit section

o ot this order and the foreiroingr subsection (b) shall not limit subsection (a) above.

187
(d) Purposes described in the lettered paragraphs of section 104

of the Act shall be carried out, with foreign currencies made available

pursuant to section 4(a) of this order, as follows :

(1) Those under section 104(a) of the Act by the Department of

Agriculture.

(2) Those under section 104(b) of the Act by the Office of Defense

Mobilization. Tlie function, conferred upon the President by that

section, of determining from time to time materials to be purchased or

contracted for for a supplemental stockpile is hereby delegated to the

Director of the Office of Defense Mobilization.

(3) Those under section 104(c) of the Act by the Department of

Defense.

(4) Those under sections 104 (d), (e), and (g) of the Act by the

Foreign Operations Administration. The function, conferred upon

the President by section 104(g) of the Act, of determining the manner

in which the loans provided for in the said section 104(g) shall be

made, is hereby delegated to the Director of the Foreign Operations

Administration.

(5) Those under section 104(f) of the Act by the respective

agencies of the Government having authority to pay United States

obligations abroad.

(6) Those under section 104(h) of the Act by the Department of

State.

SEC. 5. RESERVATION OF FUNCTIONS TO THE PRESIDENT. There are

hereby reserved to the President the functions conferred upon him by

section 108 of the Act (including that section as affected by section 406

of the Act), with respect to making reports to the Congress.

SEC. 6. DEFINITION. AS used in this order the term "Act" means

the Agricultural Trade Development and Assistance Act of 1954 (68

Stat. 454), as amended, and includes, except as may be inappropriate,

the provisions thereof amendinçr other laws.

(Executive Order 10560, September 9, 1954, 3 CFR 1954 Supplement; as amended by Executive Order 10685, October 27,1956, 3 CFE

1956 Supplement (Sections 5 and 6) ; and as amended by Executive

Order 10884, August 17. 1960, 3 CFR 1960 Supplement (Sections 1

and5).)

DwiGHT D. EISENHOWER

THE WHITE HOUSE

Mutual Security Act of 1954

(22 U.S.C. 1922)

§1922 (Section 402). Surplus agricultural commodities; funds

for shipments.

Of the funds authorized to be made available in the fiscal year 1961

pursuant to this chapter (other than funds made available pursuant

to sections 1871-1876 of this title), not less than $175,000,000 shall be

used to finance the export and sale for foreign currencies or the grant

of surplus agricultural commodities or products thereof produced in

the United States, in addition to surplus agricultural commodities or

products transferred pursuant to the Agricultural Trade Development and Assistance Act of 1954, and in accordance with the standards

as to pricing and the use of private trade channels expressed in section

188
1701 of Title 7. Foreign currency proceeds accruing from such sales

shall be used for the purposes of this chapter and with particular

emphasis on the purposes of section 1704 of Title 7 which are in

harmony with the purposes of this chapter. 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 for such purposes the foreign currencies which accrue to

the United States under this section. Surplus food commodities or

products thereof made available for transfer under this chapter (or

any other Act) as a grant or as a sale for foreign currencies may also

be made available to the maximum extent practicable to eligible

domestic recipients pursuant to section 1431 of Title 7, or to needy

persons withm the united States pursuant to clause (2) of section

612c of Title 7. (Aug. 26, 1954, ch. 937, ch. II, § 402, 68 Stat. 843;

July 8, 1955, ch. 301, §8(b), 69 Stat. 286; July 18, 1956, ch. 627,

§8(b), 70 Stat. 558; Aug. 14, 1957, Public Law 85-141, §8(c), 71

Stat. 361; June 30,1958, Public Law 85-477, ch. II, § 205 (b), 72 Stat.

266; July 24, 1959, Public Law 86-108, ch. II, § 205(c), 73 Stat. 250;

May 14, 1960, Public Law 86-472, ch. II, § 204(c), 74 Stat. 136.)

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 hereafter

acquired by it from 1954 and prior years' crops and production in

connection with its price support operation :

Maximum Minimum

Commodity quantity quantity

Wheat (bushel) 500, 000, 000 400, 000, 000

Upland cotton (bales) 4,000,000 3,000,000

Cottonseed on (pounds) 500,000,000 0

Butter (pounds) 200, 000, 000 0

Nonfat dry miUi soUds (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

aet-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 :

189
(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 nomaal

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 Corporation shall be reimbursed for the value of the conomodities 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 commoditv set-aside. (Aug. 28, 1954, ch. 1041, title

I,§103,68Stat.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

conimodity set-aside for the purpose of rotating stocks or consolidating inventories, any such sale to be offset by the purchase of the

same commodity in a substantially equivalent quantity or of a substantiall;^ 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.)

190
§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 the 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 quanity 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 supphes for the 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,§105,68Stat.898.)

§1746. Records and accounts.

The Commodity Credit Corporation shall keep such records and

accounts as may be necessary to show, for each commodity set-aside,

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. )

§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 conmiodity 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.)

Domestic Disposition of Surplus Commodities

Agricultural Act of 1949

(7 U.S.C. 1431)

§ 1431 (Section 416). 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

^orld prices, the Commodity Credit Corporation is authorized, on

191
such terms and under such regulations as the Secretary of Agriculture

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 as may be desimated by the

proper State or Federal authority and approved by the Secretary, for

use in the United States in nonprofit school-lunch programs, in nonprofit summer camps for children, 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 volimtary 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 clauses (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, nandling, 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; July 2, 1958, Public Law 85-483,

^ 1, 72 Stat. 286.)

NOTE: Authorization for Commodity Credit Corporation To

Purchase and Donate Flour and Commeal

Public Law 85-683, Aug. 19, 1958, 72 Stat. 635, provided : "That at

any time Commodity Credit Corporation has wheat or com avaUable

for donation pursuant to clauses (3) or (4) of section 416 of the

Agricultural Act of 1949, as amended [this section], section 210

of the Agricultural Act of 1956 [section 1859 of this title], or title

II of the Agricultural Trade Development and Assistance Act, as

amended [sections 1721-1724 of this title], the Corporation, in lieu

of processing all or any part of such wheat or corn into flour or meal,

192
may purchase flour or meal in quantities not to exceed the equivalent

of such wheat or com so available on the date of purchase and donate

such flour and meal pursuant to clauses (3) or (4) of said section

416 [tliis section] and to said section 210 [section 1859 of this title]

and make such flour or meal available to the President, pursuant to

said title II [sections 1721-1724 of this title] and may sell, without

regard to the provisions of section 407 of the Agricultural Act of

1949, as amended [section 1427 of this title], a quantity of wheat

and com not to exceed that which is equivalent to the quantity of

flour and meal so purchased."

§ 1431a (Section 505). Cotton donations to educational institutions.

Commodity Credit Corporation is authorized, on such terms as

the Secretary of Agriculture may approve, to donate cotton acquired

through its price support operations to educational institutions for

use in the training of students in the processing and manufacture of

cotton into textiles. (Public Law 85-835, title V, §505, Aug. 28,

1958,72 Stat. 996.)

§ 1431b (Section 9). Distribution of surplus commodities to other

United States areas; purchase of products for donation

abroad.

Notwithstanding any other provision of law (1) those areas under

the jurisdiction or administration of the United States are authorized

to receive from the Department of Agriculture for distribution on the

same basis as domestic distribution in any State, Territory, or possession of the United States, without exchange of fimds, such surplus

commodities as may be available pursuant to clause (2) of section

612c of this title and section 1431 of this title ; and (2) the Commodity

Credit Corporation is authorized to purchase products of oil seeds,

and edible oils and fats and the products thereof in such form as

may be needed for donation abroad as provided in the following

sentence. Any such commodities or products if purchased shall te

donated to nonprofit voluntary agencies registered with the Department of State, other appropriate agencies of the Federal Government

or international organizations for use in the assistance of needy persons outside the United States. Commodity Credit Corporation may

incur such additional costs with respect to such oil as it is authorized

to incur with respect to food commodities disposed of under section

1431 of this title (Public Law 85-931, § 9, Sept. 9,1958, 72 Stat. 1792).

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

193
fee, contract, or concession basis. (May 28, 1956, ch. 327, title II,

§210,70Stat.202.)

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 Xation'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 school-lunch programs. (June 4,

1946, ch. 281, § 2, 60 Stat. 230.)

§ 1752. Appropriations.

For each fiscal year, begimiing 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 conmiodities

and other foods for the scliool-limch 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 tliis

chapter. The total of such apportionments of funds for use in

Puerto Kico, 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 fimds from any annual or supplemental

appropriation (and only in such case), the apportionment for Puerto

Eico, the apportionment for Guam, and the apportionment for the

Virgin Islands, shall not be 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

194
obtained to the total funds to be apportioned. For the purpose of

this section, the number of school children in 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, "school means any public or nonprofit

private school of high-school grade or under and, with respect to

Puerto Rico, shall also include non-profit 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 contamed m 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 ñmds 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

agncultural commodities under section 612c of Title 7, shall, to the

extent not inconsistent with the provisions of this chapter, also be apphcable 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

01 this title during any fiscal year shall be available for payment to

such State for disbursement by the State educational agency, in accoraance with such agreements not inconsistent with the provisions of

591897-61 14 195
this chapter, as may be entered into bv the Secretary and such State

educational agency, for the purpose or 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 otates, 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 conmiodities 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 imder 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 accoimt 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-limch 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 multiplying the number of limches served

in the school in the school-lunch program under this chapter during

such year by the maximum Federal food-cost contribution rate for

196
the State, for the type of lunch served, as prescribed by the Secretary.

(June4,1946,eh. 281, § 8,60 Stat. 232.)

§1758. Nutritional and other program requirements; donation 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 imder this

chapter shall be operated on a nonprofit basis. Each school shall,

insofar as practicable, utilize in its lunch program, commodities

designated éom 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 imder 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 participating

in the school-lunch program under this chapter shall keep such accounts and records as may be necessary to enable the Secretary to

aetennme whether the provisions of this chapter are being complied

}^ith. Such accounts and records shall at all times be available for

inspection and audit by representatives of the Secretary and shall

197
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-limch program under

this chapter insofar as they may be applicable and such other provisions as in liis opinion are reasonably necessary or appropriate to

effectuate the piirposes 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 Eico, 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 Jime 30, 1948, "State educational agency" may mean any

agency or agencies within the State designated by the Governor to

carry out the fimctions 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.)

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

198
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 conmiodity : (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 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 conamodity shall be determmed 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. (Oct. 31, 1949, eh. 792, Title IV, § 401,

63Stat.l054.)

