i i: < ( IMPORTANT FEDERAL LAWS COMPILED BY JOHN A. LAPP, LL. D. Director of Indiana Bureau of LEcasLATiVE Information ; Member of Executive Committf;e of the National Legislative Drafting Conference; Editor of "Special Libraries." 1917 B. F. BOWEN & COMPANY INDIANAPOLIS INDIANA U. S. A. OOPtRIGHT, 1917 BT B. P. BOWBN & COMPANY J INTRODUCTION The growth of federal power has been marked during the last few years, the concrete evidence of which is found in the many acts of Con- gress 'which regulate business. Twenty years ago it was hardly necessary for tl-te lawver or business man to refer to federal acts in the conduct of everv-day afifairs. The state laws governed the business relations of men almost entirely. This condition has completely changed, and now scarcely any business^ can be done involving shipments across state lines without consulting federal laws. The number of restrictions in the niter- est of the common welfare which the federal government has thrown about business makes the consultation of federal laws imperative. The list of acts compiled in this volume indicates the extent to which the federal government has gone in controlling the affairs of men and in providing for the common welfare. The publication of these acts in a single volume will undoubtedly impress thinking citizens with the signifi- cance of modern changes in the relations existing between the states and the nation. Beginning with the interstate commerce act of 1887, the powers of Congress have been vastly extended through the implied powers which have been exercised and subsequently upheld by the courts. At first the power of control was exercised merely over the instruments of interstate commerce — the railroads and other carriers — and such laws as the inter- state commerce acts, the anti-rebate act, the safety appliance acts and .the employers' liability laws were passed. Gradually the power of the federal government was extended to affect not merely the instruments of commerce, but also the commodities shipped, as well as all men who had any transactions in interstate commerce. Even individuals who travel across state lines under certain conditions find themselves amenable to federal laws. The white slave act of 1910 acted upon the individual and penalized him for transporting anyone across state lines for imrnoral purposes. The child labor act affected the manufacturers by prohibiting the introduction into interstate commerce of goods which are manufac- tured by child labor. The insecticide act, the plant disease act, the pure seed act and the animal disease act all prohibit transportation of certain products across state lines, unless they have been inspected and approved. The standard barrel and basket laws prbhibit the use of any other than the standard barrel and basket for shipments of apples, grapes and other fruits and the shipment of lime. We have been accustomed to the idea that practically all the money used by the federal government should be derived from the tariff and internal revenue. In wartime we have been accustomed to some oother taxes, but ordinarily the average citizen never felt that he paid the fed- eral government anything in the way of direct taxes. But within the last iii IV decade a revolutionary change has taken place and, as regular sources of revenue, we have now adopted the income tax upon individuals and corporations, and an inheritance tax, besides a multitude of new sources of revenue brought about by the war. Until the passage of these acts, the citizens scarcely ever saw the tax collectors of the federal govern- ment. The brewer, distiller, tobacco manufacturer and a few others were the only citizens who had occasion to meet the internal revenue collector. These acts of the past few years have brought the federal government into closer personal relations with the individual. Another federal statute which has a direct interest to all citizens relates to food and drugs. This legislation began in 1906 with the pas- sage of the pure food and drugs act. The meat inspection act was passed the same year. The complete regulation of the sale of habit-fornung drugs was enacted in 1914, thus bringing practically the whole question of food and drugs under the direct control of the federal government. The regulation of business engaged in interstate commerce forms another chapter in the growth of federal power, and, since almost every business is interstate in character, these laws affect practically all busi- ness. After the Sherman act was passed in 1890, a long period of quiet ensued, followed by the establishment of the Bureau of Corporations in 1906, and finally the passage of the Clayton act and the trade commission act in 1914, which bring business rather completely under federal control. The banking acts offer another striking example of the extension of the federal power. Federal supervision was begun by the passage of the national bank act in 1863. Then for a period of almost fifty years no legislation of any importance was enacted. The federal reserve act of 1913 completely nationalized the banking resources of the country and placed the federal government in a more direct relation with all banks. In the meantime the postal savings bank (1910) had put the government directly in the banking business, while the recent passage of the farm loan act has further extended the jurisdiction of the government over the banking business. In agriculture and horticulture there has been a very marked growth of federal activities. The earliest act on these subjects related to agri- cultural education. Then came the animal disease acts for the suppres- sion of animal diseases through quarantine. The pure seed act, the plant quarantine act, the standard basket and barrel act, and the farm loan act have served to bring the farmer and the federal government into direct relations. ■ • . Important legislation affecting labor has been placed on the federal statutes during the last few years. The safety appliance acts cover almost all phases of the operation' of the railroads; 'the employers' liability act affecting'*the employees of carriers ; the hours of service act; the eight- hour laws,.; the child labor act, and'the act providing for compensation for federal employees, practically all have been' passed within the last ten years. Of direct interest to all citizens has been the activity of the govern- ment in election reforms. Two important acts have been passed, one prohibiting contributions to campaign funds by corporations and the other requiring publicity of campaign expenditures in federal elections, while the acts prohibiting conspiracy to control federal elections have resulted in the discomfiture of many politicians. The acts mentioned do not include all the important acts in this volume, but those in which the most striking changes have taken place in the last few years. Other important acts which have been completely revised or amended are the bankruptcy act, the trademark and copyright laws, the immigration act, the naturalization act, the criminal code and the federal judicial code, while the passing of the national defense act, the conscription act, the shipping board act of 1916 and the several war laws of 1917 bring added interest to federal affairs. It is significant to note that of the important acts in this volume, more than two-thirds have been enacted or completely revised since 1910, and more than one-half of these acts have been passed, revised or amended since June, 1916. JOHN A. LAPP. July 1st, 1917. TABLE OF CONTENTS Page Introduction iii-v Table ,of Contents vi-viii Citations of Acts ix-xiii Constitution of United States . 1 Agriculture and Horti culture — The Farm Loan Act 14 The Agricultural Education Acts 44 Bureau of Animal Industry 57 Suppression of Animal Diseases Act 60 Quarantine of Animals Act 62 Cruelty to Animals Act 64 Grain Standards Act 66 The Warehouse Act 70 Plant Quarantine Act 78 Pure Seeds Act 83 Standard Apple Barrel Act 85 Standard Fruit Basket Act 86 Standard Lime Barrel Act 88 Insecticide Act 89 Vocational Education Act 96 Banking Acts— The Federal Reserve Act 106 The Postal Savings Act 144 The National Bank Act 152 Immigration and Naturalization — Immigration Act 1^ Naturalization Laws ^ 19.4 Regulation of Business — The Trade Commission Act 215 The Sherman Act 223 The Clayton Act 225 Cotton Futures Act 239 Food and Drugs — The Food and Drugs Act 249 The Meat Inspection Act 255 Imported Meat Act 262 Sale and Use of Cocaine and Narcotics Act 263 Opium Act 269 Manufacture of Opium Act 271 vii viii Contents. I^BOR— ^«^e Mediation and Arbitration Act 273 Employers" Liability Act 279 Safety Appliance Acts 282 Accident Reiwrts Act 2S7 Boiler Inspection Act 289 Ash-Pan Act 294 Medals of Honor Act 295 Hours of Service Act 296 Compensation for Injuries of Federal Employees 298 Cbild Labor Act ^^^ Children's Bureau Act ^^2 Eight-Hour Day Act 313 Eight Hours on Tublic Works Act 315 Taxation and Revenue — • The Income Tax Act 316 The Corporation Tax Act 328 General Administrative Provisions of Tax Act 338 Inheritance Tax Act 343 Munitions Manufacturers' Tax Act 348 Miscellaneous Taxes Act 351 Tariff Act 365 Dyestuffs Act 431 Print Paper Act 403 Tariff Commission Act 460 Unfair Competition Act 464 Interstate Commerce — J Interstate Commerce Act 468 District Court Jurisdiction Act 837 Immunity of Witnesses Act 505 The Anti-Rebate Act 505 Expediting Act 509 Compulsory Testimony Act 510 Bill of Lading Acts 511 Federal Elections — The Publicity of Campaign Contributions Act 522 Corporation Contributions Act 528 National Defense — The National Defense Act 529 The Conscription Act 596 The Shipping Board Act 606 War Risk Insurance Act 620 Trademarks and Copyrights — Trademark Laws 623 Copyright Laws 634 Contents. ix Moral Reform Laws — Transportatiou of Prize Fight Films 653 White Slave Act 653 Liquor Shipments 657 Bankruptcy Act 659 The Criminal Code — Offenses Against the Existence of the Government 695 Offenses Against Neutrality 697 Offenses Against Elective Franchise 7(X) Offenses Against Operations of Government 701 Offenses Relating to Official Duties 717 Offenses Against Public Justice 726 Offenses Against Currency and Coinage 731 Offenses Against Postal Service 742 Offenses Against Interstate Commerce 758 Larceny in Interstate Commerce 763 Slave Trade and Peonage — 764 Offenses Within the Admiralty 770 Piracy 774 Offenses in Territories 778 General and Special Provisions 781 The Parole of Prisoners Act 785 The Federal Judicial Code 788 Proof of Handwriting Act 864 Public He:alth 865 Good Roads 867 Addenda- Excess Profits Tax 873 Plant Quarantine (Amendment) 875 CITATIONS OF ACTS Agriculture and Horticulture Paqe The Fanu Loan Act. approved July 17. 1916 (39 Statutes at Large 360) 14 Agricultural Educatiou (First Morrill Act), approve^l July 2, 1862 (12 Stat- utes at Large 5(KS). as auiendeil March 3, 18S3 (22 Statutes at Large 484) 44 Act for the Further Eudowment of Agricultural Colleges (Second Morrill Act), approved August 30. ISW (26 Statutes at Large 417) 47 Establishing Agricultural Experiment Stations, approved March 2. 18S7 (24 Statutes at Large 440) ' 50 The Further Endowment of Agricultural Experiment Stations Act, approved March 16, 1906 (34 Statutes at Large 63) 52 Providing for Cooperative Extension Work Act of May 8, 1914 (38 Stat- utes at Large 372) 54 Bureau of Animal Industry Act, approved May 29. 1884 (23 Statutes at Large 31) 1 57 Suppression of Animal Diseases Act, approved February 2, 1903 (32 Stat- utes at Large 791) 60 Quarantine of Animals Act, approved March 3, 1905 (33 Statutes at Large 1264), as amended March 4. 1913 (37 Statutes at Large 831) 62 Cruelty to Animals Act. approved June 29. li)06 (34 St^itutes at Large 607) __ 64 The Grain Standards Act. approved August 11, 1916 (39 Statutes at I^rge 482) qq The Warehouse Act. approved August 11, 1916 (39 Statutes at Large 486) __ 70 The Plant Quarantine Act. approved August 20. 1912 (37 Statutes at Large 315). as amended March 4, 1913 (37 Statutes at Large 854) 78 Pure Seeds Act of August 24. 1912 (37 Statutes at Large 506) S3 Standard Apple Barrels Act of August 3, 1912 (37 Statutes at Large 250) __ 85 Standard Fruit Baskets Act. approved August 31, 1916 (39 Statutes at Large 673) gg Standard Lime Barrels Act. approved August 23, 1916 (39 Statutes at Large 530) g^^ Insecticide Act, approved April 26. 1910 (36 Statutes at Large 331) 80 Vocational Education Vocational Education Act, approved February 23, 1917 (39 Statutes at Large 929) 1 ^ Banking Acts The Federal Reserve Act. approved December 23. 1913 (38 Sti;iicu 1, jt^^M \o-± oiitiuifo ill. iJiiLg,c -i^ti.t; , it.-? iiiijciiucu Deceoiber 2o, 1013 (38 Statutes at Large 251) 152 Immigration and Natubalization The Immigration Act, approved February 5, 1917 (39 Statutes at Large 874) 1G4 Naturalization Laws, approved June 29. 1900 (34 Statutes at Large 596) ; as amended Marcb 4. 1909 (35 Statutes at Large 1102) ; as amended June 25. 1910 (30 Statutes at Large 830) ; as amended March 4, 1913 (37 Statutes at Large 730) ; additional section. Act of July 30, 1813, amending Act of April 14, 1802 (R. S. 1878. p. 380; 1 Comp. Stat. 1!X>1, p. 1334); additional section. Act of March 3. 1S13 (R. S. 1878, p. .3.80; 1 Comp. Stat. 1901, p. 1333) ; additional section. Act of February 10, 1855, amending Act of April 14. 1802 (R. S. 1878, p. 350; Comp. Stat. 1901. p. 1268) ; additional section. Act of July 17, 1862 (12 Statutes at Large 597) ; additional section. Act of February 18, 1875, amending Act of July 14, 1870 (R. S. 1878. p. 3.80; 1 Comp. Stat. 1901, p. 13.33) ; additional section, July 7, 1872 (17 Statutes at Large 2f>S) ; additional section. Act of May 0, 1882 (22 Statutes at Large 58) ; additional sec- tion. Act of July 20, 1894 (28 Statutes at Large 124) ; additional sec- tion, Act of April 30, 1!M)0 (31 Statutes at Large 101) ; additional sec- tion. Act of March 2, 1907 (34 Statutes at Large 1228) ; as amended by sections of Jime 30, 1914 (38 Statutes at Large 395) 194 Regulation of Business Trade Commission Act, approved September 20, 1914 (38 Statutes at Large 717) 215 The Federal Anti-Trust Laws (The Sherman Act), approved July 2, 1890 (26 Statutes at T^irge 20!>) 223 The Clavton Anti-Trust Act. Act of October 15. 1914 (38 Statutes at I^irge 730). as amended May 15, 1916 (39 Statutes at Large 121) 225 Cotton Futures Act, approved August 11, 1916 (39 Statutes at Large 470)— 239 Food and Drugs The Food and Drugs Act, approved June 30, 1900 (34 Statutes at Large 708) ; as amendetl August 23. 1912 (37 Statutes at Large 410) ; as amended March 3, 1913 (37 Statutes at Large 732) 249 The Meat Inspection Act, approved March 4, 1907 (34 Statutes at Large 1200) 255 The Importeil Meat Act, appi'oved October 3, 1913 (38 Statutes at I^irge 159) 262 Sale and Use of Cocaine and Narcotics Act. approved December 17, 1914 (.38 Statutes at Large 785) 203 Opium Act, approved January 17, 1914 (38 Statutes at Large 275) 269 Manufacture of Opium Act of January 17, 1914 (38 Statutes at Large 277) __ 271 Citation of Acts. xiii Labor Page Mediation and Arbitration Act, approved July 15, 1913 (38 Statutes at Large 103) -"^ Employers" Liability Act. approved April 22, IIX^S (35 Statutes at Large 05) __ 279 Safety Appliance Acts, approved Marcli 2. 1893 (27 Statutes at Large 531) ; as amended April 1, 189(5 (29 Statutes at Large 85) : as supplemented by Act of March 2, 1903 (32 Statutes at Large 943) ; as supplemented by Act of March 4, 1911 (36 Statutes at Large 1397) 282 Accident Reports Act, approved May U, 1910 (30 Statutes at Large 350)— 287 Boiler Inspection Act. Act of February 17, 1911 (30 Statutes at Large 913) ; as amended March 4, 1915 (38 Statutes at Large 1192) 289 Ash-Pau Act, Act of May 30. 1908 (35 Statutes at Large 470) 294 Medals of Honor Act, Act of February 23. VMb (33 Statutes at Large 743 )__ 295 Hours of Service Act, Act of March 4, 191>7 (34 Statutes at Large 1415) ; as amended May 4, 1910 (39 Statutes at Large 61) 296 Compensation for Injuries of Federal Employees Act. approved September 7, 1910 (39 Statutes at Large 742) 298 Child Labor Act, approved September 1, 1910 (39 Statutes at Large 075) 310 Children's Bureau Act. approved April 9. 1912 (37 Statutes at Large 79) __ 312 Eight-Hour Day Act, approved September 3-5, 1910 (39 Statutes at Large 721 ) - 313 Eight Hours on I'ublic Works Act. approved March 3. 1913 (37 Statutes at Large 720) 315 Taxation and Revenue Federal Tax Laws, approved September 8. 1916 (39 Statutes at Large 750) Title I— Income Tax 317 Part 1 — On Individuals, approved September 8. 1910 (39 Statutes at Large 750) 317 Part 2— The Corporation Tax, approved September. 8, 1916 (39 Stat- utes at Large 705) : 328 Pai-t 3— General Administrative Provisions of Tax Act, approved Sei> tember 8. 1910.(39 Statutes at Large 780) __ ._ 338 Title II — The Inheritance Tax. approved September 8, 1916 (39 Statutes at Large 777) ; as amended Marc^h 3. 1917 (39 Statutes at Large 1002) ^ — 343 Title- III — Munition Manufacturer's Tax. approved September 8, 1910 (39 ■Statutes at Large 780) 348 Title IV— Miscellaneous Taxes, approved September 8, 1910 (39 Statutes ■at Large 783) 351 The TarilT Act. approved Octol)er 3, 1913 (38 Statutes at Large 114) ; as •amended September 8. 1910 (39 Statutes at LYirge 793. 795)— 365 Dyestiifts Act, approved September 8. 1910 (39 Statutes at Large 793) ____ 431 Tariff Commission Act, approved September 8, 1910 (39 .Statutes at Large 795) 400 Unfair Competition Act. approved September 8, 1910 (39 Statutes at .■ Large 798) —J-i- 464 .Interstate CQM]vtgR9E The -Interstate Commence Act, q,,pproved ., Feb ruar-y 5.4, : 1887 (24 Sti^tutes at Large 379-) ; as. anjeucVt^d -M.arch. 2, lSi89 (25,Stiatutes at Large 855) ; as ..-VI- ; ' " . . . *<• xiv Citation of Acts. Page amended February 10. 1891 (26 Statutes at Large 743) ; as amended February 8. 1805 (28 Statutes at Large 643) ; as amended June 29. 1906 (34 Statutes at Large 584) ; as amended by a joint resolution June 30, ld()6 (34 Statutes at Large 838) ; as amended April 13, 1!>U8 (35 Statutes at Large 60) ; as amended February 25, 1909 (35 Statutes at Large 648) : as amended Jime 18, 1910 (36 Statutes at Large 539) ; as amended August 24, '1912 (37 Statutes at Large 56(>) : as amended March 1, 1913 (37 Statutes at Large 701) ; as supplemented by Act of August 1, 1914 (38 Statutes at Large 627) ; as amended March 4, 1915 (38 Statutes at Large 1196) ; as amended August 9, 1916 (39 Statutes at Large 441) ; as amended August 29. 1916 (39 Statutes at Large 556) 468 Immunity of Witnesses Act, approved June 30, 1906 (34 Statutes at Large 798) 505 Anti-Rebate Act, approvetl February 19, 1903 (32 Statutes at Large 847) ; as amended June 29, 1906 (34 Statutes at Large 587) 505 Expediting Act, Act of June 25, 1910 (36 Statutes at Large 854) . 509 Compulsory Testimony Act, approved February 11, 1893 (27 Statutes at Large 443) 510 Bill of Lading Act, approved August 29, 1916 (39 Statutes at Large 538) 511 Fkderal Elections Publicity of Campaign Contributions Act, approved June 25, 1910 (36 Stat- utes at Large 822) ; as amended August 19. 1911 (37 Statutes at Large 25) ; as amended August 23, 1912 (37 Statutes at Large 360) 522 Campaign Contributions by Corporations Act, approved January 26, 1907 (34 Statutes at Large 864) 528 National Defbinse National Defense Act, approved June 3, 1916 (39 Statutes at Large 166) 529 The Conscription Act, approved May 18, 1917 (39 Statutes at Large )__ 596 Shipping Board Act, approved September 7, 1916 (39 Statutea at Liirge 72S)_ 606 War Risk Insurance Act, Act of September 2. 1914 (38 Statutes at I^irge 711) ; «8 amended March 3, 1917 (39 Statutes at Large 1131) €20 Trademarks and CorYBioHTS Trademark Laws, approved February 20, 1905 (33 Statutes at I>arge 724) ; as amended May 4, 1906 (34 St^itutes at Large 168) ; as amended March 2, 1907 (34 Statutes at Large l^^il) ; as amended February 18. 1909 (35 Statutes at Large 627) ; as amended February 18. 1911 (38 Statutes at I^rge 918) ; as amended January 8, 1913 (37 Statutea at Large 649) 623 Copyright I^w. approved March 4. 1909 (35 Statutes at I^rge 1075) ; as "amended August 24, 1912 (37 Statutes at I^rge 488) ; as amended March 2. 1913 (37 Statutes at Large 724) ; as amended March 28. 1914 (38 Statutes at Large 311) ^ 634 Moral Reform Laws Transportation of Prise Fight Pictures Act of July 31, 1912 (37 Statutes at Large 240) 653 White Slave Act. approTed June 25. 1910 (36 Statutes at Large 825) 663 Liquor Shipments In Interstate Commerce (The Webt>-Kenyon Act). Act of March 1. 1913 (37 Statutes at I^irge 699) ; as amended. Act of March 3. 1917 (39 Statutes at Large 1069) 3W Citation of Acts. xv Bankruptcy Act Page Bankruptcy Act, approved July 1, 1898 (30 Statutes at Large 544) ; as amended June 15, 1900 (34 Statutes at Large 267) ; as amended June 25, 1910 (36 Statutes at Large 838) ; as amended March 2. 1917 (39 Stat- utes at Large 999) 659 Criminal Ck)DE Criminal Code Act, approved March 4, 1909 (35 Statutes at Large 108.8) ; as amended February 15, 1912 (37 Statutes at Large 64) 695 Larceny in Interstate Commerce (37 Statutes at Large 670) 763 The Parole of Prisoners Act, approved June 25, 1910 (36 Statutes at Large 819) ; as amended January 23, 1913 (37 Statutes at Large 650) 785 Federal Judicial Code The Federal Judicial Code, approved March 3, 1911 (36 Statutes at Large 1087) ; as amended December 21, 1911 (37 Statutes at Large 46) ; as amended January 13, 1912 (37 Statutes at Large 52) ; as amended February 5, 1912 (37 Statutes at Large 59) ; as amended March 4. 1913 (37 Statutes at Large 1013) ; as amended October 3, 1913 (38 Statutes at Liirge 203) ; as amended January 20, 1914 (38 Statutes at Large 278) ; as amended July 30, 1914 (38 Statutes at Large 580) ; as amended August 22. 1914 (38 Statutes at Large 703) ; as amended January 28, 1915 (38 Statutes at Large 803) ; as amended March 3, 1915 (38 Stat- utes at Large 956) ; as amended September 6, 1916 (39 Statutes at Large 726) ; as amended February 3, 1917 (39 Statutes at Large 873) ; as supplemented by District Court Jurisdiction Act, approved October 22, 1913 (38 Statutes at Large 219 788 Proof of Handwriting Act, approved February 26, 1913 (37 Statutes at Large 683) 8^ Public Health Act, approved March 27, 1890 (26 Statutes at Large 31) ; Act of February 15, 1893 (27 Statutes at Large 452) ; Act of August 14, 1912 (37 Statutes at Large 309) 865 Federal Good Roads Act, approved July 11, 1916 (39 Statutes at Large 355). 867 Addenda Excess Profits Tax, approved March 3, 1917 (38 Statutes at Large 1000) 873 Plant Quarantine Act, approved March 4, 1917 (38 Statutes at Large 1165) __ 875 CONSTITUTION OF UNITED STATES. 