(e) Whenever any price support or surplus removal operation for

any agricultural commodity is carried out through puchases 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 maximiun 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

^^J^odity 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

m the supply of any agricultural conamodity 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 avail1054i^ ^^® Public. (Oct. 31, 1949, ch. 792, Title IV, § 402, 63 Stat.

199
§ 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 determmed 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,§403,63Stat.l054.)

§ 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 personallj^ 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 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 begmning 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

determmed, 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 anv price not prohibited by this

section. In determinmg 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

200
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 imemployment or other economic cause if the President finds that 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 conmiodities 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

kmd 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—

1^ 1 o commodity shall be considered storable upon determination

DJ the Secretary that, in normal trade practice, it is stored for substantial penods of time and that it can be stored under the price-support

program without excessive loss through deterioration or spoilage or

Jithout excessive cost for storage for such periods as will permit its

disposition without substantial impairment of the effectiveness of the

price-support program.

201
(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 com, 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.

(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) "Carrj^over" 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) "Xormal 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 whicli 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" fo/any non-basic 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.

202
(i) Any term defined in the Agricultural Adjustment i^ct of 19oS

shall have the same meaning when used in this Act. (Oct. 31,1949, ch.

792 Title IV, § 40a, 63 Stat. 1055 ; as amended Aug. 28,1954, ch. 1041,

TitîeII,§209,68Stat. 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 ^vith 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.)

§ 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 :

(a) For tobacco (except as otherwise provided

herein), corn, wheat, and rice, if the supply per- The level of support shall

oentage as of the beginning of the marketing f'o^io"^'ng'p1rc'en'tage*^of

year is : the parity price :

Not more than 102 90

More than 102 but not more than ioi 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

203
( b ) For cotton and peanuts, if the supply percent- The level of support shall

age as of the beginning of the marketing year XoUowíng plrAge^ïf

is : the 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 82

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 79

More than 127 but not more than 128 78

More than 128 but not more than 129 77

More than 129 but not more than 130 76

More than 130 75

(c) For tobacco, if marketing quotas are in effect, the level of support shall be 90 per centum of the parity price.

(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 aUotments 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

1122 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

pnce 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 thissection.

(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 wheat-producing area.

204
(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 miniumum

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 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,

eh. 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 eligibhty 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 com: 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) EEFERENDUM 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 cornproducing area to determine whether such producers favor a pricesupport program as provided in subsection (c) of this section for

the 1957 and subsequent crops in lieu of acreage allotments as provided

m 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 prorw ^^ ^^^^ subsection, no acreage allotment of com 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

205
support made available for such crops bj^ Commodity Credit Corporation shall be at such level as the Secretary determines will assist

producers in marketing com in the normal channels of trade but not

encourage the uneconomic production of com.

(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

conmiodity as of May 1, 1956, (2) the level of price support for

corn produced outside the commercial corn-producing area, for any

crop for which base acreages are in effect (except as provided in

(3) below), shall be 82^ per centum of the level of price support

for com in the commercial corn-producing area to producers complying with acreage limitations, and (3) if price support is made

available for the 1957 crop of com 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 com produced outside the commercial cornproducing 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 com in the commercial corn-producing area to producers not complying with acreage

limitations, taking into consideration the normal price relationships

between such commodity and com in the commercial area, the feed

value of such commodity in relation to com, the supply of such

commodity in relation to the demand therefor, and the ability to

dispose of stocks of such commodity acquired tlirough price support programs. (May 28, 1956, ch. 327, title III, § 308, 70 Stat.

206.)

§ 1446 (Sections 203, 204, 709). 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 :

(a) Repealed. (Aug. 28, 1954, c. 1041, Title VII, §709, 68 Stat.

(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 : Provided^ That in any crop year in wliich the Secretary determines that the domestic production of tung oil will be

less than the anticipated domestic demand for such oil the price

of tung nuts shall be supported at not less than 65 per centum of the

parity price therefor;

(c) The price of whole milk, butterfat, and the products of such

conmiodities, 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. Notwithstanding ih^ foregoing provisions, for the period beginning with September 16, 1960, and ending

206
March 31,1961, the price of milk for manufacturing purposes and the

price of butterfat shall be supported at not less than $3.22 per hundredweight and 59.6 cents per pound, respectively. 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 Conamodity Credit Corporation shall be used to increase the

consumption of fluid milk by children in (1) nonprofit schools of

high-school grade and imder; 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.

(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, c. 661, 70 Stat. 596; Aug. 28, 1958, Public Law 85-835, Title

V, §503, 72 Stat. 996; Sept. 16, 1960, Public Law 86-799, 74 Stat.

1054.)

Continuation of special milk program for children. Public Law

85-478, July 1, 1958, 72 Stat. 276, as amended by Public Law 86-10,

Apr. 3,1959, 73 Stat. 15; Public Law 86-163, Aug. 18, 1959, 73 Stat.

363; Public Law 86-446, §§ 1, 2, Apr. 29, 1960, 74 Stat. 84 provided:

"That for the fiscal year beginnmg July 1, 1959, not to exceed

$85,000,000, and for the fiscal year oeginning July 1, 1960, not to

exceed $95,000,000, of the funds of the Commo(£ty Credit Corporation

shall be used to increase the consumption of fluid milk by children

(1) in nonprofit schools of high-school grade and under; and (2) in

nonprofit nursery schools, child-care centers, settlement houses, summer camps, and similar nonprofit institutions devoted to the care

and training of children. There is authorized to be appropriated for

the purposes of this Act for the fiscal year beginning July 1, 1960,

separate from any other appropriation of funds for Commodity

Credit Corporation, such amount as may be deemed to be necessary

to reimburse Conmiodity Credit Corporation for amounts advanced

by it under this Act. Amounts expended hereunder and under the

authority contamed in the last sentence of section 201(c) of the

Agricultural Act of 1949, as amended [subsection (c) of this section],

shall not be considered as amounts expended for the purpose of

carrying out the price-support program."

§ 1446a (Section 202). 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 Admmistrator 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—

207
(a) ADMINISTRATOR OF VETERAN AFFAIRS ; NEEDS ; REPORT TO CONGRESS.

The Commodity Credit Corporation until December 31,1961, 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 Eepresentatives 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, 1961, shall

make available to the Secretary of the Army, at warehouses where

dairy products are stored, such dairy products acquired under pricesupport programs as the Secretary of the Army or his duly authorized

representative certifies can be utilized in order to provide additional

butter and cheese and other dairy products as a part of the ration

(1) of the Army, Navy, Air Force, or Coast Guard, (2) in hospitals

under the jurisdiction of the Department of Defense, and (3) of

cadets and midshipmen at, ai;d other personnel assigned to, the

United States Merchant Marine Academy. 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 price-support

operations and not disposed of under provisions (1) and (2) of

section 1431 of this title. (Oct. 31, 1949, ch. 792, title II, §202, as

added Aug. 28, 1954, ch. 1041, title II, § 2(>4(d), 68 Stat. 900; Apr. 2,

1956, ch. 159, §3, 70 Stat. 87; Aug. 28, 1958, Public Law 85-835,

title V, §504, 72 Stat. 996.)

§ 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 modem,

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

208
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.)

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-mcome groups as determined by the Secretary of

Agriculture; and (3) reestablish farmers' purchasing power by

making payment 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.

209
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

argicultural 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 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 purpose 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 HI, § 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.)

Fishery Products

(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 commoditites 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. U,

1939 ch. 696, §1, 53 Stat. 1411; 1940 Keorg. Plan No. Ill, §5,

eff. June 30, 1940, 5 F.E. 2108, 54 Stat. 1232; 1946 Reorg. Plan

No. 3, § 501, eff. July 16,1946,11 F.E. 7877, 60 Stat. 1100.)

§713c-3. Same; promotion of the free flow of domestically produced fishery products.

(a) TRANSFER OF FUNDS.

The Secretary of Agriculture shall transfer to the Secretary of

tiie interior each fiscal year beginning with the fiscal year commencing July 1, 1954^ and ending on June 30, 1957, from moneys made

avaüable to carry out the provisions of sections 612c of title 7, an

210
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 fishery products of domestic origin and (3) to

conduct any biological, technological or other research pertaining to

American fisheries.

(d) RETRANSFER 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 7l3c-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.)

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

Erotection of commercial fisheries; but nothing in this section shall

e 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 assisance

of any department or agency of the Government in carrying out the

591897—61 15 211
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,

§6,70Stat. 1122.)

§ 742j. Appropriations.

There are authorized to be appropriated such sums as may 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

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).)

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 imder 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 bindmg, and

the employment of persons and means, in the District of Columbia

^•\. ^^,^®^^^^^'. 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 io

the provisions of existing law governing the expenditure of public

tunds, of agricultural commodities and products thereof, and such

commodities, as well as agricultural commodities and products

tnereot purchased under the preceding paragraph of this section,

212
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.454,56Stat.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.)

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.)

Administrative Expenses

(7 U.S.C. 1392(b))

§1392 (Section 392). Administrative expenses; posting names

and

*******

compensation of local employees.

(b) In the administration of this subchapter and sections 590g,

590h, 590i, and 590j-590q of Title 16, the aggregate amount expended

in any fiscal year, beginning with the fiscal year ending June 30,1942,

for administrative expenses in the District of Columbia including

regional offices, and in the several States (not including the expenses

of county and local committees) shall not exceed 3 per centum of

the total amount available for such fiscal year for carrying out the

purposes of this subchapter and sections 590g, 590h, 590i, and 590j590q of Title 16, unless otherwise provided by appropriation or other

law. In the administration of section 612c of this title, and sections

601, 602, 608a, 608b, 608c, 608d, 608e, 610, 612, 614, 624, and 671-674

of this title, the aggregate amount expended in any fiscal year, beginning with the fiscal year ending June 30, 1942, for administrative

expenses in the District of Columbia, including regional offices, and

in the several States (not including the expenses of county and local

committees) shall not exceed 4 per centum of the total amount available for such fiscal year for carrying out the purposes of said sections,

unless otherwise provided by appropriation or other law. In the

event any administrative expense of any coimty or local committee

213
are deducted in any fiscal year, beginning with the fiscal year ending

June 30, 1939, from Soil Conservation Act payments, parity payments, or loans, each farmer receiving benefits under such provisions

shall be apprised of the amount or percentage deducted from such

benefit payments or loan on account of such administrative expenses.

The names and addresses of the members and employees of any county

or local committee, and the amount of such compensation received

by each of them, shall be posted annually in a conspicuous place in

the area within which they are employed. (Feb. 16, 1938, 3 p.m.,

ch. 30, Title III, § 392, 52 Stat. 69; Jan. 31, 1942, ch. 32, 56 Stat. 41;

Aug. 3,1956, ch. 950, § 7,70 Stat. 1034.)

Appropriation and Apportionment of Funds

(31 U.S.C. 665)

§665 (R.S. §3679). Appropriations.

(a) EXPENDITURES OR CONTRACT OBLIGATIONS IN EXCESS OF FUNDS

PROHIBITED.

No officer or employee of the United States shall make or authorize an expenditure from or create or authorize an obligation

under any appropriation or fund in excess of the amount available

therein; nor shall any such officer or employee involve the Government in any contract or other obligation, for the payment of money

for any purpose, in advance of appropriations made for such purpose, miless such contract or obligation is authorized by law.

(b) VOLUNTARY SERVICE FORBIDDEN.

No officer or employee of the United States shall accept voluntary

service for the United States or employ personal service in excess

of that authorized by law, except in cases of emergency involving the

safety of human life or the protection of property.

(c) APPORTIONMENT OF APPROPRIATIONS; RESERVES; DISTRIBUTION;

REVIEW.

(1) Except as otherwise provided in this section, all appropriations or funds available for obligation for a definite period of time

shall be so apportioned as to prevent obligation or expenditure

thereof in a manner which would indicate a necessity for deficiency

or supplemental appropriations for such period ; and all appropriations or funds not limited to a definite period of time, and all

authorizations to create obligations by contract in advance of appropriations, shall be so apportioned as to achieve the most effective

and economical use thereof. As used hereafter in this section, the

term "appropriation" means appropriations, funds, and authorizations to create obligations by contract in advance of appropriations.

(2) In apportioning any appropriation, reserves may be established

to provide for contingencies, or to effect savings whenever savings are

niade possible by or through changes in requirements, greater efficiency of operations, or other developments subsequent to the date on

which such appropriation was made available. Whenever it is determined by an officer designated in subsection (d) of this section to

make apportionments and reapportionments that any amount so reserved will not be required to carry out the purposes of the appropriation concerned, he shall reconmiend the rescission of such amount in

214
the manner provided in the Budget and Accounting Act, 1921, for

estimates of appropriations.

(3) Any appropriation subject to apportionment shall be distributed by months, calendar quarters, operating seasons, or other time

periods, or by activities, functions, projects, or objects, or by a combination thereof, as may be deemed appropriate by the officers designated in subsection (d) of this section to make apportionments and

reapportionments. Except as otherwise specified by the officer making the apportionment, amounts so apportioned shall remain available

for obligation, in accordance with the terms of the appropriation, on

a cumulative basis unless reapportioned.

(4) Apportionments shall be reviewed at least four times each year

by the officers designated in subsection (d) of this section to make

apportionments and reapportionments, and such reapportionments

made or such reserves established, modified, or released as may be

necessary to further the effective use of the appropriation concerned,

in accordance with the purposes stated in paragraph (1) of this

subsection.

(d) OFFICERS CONTROLLING APPORTIONMENT OR REAPPORTIONMENT.

(1) Any appropriation available to the legislative branch, the judiciary, or the District of Columbia, which is required to be apportioned

under subsection (c) of this section, shall be apportioned or reapportioned in writing by the officer having administrative control of such

appropriation. Each such appropriation shall be apportioned not

later than thirty days before the beginning of the fiscal year for which

the appropriation is available, or not more than thirty days after

approval of the Act by which the appropriation is made available,

whichever is later.

Í2) Any appropriation available to an agency, which is required

to De apportioned under subsection (c) of this section, shall be apportioned or reapportioned in writing by the Director of the Bureau

of the Budget. The head of each agency to which any such appropriation is available shall submit to the Bureau of the Budget information, in such form and manner and at such time or times as the

Director may prescribe, as may be required for the apportionment of

such appropriation. Such information shall be submitted not later

than forty days before the beginning of any fiscal year for which

the appropriation is available, or not more than fifteen days after

approval of the Act by which such appropriation is made available,

whichever is later. The Director of the Bureau of the Budget shall

apportion each such appropriation and shall notify the agency concerned of his action not later than twenty days before the beginning

of the fiscal year for which the appropriation is made available, or

not more than thirty days after the approval of the Act by which such

appropriation is made available, whichever is later. When used in

this section, the term "agency" means any executive department,

agency, commission, authority, administration, board, or other independent establishment in the executive branch of the Government,

including any corporation wholly or partly owned by the United

States which is an instrumentality of the United States. Nothing in

this subsection shall be so construed as to interfere with the initiation,

operation, and administration of agricultural price support programs

and no funds (other than funds for administrative expenses) available

for price support, surplus removal, and available under section 612(c)

215
of Title 7, with respect to agricultural commodities shall be subject

to apportionment pursuant to this section. The provisions of this

section shall not apply to any corporation which obtains funds for

making loans, other than paid in capital funds, without legal liability

on the part of the United States.

(e) APPORTIONMENT NECESSITATING DEFICIENCY OR SUPPLEMENTAL

ESTIMATES.

(1) No apportionment or reapportionment, or request therefor by

the head of an agency, which, in the judgment of the officer making

or the agency head requesting such apportionment or reapportionment, would indicate a necessity for a deficiency or supplemental

estimate shall be made except upon a determination by such officer

or agency head, as the case may be, that such action is required

because of (A) any laws enacted subsequent to the transmission to

the Congress of the estimates for an appropriation which require

expenditures beyond administrative control; or (B) emergencies involving the safety of human life, the protection of property, or the

immediate welfare of individuals in cases where an appropriation has

been made to enable the United States to make payment of, or contributions toward, sums which are required to be paid to individuals either

in specific amounts fixed by law or in accordance with formulae

prescribed by law.

(2) In each case of an apportionment or a reapportionment whicti,

in the judgment of the officer making such apportionment or reapportionment, would indicate a necessity for a deficiency or supplemental

estimate, such officer shall immediately submit a detailed report of the

facts of the case to the Congress. In transmitting any deficiency or

supplemental estimates required on account of any such apportionment

or reapportionment, reference shall be made to such report.

(f) EXEMPTION OF TRUST FUNDS AND WORKING FUNDS EXPENDITURES

FROM APPORTIONMENT.

(1) The officers designated in subsection (d) of this section to make

apportionments and reapportionments may exempt from apportionments trust funds and working funds expenditures which have no

significant eflPect on the financial operations of the Government,

working capital and revolving funds established for intragovemmental operations, receipts from industrial and power operations

available under law and any appropriation made specifically for—

( 1 ) interest on, or retirement of, the public debt ;

(2) payment of claims, judgments, refunds, and draw-backs;

(3) any item determined by the President to be of a confidential nature;

(4) payment under private relief acts or other laws requiring

payments to designated payees in the total amount of such

appropriation ;

(5) grants to the States under subchapters I, IV, or X of

chapter 7 of Title 42, or under any other public assistance subchapter m such chapter.

(2) The provisions of subsection (c) of this section shall not

apply to appropriations to the Senate or House of Representatives

or to any Member, committee, Office (including the office of the Architect of the Capitol), officer, or employee thereof

216
(çr) ADMINISTRATIVE DIVISION OF APPORTIONMENT; SIMPLIFICATION OF

SYSTEM FOR SUBDIVIDING FUNDS.

Any appropriation which is apportioned or reapportioned pursuant

to this section may be divided and subdivided administratively within

the limits of such apportionments or reapportionments. The officer

having administrative control of any such appropriation available to

the legislative branch, the judiciary, or the District of Columbia, and

the head of each agency, subject to the approval of the Director of the

Bureau of the Budget, shall prescribe, by regulation, a system of

administrative control (not inconsistent with any accounting procedures prescribed by or pursuant to law) which shall be designed

to (A) restrict obligations or expenditures against each appropriation

to the amoimt of apportionments or reapportionments made for each

such appropriation, and (B) enable such officer or agency head to fix

responsibility for the creation of any obligation or the making of

any expenditure in excess of an apportionment or reapportionment.

In order to have a simplified system for the administrative subdivision of appropriations or funds, each agency shall work toward the

objective of financing each operating imit, at the highest practical

level, from not more than one administrative subdivision for each

appropriation or fund affecting such unit.

(h) EXPENDITURES IN EXCESS OF APPORTIONMENT PROHIBITED;

PENALTIES.

No officer or employee of the United States shall authorize or create

any obligation or make any expenditure (A) in excess of an apportionment or reapportionment, or (B) in excess of the amount

permitted by regulations prescribed pursuant to subsection (g) of this

section.

(i) ADMINISTRATIVE DISCIPLINE; REPORTS ON VIOLATIONS.

(1) In addition to any penalty or liability under other law, any

officer or employee of the United States who shall violate subsections

(a), (b), or (h) of this section shall be subjected to appropriate administrative discipline, including, when circumstances warrant, suspension from duty without pay or removal from office ; and any officer

or employee of the United States who shall knowingly and willfully

violate subsections (a), (b), or (h) of this section shall, upon conviction, be fined not more than $5,000 or imprisoned for not more than

two years, or both.

(2) In the case of a violation of subsections (a), (b), or (h) of this

section by an officer or employee of an agency, or of the District of

Columbia, the head of the agency concerned or the Commissioners

of the District of Columbia, shall immediately report to the President,

through the Director of the Bureau of the Budget, and to the Congress

all pertinent facts together with a statement of the action taken thereon. (R.S. § 3679; Mar. 3, 1905, ch. 1484, § 4, 33 Stat. 1257; Feb. 27,

1906, ch. 510, § 3, 34 Stat. 48; Sept. 6, 1950, ch. 896, ch. XII, § 1211,

64 Stat. 765 ; Aug. 1, 1956, ch. 814, § 3, 70 Stat. 783 ; Aug. 28, 1957,

Public Law 85-170, ch. XIV, § 1401, 71 Stat. 440.)

217
Special Milk Program

(7 U.S.C. 1446)

§ 1446. NOTE. "Continuation of Special Milk Program for

Children.^'

That for the fiscal year beginning July 1, 1959, not to exceed

$85,000,000, and for the fiscal year beginning July 1, 1960, not to exceed $95,000,000, of the funds of the Commodity Credit Corporation

shall be used to increase the consumption of ñuid milk by children

(1) in nonprofit schools of high-school grade and under; and (2) in

nonprofit nursery schools, child-care centers, settlement houses, summer camps, and similar nonprofit institutions devoted to the care and

training of children.