1787. Preamble. We, the People of the United States, in order to form a more per- fect union, establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity, do ordain and establish this COXSTITUTION FOR THE UNITED STATES OF AMERICA. Article I. — The Legislative Department. Section 1. All legislative powers herein granted shall be vested in a Congress of the United States, which shall consist of a Senate and House of Representatives. Sec. 2. The House of Representatives shall be composed of mem- bers chosen every second year by the people of the several States, and the electors in each State shall have the qualifications requisite for elect- ors of the most numerous branch of the State Legislature. No person shall be a representative who shall not have attained to the age of twenty-five years, and been seven years a citizen of the United States, and who shall not, when elected, be an inhabitant of that State in which he shall be chosen. Representatives and direct taxes shall be apportioned among the several States which may be included wathin this Union, according to their respective numbers, which shall be determined by adding to the whole number of free persons, including those bound to service for a term of years, and excluding Indians not taxed, three-fifths of all other persons. The actual enumeration shall be made within three years after the first meeting of the Congress of the United States, and within every subsequent term of ten years, in such manner as they shall by law direct. The number of Representatives shall not exceed one for every thirty thousand ; but each State shall have at least one Representative ; and until such enumeration shall be made, the State of New Hampshire shall be entitled to choose three. Massachusetts eight, Rhode Island and Prov- idence Plantations one, Connecticut five. New York six, New Jersey four, Pennsylvania eight, Delaware one, Mary-land six, Virginia ten, North Carolina five, South Carolina five, and Georgia three. When vacancies happen in the representation from any State, the executive authority thereof shall issue writs of election to fill such "vacancies. The House of Representatives shall choose their Speaker and other officers ; and shall have the sole power of impeachment. Sec. 3. The Senate of the United States shall be composed of two Senators from each State, elected by the people thereof, for six years ; .and each Senator shall have one vote. The electors in each State shall (1) 2 liiFORTANT Federal Laws have the quahfications requisite for electors of the most numerous branch of the State Legislatures. Amendment adopted 1913. Immediately after they shall be assembled in consequence of the first election, they shall be divided as equally as may be into three classes. The seats of the Senators of the first class shall be vacated at the expi- ration of the second year, of the second class at the expiration of the fourth year, and of the third class at the expiration of the sixth year, so that one-third may be chosen every second year. When vacancies happen in the representation of any State in the Senate, the executive authority of such State shall issue writs of election to fill such vacancies : Provided, That the Legislature of any State may empower the exec- utive thereof to make temporary appointments until the people fill vacan- cies by election as the Legislature may direct. This amendment shall not be so construed as to afifect the election or term of any Senator chosen before it becomes valid as part of the Constitution. Amendment adopted 1913. No person shall be a Senator who shall not have attained to the age of thirty years, and been nine years a citizen of the United States, and who shall not, when elected, be an inhabitant of that State for which he shall be chosen. The Vice-President of the United States shall be President of the Senate, but shall have no vote, unless they be equally divided. The Senate shall choose their other officers, and also a President pro tempore, in the absence of the Vice-President, or when he shall exercise the office of President of the United States. The Senate shall have the sole power to try all impeachments. When sitting for that purpose, they shall be on oath or affirmation. When the President of the United States is tried, the Chief Justice shall preside ; and no person shall be convicted without the concurrence of two- thirds of the members present. Judgment in cases of impeachment shall not extend further than to removal from office, and disqualification to hold and enjoy any office of honor, trtist, or profit under the United States ; but the party con- victed shall nevertheless be liable and subject to indictment, trial, judg- ment and punishment, according to law. Sec. 4. The times, places and manner of holding elections for Sen- ators and Representatives shall be prescribed in each State by the Legis- lature thereof ; but the Congress may at any time by law make or alter such regulations, except as to the places of choosing Senators. The Congress shall assemble at least once in every year, and such meeting shall be on the first Monday in December, unless they shall by law appoint a dififerent day. Sec. 5. Each House shall be the judge of the elections, returns and qualifications of its own members, and a majority of each shall con- stitute a quorum to do business ; but a smaller number may adjourn I Constitution of the United States 3 from day to day, and may be authorized to compel the attendance of absent members in such manner, and under such penalties as each House may provide. Each House may determine the rules of its proceedings, punish its members for disorderly behavior, and, with the concurrence of two- thirds, expel a member. Each House shall keep a journal of its proceedings, and from time to time publish the same, excepting such parts as may in their judg- ment require secrecy ; and the yeas and nays of the members of either House on any question shall, at the desire of one-fifth of those present, be entered on the journal. Neither House, during the session of Congress, shall, without the consent of the other, adjourn for more than three days, nor to any other place than that in which the two Houses shall be sitting. Sec. 6. The Senators and Representatives shall receive a compen- sation for their services, to be ascertained by law, and paid out of the treasury of the United States. They shall in all cases, except treason, felony and breach of the peace, be privileged from arrest during their attendance at the session of their respective Houses, and in going to and returning from the same ; and for any speech or debate in either House, they shall not be questioned in any other place. No Senator or Representative shall, during the time for which he was elected, be appointed to any civil office under the authority of the United States, which shall have been created, or the emoluments whereof shall have been increased during such time ; and no person holding any office under the United States, shall be a member of either House during his continuance in office. Sec. 7. All bills for raising revenues shall originate in the House of Representatives ; but the Senate may propose or concur with amend- ments as on other bills. Every bill which shall have passed the House of Representatives and the Senate, shall, before it become a law, be presented to the Pres- ident of the United States ; if he approve he shall sign it, but if not he shall return it, with his objections, to that House in which it shall have originated, who shall enter the objections at large on their journal, and proceed to reconsider it. If after such reconsideration two-thirds of that House shall agree to pass the bill, it shall be sent, together with the objections, to the other House by which it shall likewise be reconsidered, and if approved by two-thirds of that House, it shall become a law. But in all such cases the votes of both Houses shall be determined by yeas and nays, and the names of the persons voting for and against the bill shall be entered on the journal of each House respectively. If any bill shall not be returned by the President within ten days (Sundays excepted) after it shall have been presented to him, the same shall be a law, in like manner as if he had signed it, unless the Congress, by their adjournment prevent its return, in which case it- shall not be a law. Every order, resolution, or vote to which the concurrence of the 4 Important Federal Laws Senate and House of Representatives may be necessan^ (except on a question of adjournment) shall be presented to the President of the United States ; and before the same shall take effect, shall be approved by him, or being disapproved by him, shall be repassed by two-thirds of the Senate and House of Representatives, according to the rules and limitations prescribed in the case of a bill. Sec. 8. The Congress shall have power to lay and collect taxes, duties, imposts, and excises, to pay the debts and provide for the com- mon defense and general welfare of the United States ; but all duties, imposts and excises shall be uniform throughout the United States ; To borrow money on the credit of the United States ; To regulate commerce with foreign nations, and among the several States, and with the Indian tribes; To establish an uniform rule of naturalization, and uniform laws on the subject of bankruptcies, throughout the United States; To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures ; To provide for the punishment of counterfeiting the securities and current coin of the United States ; To establish post-offices and post-roads ; To promote the progress of science and useful arts, by securing for limited times to authors and inventors the exclusive right to their re- spective writings and discoveries; To constitute tribunals inferior to the Supreme Court ; To define and punish piracies and felonies committed on the high seas, and offenses against the law of nations ; To declare war, grant letters of marque and reprisal, and make rules concerning captures on land and water; To raise and support armies, but no appropriation of money to that use shall be for a longer term than two years; To provide and maintain a navy; To make rules for the government and regulation of the land and naval forces; To provide for calling forth the militia to execute the laws of the Union, suppress insurrections, and repel invasions ; To provide for organizing, arming, and disciplining the militia, and for governing such part of them as may be employed in the service of the United States, reserving to the States respectively, the appointment of the officers and the authority of training the militia according to the discipline prescribed by Congress ; To exercise exclusive legislation, in all cases whatsoever, over such district (not exceeding ten miles square) as may, h^ cession of partic- ular States, and the acceptance of Congress, become the seat of the gov- ernment of the United States, and to exercise like authority over all places purchased by the consent of the Legislature of the State in which the same shall be, for the erection of forts, magazines, arsenals, dock- yards, and other needful buildings; CONSTITUTIOX OF THE UnITED StATES 5 And to make all laws which shall be necessary and proper for carry- ing into execution the foregoing powers, and all other powers vested by this Constitution in the government of the United States, or in any department or officer thereof. Sec. 9. The migration or importation of such persons as any of the States now existing shall think proper to admit, shall not be pro- hibited by the Congress prior to the year one thousand eight hundred and eight, but a tax or duty may be imposed on such importation, not exceeding ten dollars for each person. The privilege of the writ of habeas corpus shall not be suspended, unless when in cases of rebellion or invasion the public safety may require it. No bill of attainder or ex post facto law shall be passed. No capitation, or other direct tax shall be laid, unless in proportion to the census or enumeration hereinbefore directed to be taken. No tax or duty shall be laid on articles exported from any State. No preference shall be given by any regulation of commerce or revenue to the ports of one State over those of another: nor shall ves- sels bound to, or from, one State, be obliged to enter, clear, or pay duties in another. No money shall be drawn from the Treasury, but in consequence of appropriations made by law; and a regular statement and account of the receipts and expenditures of all public money shall be published from time to time. No title of nobility shall be granted by the United States: and no person holding any office of profit or trust under them, shall, without the consent of the Congress, accept of any present, emolument, office, or title, oi anv kind whatever, from any king, prince, or foreign State. Sec. 10. ' No State shall enter into any treaty, alliance, or confed- eration ; grant letters of marque and reprisal; coin money ;_ emit bills of credit; make an>i:hing but gold and silver coin a tender in payment of debts ; pass any bill of attainder, ex post facto law, or law impairing the obligation of contracts, or grant any title of nobility. No State shall, without the consent of the Congress, lay any imposts or duties on imports or exports, except what may be absolutely necessary for executing its inspection laws : and the net produce of all duties and imposts, "laid by anv State on imports or exports, shall be for the use of the Treasury of 'the United States ; and all such laws shall be subject to the revision and control of the Congress No State shall, without the consent of Congress, lay any duty of tonnage, keep troops, or ships of war in time of peace, enter into any agreement or compact with another State, or with a foreign power, or engage in war, unless actually in- vaded, or in such imminent danger as will not admit of delay. Article II. — The Executive Department. Section 1. The executive power shall be vested in a President of the United States of America. He shall hold his office during the term Important Federal Laws of four years, and, together with the Vice-President, chosen for the same term, be elected, as follows: Each State shall appoint, in such manner as the Legislature thereof may direct, a number of electors, equal to the whole number of Senators and Representatives to which the State may be entitled in the Congress ; but no Senator or Representatives, or person holding an office of trust or profit under the United States, shall be appointed an elector. See amendment No. 12. The Congress may determine the time of choosing the electors, and the dav on which they shall give their votes, which day shall be the same throughout the United States. No person except a natural-born citizen, or a citizen of the United States, at the time of the adoption of this Constitution, shall be eligible to the office of President ; neither shall any person be eligible to that office who shall not have attained to the age of thirty-five years, and been fourteen years a resident within the United States. In case of the removal of the President from office, or of his death, resignation or inability to discharge the powers and duties of the said office, the same shall devolve on the Vice-President, and the Congress may by law provide for the case of removal, death, resignation or in- ability,' both of the President and Vice-President, declaring what officer shall then act as President, and such officer shall act accordingly, until the disability be removed, or a President shall be elected. The President shall, at stated times, receive for his services, a com- pensation, which shall neither be increased nor diminished during the period for which he shall have been elected ; and he shall not receive, within that period, any other emolument from the United States, or any of them. Before he enter on the execution of his office, he shall take the following oath or affirmation : "I do solemnly swear (or affirm) that I will faithfully execute the office of President of t*ie United States, and will to the best of _my ability, preserve, protect and defend the Constitution of the United States." Sec. 2. The President shall be Commander-in-Chief of the army and navy of the United States, and of the militia of the several States, when called into the actual service of the United States ; he may require the opinion, in writing, of the principal officer in each of the executive departments, upon any subject relating to the duties of their respective offices, and he shall have power to grant reprieves and pardons for offenses against the United States, except in cases of impeachment. He shall have power, by and with the advice and consent of the Senate, to make treaties, provided two-thirds of the Senators present concur; and he shall nominate, and by and with the advice and consent of the Senate, shall appoint ambassadors, other public ministers and consuls, judges of Supreme Court, and all other officers of the United States whose appointments are not herein otherwise provided for, and Constitution" of the United States 7 which shall be established by law ; but the Congress may by law vest the appointment of such inferior officers, as they think proper, in the President alone, in the courts of law, or in the heads of departments. The President shall have power to fill up all vacancies that may happen during the recess of the Senate, by granting commissions which shall expire at the end of their next session. Sec. 3. He shall from time to time give to the Congress informa- tion of the state of the Union, and recommend to their consideration such measures as he shall judge necessary and expedient; he may, on estraordinary occasions, convene both Houses, or either of them, and in case of disagreement between them, with respect to the time of ad- journment, he may adjourn them to such time as he shall think proper; he shall receive ambassadors and other public ministers ; he shall take care that the laws be faithfully executed, and shall commission all the officers of the United States. Sec. 4. The President, Vice-President, and all civil officers of the United States, shall be removed from office on impeachment for, and conviction of, treason, bribery, or other high crimes and misdemeanors. Article III. — The Judicial Department. Section 1. The judicial power of the United States shall be vested in one Supreme Court, and in such inferior courts as the Con- gress may from time to time ordain and establish. The judges, both of the Supreme and inferior courts, shall hold their offices during good behavior, and shall, at stated times, receive for their services a com- pensation, which shall not be diminished during their continuance in office. Sec. 2. The judicial power shall extend to all cases, in law and equity, arising under this Constitution, the laws of the United States, and treaties made, or which shall be made, under their authority ; to all cases affecting ambassadors, other public ministers and consuls ; to all cases of admiralty and maritime jurisdiction; to controversies to which the United States shall be a party ; to controversies between two or more States ; between a State and citizens of another State ; be- tween citizens of different States ; between citizens of the same State claiming lands under grants of different States, and between a State, or the citizens thereof, and foreign States, citizens or subjects. In all cases affecting ambassadors, other public ministers and con- suls, and those in which a State shall be party, the Supreme Court shall have original jurisdiction. In all the other cases before mentioned, the Supreme Court shall have appellate jurisdiction, both as to law and fact, with such exceptions and under such regulations as the Congress shall make. The trial of all crimes, except in cases of impeachment, shall be by jury ; and such trial shall be held in the State where the said crimes shall have been committed ; but when not committed within any State, 8- Important Federal Laws the trial- shall be at such place or places as the Congress may by law have directed. Sec. 3. Treason against the United States shall consist only in levying war against them, or in adhering to their enemies, giving them aid and comfort. No person shall be convicted of treason unless on the testimony of two witnesses to the same overt act, or on confession in open court. The Congress shall have power to declare the punishment of treason, but no attainder of treason shall work corruption of blood, or forfeiture except during the life of the person attained. Article IV. — Federal and State Relations. Section 1. Full faith and credit shall be given in each State to the public acts, records and judicial proceedings of every other State. And the Congress may by general laws prescribe the manner in which such acts, records and proceedings shall be proved, and the effect thereof. Sec. 2. The citizens of each State shall be entitled to all privileges and immunities of citizens in the several States. A person charged in any State with treason, felony, or other crime, who shall flee from justice, and be found in another State, shall, on demand of the executive authority of the State from which he fled, be delivered up to be removed to the State having jurisdiction of the crime. No person held to service or labor in one State, under the laws thereof, escaping into another, shall, in consequence of any law or regu- lation therein, be discharged from such service or labor, but shall be delivered up on claim of the party to whom such service or labor may be due. Sec. 3. New States may be admitted by the Congress into this Union; but no new State shall be formed or erected within the juris- diction of any other State; nor any State be formed by the junction of two or more States, or parts of States, without the consent of the Legis- latures of the States concerned as well as of the Congress. The Congress shall have power to dispose of and make all needful rules and regulations respecting the territory or other property belonging to the United States ; and nothing in this Constitution shall be so con- strued as to prejudice any claims of the United States, or of any par- ticular State. Sec. 4. The United States shall guarantee to every State in this Union a republican form of government, and shall protect each of them against invasion; and on application of the Legislature, or of the Exec- utive (when the Legislature can not be convened), against domestic violence. Article V. — Amendments. The Congress, whenever two-thirds of both houses shall deem it necessar}', shall propose amendments to this Constitution, or, on the application of the Legislatures of two-thirds of the several States, shall Constitution of the United States 9 call a convention for proposing amendments, which, in either case, shall be valid to all intents and purposes, as part of this Constitution, when ratified by the Legislatures of three-fourths of the several States, or by conventions in three-fourths thereof, as the one or the other mode of ratification may be proposed by the Congress : Provided, That no amendment which may be made prior to the year one thousand eight hundred and eight shall in any manner aflfect the first and fourth clauses in the ninth section of the first article; and that no State, without its consent, shall be deprived of its equal suffrage in the Senate. Article VI. — Miscellaneous, All debts contracted and engagements entered into, before the adoption of this Constitution, shall be as valid against the United States under this Constitution, as under the confederation. This Constitution, and the laws of the United States which shall be made in pursuance thereof, and all treaties made, or which shall be made, under the authority of the United States, shall be the supreme law of the land ; and the judges in every State shall be bound thereby, anything in the Constitution or laws of any State to the contrary not- withstanding. The Senators and Representatives before mentioned, and the mem- bers of the several State Legislatures, and all executive and judicial officers, both of the United States and of the several States, shall be bound by oath or affirmation, to support this Constitution : but no reli- , gious test shall ever be required as a qualification to any office or public trust under the United States. Article VII. — Ratification. The ratification of the conventions of nine States shall be sufficient for the establishment of this Constitution between the States so ratifying the same. ARTICLES IN AMENDMENT OF THE CONSTITUTION Article I. Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof ; or abridging the freedom of speech, or of the press ; or the right of the people peaceably to assemble, and to petition the government for a redress of grievances. The first ten amendments were adopted in 1790 in fulfillment of a demand for a bill of rights. They apply to the national g'overnment and limit its powers, but do not restrict the power of the States with respect to its people. 194 U. S. 445 and cases cited. Article II. A well regulated militia being necessary to the security of a free State, the right of the people to keep and bear arms, shall not be in- fringed. Article III. No soldier shall, in time of peace, be quartered in any house, with- 10 Important Federal Laws out the consent of the owner, nor in time of war, but in a manner to be prescribed by law. Article IV. The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be vio- lated, and no warrants shall issue, but upon probable cause, supported by oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized. Article V. No person shall be held to answer for a capital, or otherwise infa- mous crime, unless on a presentment or indictment of a grand jury, except in cases arising in the land or naval forces, or in the militia, when in actual service in time of war or public danger ; nor shall any person be subject for the same oft"ense to be twice put in jeopardy of life or limb ; nor shall be compelled in any criminal case to be a witness against himself, nor be deprived of life, liberty, or property, without due process of law ; nor shall private property be taken for public use, with- out just compensation. Article VI. In all criminal prosecutions, the accused shall enjoy the right to a speedy and public trial, by an impartial jury of the State and district wherein the crime shall have been committed, which district shall have been previously ascertained by law, and to be informed of the nature and cause of the accusation; to be confronted with the witnesses against him ; to have compulsory process for obtaining witnesses in his favor, and to have the assistance of counsel for his defense. Article VII. In suits at common law, where the value in controversy shall exceed twenty dollars, the right of trial by jury shall be preserved, and no fact tried by a jury shall be otherwise re-examined in any court of the United States, than according to the rules of the common law. Article VIII. Excessive bail shall not be required, nor excessive fines imposed, nor cruel and unusual punishments inflicted. Article IX. The enumeration in the Constitution of certain rights shall not be construed to deny or disparage others retained by the people. Article X. The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States, respectively, or to the people. Article XI. The judicial power of the United States shall not be construed to extend to any suit in law or equity, commenced or prosecuted against Constitution of the United States 11 on-e of the United States by citizens of another State, or by citizens or subjects of any foreign State. Article XII. The electors shall meet in their respective States, and vote by ballot for President and Vice-President, one of whom, at least, shall not be an inhabitant of the same State with themselves; they shall name in their ballots the person voted for as President, and in distinct ballots the person voted for as Vice-President ; and they shall make distinct lists of all persons voted for as President, and of all persons voted for as Vice- President, and of the number of votes for each, which lists they shall sign and certify, and transmit sealed to the seat of the government of the United States, directed to the President of the Senate ; the Pres- ident of the Senate shall, in the presence of the Senate and House of Representatives, open all the certificates and the votes shall then be counted ; the person having the greatest number of votes for Pres- ident shall be the President, if such number be a majority of the whole number of electors appointed ; and if no person have such majority, then from the persons having the highest numbers not exceeding three on the list of those voted for as President, the House of Representatives shall choose immediately, by ballot, the President. But in choosing the Pres- ident, the votes shall be taken by States, the representation from each State having one vote ; a quorum for this purpose shall consist of a mem- ber or members from two-thirds of the States, and a majority of all the States shall be necessary to a choice. And if the House of Representa- tives shall not choose a President, whenever the right of choice shall devolve upon them, before the fourth day of March next following, then the Vice-President shall act as President, as in the case of the death or other constitutional disability of the President. The person having the greatest number of votes as Vice-President shall be the Vice-President, if such number be a majority oi the whole number of electors appointed, and if no person have a majority, then from the two highest numbers on the list, the Senate shall choose the Vice- President ; a quorum for the purpose shall consist of two-thirds of the whole number of Senators, and a majority of the whole number shall be necessary to a choice. But no person constitutionally ineligible to the ofiice of President shall be eligible to that of Vice-President of the United States. Article XIII. Section 1. Neither slavery nor involuntary servitude, except as a punishment for crime, whereof the party shall have been duly convicted, shall exist within the United States or any place subject to their juris- diction. Sec. 2. Congress shall have power to enforce this article by appro- priate legislation. Article XIV. Section 1. All persons born or naturalized in the United States, 12 Important Federal Laws and subject to the jurisdiction thereof, are citizens of the United States and of the State wherein they reside. No State shall make or enforce any law which shall abridge the privilege* or immunities of citizens of the United States; nor shall any State deprive any person of life, lib- erty, or property, without due process of law ; nor deny to any person within its jurisdiction the equal protection of the laws. Sec. 2. Representatives shall be apportioned among the several States according to their respective numbers, counting the whole num- ber of persons in each State, excluding Indians not taxed. But when the right to vote at any election for the choice of electors for President and Vice-President of the United States, Representatives in Congress, the executive and judicial officers of a State, or the members of the Legislature thereof, is denied to any of the male inhabitants of such State, being twenty-one years of age, and cifizens of the United States, or in any way abridged, except for participation in rebellion, or other crime, the basis of representation therein shall be reduced in the propor- tion which the number of such male citizens shall bear to the whole number of male citizens twenty-one years of age in such State. Sec. 3. No person shall be a Senator or Representative in Congress, or elector of President and Vice-President, or hold any office, civil or military, under the United States, or under any State, who, having pre- viously taken an oath, as a member of Congress, or as an officer of the United States, or as a member of any State Legislature, or as an exec- utive or judicial officer of any State, to support the Constitution of the United States, shall have engaged in insurrection or rebellion against the same or given aid or comfort to the enemies thereof. But Congress may by a vote of two-thirds of each house, remove such disability. Sec. 4. The validity of the public debt of the United States, au- thorized by law, including debts incurred for pa}Tnent of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned. But neither the United States nor any State shall assume or pay any debt or obligation incurred in aid of insurrection or rebellion against the United States, or any claim for the loss or emancipation of any slave ; but all such debts, obligations and claims shall be held illegal and void. Sec. 5. The Congress shall have power to enforce, by appropriate legislation, the provisions of this article. Article XV. Section 1. The right of the citizens of the United States to vote shall not be denied or abridged by the United States or by any State, on account of race, color, or previous condition of servitude. Sec. 2. The Congress shall have power to enforce this article by appropriate legislation. Article XVI. The Congress shall have power to lay and collect taxes on incomes. Constitution of the United States 13 from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration. This amendment was ratified in 1913. Article XVII. Providing for the election of United States Senators by the people. See section 3 of Art I. AGRICULTURE AND HORTICULTURE. THE FARM LOAN ACT. Act of July 17, 1916. An Act to provide capital for agricultural development, to create standard forms of investment based upon farm mortgage, to equalize rates of in- terest upon farm loans, to furnish a market for United States bonds, to create Government depositaries and financial agents for the United States, and for other purposes. Sec. 1. That the short title of this Act shall be "The Federal Farm Loan Act." Its administration shall be under the direction and control of the Federal Farm Loan Board hereinafter created. Definitions. Sec. 2. That wherever the term "first mortgage" is used in this Act it shall be held to include such classes of first liens on farm lands as shall be approved by the Federal Farm Loan Board, and the credit instruments secured thereby. The term "farm loan bonds" shall be held to include all bonds secured by collateral deposited with a farm loan registrar under the terms of this Act ; they shall be distinguished by the addition of the words "Federal," or "joint stock," as the case may be. Federal Farm Loan Board. Sec. 3. That there shall be established at the seat of government in the Department of the Treasury a bureau charged with the execu- tion of this Act and of all Acts amendatory thereof, to be known as the Federal Farm Loan Bureau, under the general supervision of a Federal Farm Loan Board. Said Federal Farm Loan Board shall consist of five members, including the Secretary of the Treasury, who shall be a member and chairman ex of^cio, and four members to be appointed by the Presi- dent of the United States, by and with the advice and consent of the Senate. Of the four members to be appointed by the President, not more than two shall be appointed from one political party, and all four of said members shall be citizens of the United States and shall devote their entire time to the business of the Federal Farm Loan Board ; they shall receive an annual salary of $10,000 payable monthly, together with actual necessary traveling expenses. One of the members to be appointed by the President shall be desig- nated by him to serve for two years, one for four years, one for six years, and one for eight years, and thereafter each member so ap- pointed shall serve for a term of eight years, unless sooner removed for cause by the President. One of the members shall be designated by the President as the Farm Loan Commissioner, who shall be the Farm Loan Act 15 active executive officer of said board. Each member of the Federal Farm Loan Board shall within fifteen days after notice of his appoint- ment take and subscribe to the oath of office. The first meeting of the Federal Farm Loan Board shall be held in Washington as soon as may be after the passage of this Act, at a date and place to be fixed by the Secretary of the Treasury. No member of the Federal Farm Loan Board shall, during his con- tinuance in office, be an officer or director of any other institution, association, or partnership engaged in banking, or in the business of making land mortgage loans or selling land mortgages. Before enter- ing upon his duties as a member of the Federal Farm Loan Board each member shall certify under oath to the President that he is eligible under this section. The President shall have the power, by and with the advice and consent of the Senate, to fill any vacancy occurring in the member- ship of the Federal Farm Loan Board ; if such vacancy shall be filled during the recess of the Senate a commission shall be granted which shall expire at the end of the next session. The Federal Farm Loan Board shall appoint a farm loan registrar in each land bank district to receive applications for issues of farm loan bonds and to perform such other services as are prescribed by this Act. It shall also appoint one or more land bank appraisers for each land bank district and as many land bank examiners as it shall deem necessary. Farm loan registrars, land bank appraisers, and land bank examiners appointed under this section shall be public officials and shall, during their continuance in office, have no connection with or interest in any other institution, association, or partnership engaged in banking or in the business of making land mortgage loans or selling land mortgages : Provided, That this limitation shall not apply to persons employed by the board temporarily to do special work. The salaries and expenses of the Federal Farm Loan Board, and of farm loan registrars and examiners authorized under this section, shall be paid by the United States. Land bank appraisers shall receive such compensation as the Federal Farm Loan Board shall fix, and shall be paid by the Federal land banks and the joint stock land banks which they serve, in such proportion and in such manner as the Federal Farm Loan Board shall order. The Federal Farm Loan Board shall be authorized and empowered to employ such attorneys, experts, assistants, clerks, laborers, and other employees as it may deem necessary to conduct the business of said board. All salaries and fees authorized in this section and not otherwise provided for shall be fixed in advance by said board and shall be paid in the same manner as the salaries of the Federal Farm Loan Board. All such attorneys, experts, assistants, clerks, laborers, and other em- ployees, and all registrars, examiners, and appraisers shall be appointed without regard to the provisions of the Act of January sixteenth, eigh- 16 Important Federal Laws teen hundred and eighty-three (volume twenty-two, United States Stat- utes at Large, page four hundred and three), and amendments thereto, or any rule or regulation made in pursuance thereof: Provided, That nothing herein shall prevent the President from placing said employees in the classified service. Every Federal land bank shall semiannually submit to the Federal Farm Loan Board a schedule showing the salaries or rates of compen- sation paid to its officers and employees. The Federal Farm Loan Board shall annually make a full report of its operations to the Speaker of the House of Representatives, who shall cause the same to be printed for the information of the Congress. The Federal Fsrm Loan Board shall from time to time require examinations and reports of condition of all land banks established under the provisions of this Act and shall publish consolidated state- ments of the results thereof. It shall cause to be made appraisals of farm lands as provided by this Act, and shall prepare and publish amortization tables which shall be used by national farm loan associa- tions and land banks organized under this Act. The Federal Farm Loan Board shall prescribe a form for the state- ment of condition of national farm loan associations and land banks under its supervision, which shall be filled out quarterly by each such association or bank and transmitted to said board. It shall be the duty of the Federal Farm Loan Board to prepare from time to time bulletins setting forth the principal features of this Act and through the Department of Agriculture or otherwise to distribute the same, particularly to the press, to agricultural journals, and to farmers' organizations ; to prepare and distribute in the same manner circulars setting forth the principles and advantages of amortized farm loans and the protection afforded debtors under this Act, instructing farmers how to organize and conduct farm loan associations, and advis- ing investors of the merits and advantages of farm loan bonds ; and to disseminate in its discretion information for the further instruction of farmers regarding the methods and principles of cooperative credit and organization. Said board is hereby authorized to use a reasonable por- tion of the organization fund provided in section thirty-three of this Act for the objects specified in this paragraph, and is instructed to lay before the Congress at each session its recommendations for further appropriations to carry out said objects. Federal Land Banks. Sec. 4. That as soon as practicable the Federal Farm Loan Board shall divide the continental L^nited States, excluding Alaska, into twelve districts, which shall be known as Federal land bank districts, and may be designated by number. Said districts shall be apportioned Avith due regard to the farm loan needs of the country, but no such district shall contain a fractional part of any State. The boundaries Farm Loan Act 17 thereof may be readjusted from. time to time in the discretion of said board. The Federal Farm Loan Board shall establish in each Federal land bank district a Federal land bank, with its principal office located in such city within the district as said board shall designate. Each Federal land bank shall include in its title the name of the city in which it is located. Subject to the approval of the Federal Farm Loan Board, any Federal land bank may establish branches wathin the land bank district. Each Federal land bank shall be temporarily managed by five directors appointed by the Federal Farm Loan Board. Said directors shall be citizens of the United States and residents of the district. They shall each give a surety bond, the premium on which shall be paid from the funds of the bank. They shall receive such compensation as the Federal Farm Loan Board shall fix. They shall choose from their number, by majority vote, a president, a vice-president, a secretary and a treasurer. They are further authorized and empowered to employ such attorneys, experts, assistants, clerks, laborers, and other employees as they may deem necessary, and to fix their compensation, subject to the approval of the Federal Farm Loan Board. Said temporary directors shall, under their hands, forthwith make an organization certificate, which shall specifically state: First. The name assumed by such bank. Second. The district within which its operations are to be carried on, and the particular city in which its principal office is to be located. Third. The amount of capital stock and the number of shares into which the same is to be divided: Provided, That every Federal land bank organized under this Act shall by its articles of association peraiit an increase of its capital stock from time to time for the purpose of providing for the issue of shares to national farm loan associations and stockholders who may secure loans through agents of Federal land banks in accordance with the provisions of this Act. Fourth. The fact that the certificate is made to enable such persons to avail themselves of the advantages of this Act. The organization certificate shall be acknowledged before a judge or clerk of some court of record or notary public, and shall be, together with the acknowl- edgment thereof, authenticated by the seal of such court or notary, transmitted to the Farm Loan Commissioner, who shall record and carefullv preserve the same in hi^ office, where it shall be at all times open to public inspection. The Federal Farm Loan Board is authorized to direct such changes in or additions to any such organization certificate, not inconsistent with this Act. as it may deem necessary or expedient. Upon duly making and filing such organization certificate the bank shall become, as from the date of the execution of its organization certificate, a body corporate, and as such, and in the nzune designated in the organization certificate, it shall have power — (2) 18 Important Federal Laws First. To adopt and use a corporate seal. Second. To have succession until it is dissolved by Act of Congress or under the provisions of this Act. Third. To make contracts. Fourth. To sue and be sued, complain, interplead, and defend, in any court of law or equity, as fully as natural persons. Fifth. To elect or appoint directors, and by its board of directors to elect a president and a vice president, appoint a secretary and a treasurer and other officers and employees, define their duties, require bonds of them, and fix the penalty thereof; by action of its board of directors dismiss such officers and employees, or any of them, at pleas- ure and appoint others to fill their places. Sixth. To prescribe, by its board of directors, subject to the super- vision and regulation of the Federal Farm Loan Board, by-laws not inconsistent with law, regulating the manner in which its stock shall be transferred, its directors elected, its ofiicers elected or appointed, its property transferred, its general business conducted, and the priv- ileges granted to it by law exercised and enjoyed. Seventh. To exercise, by its board of directors or duly authorized officers or agents, subject to law, all such incidental powers as shall be necessary to carry on the business herein described. After the subscriptions to stock in any Federal land bank by national farm loan associations, hereinafter authorized, shall have reached the sum of $100,000, the officers and directors of said land bank shall be chosen as herein provided and shall, upon becoming duly qualified, take over the management of said land bank from the tem- porary officers selected under this section. The board of directors of every Federal land bank shall be selected as hereinafter specified and shall consist of nine members, each hold- ing office for three years. Six of said directors shall be known as local directors, and shall be chosen by and be representative of national farm loan associations ; and the remaining three directors shall be known as district directors, and shall be appointed by the Federal Farm Loan Board and represent the public interest. At least two months before each election the Farm Loan Commis- sioner shall notify each national farm loan association in writing that such election is to be held, giving the number of directors to be elected for its district, and recjuesting each association to nominate one can- didate for each director to be elected. Within ten days of the receipt of such notice each association shall forward its nominations to said Farm Loan Commissioner. Said commissioner shall prepare a list of candidates for local directors consisting of the twenty persons secur- ing the hisfhest number of votes from national farm loan associations making such nominations. At least one month before said election said Farm Loan Commis- sioner shall mail to each national farm loan association the list of Farm Loan Act 19 candidates. The directors of each national farm loan association shall cast the vote of said association for as many candidates on said list as there are vacancies to be filled, and shall forward said vote to the Farm Loan Commissioner within ten days after said list of candidates is received by them. The candidates receiving the highest number of votes shall be elected as local directors. In case of a tie the Farm Loan Commissioner shall determine the choice. The Federal Farm Loan Board shall designate one of the district directors to serve for three years and to act as chairman of the board of directors. It shall designate one of said directors to serve for a term of two years and one to serve for a term of one year. After the first appointments each district director shall be appointed for a term of three years. At the first regular meeting of the board of directors of each Federal land bank it shall be the dutv of the local directors to designate two of the local directors whose term of ofifice shall expire in one year from the date of such meeting, two whose term of office shall expire in two years from said date, and two whose term of office shall expire in three years from said date. Thereafter every local director of a Federal land bank chosen as hereinbefore provided shall hold office for a term of three years. Vacancies that may occur in the board of directors shall be filled for the unexpired term in the manner provided for the original selection of such directors. Directors of Federal land banks shall have been for at least two years residents of the district for which they are appointed or elected, and at least one district director shall be experienced in practical farm- ing and actually engaged at the time of his appointment in farming operations within the district. No director of a Federal land bank shall, during his continuance in office, act as an officer, director, or employee of any other institution, association, or partnership engaged in banking or in the business of making or selling land mortgage loans. Directors of Federal land banks shall receive, in addition to any compensation otherwise provided, a reasonable allowance for neces- sary expenses in attending meetings of their respective boards, to be paid by the respective Federal land banks. Any compensation that may be provided by boards of directors of Federal land banks for directors, officers, or employees shall be subject to the approval of the Federal Farm Loan Board. Capital Stock of Federal Land Banks. Sec. 5. That every Federal land bank shall have, before begin- ning business, a subscribed capital of not less than $750,000. The Fed- eral Farm Loan Board is authorized to prescribe the times and conditions of the payment of subscriptions to capital stock, to reject any subscrip- tion in its discretion, and to require subscribers to furnish adequate security for the payment thereof. 