There is authorized to be appropriated for the purposes of this

Act for the fiscal year beginning July 1,1960, separate from any other

appropriation of funds for Commodity Credit Corporation, such

amount as may be deemed to be necessary to reimburse Commodity

Credit Corporation for amounts advanced by it under this Act. (July

20,1956, ch. 661, 70 Stat. 596; Public Law 86-M6, 74 Stat. 84.)

218
PART IV

MISCELLANEOUS

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 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

219
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, the officers, and members thereof. (Feb. 18,1922, ch. 57, §2,

42 Stat. 388.)

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

220
discourage the concentration of such productive facilities within

limited geographical areas which are vulnerable to attack by an

enemy of the United States. In the construction of any Governmentowned 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 prmciple of the geographical dispersal of such facilities in the

interest oi 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 MATERLA^LS 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

221
any loan, discount, or advance, or on any commitment in connection

therewith, which may be made by 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 m connection with or in contemplatioii 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.

(As amended Jmie 30, 1953, ch. 171, § 4, 67 Stat. 129.)

§ 2093. Purchase of raw materials and installation of equipment.

(a) PURCHASES FOR USE OR RESALE; DEVELOPMENT OF 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) j 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 tlmn established ceiling

prices (or if there be no established ceiling prices, currently prevailmg market prices) or anticipated loss on resale shall not be made

222
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) SuBSn)Y PAYMENTS ON DOMESTICALLY PRODUCED MATERLA.LS ; EXCLUSION OF AGRICULTURAL PRODUCTS.

Ifthe 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 costs of such metals,

minerals, and materials transferred shall be deemed to be net losses

incurred by the transferring agency and the notes payable issued to

223
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.

Wlien 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 liiely

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 imder 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 2002 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

mto 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 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

224
is authorized and directed to purchase such obligations and for such

purpose the Secretary of the Treasury is authorized to use as a publicdebt 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) Eepealed. July 31, 1951, 7:00 p.m., E.D.T., ch. 275, title I,

S 103 (c),65Stat.l34.

(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 uie objectives of this Act [sections 2061-2166 of

this Appendix].

(b) In order to carry out this policy—

(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 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

chaimel 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: 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.

225
(d) DISTRIBUTION OF DEFENSE CONTRACTS.

In order to further the objectives and purposes of this section

the Office of Defense Mobilization 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, poHcies, 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 ^iobilization 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 Mobilization; 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,§§4,5,69Stat.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 foregomg, 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 A])pendix] shall apply to the United States,

or to any such governmtnt, 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^' sliall not include farms, churches or other

places of worship, or private dwelliiio; houses.

(d) The term "national defense" means programs for military and

atomic energy production or construction, military assistiince 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 wel226
fare 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 admmister 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

comptent 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

conunitted 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 right

to priorities assistance to the allocation of materials, or to any other

benefits 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

591897—61 16 227
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 pubUshed 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 vear, or both.

(f) Any person subpenaed under tliis section shall have the right

to make a record of his testimonv 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, 6T

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 2061-

2166 of this Appendix] which occurs while this Act [said sections] is

m 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, hoioever, That after August 9,1955, the exemption

from the prohibitions of the antitrust laws and the Federal Trade

Commission Act [section 41-58 of Title 15] of the United States shall

apply only (1) to acts and omissions to act requested by the President

228
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 Kegister 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 [section 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 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 otherwise

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],

229
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

Ajnendments 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 AUí::. 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) Eepealed, 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 oif

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 appointment 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.

(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 Kevised

Statutes [section 99 of Title 5], except that—

(i) exemption hereimder shall not extend to the negotiation or

execution, by such appomtee, 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 pecimiary profits or contracts of which theappomtee has any direct or indirect interest ;

230
(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 imder 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 fulltime, salaried basis.

(6) The heads of the departments or agencies making appointments under this subsection shall file with the Division of the Federal

Kegister for publication in the Federal Kegister a statement including

the name of the appointee, the employing department or agency, the

title of liis 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 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 3 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

231
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 section 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 perio(¿ 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

Kevised Statutes [section 99 of Title 5].

(f) Whoever, being an officer or employee of the United States

or any department or agency thereof (including any Member of the

Senate or House of Kepresentatives), 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 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 St at. 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 mmority party, to be appointed by the chairman of the committee; and

232
(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 ana 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 subcommittee 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 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

233
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

VII, §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

2164r-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 bj

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] and all authority 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 necessarv 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 harship to borrowers in reconvertinir to normal civilian

production ; and all of the authority granted to the President, ^ruaranonoi^^l^f^^^^^' ^^^ ^^^^^ 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.

234
Notwithstanding any other provision of this Act [sections 2061-2123

and 213:^-1^166], 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, b}^ 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 pursiumt 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 miless such action is brought by producers

specifically named as party plaintifls to recover their respective share

of such payments within ninety days after the date of enactment of

the Defense Production Act Amendments of 1952 [Jmie 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 imless each claimant shall allege and prove (1) that

ne 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 protests to either the Secretary or the Aministrator. The district courts

of the United States shall have exclusive original jurisdiction of all

such actions regardless of the amount involved. This subsection shall

not appy 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,

eh. 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.)

Department of Agriculture and Farm Credit Administration Appropriation Act, 1961 '

AN ACT

Making appropriations for the Department of Agriculture and Farm Credit

Administration for the fiscal year ending June 30, 1961, and for other

purposes.

Be it enacted hy the Senate and House of Representatives of the

united States of America in Congress assembled^ That the following

sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the Department of Agriculture and Farm

Credit Administration for the fiscal year ending June 30, 1961;

namely :

'Public Law 86-532, 74 Stat. 232, approved June 29, 1960.

235
DEPARTMENT OF AGRICULTURE

TITLE I—REGULAR ACTIVITIES

AGRICULTURAL MARKETING SERVICE

MARKETING RESEARCH AND SERVICE

For expenses necessary to carry on research and service to improve

and develop marketing and distribution relating to agriculture as

authorized by the Agricultural Marketing Act of 1946 (7 U.S.C.

1621-1627) and other laws, including the ^ministration of marketing regulatory acts connected therewith : Provided^ That appropriations hereunder shall be available pursuant to 5 U.S.C. 565a for

the construction, alteration, and repair of buildings and improvements, but unless otherwise provided, the cost of erecting any one

building shall not exceed $15,000, except for two buildmgs to be

constructed or improved at a cost not to exceed $30,000 each, and

the cost of altering any one building during the fiscal year shall

not exceed $5,000 or 5 per centum of the cost of the building, wliichever is greater :

Marketing research and agricultural estimates : For research and

development relating to agricultural marketing and distribution, for

analyses relating to farm prices, income and population, and demand for farm products, and for crop and livestock estimates,

$16,515,000 : Provided, That not less than $350,000 of the funds contained in this appropriation shall be available to continue to gather

statistics and conduct a special study on the price spread between the

farmer and the consumer: Provided further, That no part of the

funds herein appropriated shall be available for any expense incident to publishing estimates of apple production for other than the

commercial crop;

Marketing services : For services relating to agricultural marketing and distribution, for carrying out regulatory acts connected

therewith, and for administration, and coordination of payments to

States, $26,579,900, including not to exceed $25,000 for employment

at rates not to exceed $50 per diem, except for employment in rate

cases at not to exceed $100 per diem pursuant to the second sentence

of section 706(a) of the Organic Act of 1944 (5 U.S.C. 574), as

amended by section 15 of the Act of August 2, 1946 (5 U.S.C. 55a),

m carrying out section 201(a) to 201(d), inclusive, of title 11 of

the Agricultural Adjustment Act of 1938 (7 U.S.C. 1291) and section 203(j) of the Agricultural Marketing Act of 1946.

PAYMEXTS TO STATES AXD POSSESSIONS

For payments to departments of agriculture, bureaus and departments of markets, and similar agencies for marketing activities mider

í^'ííoTx^v^^^'^) ^* ^^^ Agricultural Marketing Act of 1946 (7 U.S.C

1623(b)), $1,195,000. ^

SCHOOL LUNCH PROGRAM

For necessary expenses to carry out the provisions of the National

School Lunch Act (42 U.S.C. 1751-1760), $110,000,000: ProvM^

Ihat no part of this appropriation shall be used for nonfood assistance under section 5 of said Act : Provided further, That $45,000,000

236
shall be transferred to this appropriation from funds available under

section 32 of the Act of August 24, 1935, for purchase and distribution of agricultural commodities and other foods pursuant to section

6 of the National School Lunch Act.

TITLE IV—GENERAL PROVISIONS

SEO. 401. Within the unit limit of cost fixed by law, appropriations

and authorizations made for the Department under this Act shall be

available for the purchase, in addition to those specifically provided

for, of not to exceed three hundred and thirty-seven passenger motor

vehicles, of which three hundred and thirty-two shall be for replacement only, and for the hire of such vehicles.

SEC. 402. Provisions of law prohibiting or restricting the employment of aliens shall not apply to employment under the appropriation for the Foreign Agricultural Service.

SEC. 403. Funds available to the Department of Agriculture shall

be available for uniforms or allowances therefor as authorized by the

Act of September 1, 1954, as amended (5 U.S.C. 2131).

SEC. 404. No part of the funds appropriated by this Act shall be

used for the payment of any officer or employee of the Department

who, as such officer or employee, or on behalf of the Department or

any division, commission, or bureau thereof, issues, or causes to be

issued, any prediction, oral or written, or forecast, except as to damage

threatened or caused by insects and pests, with respect to future prices

of cotton or the trend of same.

SEC. 405. Except to provide materials required in or incident to

research or experimental work where no suitable domestic product

is available, no part of the funds appropriated by this Act shall be

expended in the purchase of twine manufactured from commodities

or materials produced outside of the United States.

SEC. 406. Not less than $1,500,000 of the appropriations of the Department for research and service work authorized by the Acts of

August 14, 1946, July 28, 1954, and September 6, 1958 (7 U.S.C. 427,

1621-1629 ; 72 Stat. 1793), shall be available for contracting in accordance with said Acts.

SEC 407. No part of any appropriation contained in this Act or of

the funds available for expenditure by smj corporation or agency included in this Act shall be used for publicity or propaganda purposes

to support or defeat legislation pending before the Congress.

This Act may be cited as the "Department of Agriculture and

Farm Credit Administration Appropriation Act, 1961".

Department of Agriculture Organic Act of 1944

(7 U.S.C. 396)

§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 a^ent 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

237
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.)

Department of Agriculture Organic Act of 1956

(70 Stat. 1034)

§ 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 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 2251-229T

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

m 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

eflectuate emergency repairs to, or the emergency restoration of, vital

utilities and facilities destroyed or damaged by any such attack.

buch term shall mclude, but 'shall not be limited to, (A) measures

to be taken m preparation for anticipated attack (including the establishment of appropriate organizations, operational plans, and supporting agreements; the recruitment and training of personnel; the

238
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 nonmilitary evacuation of civil

population) ; (B) measures to be taken during attack (including

the enforcement of passive 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; imexploded bomb reconnaissance;

essential debris clearance; emergency welfare measures; and immediately essential emergency repair or restoration of damaged vital

facilities) ;

(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 (Section 401). Administrative authority.

For the purpose of carrying out his powers and duties imder this

Act [sections 2251-2284, 2286 and 2291-2297 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 civilservice 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 twenty-five

retired personnel of the armed services on a fuU- 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 carrymg out the provisions of this Act [sections 2251-

2284, 2286 and 2291-2297 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

239
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 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

imcompensated services by individuals or organizations as may from

time to time be needed ; and authorize the States tx) establish and

organize such individuals and organizations into units to be known

collectively as the United States Civil Defense Corps: Provided^

That the member 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 2251-2284, 2286 and 2291-2297 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 2251-2284, 2286

and 2291-2297 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-

2284, 2286 and 2291-2297 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,

(h) when, after reasonable notice and opportimity for hearing to

the State, or other person, he finds that there is a failure to expend

funds in accordance with the regulations, terms, and conditions established under this Act [sections 2251-2284, 2286 and 2291-2297 of this

Appendix] for approved civil defense plans, programs, or projects,

notify such State or person that further payments will not be made to

the State or person from appropriations under this Act [sections

2251-2284, 2286 and 2291-2297 of this Appendix] (or from funds

otherwise available for the purposes of this Act [sections 2251-2284,

2286 and 2291-2297 of this Appendix] for any approved plan, program or project with respect to which there is such failure to comply)

until the Administrator 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 contribution to such State or

person, or limit payments to those programs or projects with respect

to which there is substantial compliance with the regulations, terms,

and conditions governing plans, programs, or projects hereunder:

Provided, That person as used in this subsection, means the political

subdivision of any State or combination or group thereof; or any

240
interstate civil defense authority established pursuant to subsection

201(g) [section 2281(g) of this Appendix]; or any person, corporation, association, or other entity of any nature whatsoever, including

but not limited to, instrumentalities of States and political subdivisions. (Jan. 12, 1951, ch. 1228, title IV, §401, 64 Stat. 1254;

June 28, 1955, ch. 189, § 12(c) (2), 69 Stat. 180; Aug. 8, 1958, Public

Law 85-606, § 5, 72 Stat. 534.)

§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 with

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 requirements

and safeguards, including restrictions with respect to access of information and property as he deems necessary. No employee of 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 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 Kmgdom and the Dominion of Canada specified m 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 liis duties, take an oath

m writing before a person authorized to administer oaths, which

oath shall be substantially as follows :

241
, do solemnly swear (or affirm), that I will

any menial 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 affirm) 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,

ch. 1228, title IV, §403, 64 Stat. 1255; Mar. 5, 1952, ch. 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 2'271 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 National 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,

ch. 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

îo^fPP^^^^^^* ^'^^^' ^^' ^^^^' ^1^- 1228, title IV, §405, 64 Stat.

§2258. Reports to Congress.

The Administrator shall annually submit a written report to the

rresident and the Congress covering expenditures, contributions,

work, and accomplishments of the Administration, pursuant to

242
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 2251-2207 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 (Section 408). 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 2251-2284,

2286 and 2291-2297 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 shall be reported in full detail to the Congress within thirty days after such,

allocation or transfer: Provided further^ That appropriations for

the payment of travel and per diem expenses for students under section 101(e) [section 2281(e) of this Appendix] shall not exceed

$300,000 per annum; appropriations for expenditures under the

fourth proviso of section 201(h) [section 2281(h) of this Appendix]

(donation of radiological instruments, et cetera) shall not exceed

$35,000,000 per annum; appropriations for contribution to the States

for personal equipment for State and local workers, under section

201 (i) [section 2281 (i) of this Appendix] shall not exceed $2,000,000

per annum; appropriations for contributions to the States for personnel and administrative expenses under section 205 [section 2286 of

this Appendix] shall not exceed $25,000,000 per annum. (Jan. 12,

1951, ch. 1228, title IV, §408, 64 Stat. 1257: Aug. 8, 1958, Public

Law 85-606, § 6,72 Stat. 534.)

§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

^bversive acts by any persons other than personnel of the Federal

Bureau of Investigation. (Jan. 12, 1951, ch. 1228, title IV, S 411,

64 Stat. 1257.) ? o ?

§2264. Establishment of ^'Civil defense procurement fund"; uses;

charges against fund.

There is established a workmg capital of $5,000,000 for the "Civil

detense procurement fund," which is established for the purpose

ot imancmg the procurement, by the Administrator, of materials or

organizational equipment for which financial contributions to the

ötat^ are otherwise authorized to be made on a matching basis by

591897—61 17 243
subsection (i) of section 2281 of this Appendix. Said fund shall be

charged with the purcliase price of said materials or equipment, and

shall be paid therfor 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,65Stat.61.)

§2271. Federal Civil Defense Administration.

(a) ESTABLISHMENT; APPOINTMENT or 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 AD]vnNiSTRATOR; 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 SLTîJECT 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.)

§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

244
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 calender 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 (Section 201). Functions of Administrator.

The Administrator is authorized, in order to carry out the abovementioned purposes, to—

(a) PREPARATION OF PLANS FOR crv^iL 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 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 provisions 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;

245
(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

m 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 heu of subsistence for trainees in attendance or the furnishing of subsistence

and quarters for trainees and instructors on terms prescribed by

the Administrator; and provide instructors and training aids as

deemed necessary : Provided^ That the terms prescribed by the Administrator for the payment of travel expenses and per diem allowances authorized by tliis subsection shall include a provision that

such payment shall not exceed one-half of the total cost of such

expenses: Provided further^ That the authority to pay travel and

per diem expenses of students as authorized by this subsection shall

terminate on June 30, 1964 : Provided further^ 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) ENCOURAGEIMENT OF STATE cm:L 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 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 bj^ 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 Eepresentatives. The consent of

the Congress shall be granted to each such compact, upon the expiration of the first period of sixty calendar davs 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

246
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 2251-2284, 2286 and 2291-2297 of this Appendix], prior to the approval of title by the Attorney General as required by section 355 of the Kevised 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 tliis subsection, but

shall not acquire fee title to property unless specifically authorized

by Act of Congress : Provided further^ That until June 30, 1964, the

Administrator is authorized to procure and maintain under this

subsection radiological instruments and detection devices, protective

masks, and gas detection kits, and distribute the same by loan or

grant to the States for civil defense purposes under such terms and

conditions as the Administrator shall prescribe.

(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 no contributions shall be made for the procurement of land:

Provided further^ That after June 30, 1964, no contribution shall be

made for the purchase of personal equipment for State or local civil

defense workers : 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 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 apj)ortioning 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 any State under this subsection shall be expended solely in carrying out the purposes set forth herein and in

accordance with State civil defense programs or projects approved

247
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 sufficient revenue to provide

reasonable assurance of the retirement or repayinent 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^ That the Administrator shall report not less often than

quarterly to the Congress all contributions made pursuant to this subsection: Provided further. That all laborers and mechanics employed

by contractors or subcontractors in the performance of construction

work financed with the assistance of any contribution of Federal

funds made by the Administrator under the provisions of this section

shall be paid wages at rates not less than those prevailing on similar

construction in the locality as determined by the Secretary of Labor

in accordance with the Davis-Bacon Act, as amended [sections 276 to

276a-5 of Title 40], and every such employee shall receive compensation at a rate not less than one and one-half times his basic rate of

pay for all hours worked in any workweek in excess of eight hours in

any workday or forty hours in the workweek, as the case may be. The

Administrator shall make no contribution of Federal funds without

first obtaining adequate assurance that these labor standards will be

maintained upon the construction work. The Secretary of Labor

shall have, with respect to the labor standards specified in tliis proviso,

the authority and functions set forth in Eeorganization Plan Numbered 14 of 1950 (15 F.R. 3176, 64 Stat. 1267) [set out as a note under

section 133Z-15 of Title 5], and section 2 of the Act of June 13,1934,

as amended (48 Stat. 948, as amended) [section 276(c) of Title 40].

(j ) SALE AND DISPOSITION OF SURPLUS PROPERTY.

Arrange for the sale or disposal of materials and facilities foimdby

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;

Aug. 8, 1958, Public Law 85-606, § 3 (a) (1), (2), (b), (c), 72 Stat.

532, 533.)

§ 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.) ^^ J v ' '

248
§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 Number

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) AGREEMEXTS BETWEEN ADMIXISTRATION AND ARIMED 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 Eepresentatives

before entering into any of the following transactions by or for the

use of that administration :

(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

tor 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

ana Fuerto Rico. It does not apply to real property for river and

249
harbor projects or flood-control projects, or to leases of Governmentowned real property for agricultural or grazing purposes.

(d) EECITAL OF COMPLIANCE IN INSTRU]VIENT OF 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.)

§ 2286 (Section 205). Financial contributions to States for personnel and administrative expenses.

To further assist in carrying out the purposes of this Act [sections

2251-2284, 2286 and 2291-2297 of this Appendix], the Administrator

is authorized to make financial contributions to the States (including

interstate civil defense authorities established pursuant to section

201(g) of this Act [section 2281(g) of this Appendix] ) for necessary

and essential State and local civil defense personnel and administrative expenses, on the basis of approved plans (v^hich shall be consistent with the national plan for civil defense approved by the Administrator) for the civil defense of the States : Provided. That the

financial contributions to the States for the purposes of this section

shall not exceed one-half of the total cost of such necessary and essential State and local civil defense personnel and administrative

expenses.

(a) REQUIREMENTS OF PLAN.