20 Important Federal Laws The capital stock of each Federal land bank shall be divided into shares of $5 each, and may be subscribed for and held by any indi- vidual, firm, or corporation, or by the Government of any State or of the United States. Stock held by national farm loan associations shall not be trans- ferred or hypothecated, and the certificates therefor shall so state. Stoclv owned by the Government of the United States in Federal land baitks shall receive no dividends, but all other stock shall share in dividend distributions without preference. Each national farm loan association and the Government of the United States shall be entitled to one vote for each share of stock held by it in deciding all questions at meetings of shareholders, and no other shareholder shall be permitted to vote. Stock owned by the United States shall be voted by the Farm Loan Commissioner, as directed by the Federal Farm Loan Board. It shall be the duty of the Federal Farm Loan Board, as soon as practicable after the passage of this Act, to open books of subscrip- tion for the capital stock of a Federal land bank in each Federal land bank district. If within thirty days after the opening of said books any part of the ntinimum capitalization of $750,000 herein prescribed for Federal land banks shaW remain unsubscribed, it shall be the duty of the Secretary of the Treasury to subscribe the balance thereof on behalf of the United States, said subscription to be subject to call in whole or in part by the board of directors of said land bank upon thirty days' notice with the appro^■al of the Federal Farm Loan Board ; and the Secretary of the Treasury is hereby authorized and directed to take out shares corresponding to the unsubscribed balance as called, and to pay for the same out of any moneys in the Treasury not otherwise appro- priated. Thereafter no stock shall be issued except as hereinafter pro- vided. After the subscriptions to capital stock by national farm loan asso- ciations siiall amount to $750,000 in any Federal land bank, said bank shall apply semiannually to the payment and retirement of the shares of stock which were issued to represent the subscriptions to the original capital twenty-tive per centum of all sums thereafter subscribed to capital stock until all such original capital stock is retired at par. At least twenty-five per centum of that part of the capital of any Federal land bank for which stock is out-standing in the name of national farm loan associations shall be held in quick a.ssets, and may consist of cash in the vaults of said land bank, or in deposits in member banfe of the Federal reserve system, or in readily marketable securities which are approved under rules and regulations of the Federal Farm Loan Board : Provided, Tl>at not less than five per centum of such capital shall be invested in United States Government bonds. Govemment Depositaries. Sec. 6. Ttiat all Federal land banks and joint stock land banks organized under this Act, when designated for tshat purpose by the Farm Loan Act 21 Secretary of the Treasury, shall be depositaries of public money, except receipts from customs, under such regulations as may be prescribed by said Secretary ; and they may also be employed as financial agents of the Government; and they shall perform all such reasonable duties, as depositaries of public money and financial agents of the Government, as may be required of them. And the Secretary of the Treasury shall require of the Federal land banks and joint stock land banks thus desig- nated satisfactory security, by the deposit of United States bonds or otherwise, for the safekeeping and prompt payment of the public money deposited with them, and for the faithful performance of their duties as financial agents of the Government. No Government funds deposited under the provisions of this section shall be invested in mortgage loans or farm loan bonds. National Farm Loan Association. Sec. 7 . That corporations, to be known as national farm loan associations, may be organized by persons desiring to borrow money on farm mortgage security under the terms of this Act. Such persons shall enter into articles of association which shall specify in general terms the object for which the association is formed and the territory within which its operations are to be carried on, and which may contain any other provision, not inconsistent with law, which the association may see fit to adopt for the regulation of its business and the conduct of its affairs. Said articles shall be signed by the persons uniting to form the association, and a copy thereof shall be forwarded to the Federal land bank for the district, to be filed and preserved in its office. Every national farm loan association shall elect, in the manner pre- scribed for the election of directors of national banking associations, a board of not less than five directors, who shall hold office for the same period as directors of national banking associations. It shall be the duty of said board of directors to choose in such manner as they may prefer a secretary-treasurer, who shall receive such compensation as said board of directors shall determine. The board of directors shall elect a presi- dent, a vice president, and a loan committee of three members. The directors and all officers except the secretary-treasurer shall serve without compensation, unless the payment of salaries to them shall be approved by the Federal Farm Loan Board. All officers and directors except the secretary-treasurer shall, during their term of office, be bona fide residents of the territory within which the association is authorized to do business, and shall be shareholders of the association. It shall be the duty of the secretary-treasurer of every national farm loan association to act as custodian of its funds and to deposit the same in such bank as the board of directors may designate, to pay over to bor- rowers all sums received for their aceount from the Federal land bank upon first mortgage as in this Act prescribed, and to meet all other obli- gations of the association, subject to the orders of the board of directors 22 Important Federal Laws and in accordance with the by-laws of the association. It shall be the duty of the secretary-treasurer, acting under the direction of the national farm loan association, to collect, receipt for. and transmit to the Federal land bank payments of interest, amortization installments, or principal arising out of loans made through the association. He shall be the cus- todian of the securities, records, papers, certificates of stock, and all documents relating to or bearing upon the conduct of the affairs of the association. He shall furnish a suitable surety bond to be prescribed and ap- proved by the Federal Farm Loan Board for the proper performance of the duties imposed upon him under this Act, which shall cover prompt collection and transmission of funds. He shall make a quarterly report to the Federal Farm Loan Board upon forms to be provided for that purpose. Upon request from said board said secretary-treasurer shall furnish information regarding the condition of the national farm loan association for which he is acting, and he shall carry out all duly author- ized orders of said board. He shall assure himself from time to time that the loans made through the national farm loan association of which he is an officer are applied to the purposes set forth in the application of the borrower as approved, and shall forthwith report to the land bank of the district any failure of any borrower to comply with the terms of his application or mortgage. He shall also ascertain and report to said bank the amount of any delinquent taxes on land mortgaged to said bank and the name of the delinquent. The reasonable e.xpenses of the secretary-treasurer, the loan com- mittee, and other officers and agents of national farm loan associations, and the salary of the secretary-treasurer, shall be paid from the general funds of the association, and the board of directors is authorized to set aside such sums as it shall deem requisite for that purpose and for other expenses of said association. When no such funds are available, the board of directors may levy an assessment on members in proportion to the amount of stock held by each, which may be repaid as soon as funds are available, or it may secure an advance from the Federal land bank of the district, to be repaid with interest at the rate of six per centum per annum, from dividends belonging to said association. Said Federal land bank is hereby authorized to make such advance and to deduct such repayment. Ten or more natural persons who are the owners, or about to become the owners, of farm land qualified as security for a mortgage loan under section twelve of this Act, may unite to form a national farm loan asso- ciation. They shall organize subject to the requirements and the con- ditions specified in this section and in section four of this Act, so far as the same may be applicable: Provided. That the board of directors may consist of five members only, and instead of a secretary and a treasurer there shall be a secretary-treasurer, who need not be a shareholder of the association. Farm Loan Act 23 When the articles of association are forwarded to the Federal land bank of the district as provided in this section, they shall be accompanied by the written report of the loan committee as required in section ten of this Act, and by an affidavit stating that each of the subscribers is the owner, or is about to become the owner, of farm land qualified under section twelve of this x^ct as the basis of a mortgage loan ; that the loan desired by each person is not more than $10,000. nor less than $100 and that the aggregate of the desired loans is not less than $20,000; that said affidavit is accompanied by a subscription to stock in the Federal land bank equal to five per centum of the aggregate sum desired on mortgage loans; and that a temporary organization of said association has been formed by the election of a board of directors, a loan committee and a secretary-treasurer who subscribes to said affidavit, giving his residence and postoffice address. Upon receipt of such articles of association, with the accompanying affidavit and stock subscription, the directors of said Federal land bank shall send an appraiser to investigate the solvency and character of the applicants and the value of their lands, and shall then determine whether in their judgment a charter should be granted to such association. They shall forward such articles of association and the accompanying affidavit to the Federal Farm Loan Board with their recommendation. If said recommendation is unfavorable, the charter shall be refused. If said recommendation is favorable, the Federal Farm Loan Board shall thereupon grant a charter to the applicants therefor, designating the territory in which such association may make loans, and shall forward said charter to said applicants through said Federal land bank : Pro- vided, That said Federal Farm Loan Board may for good cause shown in any case refuse to grant a charter. Upon receipt of its charter such national farm loan association shall "be authorized and empowered to receive from the Federal land bank of the district sums to be loaned to its members under the terms and con- ditions of this i\.ct. Whenever any national farm loan association shall desire to secure ior any member a loan on first mortgage from the Federal land bank of its district it shall subscribe for capital stock of said land bank to the amount of five per centum of such loan, such subscription to be paid in ■cash upon the granting of the loan by said land bank. Such capital stock shall be held by said land bank as collateral security for the payment of said loan, but said association shall be paid any dividends accruino- and payable on said capital stock while it is outstanding. Such stock may, in the discretion of the directors, and with the approval of the Federal Farm Loan Board, be paid off at par and retired, and it shall be so paid off and retired upon full payment of the mortgage loan. In such case the national farm loan association shall pay oft' at par and retire the corre- 24 Important Federal Laws spending shares of its stock which were issued when said land bank stock was issued. The capital stock of a Federal land bank shall not be reduced to an amount less than five per centum of the principal of the outstanding farm loan bonds issued by it. Capital Stock of National Farm Loan Associations. Sec. 8. That the shares in national farm loan associations shall be of the par value of $5 each. Every shareholder shall be entitled to one vote on each share of stock held by him at all elections of directors and in deciding all questions at meetings of shareholders: Provided, That the maximum number of votes which may be cast by any one shareholder shall be twenty. No persons but borrowers on farm land mortgages shall be members or shareholders of national farm loan associations. Any person desiring to borrow on farm land mortgage through a national farm loan associa- tion shall make application for membership and shall subscribe for shares of stock in such farm loan association to an amount equal to five per centum of the face of the desired loan, said subscription to be paid in cash upon the granting of the loan. If the application for membership is ac- cepted and the loan is granted, the applicant shall, upon full payment therefor, become the owner of one share of capital stock in said loan association for each $100 of the face of his loan, or any major fractional part thereof. Said capital stock shall be paid ofT at par and retired upon full payment of said loan. Said capital stock shall be held by said asso- ciation as collateral security for the payment of said loan, but said bor- rower shall be paid any dividends accruing and payable on said capital stock while it is outstanding. Every national farm loan association formed under this Act shall by its articles of association provide for an increase of its capital stock from time to time for the purpose of securing additional loans for its members and providing for the issue of shares to borrowers in accordance with the provisions of this Act. Such increases shall be included in the quarterly reports to the Federal Farm Loan Board. National Farm Loan Associations. — Special Provisions. Sec. 9. That any person whose application for membership is ac- cepted by a national farm loan association shall be entitled to borrow money on farm land mortgage upon filing his application in accordance with section eight and otherwise complying with the terms of this Act whenever the Federal land bank of the district has funds available for that purpose, unless said land bank or the Federal Farm Loan Board shall, in its discretion, otherwise determine. Any person desiring to secure a loan through a national farm loan association under the provisions of this Act may, at his option, borrow from the Federal land bank through such association the sum necessary to pay for shares of stock subscribed for by him in the national farm loan association, such sum to be made a part of the face of the loan and paid Farm Loan Act 25 off in amortization payments : Provided, however, That such addition to the loan shall not be permitted to increase said loan above the limita- tion imposed in subsection fifth of section twelve. Subject to rules and regulations prescribed by the Federal Farm Loan Board, any national farm loan association shall be entitled to retain as a commission from each interest payment on any loan indorsed by it an amount to be determined by said board not to exceed one-eighth of one per centum semiannually upon the unpaid principal of said loan, any amounts so retained as commissions to be deducted from dividends pay- able to such farm loan association by the Federal land bank, and to make application to the land bank of the district for loans not exceeding in the aggregate one-fourth of its total stock holdings in said land bank. The Federal land banks shall have power to make such loans to associations applying therefor and to charge interest at a rate not exceeding six per centum per annum. Shareholders of every national farm loan association shaJl be held individually responsible, equally and ratably, and not one for another, for all contracts, debts and engagements of such association to the extent of the amount of stock owned by them at the par value thereof, in addi- tion to the amount paid in and represented by their shares. After a charter has been granted to a national farm loan associa- tion, any natural person who is the owner, or about to become the owner, of farm land qualified under section twelve of this Act as the basis of a mortgage loan, and who desires to borrow on a mortgage of such farm land, may become a member of the association by a two-thirds vote of the directors upon subscribing for one share of the capital stock of such association foreach $1(X) of the face of his proposed loan or any major fractional part thereof. He shall at the same time file with the secretarv'- treasurer his application for a mortgage loan, giving the particulars re- quired by section twelve of this Act. Appraisal. Sec. 10. That whenever an application for a mortgage loan is made to a national farm loan association, it shall be first referred to the loan committee provided for in section seven of this Act. Said loan com- m.ittee shall examine the land which is offered as security for the desired loan and shall make a detailed written report signed by all three members, giving the appraisal of said land as determined by them, and such other information as may be required by rules and regulations to be prescribed by the Federal Farm Loan Board. No loan shall be approved by the directors unless said loan committee agrees upon a favorable report. The written report of said loan committee shall be submitted to the Federal land bank, together with the application for the loan, and the directors of said land bank shall examine said written report when they pass upon the loan application which it accompanies, but they shall not be bound by said appraisal. 