Plans submitted under this section shall—

(1) provide, pursuant to State law, that the plan shall be in effect

in all political subdivisions of the State and be mandatory on them,

and be administered or supervised by a single State agency ;

(2) provide that the State shall share the financial assistance with

that provided by the Federal Government under this section from any

source determined by it to be consistent with State law ;

(3) provide for the development of State and local civil defense

operational plans, pursuant to standards approved by the Administrator;

(4) provide for the employment of a full-time civil defense director, or deputy director, by the State, and for such other methods

of administration, including methods relating to the establishment

and maintenance of personnel standards on the merit basis (except

that the Administrator shall exercise no authority with respect to

the selection, tenure of office, and compensation of any individual

•employed m accordance witli such methods) as the Administrator

shall lind to be necessary and proper for the operation of the plan;

(5) provide that the State shall make such reports in such form

and content as the Administrator may require ;

(6) make available to duly authorized representatives of the Administrator and the Comptroller General, books, records, and papers

necessary to conduct audits for the purposes of this section.

(b) ESTABLISHI^IENT OF OTHEK TERMS AND CONDITIONS BY ADMINISTRATOR.

The Administrator shall establish such other terms and conditions

as he may deem necessary and proper.

250
(c) APPLICABILITY OF OTHER LAWS.

In carrying out the provisions of this section, the provisions of

section 201(g) [section 2281(g) of this Appendix] and 401(h) of

tliis Act [section 2253 (h) of this Appendix] shall apply.

(d) ALLOCATION TO STATES.

For each fiscal year concerned, the Administrator shall allocate

to each State, in accordance with his regulations and the total sum

appropriated hereunder, amounts to be made available to the States

for the purposes of this section. Regulations governing allocations

to the States shall give due regard to (1) the criticality of the target

and support areas with respect to the development of the total civil

defense readiness of the Nation, (2) the relative state of development

of civil defense readiness of the State, (3) population, and (4) such

other factors as the Administrator shall prescribe: Provided^ That

the Administrator may reallocate the excess of any allocation not

utilized by a State in an approvable plan submitted hereunder:

Provided further^ That amounts paid to any State or political subdivision under this section shall be expended solely for the purposes

set forth herein.

(e) FAILURE TO SUBMIT PLAN; REALLOCATION.

In the event a State fails to submit an approvable plan as required

'by this section within sixty days after the Administrator notifies the

States of the allocations hereunder, the Administrator may ireallocate

such funds, or portions thereof, among the other States in such

amounts as, in his judgment will best assure the adequate development of the civil defense capability of the Nation.

(f) EEPORT TO THE CONGRESS.

The Administrator shall report annually to the Congress all contributions made pursuant to this section.

(g) DEFINITION.

As used in this Act [sections 2251-2284, 2286 and 2291-2297 of

this Appendix], the term "State" shall include interstate civil defense

authorities established under section 201(g) [section 2281(g) of this

Appendix].

{h) TERMINATION DATE.

The provisions of this section terminate on June 30, 1964. (Jan.

12, 1951, ch. 1228, title II, § 205, as added Aug. 8, 1958, Public Law

85-606, §4,72 Stat. 533.)

§2291. Sections 2291-2297 of this Appendix effective 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 heremafter in this title [said sections] as

emerg^cy"). The existence of such emergency may be proclaimed

by the President or by concurrent resolution of the Congress if the

rresident in such proclamation, or the Congress in such resolution,

imcls that an attack upon the United States has occurred or is anticipated and that the national safety therefor requires an invocation

^l 11 provisions of this title [said sections]. Such emergency also

shall exist with respect to any designated geographic area or areas

251
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 President^ or the passage by the Congress

of a concurrent resolution terminatmg 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, includmg the provisions of the Act of June 30, 1932^

as amended [section 278a of Title 40], and section 3709 of the Eevised

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 1049, 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^ Tliat 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 tliis 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 btate government or any political subdivision thereof, and such

employees shall not 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

(t) 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 emero-ency, the Administrator shall

transmit quarterly to the Congress a detailed report concerning all

TxV^^o i^^^^ pursuant to this section. (Jan. 12, 1951, ch. 1228, title III, § 303, 64 Stat. 1252.) v 5 ,

252
§ 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

property or for any death or personal injury occurring directly or

indirectly as a result of the exercise or peformance 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 which 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) Wlieneyer 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

253
expenses of such determination shall be paid in equal shares 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 Adininistrator 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.)

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 liim for the purpose, shall have power to administer oatlis, 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.)

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

254
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 sliall, 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, including any

function transferred to the Secretary by the provisions of this

reorganization plan.

(b) To the extent that the carrymg 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.

255
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 orioinallv

made. (18 F.R. 3219, 67 Stat. 633.) ^

256
INDEX

Acreage: ^^f^

Reports, cotton lo

Requirements, corn and feed grains 205

Act of June 28, 1937 212

Adjusted base price 22

Administrative Procedures Act, waiver of._. 253

Agencies, Federal and State, cooperation of 2

Agreements:

Agricultural Marketing Agreement Act of 1937 29

Agricultural Trade Development and Assistance Act of 1954 177

Defense Production Act of 1950 228

National Wool Act of 1954 127

Agricultural Act of 1949:

Acreage requirements, corn and feed grains 205

CCC, utilization of services and facilities of 200, 213

Commodities, disposition of 191

Commodities, farm, sale of 200

Dairy products:

Availability 207

Domestic disposal 209

Policy 208

Definitions:

Basic agricultural commodity -- 202

Carryover 202

Cooperator 202

Marketing year 202

Nonbasic agricultural commodity 202

Normal supply 202

Supply percentage 202

Total supply 202

Determinations of Secretary final 203

Price support:

Adjustment of 200

Advance announcement of 200

Corn and feed grains 205

Cottonseed and soybeans 209

Extension of 203

Increase of 199

Levels 203

Retroactive effect 203

Source of 198

Recipients, eligible 191

Section 416 191

Agricultural Act of 1954. {See Commodity Set-Aside.)

Agricultural Act of 1956 193, 213

Agricultural Adjustment Act of 1938 164

Freight rates, adjustments in 164

Parity determination, definition of 21

Agricultural Experiment Stations 7

Agricultural Marketing Act of 1929 1

Cotton price predictions prohibited 1

Publications 1

Agricultural Marketing Act of 1946:

Agencies, Federal and State, cooperation of 6

Allotments to States 5

Appropriations 5

Consumer education 3

Costs, determination of 3

257
Agricultural Marketing Act of 1946—Continued

Facilities: Page

Development of 4

Use of 2

Information, collection of 3

Inspection and certification 4

Marketing statistics, collection of 4

New markets, development of 3

Personnel, appointment of 7

Processing, packaging, marketing methods 3

Research, promotion of 5

Standards:

Development of 5

Improvement of 3

States, allotments to 5

Transportation facilities, improvement of 4

Transfer and consolidation of functions, powers, bureaus 6

Agricultural Marketing Agreement Act of 1937:

Administration:

Appointments 42

Regulations 44

Speculation 44

Agreements 49

Appropriations 46

Arbitration 48

Base periods 29

Books and records 41

Conditions 29

Forfeitures 30

Imports:

Limitations on 47

Prohibitions 41

Information, disclosure of 41

Invalidity, partial 47

Licenses 49

Orders, regulatory 31

Policy, declaration of 29

Regulations 41

Standards, marketing , 29

Taxes 50

Agricultural seeds, list of 92

Agricultural Trade Development and Assistance Act of 1954 (P.L. 480):

Bartering authority of Secretary 173

Commodities:

Availability for emergencv relief _ _ _ 184

Transfer of Í 184

CCC, reimbursement to I 179,183

Congress, reports by President to 184

Currencies, foreign:

Deposit of _ _ 183

Use of """"ll[lilll"l 179,183

Friendly nation:

Agreements with 177

Assistance to _ . 174

Definition of -"-"-""""II^I"!!"!!""''"- 183

Identification of packages and containers by'ap'pVop'rïate markings 174

Policy, declaration of _ 173

Surplus agricultural commoditv, definition of ..... 183

Termination date for transactions 184

Allotments to States for marketing research and"service work " 8

Animal fats and oils __ "" 177

Antitrust laws, exemption from .... . .. ..... 31

Apples:

Estimates of production, limitations on_ _ _.. 236

Export standards _ ~_~ _ 65

Standard for ""' ~ ~~ """ [ 91

Apportionments to States, Ñatio'ñaf School Lunch "Act --- 1^^

258
Appropriations: l'as«

Agricultural Marketing Act of 1946 5

Agricultural Marketing Agreement Act of 1937 46

Commodity Set-Aside 191

Cotton statistics and estimates 15

Federal Seed Act 110

Fish and Wildlife Act 212

National School Lunch Act 194

Naval Stores Act 148

Peanut statistics 24

Perishable Agricultural Commodities Act, 1930 83

Produce Agency Act 85

Public Law 480 179

Section 32 209

Special Milk Program 218

Standard Containers Act 90

Tobacco Inspection Act 162

United States Department of Agriculture and FCA, 1961 235

United States Cotton Standards Act 62

Wool Standards Act 145

Arbitration of disputes concerning milk 48

Assistance to friendly nations 174

Atomic Energy Act of 1946 unaffected by Federal Civil Defense Act 243

Bankhead-Jones Act:

Agricultural research 10

Duties of Secretary 10

Facilities, use of existing 10

Policy, declaration of 10

Bartering authority of Secretary, P.L. 480 173

Basic agricultural commodity, definition of 202

Basis grade contracts 52

Basket or container, standard 87

Baskets, climax 85

Capper-Volstead Act:

Associations:

Authorization of 219

Powers of 219

Monopolizing or restraining of trade prohibited 219

Carryover, commodity set-aside excluded from computation of 191

Climax basksts, standards for 85

Commerce, interstate and foreign, definition of 45

Commodities:

Availability for emergency relief 184

Disposition of 191

Limitation on transfers of 184

Nonbasic, definition of 202

Sale of, by CCC 190

Surplus, disposition of 191

Surplus, donation of 193

Transfer of, on grant basis 184

Commodity Credit Corporation:

Authority to use CCC funds. Section 32 213

Reimbursement to 179

Commodity Set-Aside:

Appropriations 191

Carryover, excluded from computation of 191

Determination of commodity value 189

Quantities, maximum and minimum 189

Records and accounts 191

Reduction of 189

Sale of 19Q

Congress:

Reports to, by President under P.L. 480 184

Consumer education 3

591897—61 ^18 259
Containers: Page

Barrels for apples 91

Baskets. See Standard Containers Act of 1916.

Hampers and baskets. See Standard Containers Act of 1928.

Packages and packaging. See:

Agricultural Marketing Act of 1946.

Agricultural Trade Development and Assistance Act.

Section 416 and related statutes.