26 Important Federal Laws Before any mortgage loan is made by any Federal land bank, or joint stock land bank, it shall refer the application and written report of the loan committee to one or more of the land bank appraisers ap- pointed under the authority of section three of this Act, and such ap- praiser or appraisers shall investigate and make a written report upon the land offered as security for said loan. No such loan shall be made by said land bank unless said written report is favorable. Forms for appraisal reports for farm loan associations and land banks shall be prescribed by the Federal Farm Loan Board. Land bank appraisers shall make such examinations and appraisals and conduct such investigations, concerning farm loan bonds and first mortgages, as the Federal Farm Loan Board shall direct. No borrower under this Act shall be eligible as an appraiser under this section, but borrowers may act as members of a loan committee in any case where they are not personally interested in the loan under con- sideration. When any member of a loan committee or of a board of directors is interested, directly or indirectly, in a loan, a majority of the board of directors of any national farm loan association shall appoint a substitute to act in his place in passing upon such loan. Powers of National Farm Loan Associations. Sec. 11. That every national farm loan association shall have power : First. To indorse, and thereby become liable for the payment of, mortgages taken from its shareholders by the Federal land bank of its district. Second. To receive from the Federal land bank of its district funds advanced by said land bank, and to deliver said funds to its shareholders on receipt of first mortgages qualified under section twelve of this Act. Third. To acquire and dispose of such property, real or personal, as may be necessary or convenient for the transaction of its business. Fourth. To issue certificates against deposits of current funds bear- ing interest for not longer than one year at not to exceed four per centum per annum after six days from date, convertible into farm loan bonds when presented at the Federal land bank of the district in the amount of $25 or any multiple thereof. Such deposits, when received, shall be forthvvith transmitted to said land bank, and be invested by it in the pur- chase of farm loan bonds issued by a Federal land bank or in first mort- gages as defined by this Act. Restrictions on Loans Based on First Mortgages. Sec. 12. That no Federal land bank organized under this Act shall make loans except upon the following terms and conditions : First. Said loans shall be secured by duly recorded first mortgages on farm land within the land bank district in which the bank is situated. Second. Every such mortgage shall contain an agreement provid- ing for the repayment of the loan on an amortization plan by means of a Farm Loan Act 27 fixed number of annual or semiannual installments sufficient to cover, first, a charge on the loan, at a rate not exceeding the interest rate in the last series of farm loan bonds issued by the land bank making the loan ; second, a charge for administration and profits at a rate not exceed- ing one per centum per annum on the unpaid principal, said two rates combined constituting the interest rate on the mortgage ; and, third, such amounts to be applied on the principal as will extinguish the debt within an agreed period, not less than rive years nor more than forty years : Provided, That after five years from the date upon which a loan is made additional payments in sums of $25 or any multiple thereof for the re- duction of the principal, or the payment of the entire principal, may be made on any regular installment date under the rules and regulations of the Federal Farm Loan Board : /\nd provided further, That before the first issue of farm loan bonds by any land bank the interest rate on mortgages may be determined in the discretion of said land bank sub- ject to the provisions and limitations of this Act. Third. No loan on mortgage shall be made under this Act at a rate of interest exceeding six per centum per annum, exclusive of amortization payments. Fourth. Such loans may be made for the following purposes and for no other : (a) To provide for the purchase of land for agricultural uses. (b) To provide for the purchase of equipment, fertilizers and live stock necessary for the proper and reasonable operation of the mortgaged farm ; the term "equipment" to be defined by the Federal Farm Loan Board. (c) To provide buildings and for the improvement of farm lands; the term "improvement" to be defined by the Federal Farm Loan Board. (d) To liquidate indebtedness of the owner of the land mortgaged, existing at the time of the organization of the first national farm loan association established in or for the county in which the land mortgaged is situated, or indebtedness subsequently incurred for purposes mentioned in this section. Fifth. No such loan shall exceed fifty per centum of the value of the land mortgaged and twenty per centum of the value of the permanent, insured improvements thereon, said value to be ascertained by appraisal, as provided in section ten of this Act. In making said appraisal the value of the land for agricultural purposes shall be the basis of appraisal and the earning power of said land shall be a principal factor. A reappraisal may be permitted at an}' time in the discretion of the Federal land bank, and such additional loan may be granted as such re- appraisal will warrant under the provisions of this paragraph. When- ever the amount of the loan applied for exceeds the amount that may be loaned under the appraisal as herein limited, such loan may be granted to the amount permitted under the terms of this paragraph without re- quiring a new application or appraisal. 28 Important Federal Laws Sixth. No such loan shall be made to any person who is not at the time, or shortly to become, engaged in the cultivation of the farm mort- gaged. In case of the sale of the mortgaged land, the Federal land bank may permit said mortgage and the stock interests of the vendor to be assumed by the purchaser. In case of the death of the mortgagor, his heir or heirs, or his legal representative or representatives, shall have the option, within sixty days of such death, to assume the mortgage and stock interests of the deceased. Seventh. The amount of loans to any one borro\\'«r shall in no case exceed a maximum of $10,000, nor shall any loan be for a less sum than $100. Eighth. Every applicant for a loan under the terms of this Act shall make application on a form to be prescribed for that purpose by the Federal Farm Loan Board, and such applicant shall state the objects to which the proceeds of said loan are to be applied, and shall afford such other infonnation as may be required. Ninth. Every borrower shall pay simple interest on defaulted pay- ments at the rate of eight per centum per annum, and by express cove- nant in his mortgage deed shall undertake to pay when due all taxes, liens, judgments, or assessments which may be lawfully assessed against the land mortgaged. Taxes, liens, judgments, or assessments not paid when due, and paid by the mortgagee, shall become a part of the mortgage debt and shall bear simple interest at the rate of eight per centum per annum. Every borrower shall undertake to keep insured to the satisfaction of the Federal Farm Loan Board all buildings the value of which was a factor in determining the amount of the loan. Insurance shall be made payable to the mortgagee as its interest may appear at time of loss, and, at the option of the mortgagor and subject to general lobulations of the Federal Farm Loan Board, sums so received may bt used to pay for reconstruction of the buildings destroyed. Tenth. Every borrower who shall be granted a loan under the pro- visions of this Act shall enter into an agreement, in form and under con- ditions to be prescribed by the Federal Farm Loan Board, that if the whole or any portion of his loan shall be expended for purposes other than those specified in his original application, or if the borrower shall be in default in respect to any condition or covenant of the mortgage, the whole of said loan shall, at the option of the mortgagee, become due and payable forthwith : Provided, That the borrower may use part of said loan to pay for his stock in the farm loan association, and the land bank holding such mortgage may permit said loan to be used for any purpose specified in subsection fourth of this section. Eleventh. That no loan or the mortgage securing the same shall be impaired or invalidated by reason of the exercise of any power by any Federal land bank or national farm loan association in excess of the powers herein granted or any limitations thiereon. Farm Loan Act 29 Funds transmitted to farm loan associations by Federal land banks to be loaned to its members shall be in current funds, or farm loan bonds, at the option of the borrower. Powers of Federal Land Banks. Sec. 13. That every Federal land bank shall have power, subject to the limitations and requirements of this Act — First. To issue, subject to the approval of the Federal Farm Loan Board, and to sell farm loan bonds of the kinds authorized in this Act, to buy the same for its own account, and to retire the same at or before maturity. Second. To invest such funds as may be in its possession in the purchase of qualified first mortgages on farm lands situated within the Federal land bank district within which it is organized or for which it is acting. Third. To receive and to deposit in trust with the farm loan regis- trar for the district, to be by him held as collateral security for farm loan bonds, first mortgages upon farm land qualified under section twelve of this Act, and to empower national farm loan associations, or duly authorized agents, to collect and immediately pay over to said land banks the dues, interest, amortization installments and other sums payable under the terms, conditions, and covenants of the mortgages and of the bonds secured tliereby. Fourth. To acquire and dispose of — (a) Sucli property, real or personal, as may be necessary or con- venient for the transaction of its business, which, however, may be in part leased to others for revenue purposes. (b) Parcels of land acquired in satisfaction of debts or purchased at sales under judgments, decrees, or mortgages held by it. But no such bank shall hold title and possession of any real estate purchased or ac- quired to secure any debt due to it, for a longer period than five years, except with the special approval of the Federal Farm Loan Board in writing. Fifth. To deposit its securities, and its current funds subject to check, with any member bank of the Federal Reserve System, and to receive interest on the same as may be agreed. Sixth. To accept deposits of securities or of current funds from national farm loan associations holding its shares, but to pay no interest on such deposits. Seventh. To borrow money, to give security therefor, and to pay interest thereon. Eigi^th. To buy and sell United States bonds. Ninth. To charge applicants for loans and borrowers, under rules and regulations promulgated by the Federal Farm Loan Board, reason- able fees not exceeding the actual cost of appraisal and determination of 30 Important Federal Laws title. Legal fees and recording charges imposed by law in the State where the land to be mortgaged is located may also be included in the preliminary costs of negotiating mortgage loans. The borrower may pay such fees and charges or he may arrange with the Federal land bank making the loan to advance the same, in which case said expenses shall be made a part of the face of the loan and paid off in amortization pay- ments. Such addition to the loan shall not be permitted to increase said loan above the limitations provided in section twelve. Restrictions on Federal Land Banks. Sec. 14. That no Federal land bank shall have power — First. To accept deposits of current funds payable upon demand except from its own stockholders, or to transact any banking or other business not expressly authorized by the provisions of this Act. Second. To loan on first mortgage except through national farm loan associations as provided in section seven and section eight of this .A.ct, or through agents as provided in section fifteen. Third. To accept any mortgages on real estate except first mort- gages created sul:)iect to all limitations imposed by section twelve of this Act, and those taken as additional security for existing loans. Fourth. To issue or obligate itself for outstanding farm loan bonds in excess of twenty times the amount of its capital and surplus, or to receive from anv national farm loan association additional mortgaees when the principal remaining unpaid upon mortgages already received from such association shall exceed twenty times the amount of its capital stock owned by such association. Fifth. To demand or receive, under any form or pretense, any com- mission or charge not specifically authorized in this Act. Agents of Federal Land Banks. Sec. 15. That whenever, after this Act shall have been in effect one year, it shall appear to the Federal Farm Loan Board that national farm loan associations have not been formed, and are not likely to be formed, in any locality, because of peculiar local conditions, said board may, in its discretion, authorize Federal land banks to make loans on farm lands through agents approved by said board. Such loans shall be subject to the same conditions and restrictions as if the same were made through national farm loan associations, and each borrower shall contribute five per centum of the amount of his loan to the capital of the Federal land bank, and shall become the owner of as much capital stock of the land bank as such contribution shall warrant. No agent other than a duly incorporated bank, trust company, mort- gage company, or savings institution, chartered by the State in which it has its principal office, shall be employed under the provisions of this section. Federal land banks may pay to such agents the actual expense of appraising the land oft'ered as security for a loan, examining and certi- Farm Loan Act 31 fying the title thereof, and making, executing, and recording the mort- gage papers ; and in addition may allow said agents not to exceed one- half of one per centum per annum upon the unpaid principal of said loan, such commission to be deducted from dividends payable to the borrower on his stock in the Federal land bank. Actual expenses paid to agents under the provisions of this section shall be added to the face of the loan and paid oft' in amortization pay- ments subject to the limitations provided in subsection ninth of section thirteen of this Act. Said agents, when required by the Federal land banks, shall collect and forward to such banks without charge all interest and amortization payments on loans indorsed by them. Any agent negotiating any such loan shall indorse the same and become liable for the payment thereof, and for any default by the mort- gagor, on the same terms and under the same penalties as if the loan had been originally made by said agent as principal and sold by said agent to said land bank, but the aggregate of the unpaid principal of mortgage loans received from any such agent shall not exceed ten times its capital and surplus. If at any time the district represented by any agent under the pro- visions of this section shall, in the judgment of the Federal Farm Loan Board, be adequately served by national farm loan associations, no further loans shall be negotiated therein by agents under this section. Joint Stock Land Banks. Sec. 16. That corporations, to be known as joint stock land banks, for carrying on the business of lending on farm mortgage security and issuing farm loan bonds, may be formed by any number of natural per- sons not less than ten. They shall be organized subject to the require- ments and under the conditions set forth in section four of this Act, so far as the same may be applicable : Provided. That the board of directors of every joint stock land bank shall consist of not less than five members. Skareholders of every joint stock land bank organized under this Act shall be held individually responsible, equally and ratably, and not one for another, for all contracts, debts and engagements of such bank to the extent of the amount of stock owned by them at the par value thereof, in addition to the amount paid in and represented by their shares. Except as otherwise provided, joint stock land banks shall have the powers of, and be subject to all the restrictions and conditions imposed on, Federal land banks by this Act, so far as such restrictions and con- ditions are applicable : Provided, however. That the Government of the United States shall not purchase or subscribe for any of the capital stock of any such bank; and each shareholder of any such bank shall have the same voting privileges as holders of shares in national banking associa- tions. No joint stock land bank shall have power to issue or obligate itself 32 Important Federal Laws for outstanding farm loan bonds in excess of fifteen times the amount of its capital and surplus, or tO' rec'ei've deposits or to transact any bank- ing or other business not expressly authorized by the provisions of this Act. No joint stock land bank shall be authorized to do business until capital stock to the amount of at least $250,000 has been subscribed, one- half thereof paid in cash and the balance subject to call by the board of directors, and a charter has been issued to it by the Federal Farm Loan Board. No joint stock land bank shall issue any bonds until after the capital stock is entirely paid up. Farm loan bonds issued by joint stock land banks shall be so engraved as to be readily distinguished in form and color from farm loan bonds issued by Federal land banks, and shall otherwise bear sucli distinguish- ing marks as the Federal Farm Loan Board shall direct. Joint stock land banks shall not be subject to the provisions of sub- section (b) of section seventeen of this Act as to interest rates on mort- gage, loans or farm loan bonds, nor to the provisions of subsections first, fourth, sixth, seventh and tenth of section tAvelve as to restrictions on mortgage loans : Provided, however, That no loans shall be made which are not secured by first mortgages on farm lands within the State in which such joint stock land bank has its principal office, or within some one State contiguous to such State. Such joint stock land banks shall be subject to all other restrictions on mortgage loans imposed on Federal land banks in section twelve of this Act. Joint stock land banks shall in no case charge a rate of interest on farm loans exceeding by more than one per centum the rate of interest established for the last series of farm loan bonds issued by them. Joint stock land banks shall in no case demand or receive, under any fonn or pretense, any commission or charge not specifically author- ized in this Act. Each joint stock land bank organized under this Act shall have authority to issue bonds based upon mortgages taken by it in accordance with the terms of this Act. .Such bonds shall be in form prescribed by the Federal Farm Loan Board, and it shall be stated in such bonds that such bank is organized under section sixteen of this Act, is under Federal supervision, and operates under the provisions of this Act. Powers of Federal Farm Loan Board. Sec. 17. That the Federal Farm Loan Board shall have power — (a) To organize and charter Federal land banks, and to charter national farm loan associations and joint stock land banks subject to the provisions of this Act, and in its discretion to authorize them to increase their capital stock. (b) To review and alter at its discretion the rate of interest to be charged by Federal land banks for loans made by them under the pro- visions of this Act, said rates to be uniform so far as practicable. Farm Loan Act 33 (c) To grant or refuse to Federal land banks, or joint stock land banks, authority to make any specific issue of farm loan bonds. (d) To make rules and regulations respecting the charges made to borrowers on loans under this Act for expenses in appraisal, determina- tion of title and recording. (e) _ To require reports and statements of condition and to make examinations of all banks or associations doing business under the pro- visions of this Act. (f) To prescribe the form and terms of farm loan bonds, and the form, terms and penal sums of all surety bonds required under this Act and of such other surety bonds as they shall deem necessary, such surety bonds to cover financial loss as well as faithful performance of duty. (g) To require Federal land banks to pay forthwith to any Fed- eral land bank their equitable proportion of any sums advanced bv said land bank to pay the coupons of any other land bank, basing said required payments on the amount of farm loan bonds issued by each land bank and actually outstanding at the time of such requirement. (h) To suspend or to remove for cause any district director or any registrar, appraiser, examiner, or other official appointed by said board under authority of section three of this Act, the cause of such suspension or removal to be communicated forthwith in writing by the Federal Farm Loan Board to the person suspended or removed, and in case of a district director to the proper Federal land bank. (i) To exercise general supervisory authority over the Federal land banks, the national farm loan associations, and the joint stock land banks herein provided for. (j) To exercise such incidental powers as shall be necessary or requisite to fulfill its duties and carry out the purposes of this Act. Applications for Farm Loan Bonds. ^ Sec. 18. That any Federal land bank, or joint stock land bank, which shall have voted to issue farm loan bonds under this Act, shall make written application to the Federal Farm Loan Board, through the farm loan registrar of the district, for approval of such issue. With said application said land bank shall tender to said farm loan reo-istrar as collateral security first mortgages on farm lands qualified under the provisions of section twelve, section fifteen, or section sixteen of this Act, or United States Goveniment bonds, not less in aggregate amount than the sum of the bonds proposed to be issued. Said bank shall furnish with such mortgages a schedule containing a description thereof and such further information as may be prescribed by the Federal Farm Loan Board. L'pon receipt of such application said farm loan registrar shall verify said schedule and shall transmit said application and said schedule to the Federal Farm Loan Board, giving such further information pertaining thereto as he may possess. The Federal Farm Loan Board shall forth- (3) 34 Important Federal Laws with cause to be made such investigation and appraisement of the secur- ities tendered as it shall deem wise, and it shall grant in whole or in part, or reject entirely, such application. The Federal Farm Lx)an Board shall promptly transmit its decision as to any issue of farm loan bonds to the land bank applying for the same and to the farm loan registrar of the district. Said registrar shall fur- nish, in writing, such information regarding any issue of farm loan bonds as the Federal P'arm Loan Board may at any time require. No issue of farm loan bonds shall be authorized unless the Federal Farm Loan Board shall approve such issue in writing. Issue of Farm Loan Bonds. Sec. 19. That whenever any farm loan registrar shall receive from the Federal Farm Loan Board notice that it has approved any issue of farm loan bonds under the provisions of section eighteen he shall forth- with take such steps as may be necessary, in accordance with the provi- sions of this Act, to insure the prompt execution of said bonds and the delivery of the same to the land bank applying therefor. Whenever the Federal Farm Loan Board shall reject entirely any application for an issue of farm loan bonds, the first mortgages and bonds tendered to the farm loan registrar as collateral security therefor shall be forthwith returned to said land bank by him. Whenever the Federal Farm Loan Board shall approve an issue of farm loan bonds, the farm loan registrar having the custody of the first mortgages and bonds tendered as collateral security for such issue of bonds shall retain in his custody those first mortgages and bonds which are to be held as collateral security, and shall return to the bank owning the same any of said mortgages and bonds which are not to be held by him as collateral security. The land bank which is to issue said farm loan bonds shall transfer to said registrar, by assignment, in trust, all first mortgages and bonds which are to be held by said registrar as collateral security, said assignment providing for the right of redemption at any time by payment as provided in this Act and reserving the right of substi- tution of other mortgages qualified under sections twelve, fifteen and six- teen of this Act. Said mortgages and bonds shall be deposited in such deposit vault or bank as the Federal Farm Loan Board shall approve, subject to the control of said registrar and in his name as trustee for the bank issuing the farm loan bonds and for the prospective holders of said farm loan bonds. No mortgage shall be accepted by a farm loan registrar from a land bank as part of an ofifering to secure an issue of farm loan bonds, either originally or by substitution, except first mortgages made subject to the conditions prescribed in said sections twelve, fifteen and sixteen. It shall be the duty of each farm loan registrar to see that the farm loan bonds delivered by him and outstanding do not exceed the amount of collateral security pledged therefor. Such registrar may, in his dis- Farm Loan Act 35 cretion, temporarily accept, in place of mortgages withdrawn, United States Government bonds or cash. The Federal Farm Loan Board may, at any time, call upon any land bank for additional security to protect the bonds issued by it. Form of Farm Loan Bonds. Sec. 20. That bonds provided for in this Act shall be issued in denominations of S25, $50, $100, $500 and $1,000; they shall run for specified minimum and maximum periods, subject to payment and retire- ment, at the option