Contracting authority for research and service 5

Cooperation:

Agencies, Federal and State 6j

Amount and character of 6j

Cooperative:

Contributions 63

Cotton classers 59

Corn:

Acreage requirements 205

Definition of 23

Cotton:

Classification on request 14

Cooperative cotton classers 59

Crop reports 16,17

Futures Act:

Basis grade contracts 52

Collection and enforcement 55

Contracts:

Enforceability of 58

Form and validity of 50

Grade:

Basis 52

Specific 55

Tendered 54

Cross references 56

Immunity of witnesses 56,58

Liability of principal for acts of agent 56

Method of payment hb

Penalties:

Civil 57

Withholding information 57

Records, statements and special returns 57

Reports of Secretary of Agriculture 56

Specific grade contracts 55

Spot cotton 51

Spot markets, definition of I-"II"IIIIIIIII_I 51

Standards III'II.IIIIIIIIIIII 51

State laws, operation of 5&

Tax:

Evasion of 57

Imposition of III_I_"II_IIII~!!IIII-III_.- 50

Tendered grade contracts V^Ji.V.'. VVJiVJl.. 54

Standards:

Disposition of proceeds from sale of samples _ 61

Establishment and furnishing copies of 60

Offenses in relation to _ _ 61

Use of nonoflScial prohibited. "" I'_'_'"I 59

Standards Act, United States:

Agreements with cotton associations _ 61

Appropriation, authorization for VV /V \ I 62

Classification:

By Department of Agriculture 60

Charges for licenses and classificationJIV". \ I"'" 60

Facilities, extension to cotton growers of ' -- 58 Definitions _ _" ___ 62

Disposition of proceeds frorn"sale of'cotton -'- 61

Inspection and sampling of cotton __ __" '_' 61

Liability of principal for action of agent — 62

Licenses:

Revocation and suspension:

Classifiers ___ 59

Samplers ~" ' 59^

260
Cotton—Continued

Statistics and estimates: '*=^*^®

Acreage reports -- j^

Appropriation, authorization for jo

Classification of cotton on request of producer 14

Crop reports --- J^

Foreign cotton statistics 17

Grades and staple length; collection and publication of 12

Limitations on 12

Market supply and demand; collection and publication of 14

Penalties and fines 15

Powers of Secretary of Agriculture 15

Quality tests and analyses for breeders; fees 15

Reports, collection, distribution and publication of 16, 17

Rules and regulations 14

Cottonseed, price supporii levels for 209

Crop information, disclosure of 21

Croprepori;s: .« .^

Cotton 16,17

Monthly 21

Currencies, foreign:

Deposit of 183

Use of 179,183

Dairy products:

Availability through CCC 207

Domestic disposal programs 209

Pohcy 208

Defense Production Act of 1950:

Agencies under,, utilization and creation of 224

Agreements and programs, voluntary 228

Antitrust laws, exemption from 228

Appointment policies 230

Business, small, encouragement of 225

Definitions 226

Information, confidential, use of 228

Investigations; records, reports 227

Joint Committee on Defense Production 232

Loan guarantees 221

Policy, declaration of 220

Priority in contracts and orders 221

Raw materials, purchase of 222

Termination of act 234

Domestic disposition of surplus commodities 191

Donation of surplus commodities:

For relief purposes 174

To any areas under U.S. jurisdiction 193

To National School Lunch Program 197

To needy families 176

To nonprofit summer camps for children 192, 207

To penal and correctional institutions 193

Education, consumer 3

Expori; Grape and Plum Act:

Administration of 69

Fees under 68

Penalties under 69

Standards 67

Export Standards for Apples and Pears:

Certificates, refusal of 66

Definitions 67

Fees for inspection and certification 66

Rules and regulations 67

Separability clause 67

Shipments of less than carload lots, exemption of 66

Standards . _ _ 65

Facilities:

Development of. Agricultural Marketing Act of 1946 4

Use of:

Agricultural Marketing Act of 1946 __ _ 2

Federal Civil Defense Act 242

261
Farm: Pur

Destruction or dumping of produce _. ^

Food products; sale of samples ß4

Sale of commodities by CCC 190

Fats and oils, animals 177

Federal Civil Defense Act:

Administrative:

Authority 239"

Procedure Act, waiver of 25Î

Administrator:

Emergency powers of 252

Functions of 245-

Appropriations and transfers of funds 24J

Atomic Energy Act of 1946 unafiPected by this act 243^

Civil Defense:

Advisory Administration 244

Procurement fund 243

Employment:

Exemption from certain restrictions 241

Transfer of personnel 242

Insignia, identity 249^

Investigation of espionage 243

Liability, Government immune from 253

Mutual aid pacts 249

Policy, Congressional, declaration of 238

Property:

Nongovernmental, compensation for acquisition of 253

Real 249

Transfer of 242

Reports to Congress 242

Security regulations 241

Termination 254

Federal Reports Act of 1942:

Definitions 2Q

Information:

Collection of 18

Unlawful disclosure of 19"

Policy, Congressional, declaration of 18

Rules and regulations _ 20

Federal Seed Act:

Advertising, false 100

Agricultural seeds, list of "_ 92

Alterations, prohibition against 10&

Appeal to Court of Appeals I 108

Appropriations, authorization for 110

Cease and desist proceedings 107

Cooperation with other agencies I_I_I_I_I H^

Disclaimers and nonwarranties 100

Duties, delegation of ' 105

Enforcement of order ~_ ' 108

Exemptions "".l"llll I I I "IIIIIIIIII--- 99

Expenditures, authorization for___'""" "" ' .III-— HO

Impori:ations, procedure and prohibitions reiating to""II "II-1 101

Intention to prosecute, notice of _ _ _ _ 106

Interstate commerce, prohibitions relating t'oV .11- ^6 Liabihty of principal for acts of agent _ - 106

Penalties _" '_ _ 106

Power to examine I'I"_ ' 109

Publication ' ~ " '_ 109

Records .III " 98

Repeals IIIIIIII I I HO

Rules and regulations.._I'~ I 105

Seed:

Adulterated 103

Required to be stained.-IIIIIIIIII~I IIIIIII 103

Unfit for seeding purposes 103

Separability: ~ "~

Of proceedings __ 109

Of provisions H" I. 110

Standards, tests, tolerances. I I 105

262
Federal Trade Commission. {See Packers and Stockyards Act, 1921.) Pa««

Feed grains, acreage requirements 205

Fees, reimbursements:

Agricultural Marketing Act of 1946 4

Commodity Credit Corporation, reimbursement to 179, 183

Cooperative contributions 63

Cotton Futures Act 51

Cotton Standards Act, United States 60

Cotton statistics and estimates._ 14

Department of Agriculture Organic Act of 1944 64

Export Grape and Plum Act 68

Export Standards for Apples and Pears 66

For services rendered 64

Grain Standards Act, United States 116

Inspection services, reimbursements for 65

Packers and Stockyards Act, 1921 139

Perishable Agricultural Commodities Act, 1930 72

Poultry Products Inspection Act 157

Tobacco Inspection Act 159

United States Warehouse Act 167

Wool Standards Act 145

Fish and Wildlife Act, pertinent provisions of 211

Fishery products:

Surplus, purchase and distribution of 210

Transfer of funds to Interior 210

Flour, wheat _ 111

Food distribution 173

Food Stamp Plan _. 175

Foreign:

Cotton statistics 17

Currencies:

Deposit of 183

Use of 179

Freight rates, adjustment in 164

Fruits and vegetables 65

Grading and inspection 29

Grain :

Standards Act, United States:

Appeal to Secretary 116

Definitions 114

Disqualification to act 117

Fees 116

Interference 118

Invalidity of the act, partial.. 118

Liability of principal for act of agent 114

License:

Inspection and grading 117

Revocation and suspension of 117

Misrepresentation 115

Overtime 116

Penalty for violations 118

Records and reports by inspectors 117

Reports by Secretary, semiannual 118

Standards:

Compulsory use of 115

Designation of 115

Establishment of; promulgation 114

Grapes. (See Export Grape and Plum Act.)

Hampers and baskets:

For foreign countries 90

Illegal, seizure of 89

Standards _ _ _ 37

Imports:

Federal Seed Act prohibitions and procedure 101

Limitations on; authority of President _ __ 47

Rye seed 112

Inspection (s):

Analyses. {See Organic Act of 1944.)

Cotton. {See Cotton Standards Act.)

263
Inspection (s)—Continued Pm

Meat - 124

Poultry products 14g

Services, reimbursements for §5

International Wheat Agreement Act Hi

Labeling of poultry products 152

Licenses:

Agricultural Marketing Agreement Act of 1937 49

Cotton Standards Act 59

Grain Standards Act II7

Packers and Stockyards Act _ 140

Perishable Agricultural Commodities Act_ 72

United States Warehouse Act 165

Livestock 119

Livestock slaughter, humane methods of 122

Marketing:

Agreements and orders 31

Standards 29

Statistics, collection of 4

Year, definition of 202

Markets:

Designation of under the Tobacco Inspection Act 159

Development of new 3

Meat inspection 124

Milk:

Arbitrations of disputes 48

See also Special Milk Program.