of the land bank, at any time after five years from the date of their issue. They shall have interest coupons attached, payable semiannually and shall be issued in series of not less than $50,000, the amount and terms to be fixed by the Federal Farm Loan Board. They shall bear a rate of interest not to exceed five per centum per annum. The Federal Farm Loan Board shall prescribe rules and regulations concerning the circumstances and manner in which farm loan bonds shall be paid and retired under the provisions of this Act. Farm loan bonds shall be delivered through the registrar of the dis- trict to the bank applying for the same. In order to furnish farm loan bonds for delivery at the Federal land banks and joint stock land banks, the Secretary of the Treasury is hereby authorized to prepare suitable bonds in such form, subject to the provi- sions of this Act, as the Federal Farm Loan Board may approve, such bonds when prepared to be held in the Treasury subject to delivery upon order of the Federal Farm Loan Board. The engraved plates, dies, bed- pieces, and so forth, executed in connection therewith shall remain in the custody of the Secretary of the Treasury. Any expenses incurred in the preparation, custody and delivery of such farm loan bonds shall be paid by the Secretary of the Treasury from any funds in the Treasury not otherwise appropriated: Provided, however. That the Secretary shall be reimbursed for such expenditures by the Federal Farm Loan Board through assessment upon the farm land banks in proportion to the work executed. They may be exchanged into registered bonds of any amount, and re-exchanged into coupon bonds, at the option of the holder, under rules and regulations to be prescribed by the Federal Farm Loan Board. Special Provisions of Farm Loan Bonds. Sec. 21. That each land bank shall be bound in all respects by the acts of its officers in signing and issuing farm loan bonds, and by the acts of the Federal Farm Loan Board in authorizing their issue. Every Federal land bank issuing farm loan bonds shall be primarily liable therefor, and shall also be liable, upon presentation of farm loan bond coupons, for interest payments due upon any farm loan bonds issued by other Federal land banks and remaining unpaid in consequence of the default of such other land banks ; and every such bank shall likewise be liable for such portion of the principal of farm loan bonds so issued as 36 Important Federal Laws shall not be paid after the assets of any such other land banks shall have been liquidated and distributed: Provided, That such losses, if any, either of interest or of principal, shall be assessed by the Federal Farm Loan Board against solvent land banks liable therefor in proportion to the amount of farm loan bonds which each may have outstanding at the time of such assessment. Every Federal land bank shall by appropriate action of its board of directors, duly recorded in its minutes, obligate itself to become liable on farm loan bonds as provided in this section. Every farm loan bond issued by a Federal land bank shall be signed by its president and attested by its secretary, and shall contain in the face thereof a certificate signed by the Farm Loan Commissioner to the efifect that it is issued under the authority of the Federal Farm Loan Act, has the approval in form and issue of the Federal Farm Loan Board, and is legal and regular in all respects; that it is not taxable by National, State, municipal or local authority; that it is issued against collateral security of United States Government bonds, or indorsed first mortgages on farm lands, at least equal in amount to the bonds issued ; and that all Federal land banks are liable for the payment of each bond. • Application of Amortization and Interest Payments. Sec. 22. That whenever any Federal land bank, or joint stock land bank, shall receive any interest, amortization or other payments upon any first mortgage or bond pledged as collateral security for the issue of farm loan bonds, it shall forthwith notify the farm loan registrar of the items so received. Said registrar shall forthwith cause such payment to be duly credited upon the mortgage entitled to such credit. Whenever any such mortgage is paid in full, said registrar shall cause the same to be canceled and delivered to the proper land bank, which shall promptly satisfy and discharge the lien of record and transmit such canceled mort- gage to the original maker thereof, or his heirs, administrators, executors or assigns. Upon written application by any Federal land bank, or joint stock land bank, to the farm loan registrar, it may be permitted, in the discre- tion of said registrar, to withdraw any mortgages or bonds pledged as collateral security under this Act and to substitute therefor other similar mortgages or United States Government bonds not less in amount than the mortgages or bonds desired to be withdrawn. Whenever any farm loan bonds, or coupons or interest payments of such bonds are due under their terms, they shall be payable at the land bank bv which they were issued, in gold or lawful money, and upon pay- ment shall be duly canceled by said bank. At the discretion of the Fed- eral Farm Loan Board, payment of any farm loan bond or coupon or interest payment may, however, be authorized to be made at any Federal land bank, any joint' stock land bank, or any other bank, under rules and regulations to be prescribed by the Federal Farm Loan Board. Farm Loan Act 37 When any land bank shall surrender to the proper farm loan regis- trar any farm loan bonds of any series, canceled or uncanceled, said land bank shall be entitled to withdraw first mortgages and bonds pledged as collateral security for any of said series of farm loan bonds to an amount equal to the farm loan bonds so surrendered, and it shall be the duty of said registrar to permit and direct the delivery of such mort- gages and bonds to such land bank. ,ti Interest payments on hypothecated first mortgages shall be at the disposal of the land bank pledging the same, and shall be available for the payment of coupons and the interest of farm loan bonds as they become due. Whenever any bond matures, or the interest on any registered bond is due, or the coupon on any coupon bond matures, and the same shall be presented for payment as provided in this Act, the full face value thereof shall be paid to the holder. Amortization and other payments on the principal of first mortgages held by a farm loan registrar as collateral security for the issue of farm loan bonds shall constitute a trust fund in the hands of the Federal land bank or joint stock land bank receiving the same, and shall be applied or employed as follows : In the case of a Federal land bank — (a) To pay ofif farm loan bonds issued by said bank as thev mature. (b) To purchase at or below par farm loan bonds issued by said bank or by any other Federal land bank. _(c) To loan on first mortgages on farm lands within the land bank district, qualified under this Act as collateral security for an issue of farm loan bonds. (d) To purchase United States Government bonds. In the case of a joint stock land bank — (a) To pay off farm loan bonds issued by said bank as they mature. (b) To purchase at or below par farm loan bonds. (c) To loan on first mortgages qualified under section sixteen of this Act. (d) To purchase United States Government bonds. The farm loan bonds, first mortgages, United States Government bonds, or cash constituting the trust fund aforesaid, shall be forthwith deposited with the farm loan registrar as substituted collateral security in place of the sums paid on the principal of indorsed mortgages held by him in trust. Every Federal land bank, or joint stock land bank, shall notify the farm loan registrar of the disposition of all payments made on the prin- cipal of mortgages held as collateral security for an issue of farm loan bonds, and said registrar is authorized, at his discretion, to order any of such payments, or the proceeds thereof, wherever deposited or however invested, to be immediately transferred to his account as trustee aforesaid. 38 Important Federal Laws Reserves and Dividends of Land Banks. Sec. 23. That every Federal land bank, and every joint stock land bank, shall semiannually carry to reserve account twenty-five per centum of its net earnings until said reserve account shall show a credit balance equal to twenty per centum of the outstanding capital stock of said land bank. Whenever said reserve shall have been impaired, said balance of twenty per centum shall be fully restored before any dividends are paid. After said reserve has reached the sum of twenty per centum of the out- standing capital stock, five per centum of the net earnings shall be an- nually added thereto. For the period of two years from the date when any default occurs in the payment of the interest, amortization install- ments, or principal on any first mortgage, by both mortgagor and indorser, the amount so defaulted shall be carried to a suspense account, and at the end of the two-year period specified, unless collected, shall be debited to reserve account. After deducting the twenty-five per centum or the five per centum hereinbefore directed to be deducted for credit to reserve account, any Federal land bank or joint stock land bank may declare a dividend to shareholders of the whole or any part of the balance of its net earnings. The reserves of land banks shall be invested in accordance with rules and regulations to be prescribed by the Federal Farm Loan Board. Reserve and Dividends of National Farm Loan Associations. Sec. 24. That everv^ national farm loan association shall, out of its net earnings, semi-annually carry to reserve account a sum not less than ten per centum of such net earnings until said reserve account shall show a credit balance equal to twenty per centum of the outstanding capital stock of said association. Whenever said reserve shall have been impaired, said credit balance of twenty per centum shall be fully restored before any dividends are paid. After said reserve has reached said sum of twenty per centum, two per centum of the net earnings shall be annually added thereto. After deducting the ten per centum or the two per centum herein- before directed to be credited to reserve account, said association may, at its discretion, declare a dividend to shareholders of the whole or any part of the balance of said net earnings. The reserve of farm loan associations shall be invested in accord- ance with rules and regulations to be prescribed by the Federal Farm Loan Board. Whenever any farm loan association shall be voluntarily liquidated a sum equal to its reserve account as herein required shall be paid to and become the property of the Federal land bank in which such loan association may be a shareholder. Defaulted Loans. Sec. 25. That if there shall be default under the terms of any in- dorsed first mortgage held by a Federal land bank under the provisions of this Act, the national farm loan association or agent through which Farm Loan Act 39 said mortgage was received by said Federal land bank shall be notified of said default. Said association or agent may thereupon be required, within thirty days after such notice, to make good said default, either by payment of the amount unpaid thereon in cash, or by the substitution of an equal amount of farm loan bonds issued by said land bank, with all unmatured coupons attached. Exemption From Taxation, Sec. 26. That every Federal land bank and every national farm loan association, including the capital and reserve or surplus therein and the income derived therefrom, shall be exempt from Federal, State, municipal and local taxation, except taxes upon real estate held, pur- chased or taken by said bank or association under the provisions of sec- tion eleven and section thirteen of this Act. First mortgages executed to Federal land banks or to joint stock land banks and farm loan bonds issued under the provisions of this Act, shall be deemed and held to be instrumentalities of the Government of the United States, and as such they and the income derived therefrom shall be exempt from Federal, State, municipal and local taxation. Nothing herein shall prevent the shares in any joint stock land bank from being included in the valuation of the personal property of the owner or holder of such shares, in assessing taxes imposed by authority of the State within which the bank is located ; but such assessment and taxation shall be in manner and subject to the conditions and limitations contained in section fifty-two hundred and nineteen of the Revised Statutes with reference to the shares of national banking associations. Nothing herein shall be construed to exempt the real property of Federal and joint stock land banks and national farm loan associations from either State, county, or municipal taxes, to the same extent, accord- ing to its value, as other real property is taxed. Investment in Farm Loan Bonds. Sec. 27. That farm loan bonds issued under the provisions of this Act by Federal land banks or joint stock land banks shall be a lawful investment for all fiduciary and trust funds, and may be accepted as security for all public deposits. Any member bank of the Federal Reserve System may buy and sell farm loan bonds issued under the authority of this Act. Any Federal reserve bank may buy and sell fami loan bonds issued under this Act to the same extent and subject to the same limitations placed upon the purchase and sale by said banks of State, county, dis- trict and municipal bonds under subsection (b) of section fourteen of the Federal Reserve Act approved December twenty-third, nineteen hun- dred and thirteen. Examinations. Sec. 28. That the Federal Farm Loan Board shall appoint as many land bank examiners as in its judgment may be required to make careful 40 Important Federal Laws examinations of the banks and associations permitted to do business under this Act. Said examiners shall be subject to the same requirements, responsi- bilities and penalties as are applicable to national bank examiners under the national bank Act, the Federal Reserve Act and other provisions of law. Whenever directed by the Federal Farm Loan Board, said examin- ers shall examine the condition of any national farm loan association and report the same to the Farm Loan Commissioner. They shall examine and report the condition of every Federal land bank and joint stock land bank at least twice each year. Said examiners shall receive salaries to be fixed by the Federal Farm Loan Board. Dissolution and Appointment of Receivers. Sec. 29. That upon receiving satisfactory evidence that any national farm loan association has failed to meet its outstanding obliga- tions of any description the Federal Farm Loan Board may forthwith declare such association insolvent and appoint a receiver and require of him such bond and security as it deems proper: Provided, That no national farm loan association shall be declared insolvent by said board until the total amount of defaults of current interest and amortization installments on loans indorsed by national farm loan associations shall amount to at least $150,000 in the Federal land bank district, unless such association shall have been in default for a period of two years. Such receiver, under the direction of the Federal Farm Loan Board, shall take possession of the books, records and assets of every description of such association, collect all debts, dues and claims belonging to it, and, with the approval of the Federal Farm Loan Board, or upon the order of a court of record of competent jurisdiction, may sell or compound all bad or doubtful debts, and, on a like approval or order, may sell all the real and personal property of such association, on such terms as the Federal Farm Loan Board or said court shall direct. Such receiver shall pay over all money so collected to the Treasurer of the United States, subject to the order of the Federal P'arm Loan Board, and also make report to said board of all his acts and proceedings. The Secretary of the Treasury shall have authority to deposit at interest any money so received. Upon default of any obligation, Federal land banks and joint stock land banks may be declared insolvent and placed in the hands of a receiver by the Federal Farm Loan Board, and proceedings shall thereupon be had in accordance with the provisions of this section regarding national farm loan associations. If any national farm loan association shall be declared insolvent and a receiver shall be appointed therefor by the Federal Farm Loan Board, the stock held by it in the Federal land bank of its district shall be can- celed without impairment of its liability and all payments on such stock, Farm Loan Act 41 with accrued dividends, if any, since the date of the last dividend shall be first applied to all debts of the insolvent farm loan association to the Federal land bank and the balance, if any, shall be paid to the receiver of said farm loan association : Provided, That in estimating said debts contingent liabilities incurred by national farm loan associations under the provisions of this Act on account of default of principal or interest of indorsed mortgages shall be estimated and included as a debt, and said contingent liabilities shall be determined by agreement between the receiver and the Federal land bank of the district, subject to the approval of the Federal Farm Loan Board, and if said receiver and said land bank can not agree, then by the decision of the Farm Loan Commissioner, and the amount thus ascertained shall be deducted in accordance with the pro- visions of this section from the amount otherwise due said national farm loan association for said canceled stock. Whenever the capital stock of a Federal land bank shall be reduced, the board of directors shall cause to be executed a certificate to the Federal Farm Loan Board, showing such reduction of capital stock, and, if said reduction shall be due to the insolvency of a national farm loan association, the amount repaid to such association. No national farm loan association, Federal land bank or joint stock land bank shall go into voluntary liquidation w'ithout the written consent of the Federal Farm Loan Board, but national farm loan associations may consolidate under rules and regulations promulgated by the Federal Farm Loan Board. State Legislation, Sec. 30. That it shall be the duty of the Farm Loan Commissioner to make examination of the laws of every State of the United States and to inform the Federal Farm Loan Board as rapidly as may be whether in his judgment the laws of each State relating to the conveying and recording of land titles and the foreclosure of mortgages or other instruments securing loans, as well as providing homestead and other exemptions and granting the power to waive such exemptions as respects first mortgages, are such as to assure the holder thereof adequate safe- guards against loss in the event of default on loans secured by any such mortgages. Pending the making of such examination in the case of any State, the Federal Farm Loan Board may declare first mortgages on farm lands situated w'ithin such State ineligible as the basis for an issue of farm loan bonds ; and if said examination shall show that the laws of any such State afford insufficient protection to the holder of first mortgages of the kinds provided in this Act, said Federal Farm Loan Board may declare said first mortgages on land situated in such State ineligible during the continuance of the laws in question. In making his examination of the laws of the several States and forming his conclusions thereon said Farm Loan Commissioner may call upon the office of the Attorney-General of 42 Important Federal Laws the United States for any needed legal advice or assistance, or may em- ploy special counsel in any State where he considers such action necessary. At the request of the Executive of any State the Federal Farm Loan Board shall prepare a statement setting forth in what respects the require- ments of said board can not be complied with under the existing laws of such State. Penalties. Sec. 31. That any applicant for a loan under this Act who shall knowingly make any false statement in his application for such loan, and any member of a loan committee or any appraiser provided for in this Act who shall willfully overvalue any land offered as security for loans under this Act, shall be punished by a fine of not exceeding $5,000, or by imprisonment not exceeding one year, or both. Any examiner ap- pointed under this Act who shall accept a loan or gratuity from any land bank or national farm loan association examined by him, or from any person connected with any such bank or association in any capacity, shall be punished by a fine of not exceeding $5,000, or by imprisonment not exceeding one year, or both, and may be fined a further sum equal to the money so loaned or gratuity given, and shall forever thereafter be disqualified from holding office as an examiner under the provisions of this Act. No examiner, while holding such office, shall perform any other service for compensation for any bank or banking or loan associa- tion, or for any person connected therewith in any capacity. Any person who shall falsely make, forge, or counterfeit, or cause or procure to be falsely made, forged, or counterfeited, or willingly aid or assist in falsely making, forging or counterfeiting any bond, coupon, or paper in imitation of, or purporting to be in imitation of, the bonds or coupons issued by any land bank or national farm loan association, now or hereafter authorized and acting under the laws of the United States ; or any person who shall pass, utter, or publish, or attempt to pass, utter, or publish any false, forged or counterfeited bond, coupon or paper pur- porting to be issued by any such bank or association, knowing the same to be falsely made, forged or counterfeited ; or whoever shall falsely alter, or cause or procure to be falsely altered, or shall willingly aid or assist in falsely altering any such bond, coupon or paper, or shall pass, utter or publish as true any falsely altered or spurious bond, coupon or paper issued, or purporting to have been issued by any such bank or asso- ciation, knowing the same to be falsely altered or spurious, shall be pun- ished by a fine of not exceeding $5,000 or by imprisonment not exceeding five years, or both. Other than the usual salary or director's fee paid to any officer, director or employee of a national farm loan association, a Federal land bank, or a joint stock land bank, and other than a reasonable fee paid by such association or bank to any officer, director, attorney or employee for services rendered, no officer, director, attorney or employee of an associa- Farm Loan Act 43 tion or bank organized under this Act shall be a beneficiary of or receive, directly or indirectly, any fee, commission, gift, or other consideration for or in connection with any transaction or business of such association or bank. No land bank or national farm loan association organized under this Act shall charge or receive any fee, commission, bonus, gift or other consideration not herein specifically authorized. No examiner, public or private, shall disclose the names of borrowers to other than the proper officers of a national farm loan association or land bank without first having obtained express permission in writing from the Farm Loan Commissioner or from the board of directors of such association or bank, except when ordered to do so by a court of competent jurisdiction or by direction of the Congress of the United States, or of either House thereof, or any committee of Congress or of either House duly authorized. Any person violating any provision of this paragraph shall be punished by a line of not exceeding $5,000 or by imprisonment not exceeding one year, or both. Any person connected in any capacity with any national farm loan association. Federal land bank, or joint stock land bank, who embezzles, abstracts, or willfully misapplies any moneys, funds, or credits thereof, or who without authority from the directors draws any order, assigns any note, bond, draft, mortgage, judgment or decree thereof, or who makes any false entry in any book, report or statement of such associa- tion or land bank with intent in either case to defraud such institution or any other company, body politic or corporate, or any individual person, or to deceive any officer of a national farm loan association or land bank or any agent appointed to examine into the affairs of any such association or bank, and every person who with like intent aids or abets any officer, clerk, or agent in any violation of this section, shall be punished by a fine of not exceeding $5,000 or by imprisonment not exceeding five years, or both. Any person who shall deceive, defraud or impose upon, or who shall attempt to deceive, defraud or impose upon, any person, firm or corpora- tion by making any false pretense or representation regarding the char- acter, issue, security, or terms of any farm loan bond, or coupon, issued under the terms of this Act ; or by falsely pretending or representing that any farm loan bond, or coupon, issued under the terms of this Act by one class of land banks is a farm loan bond, or coupon, issued by another class of banks ; or by falsely pretending or representing that any farm loan bond, or coupon, issued under the terms of this Act, or anything contained in said farm loan bond, or coupon, is anything other than, or different from, what it purports to be on the face of said bond or coupon, shall be fined not exceeding $500 or imprisoned not exceeding one year, or both. The Secretary of the Treasury is hereby authorized to direct and use the Secret Service Division of the Treasury Department to detect, arrest and deliver into custody of the United States marshal having juris- 44 Important Federal Laws diction, any person or persons violating any of the provisions of this section. Government Deposits. Sec. 32. That the Secretary of the Treasurv- is authorized, in his discretion, upon the request of the Federal Fann Loan Board, to make deposits for the temporary use of any Federal land bank, out of any money in the Treasury not otherwise appropriated. Such Federal land bank shall issue to the Secretary of the Treasury a certificate of indebted- ness for any such deposit, bearing a rate of interest not to exceed the current rate charged for other Government deposits, to be secured by farm loan bonds or other collateral, to the satisfaction of the Secretary of the Treasury. Any such certificate shall be redeemed and paid by such land bank at the discretion of the Secretary of the Treasur}\ The aggre- gate of all sums so deposited by the Secretary of the Treasury shall not exceed the sum of $6,000,000 at any one time. Organization Expenses. Sec. 33. That the sum of $100,000, or so much thereof as may be necessary, is hereby appropriated, out of any money in the Treasury not otherwise appropriated, to be expended under the direction of the Federal Fann Loan Board, for the purpose of carrying into effect the provisions of this Act, including the rent and equipment of necessary offices. Limitation of Court Decisions. Sec. 34. That if any clause, sentence, paragraph, or part of this Act shall for any reason be adjudged by any court of competent juris- diction to be invalid, such judgment shall not aft'ect, impair, or invalidate the remainder of this Act, but shall be confined in its operation to the clause, sentence, paragraph or part thereof directly involved in the contro- versy in which such judgment shall have been rendered. Repealing Clause. Sec. 35. That all Acts or parts of Acts inconsistent with this Act are hereby repealed, and this Act shall take eft'ect upon its passage. The right to amend, alter or repeal this Act is hereby expressly reserved. AGRICULTURAL EDUCATION. Act of 1862 donating lands for agricultural colleg'es. [First Morrill Act.] An Act donating public lands to the several States and Territories which may provide colleges for the benefit of agriculture and the mechanic arts. Grants to the State. Sec. L That there be granted to the several States, for the pur- poses hereinafter mentioned, an amount of public land, to be apportioned to each State a quantity equal to thirty thousand acres for each Senator and Representative in Congress to which the States are respectively entitled by the apportionment under the census of eighteen hundred and Agricultural Education 45 sixty: Provided, That no mineral lands shall be selected or purchased under the provisions of this act. Apportionment. Sec. 2. That the land aforesaid, after being surveyed, shall be ap- portioned to the several States in sections or subdivisions of sections, not less than one-quarter of a section; and whenever there are public lands in a State subject to sale at private entry at one dollar and twenty-five cents per acre, the quantity to which said State shall ,be entitled shall be selected from such lands within the limits of such State, and the Secretary of the Interior is hereby directed to issue to each of the States in which there is not the quantity of public lands subject to sale at private entr}^ at one dollar and twenty-five cents per acre to which said vState may be entitled under the provisions of this act land scrip to the amount in acres for the deficiency of its distributive share; said scrip to be sold by said States and the proceeds thereof ap- plied to the uses and purposes prescribed in this act and for no other use or purpose whatsoever : Provided, That in no case shall any State to which land scrip may thus be issued be allowed to locate the same within the limits of any other State or of any Territory of the United States, but their assignees may thus locate said land scrip upon any of the unap- propriated lands of the United States subject to sale at private entry at one dollar and twenty-five cents, or less, per acre : And provided further, That not more than one million acres shall be located by such assignees in any one of the States : And provided further. That no such location shall be made before one year from the passage of this act. Expenses. Sec. 3. That all the expenses of management, superintendence, and taxes from date of selection of said lands, previous to their sales, and all expenses incurred in the management and disbursement of the moneys which may be received therefrom, shall be paid by the States to which they may belong, out of the treasury of said States, so that the entire proceeds of the sale of said lands shall be applied without any diminution whatever to the purposes hereinafter mentioned. Investment of Fund. Sec. 4. That all moneys derived from the sale of lands aforesaid by the States to which lands are apportioned, and from the sales of land scrip hereinbefore provided for, shall be invested in stocks of the United States or of the States, or some other safe stocks ; or the same may be invested by the States having no State stocks in any other manner after the legislatures of such States shall have assented thereto, and engaged that such funds shall yield not less than five per centum upon the amount so invested and that the principal thereof shall forever remain unim- paired: Provided, That the moneys so invested or loaned shall con- stitute a perpetual fund, the capital of which shall remain forever undi- minished (except so far as may be provided in section five of this act), 46 Important Federal Laws and the interest of which shall be inviolably appropriated, by each State which may take and claim the benefit of this act, to the endowment, sup- port, and maintenance of at least one college where the leading object shall be, without excluding other scientific and classical studies, and in- cluding military tactics, to teach such branches of learning as are related to agriculture and the mechanic arts, in such manner as the legislatures of the States may respectively prescribe, in order to promote the liberal and practical education of the industrial classes in the several pursuits and professions in life. (As amended March 3, 1883.) Acceptance by the State of Restrictions. Sec. 5. That the grant of land and land scrip hereby authorized shall be made on the following conditions, to which, as well as to the provisions hereinbefore contained, the previous assent of the several States shall be signified by legislative acts : First. If any portion of the fund invested, as provided by the fore- going section, or any portion of the interest thereon, shall, by any action or contingency, be diminished or lost, it shall be replaced by the State to which it belongs, so that the capital of the fund shall remain forever undiminished ; and the annual interest shall be regularly applied without diminution to the purposes mentioned in the fourth section of this act, except that a sum, not exceeding ten per centum upon the amount received by any State under the provisions of this act, may be expended for the purchase of lands for sites or experimental farms whenever authorized by the respective legislatures of said States. Second. No portion of said fund, nor the interest thereon, shall be applied, directly or indirectly, under any pretense whatever, to the pur- chase, erection, preservation, or repair of any building or buildings. Third. Any State which may take and claim the benefit of the pro- visions of this act shall provide, within five years, at least not less than one college, as described in the fourth section of this act, or the grant to such State shall cease ; and said State shall be bound to pay the United States the amount received of any lands previously sold and that the title to purchasers under the State shall be valid. Fourth. An annual report shall be made regarding the progress of each college, recording any improvements and experiments made, with their cost and results, and such other matters, including State industrial and economical statistics, as may be supposed useful, one copy of which shall be transmitted by mail free, by each, to all the other colleges which may be endowed under the provisions of this act, and also one copy to the Secretary of the Interior. Fifth. When lands shall be selected from those which have been raised to double the minimum price, in consequence of railroad grants, they shall be computed to the States at the maximum price and the num- ber of acres proportionately diminished. Sixth. No State while in a condition of rebellion or insurrection Agricultural Colleges 47 against the Government of the United States shall be entitled to the benefit of this act. Seventh. No State shall be entitled to the benefits of this act unless it shall express its acceptance thereof by its legislature within two years from the date of its approval by the President. Time of Locating Lands. Sec. 6. That land scrip issued under the provisions of this act shall not be subject to location until after the first day of January, one thou- sand eight hundred and sixty-three. Fees. Sec. 7. That the land officers shall receive the same fees for locatmg land scrip issued under the provisions of this act as is now allowed for the location of military bounty land warrants under existing laws : Pro- vided, That their maximum compensation shall not be thereby increased. Reports. Sec. 8. That the governors of the several States to which scrip shall be issued under this act shall be required to report annually to Con- gress all sales made of such scrip until the whole shall be disposed of, the amount received for the same, and what appropriation has been made of the proceeds. ACT FOR THE FURTHER ENDOWMENT OF AGRICUL- TURAL COLLEGES. Act of August 30, 1S90. [Second Morrill Act.] An Act to apply a portion of the proceeds of the public lands to the more com- plete endowment and support of the colleges for the benefit of agricul- ture and the mechanic arts established under the provisions of an act of Congress approved July second, eighteen hundred and sixty-two. Grants to the States. Sec. 1. That there shall be, and hereby is, annually appropriated, out of any money in the Treasury not otherwise appropriated, arising from the sales of public lands, to be paid as hereinafter provided, to each State and Territory for the more complete endowment and maintenance of colleges for the benefit of agriculture and the mechanic arts now estab- lished, or which may be hereafter established, in accordance with an act of Congress approved July second, eighteen hundred and sixty-two, the sum of fifteen thousand dollars for the year ending June thirtieth, eighteen hundred and ninety, and an annual increase of the amount of such ap- propriation thereafter for ten years by an additional sum of one thousand dollars over the preceding year, and the annual amount to be paid there- after to each State and Territory shall be twenty-five thousand dollars, to be applied only to instruction in agriculture, the mechanic arts, the Eng- lish language, and the various branches of mathematical, physical, natural 48 Important Federal Laws and economic science, with special reference to their apphcations in the industries of life and to the facilities for such instruction : Provided, That no money shall be paid out under this act to any State or Territory for the support and maintenance of a college where a distinction of race or color is made in the admission of students, but the establishment and maintenance of such colleges separately for white and colored students shall be held to be a compliance with the provisions of this act if the funds received in such State or Territory be equitably divided as herein- after set forth : Provided, That in any State in which there has been one college established in pursuance of the act of July second, eighteen hundred and sixty-two, and also in which an educational institution of like character has been established, or may be hereafter established, and is now aided by such State from its own revenue, for the education of colored students in agriculture and the mechanic arts, however named or styled, or whether or not it has received money heretofore under the act to which this act is an amendment, the legislature of such State mav pro- pose and report to the Secretary of the Interior a just and equitable divi- sion of the fund to be received under this act, between one college for white students and one institution for colored students, established as aforesaid, which shall be divided into two parts, and paid accordingly, and thereupon such institution for colored students shall be entitled to the benefits of this act and subject to its provisions, as much as it would have been if it had been included under the act of eighteen hundred and sixty-two, and the fulfillment of the foregoing provisions shall be taken as a compliance with the provision in reference to separate colleges for white and colored students. Payments to States. Sec. 2. That the sums hereby appropriated to the States and Terri- tories for the further endowment and support of colleges shall be annually paid on or before the thirty-first day of July of each year, by the Secre- tary of the Treasury, upon the warrant of the Secretary of the Interior, out of the Treasury of the United States, to the State or Territorial treasurer, or to such officer as shall be designated by the laws of such State or Territory to receive the same, who shall, upon the order of the trustees of the college or the institution for colored students, immediately pay over said sums to the treasurers of the respective colleges or other institutions entitled to receive the same, and such treasurers shall be re- quired to report to the Secretary' of Agriculture and to the Secretary of the Interior on or before the first day of September of each year a de- tailed statement of the amount so received and of its disbursement. The grants of moneys authorized by this act are made subject to the legis- lative assent of the several States and Territories to the purpose of said grants : Provided, That payments of such installments of the appropria- tion herein made as shall become due to any State before the adjourn- ment of the regular session of legislature meeting next after the passage Agricultural Colleges 49 of this act shall be made upon the assent of the governor thereof, duly certified to the Secretary of the Treasury. State Liable for Fund — Reports. Sec. 3. That if any portion of the moneys received by the desig- nated officer of the State or Territory for the further and more complete endowment, support and maintenance of colleges, or of institutions for colored students, as provided in this act, shall, by any action or contin- gency, be diminished or lost, or be misapplied, it shall be replaced by the State or Territory to which it belongs, and until so replaced no subse- quent appropriation shall be apportioned or paid to such State or Terri- tory ; and no portion of said moneys shall be applied, directly or indirectly, under any pretense whatever, to the purchase, erection, preservation or repair of any building or buildings. An annual report by the president of each of said colleges shall be made to the Secretary of Agriculture, as well as to the Secretary of the Interior, regarding the condition and prog- ress of each college, including statistical information in relation to its receipts and expenditures, its library, the number of its students and pro- fessors and also as to any improvements and experiments made under the direction of any experiment stations attached to said colleges, with their cost and results and such other industrial and economical statistics as may be regarded as useful, one copy of which shall be transmitted by mail free to all other colleges further endowed under this act. Apportionment. Sec. 4. That on or before the first day of July in each year, after the passage of this act, the Secretary of the Interior shall ascertain and certify to the Secretary of the Treasury as to each State and Territory, whether it is entitled to receive its share of the annual appropriation for colleges, or of institutions for colored students, under this act and the amount which thereupon each is entitled, respectively, to receive. If the Secretary of the Interior shall withhold a certificate from any State or Territory of its appropriation, the facts and reasons therefor shall be re- ported to the President, and the amount involved shall be kept separate in the Treasury until the close of the next Congress, in order that the State or Territory may, if it should so desire, appeal to Congress from the determination of the Secretary of the Interior. If the next Congress shall not direct such sum to be paid it shall be covered into the Treasury. And the Secretary of the Interior is hereby charged with the proper ad- ministration of this law. Report to Congress, Sec. 5. That the Secretary of the Interior shall annually report to Congress the disbursements which have been made in all the States and Territories, and also whether the appropriation of any State or Territory- has been withheld, and, if so, the reasons therefor. Sec. 6. Congress may at any time amend, suspend, or repeal any or all of the provisions of this act. (4) 50 Important Federal Laws ESTABLISHING AGRICULTURAL EXPERIMENT STATIONS. Act of March 2. 1887. [Hatch Act.] An Act to establish agricultural experiment stations in connection with the colleges established in the several States under the provisions of an act approved July second, eighteen hundred and sixty-two, and of the acts supplementary thereto. Experiment Stations Established. Sec. L That in order to aid in acquiring and diffusing among the people of the United States useful and practical information on subjects connected with agriculture, and to promote scientific investigation and experiment respecting the principles and applications of agricultural science, there shall be established under direction of the college or col- leges or agricultural department of colleges in each State or Territory established, or which may hereafter be established, in accordance with the provisions of an act approved July second, eighteen hundred and sixty- two, entitled "An act donating public lands to the several States and Ter- ritories which may provide colleges for the benefit of agriculture and the mechanic arts," or any of the supplements to said act, a department to be known and designated as an "agricultural experiment station" : Pro- vided, That in any State or Territory in which two such colleges have been or may be so established the appropriation hereinafter made to such State or Territory shall be equally divided between such colleges, unless the legislature of such State or Territory shall otherwise direct. Purpose. Sec. 2. That it shall be the object and duty of said experiment stations to conduct original researches or verify experiments on the physi- ology of plants and animals ; the diseases to which they are severally subject, with the remedies of the same; the chemical composition of use- ful plants at their dift'erent stages of growth ; the comparative advantages of rotative cropping as pursued tmder the varying series of crops ; the capacity of new plants or trees for acclimation ; the analysis of soils and water ; the chemical composition of manures, natural or artificial, with experiments designed to test the comparative effects on crops of differ- ent kinds; the adaptation and value of grasses and forage plants; the composition and digestibility of the different kinds of food for domestic animals ; the scientific and economic questions involved in the production of butter and cheese ; and such other researches or experiments bearing directly on the agricultural industry of the United States as may in each case be deemed advisable, having due regard to the varying conditions and needs of the respective States or Territories. Duty of Secretary of Agriculture. Sec. 3. That in order to secure, as far as practicable, uniformity of methods and results in the work of said stations, it shall be the duty of the United States Commissioner [now Secretary] of Agriculture to fur- Agricultural Experiment Stations 51 nish forms, as far as practicable, for the tabulation of results of investi- gation or experiments ; to indicate from time to time such lines of inquiry as to him shall seem most important, and, in general, to furnish such advice and assistance as will best promote the purpose of this act. It shall be the duty of each of said stations annually, on or before the first of February, to make to the governor of the State or Territory in which it is located a full and detailed report of its operations, including a state- ment of receipts and expenditures, a copy of which report shall be sent to each of said stations, to the said Commissioner [now Secretary] of Agriculture, and to the Secretary of the Treasury of the United States. Publications. Sec. 4. That bulletins or reports of progress shall be published at said stations at least once in three months, one copy of which shall be sent to each newspaper in the States or Territories in which they are respec- tively located, and to such individuals