Mutual aid pacts 249

National School Lunch Act:

Administrative expense limitation 195

Apportionment formula 194

Audits by USDA 197

Matching payments by States .-. 195

Nonfood assistance 195

Nonprofit private school, definition of.. 198

School, definition of 195

Section 6 purchases 195

State:

Disbursement 196

Educational agency, definition of 198

USDA disbursement to nonprofit private schools 197

National Wool Act of 1954:

Agreements 127

CCC, reimbursements to 126

Policy, declaration of 125

Price supports " 125

Naval Stores Act:

Acts, prohibition of injurious 147

Appropriation, authorization for 148

Definitions I_'_'_I 146

Effect of partial invalidity of chapter ' ' 148

Punishment for violation of 147

Standards:

Establishment of __ 146

Supplying duplicates of "lllll 11 " IIIIIII 147

Turpentine, purchase and analysis of samples of I 1^^

^onbasic agricultural commodity, definition of 202

nonfood assistance. (See National School Lunch Act.)'

t'aths, witnesses, and records . 254

Oils - --- y_ 177

Organic acts:

Act of 1944:

Farm or food products, sale of samples _ _ ^^

Inspections, analyses, and tests for other Government departments

ana agencies: reimbursement ____ __ ..64

Inspections of livestock, hides, animal"¿rödücts" """'.".I"- 237

Act of mT^^^^^''^'' (certificates as prima facie evidence ^^

T?oJ^Kr^i-^^^rF^^ ^^^^ expenses of temporary or seasonal employees... 238

Establishing Department of Agriculture ^

264
Packages and packaging. {See Containers.)

Packers and Stockyards Act, 1921: ^ »*

Accounts and records, punishment for failure to keep |^^

Application of provisions of this act 1^1

Attorney General to institute court proceedings 14^

Bond and suspension of registrants 13a

Brand inspection fees |^^

Court proceedings to enforce orders 1^^

Definitions:

Commerce l^^

Dealer 132

Live poultry dealer --- 141

Livestock; livestock products 128

Market agency 132

Meat food products 128

Pa cker 129

Person 128

Secretary 128

State 128

Stockyard 133

Stockyard owner; stockyard services 132

Designation of cities and markets where unfair practices exist 140

Duty of stockyard owner or market agency 134

Federal Trade Commission 142, 143

Interstate Commerce Commission's powers unaffected 143

Invalidity, partial, effect of 144

Laws unaffected 142

Liability to individuals for violations, enforcement of 136

Licenses, suspension and revocation of 141

Orders of the Secretary:

Appeal to court of appeals for review of 131

Conclusiveness of 131

Court proceedings to enforce 139

Effective date of 138

Failure to obey, punishment for 139

Injunction against packer for violation 131, 139

Proceedings for suspension of 139

Punishment for violation of 132

Prevention of unfair, discriminatory, or deceptive practices 138

Proceedings before Secretary for violations 136

Proceedings for suspension of orders 139

Punishment for violation of order 132

Rates, schedule of 134

Rates and charges, discrimination in 134

Rates and practices prescribed by Secretary 137, 138

Registration of stockyard dealer or market agency 133

Responsibility of principal for act or omission of agent 142

Secretary:

General authority of 143

Proceedings before, for violations 136

See also Orders of the Secretary.

Unfair, deceptive, and fraudulent practices 138, 140

Unlawful practices enumerated 129

Parity determination 21

Payments to States and possessions:

Agricultural Marketing Act of 1946 5

Appropriation Act, Department of Agriculture and Farm Credit Administration, 1961 236

National School Lunch Act 195

Peanut statistics:

Collection and publication 23

Cooperation of Secretary 24

Definitions 25

Grades and standards 24

Limitation on use of 24

Reports; necessity for; by whom made ; penalties 24

Rules and regulations 24

Pears, export standards for _ 65

265
Perishable Agricultural Commodities Act, 1930: Pag«

Accounts, records, and memoranda 79

Citation of chapter 84

Complaint and investigation 75^ 8Q

Definitions 70

Injunctions 80

Inspection of perishable agricultural commodities 82

Invalidity of separate provisions of chapter 83

Liability of licensees for acts or omission of agent 83

Liability to persons injured _ 75

License, grounds for suspension or revocation of 78

Licenses _. 72,73

Orders 80

Reparation order 76

Rules, regulations, and orders 83

Unfair conduct, defined 71

Violation, report to Attorney General of 80

Plums 67

Poultry Products Inspection Act:

Exemption from 155

Fees for inspection 157

Inspection and quarantine 151

Labeling 152

Penalties under 154

Report of violation 155

Price, adjusted base 22

Price support. {See Agricultural Act of 1949.)

Produce Agency Act:

Appropriation 85

Cooperation with States 84

Destruction or dumping, prohibited; penalty 84

Enforcement of provisions; prosecution of cases 84

Invalidity of any provisions of chapter 85

Rules and regulations 84

Validity of other statutes 85

Property:

Nongovernmental, acquisition of 253

Real _ _ . _ 249

Transfer _ . _ .242

Public Law 480 173

Reimbursements. (See Fees, Reimbursements.^

Removal of surplus agricultural commodities. (See Sec. 32 and Related

Statutes.)

Reorganization Plan No. 2 of 1953:

Administrative Assistant Secretary 255

Assistant Secretaries of Agriculture 255

Delegation of functions I.III I 255

Transfer of functions to the Secretary..'. I'll.I 254

Transfers, incidental 256

Reports:

Cotton acreage _ __ 16

Cotton crop " """ '_ 16,17

Cotton Futures Act__. _ _ I '_ 56

Federal Civil Defense Act '_ 242

Federal Reports Act of 1942 '_ 18

Grain Standards Act 118

Monthly crop '_'_'_'_ ~ '/_'_ 21

Peanut statistics _ 24

Public Law 480 II"I"1III "I""" l/.l'. 184

Tobacco statistics IIII _'"" I 26

Research:

Agricultural Marketing Act of 1946 5

Bankhead-Jones Act "" . 10

Scientific, authorization for su'p'po'r't'öf' " 12 Rosin:

Naval Stores Act 146

Statistics ~ 27

Rye seed imports II.II 112

266
School Lunch Act. {See National School Lunch Act.)

Section 32 and related statutes: ^^^^

Basic authority: OQQ

Authorized programs ^JJ^

Donations to low-income groups ^V^

25-percent limitation ^j!:"

30 percent of customs receipts ^"^

$300,000,000 carryover ^^"

Related statutes: „ ^ «

Administrative expenses jff^

Authority for supplemental funds ^|^

Authority to use CCC funds ^^^

Donation: ^i«

For relief purposes f¿5

To any area under U.S. jurisdiction 1^^

To National School Lunch Program 1^^

To needy families J^^

To nonprofit summer camps for children ly^, ^^*

Food Stamp Plan 1{5

Program funds exempt from apportionment ^lt>

Transfer of funds to Fish and Wildlife 211

Section 416 and related statutes:

Basic authority:

Eligibility for donation 191

Priority of donation 191

Processing, reprocessing, packaging 191

Related statutes:

Donations:

Animal fats and oils to foreign outlets 193

Flour and cornmeal 192

To needy families 192

To nonprofit summer camps 192

To penal and correctional institutions 193

Labeling of packages and containers 174

Ocean freight payments 184

Security regulations 241

Seed. (See Federal Seed Act.)

Set-aside. {See Commodity Set-Aside.)

Small business, encouragement of. (See Defense Production Act of 1950.)

Smith-Doxey Amendment 14

Soybeans, price support levels for 209

Special Milk Program 218

Standard Containers Act of 1916:

Baskets:

Climax, standards for 85

Examination and test by Department of Agriculture 87

Guaranty of manufacturer 87

Rules and regulations for tolerances and variations 85, 86

Standard, for small fruits and vegetables 86

Duties of United States Attorney 87

Failure to conform to standards 86

Rules and regulations 87

Standard Containers Act of 1928:

Appropriation, authorization for 90

Containers:

Baskets, round stave 87

Baskets, standard splint 88

Condemnation procedure 89

For foreign countries _ 90

Hampers and baskets, standard 87

Hampers, banana 90

Illegal, seizure of 89

Regulations for variations in 88

Secretary:

Approval of manufacturers' dimension specifications 89

Authority of 90

Regulations by 90

Violations 89

267
Standards: Paw

Agricultural Marketing Act of 1946 __ j

Agricultural Marketing Agreement Act of 1937 2^

Apples 65,91

Containers:

Baskets for small fruits and vegetables gg

Baskets, climax 85

Baskets, splint 88

Hampers and baskets 87

See also Standard Containers Act of 1916.

See also Standard Containers Act of 1928.

Cotton Futures Act 51

Cotton Standards Act 58

Expori; Grape and Plum Act 67

Federal Seed Act 105

Grain Standards Act 114

Grapes 67

Marketing 29

Naval Stores Act 146

Pears 65

Plums 67

Tobacco 159

Tobacco Inspection Act 158

United States Warehouse Act 168

Wool Standards Act 145

States, allotments to 8

Statistics:

Cotton 12

Marketing 4

Peanut 23

Rosin 27

Tobacco 25

Summer camps 192, 207

Surplus agricultural commodity:

See Agricultural Trade Development and Assistance Act.

See Domestic Distribution of Surplus Commodities.

See Donation of Surplus Commodities.

Tobacco:

Inspection Act 158

Administration of 162

Agent as principal "_"_! 162

Definitions 158

Designation of markets ill.llWl.1 159

Duties of Secretary, execution by designated agents 165

Grade, placing on warehouse ticket 161

Hearings _ 163

Information, publication of" I '_ I _"_ '.. 161

Offenses ^ " ~_ ' 161

Purposes of chapter lll.ll. ll.lll... 158

Regulations I_I"II"'II~"III'III_I] 162

Reinspection and appeal inspection I IIIIIII"! 160

Sampling and weighing _ _ __ 160

Separability clause "' "" 163

Standards for classification ' ~_ '_ _ __ 159

Plant and Seed Expori;ation Act __ '_"_ "'_" .- 163

Statistics:

Collection and pubHcation of _ _ _ -.25

Definition of "person" ."/. _ " _'__ ".-. 26

Internal revenue records, access to." " - 26 Invalidity 27

Reports:

Necessity for _ .26

Penalties "~~ [ 26

Returns under oath__"IIII'~' " 26

Standards for classification of "tobaccol V- 26

Transporation facilities and rates, improvement ofIII"IIIIIII ^

Turpentine and rosin:

Naval Stores Act 145 Statistics mil I 27

268
Fafff

Twine purchasing provision 237

United States Warehouse Act:

Action on bond by person injured 167

Cooperation with State authorities 171

Definitions 16'

DeHvery of products stored on demand 170

Deposit of products 168

Designation as bonded warehouse 167

Discrimination by wa rehouseman prohibited 168

Efifect of partial invalidity of chapter 172

Employment of temporary assistance 172

Examination of—

Books and records of warehouseman 171

Stored products 171

Fees and disposition 167

Inspection and grading of products stored 168

Investigation and inspection 165

License:

Bond of applicant for 166

Fee for 167

Suspension and revocation of 166, 167

Term of; renewal 165

To classify, grade, or weigh agricultural products 167

To person not warehouseman 166

To warehouseman 165

MingHng products stored 168

Publication of—

Findings 171

Results of investigations 171

Punishment 172

Receipts:

Cancellation of, on delivery of product stored 170

Contents of 169

For products stored 169

Issuance of further receipt with original outstanding 170

Records of products stored 170

Secretary :

Authority of 171

Reports to 170

Rules and regulations by 171

Standards for agriculturarproducts 168

Warehouse Act. {See United States Warehouse Act.)

Wheat. {See International Wheat Agreement Act.)

Wool:

National Wool Act of 1954 125

Standards Act:

Appropriation of certain funds 145

Charge for wool grading and forms of grades 145

Standards; rules and regulations 145

U.S. 60VERNMENT PRINTINO OFFICei IStI

269