actually engaged in farming as may request the same and as far as the means of the station will permit. Such bulletins or reports and the annual reports of said stations shall be transmitted in the mails of the United States free of charge for post- age, under such regulations as the Postmaster General may from time to time prescribe. Appropriations. Sec. 5. That for the purpose of paying the necessary expenses of conducting investigations and experiments and printing and distributing the results as hereinbefore prescribed, the sum of fifteen thousand dol- lars per annum is hereby appropriated to each State, to be specially pro- vided for by Congress in the appropriations from year to year, and to each Territory entitled under the provisions of section eight of this act, out of any money in the Treasury proceeding from the sales of public lands, to be paid in equal quarterly payments on the first day of January, April, July and October in each year, to the treasurer or other officer duly appointed by the governing boards of said colleges to receive the same, the first payment to be made on the first day of October, eighteen hundred and eighty-seven : Provided, however. That out of the first annual appropriation so received by any station an amount not exceeding one-fifth may be expended in the erection, enlargement, or repair of a building or buildings necessary for carrying on the work of such station; and thereafter an amount not exceeding five per centum of such annual appropriation may be so expended. Unexpended Balance Deducted. Sec. 6. That whenever it shall appear to the Secretary of the Treas- ury from the annual statement of receipts and expenditures of any of said stations that a portion of the preceding annual appropriation remains unexpended, such amount shall be deducted from the next succeeding annual appropriation to such station, in order that the amount of money 52 Important Federal 'Laws appropriated to any station shall not exceed the amount actually and necessarily required for its maintenance and support. Not to Affect Relations of Colleges to States. Sec. 7. That nothing in this act shall be construed to impair or modify the legal relation existing between any of the said colleges and the government of the States or Territories in which they are respectively located. Separate Experiment Stations. Sec. 8. That in States having colleges entitled under this section to the benefits of this act and having also agricultural experiment stations established by law separate from said colleges, such States shall be author- ized to apply such benefits to experiments at stations so established by such State ; and in case any State shall have established, under the pro- visions of said act of July second aforesaid, an agricultural department or experimental station in connection with any university, college, or institution not distinctly an agricultural college or school, and such State shall have established or shah hereafter establish a separate agricultural college or school, which shall have connected therewith an experimental farm or station, the legislature of such State may apply in whole or in part the appropriation by this act made to such separate agricultural col- lege or school, and no legislature shall by contract, express or implied, disable itself from so doing. Acceptance by States. Sec. 9. That the grants of moneys authorized by this act are made subiect to the legislative assent of the several States and Territories to the purposes of said grants: Provided, That payment of such install- ments of the appropriation herein made as shall become due to any State before the adjournment of the regular session of its legislature meeting next after the passage of this act shall be made upon the assent of the governor thereof duly certified to the Secretary of the Treasury. Appropriation May Be Repealed. Sec. 10. Nothing in this act shall be held or construed as binding the United States to continue any payments from the Treasury to any or all the States or institutions mentioned in this act, but Congress may at any time amend, suspend or repeal any or all the provisions of this act. THE FURTHER ENDOWMENT OF AGRICULTURAL EXPER- IMENT STATIONS. Act of March 16. 1906. [Adams Act.] An Act to provide for an increased annual appropriation for agricultural ex- periment stations and regulating the expenditure thereof. Grants to the States. Sec. 1. That there shall be, and hereby is, annually appropriated, out of any money in the Treasury not otherwise appropriated, to be paid Agricultural Experiment Stations 53 as hereinafter provided, to each State and Territory, for the more com- plete endowment and maintenance of agricultural experiment stations now established or which may hereafter be established in accordance with the act of Congress approved March second, eighteen hundred and eighty-seven, the sum of five thousand dollars in addition to the sum named in said act for the year ending June thirtieth, nineteen hundred and six, and an annual increase of the amount of such appropriation thereafter for five years by an additional sum of two thousand dollars over the preceding year, and the annual amount to be paid thereafter to each State or Territory shall be thirty thousand dollars, to be applied only to paying the necessary expenses of conducting original researches or ex- periments bearing directly on the agricultural industry of the United States, having due regard to the varying conditions and needs of the respective States or Territories. Payments. Sec. 2. That the sums hereby appropriated to the States and Terri- tories for the further endowment and support of agricultural experiment stations shall be annually paid in equal quarterly payments on the first day of January, April, July and October of each year by the Secretary of the Treasury, upon the warrant of the Secretary of Agriculture, out of the Treasury of the United States, to the treasurer or other ofiicer duly appointed by the governing boards of said experiment stations to receive the same, and such officers shall be required to report to the Secretary of Agriculture on or before the first day of September of each year a detailed statement of the amount so received and of its disburse- ment, on schedules prescribed by the Secretary of Agriculture. The grants of money authorized by this act are made subject to legislative assent of the several States and Territories to the purpose of said grants : Provided, That payment of such installments of the appropriation herein made as shall become due to any State or Territory before the adjourn- ment of the regular session of legislature meeting next after the passage of this act shall be made upon the assent of the governor thereof, duly certified by the Secretary of the Treasury. States Liable for Fund. Sec. 3. That if any portion of the moneys received by the designated officer of any State or Territory for the further and more complete en- dowment, support, and maintenance of agricultural experiment stations as provided in this act shall by any action or contingency be diminished or lost or be misapplied, it shall be replaced by said State or Territory to which it belongs, and until so replaced no subsequent appropriation shall be apportioned or paid to such State or Territory ; and no portion of said moneys exceeding five per centum of each annual appropriation shall be applied, directly or indirectly, under any pretense whatever, to the purchase, erection, preservation, or repair of any building or build- ings, or to the purchase or rental of land. It shall be the dutv of each of 54 Important Federal Laws said stations annually, on or before the first day of February, to make to the governor of the State or Territory in which it is located a full and detailed report of its operations, including a statement of receipts and expenditures, a copy of which report shall be sent to each of said stations, to the Secretary of Agriculture and to the Secretary of the Treasury of the United States. Duties of Secretary of Agriculture. Sec. 4. That on or before the first day of July in each year after the passage of this act the Secretary of Agriculture shall ascertain^ and certify to the Secretary of the Treasury as to each State and Territory whether it is complying with the provisions of this act and is entitled to receive its share of the annual appropriation for agricultural experiment stations under this act and the amount which thereupon each is entitled, respectively, to receive. If the Secretary of Agriculture shall withhold a certificate from any State or Territory of its appropriations, the facts and reasons therefor shall be reported to the President, and the amount involved shall be kept separate in the Treasury until the close of the next Congress, in order that the State or Territory may, if it shall so desire, appeal to Congress from the determination of the Secretary of Agriculture. If the next Congress shall not direct such sum to be paid, it shall be covered into the Treasury; and the Secretary of Agriculture is hereby charged with the proper administration of this law. Report by the Secretary of Agriculture. Sec. 5. That the Secretary of Agriculture shall make an annual re- port to Congress on the receipts and expenditures and work of the agri- cultural experiment stations in all of the States and Territories, and also whether the appropriation of any State or Territory has been with- held, and if so, the reason therefor. Sec. 6. That Congress may at any time amend, suspend, or repeal any or all of the provisions of this act. PROVIDING FOR COOPERATIVE EXTENSION WORK. Act of May 8. 1914. [Smith-Lever Act.] An Act to provide for cooperative agricultural extension work between the agricultural colleges in the several States receiving the benefits of an act of Congress approved July second, eighteen hundred and sixty-two, and of acts supplementary thereto, and the United States Department of Agri- culture. Cooperative Extension Work. Sec. 1. That in order to aid in diffusing among the people of the United States useful and practical information on subjects relating to ao-riculture and home economics, and to encourage the application of the same, there may be inaugurated in connection with the college or colleges Cooperative Agricultur-\l Extension Work 55 in each State now receiving, or which may hereafter receive, the benefits of the act of Congress approved July second, eighteen hundred and sixty- two, entitled "An act donating public lands to the several States and Territories which may provide colleges for the benefit of agriculture and the mechanic arts" (Twelfth Statutes at Large, page five hundred and three), and of the act of Congress approved August thirtieth, eighteen hundred and ninety (Twenty-sixth Statutes at Large, page four hundred and seventeen and chapter eight hundred and forty-one), agricultural ex- tension work which shall be carried on in cooperation with the United States Department of Agriculture : Provided, That in any State in which two or more such colleges have been or hereafter may be established the appropriations hereinafter made to such State shall be administered by such college or colleges as the legislature of such State may direct: Pro- vided further, That, pending the inauguration and development of the cooperative extension work herein authorized, nothing in this act shall be construed to discontinue either the farm management work or the farm- ers' cooperative demonstration work as now conducted by the Bureau of Plant Industry of the Department of Agriculture. Character of Instruction. Sec. 2. That cooperative agricultural extension work shall consist of the giving of instruction and practical demonstrations in agriculture and home economics to persons not attending or resident in said colleges in the several communities, and imparting to such persons information on said subjects through field demonstrations, publications and otherwise; and this work shall be carried on in such manner as may be mutually agreed upon by the Secretary of Agriculture and the State agricultural college or colleges receiving the benefits of this act. Appropriations. Sec. 3. That for the purpose of paying the expenses of said co- operative agricultural extension work and the necessary printing and dis- tributing of information in connection with the same, there is permanently appropriated, out of any money in the Treasury not otherwise appro- priated, the sum of $480.0CO for each year, $10,000 of which shall be paid annually, in the manner hereinafter provided, to each State which shall by action of its legislature assent to the provisions of this act : Pro- vided, That payment of such installments of the appropriation herein- before made as shall become due to any State before the adjournment of the regular session of the legislature meeting next after the passage of this act may, in the absence of prior legislative assent, be made upon the assent of the governor thereof, duly certified to the Secretary of the Treasury: Provided further. That there is also appropriated an addi- tional sum of $600,000 for the fiscal year following that in which the foregoing appropriation first becomes available, and for each year there- after for seven years a sum exceeding by $500,000 the sum appropriated for each preceding year, and for each year thereafter there is permanently 56 Important Federal Laws appropriated for each year the sum of $4,100,000 in addition to the sum of $480,000 hereinbefore provided: Provided further, That before the funds herein appropriated shall become available to any college for any fiscal year plans for the work to be carried on under this act shall be submitted by the proper officials of each college and approved by the Secretary of Agriculture. Such additional sums shall be used only for the purposes hereinbefore stated, and shall be allotted annually to each State by the Secretary of Agriculture and paid in the manner hereinbefore provided, in the proportion which the rural population of each State bears to the total rural population of all the States as determined by the next preceding Federal census : Provided further. That no payment out of the additional appropriations herein provided shall be made in any year to any State until an equal sum has been appropriated for that year by the legislature of such State, or provided by State, county, college, local authority, or individual contributions from within the State, for the maintenance of the cooperative agricultural extension work provided for in this act. Payment. Sec. 4. That the sums hereby appropriated for extension work shall be paid in equal semiannual payments on the first day of January and July of each year by the Secretary of the Treasury upon the warrant of the Secretary of Agriculture, out of the Treasury of the United States, to the treasurer or other officer of the State duly authorized by the laws of the State to receive the same; and such officer shall be required to report to the Secretary of Agriculture, on or before the first day of September of each year, a detailed statement of the amount so received during the previous fiscal year, and of its disbursement, on forms pre- scribed by the Secretary of Agriculture. States Liable for Fund. Sec. 5. That if any portion of the moneys received by the desig- nated officer of any State for the support and maintenance of cooperative agricultural extension work, as provided in this act, shall by any action or contingency be diminshed or lost or be misapplied, it shall be replaced by said State to which it belongs, and until so replaced no subsequent appropriation shall be apportioned or paid to said State, and no portion of said moneys shall be applied, directly or indirectly, to the purchase, erection, preservation, or repair of any building or buildings, or the pur- chase or rental of land, or in college-course teaching, lectures in colleges, promoting agricultural trains, or any other purpose not specified in this act, and not more than five per centum of each annual appropriation shall be applied to the printing and distribution of publications. It shall be the duty of each of said colleges annually, on or before the first day of January, to make to the governor of the State in which it is located a full and detailed report of its operations in the direction of extension work as defined in this act, including a detailed statement of receipts Bureau of Animal Industry 57 and expenditures from all sources for this purpose, a copy of which re- port shall be sent to the Secretary of Agriculture and to the Secretary of the Treasury of the United States. Duty of Secretary of Agriculture. Sec. 6. That on or before the first day of July in each year after the passage of this act the Secretary of Agriculture shall ascertain and certify to the Secretary of the Treasury as to each State whether it is entitled to receive its share of the annual appropriation for cooperative agricultural extension work under this act, and the amount which it is entitled to receive. If the Secretary of Agriculture shall withhold a certificate from any State of its appropriation, the facts and reasons therefor shall be reported to the President, and the amount involved shall be kept separate in the Treasury until the expiration of the Congress next succeeding a session of the legislature of any State from which a certificate has been withheld, in order that the State may, if it should so desire, appeal to Congress from the determination of the Secretary of Agriculture. If the next Congress shall not direct such sum to be paid, it shall be covered into the Treasury. Report of the Secretary of Agriculture. Sec. 7. That the Secretary of Agriculture shall make an annual re- port to Congress of the receipts, expenditures and results of the co- operative agricultural extension work in all of the States receiving the benefits of this act, and also whether the appropriation of any State has been withheld, and if so, the reasons therefor. Sec. 8. That Congress may at any time alter, amend, or repeal any or all of the provisions of this act. BUREAU OF ANIMAL INDUSTRY. Act of May 29, 1884. An Act for the establishment of a Bureau of Animal Industry, to prevent the exportation of diseased cattle, and to provide means for the suppression and extirpation of pleuro-pneumonia and other contagious diseases among domestic animals. Creation of Bureau. Sec. 1. That the Commissioner of Agriculture shall organize in his department a Bureau of Animal Industry, and shall appoint a chief thereof, who shall be a competent veterinary surgeon, and whose duty it shall be to investigate and report upon the condition of domestic animals of the United States, their protection and use, and also inquire into and report the causes of contagious, infectious, and communicable diseases among them, and the means for the prevention and cure of the same, and to collect such information on these subjects as shall be valu- able to the agricultural and commercial interests of the country; and the Commissioner of Agriculture is hereby authorized to employ a force suffi- 58 Important Federal Laws cient for this purpose, not to exceed twenty persons at any one time. The salary of the chief of said bureau shall be three thousand dollars per annum ; and the commissioner shall appoint a clerk for said bureau, with a salary of one thousand five hundred dollars per annum. Appointment of Agents. Sec. 2. That the Commissioner of Agriculture is authorized to ap- point two competent agents, who shall be practical stock raisers or experi- enced business men familiar with questions pertaining to commercial transactions in live stock and whose duty it shall be, under the instructions of the Commissioner of Agriculture, to examine and report upon the best methods of treating, transporting, and caring for animals, and the means to be adopted for the suppression and extirpation of contagious pleuro- pneumonia, and to provide against the spread of other dangerous, conta- gious, infectious, and communicable diseases. The compensation of said agents shall be at the rate of ten dollars per diem, with all necessary expenses while engaged in the actual performance of their duties under this act, when absent from their usual place of business or residence as such agent. Rules and Regulations. Sec. 3. That it shall be the duty of the Commissioner of Agricul- ture to prepare such rules and regulations as he may deem necessary for the speedv and effectual suppression and extirpation of said diseases, and to certify such rules and regulations to the executive authority of each State and Territory, and invite said authorities to cooperate in the execu- tion and enforcement of this Act. Whenever the plans and methods of the Commissioner of Agriculture shall be accepted by any State or Terri- tory in which pleuro-pneumonia or other contagious, infectious, or com- municable disease is declared to exist, or such State or Territory shall have adopted plans and methods for the suppression and extirpation of said diseases, and such plans and methods shall be accepted by the Com- missioner of Agriculture, and whenever the governor of a State or other properly constituted authorities signify their readiness to cooperate for the extinction of any contagious, infectious, or communicable disease in conformity with the provisions of this Act, the Commissioner of Agriculture is hereby authorized to expend so much of the money appro- priated bv this act as may be necessary in such investigations and in such disinfection and quarantine measures as may be necessan,' to prevent the spread of the disease from one State or Territory into another. Investigation of Contagious Diseases. Sec. 4. That in order to promote the exportation of live stock from the United States the Commissioner of Agriculture shall make special investigation as to the existence of pleuro-pneumonia, or any contagious, infectious, or communicable disease, along the dividing lines between the United States and foreign countries, and along the lines of transportation from all parts of the United States to ports from which live stock are Bureau of Animal Industry 59 exported, and make report of the results of such investigation to the Secre- tary of the Treasury, who shall from time to time establish such regula- tions concerning the exportation and transportation of live stock as the results of said investigations may require. Power of Secretary of the Treasury. Sec. 5. That to prevent the exportation from any port of the United States to any port in a foreign country of live stock affected with any contagious, infectious, or communicable disease, and especially pleuro- pneumonia, the Secretary of the Treasury be, and he is hereby, authorized to take such steps and adopt such measures, not inconsistent with the pro- visions of this act, as he may deem necessary. Infected Stock Not to be Transported. Sec. 6. That no railroad company within the United States, or the owners or masters of any steam or sailing or other vessel or boat, shall receive for transportation or transport, from one State or Territory to another, or from any State into the District of Columbia, or from the District into any State, any live stock aft'ected with any contagious, infec- tious, or communicable disease, and especially the disease known as pleuro- pneumonia ; nor shall any person, company, or corporation deliver for such transportation to any railroad company, or master or owner of any boat or vessel, any live stock, knowing them to be affected with any contagious, infectious, or communicable disease ; nor shall any person, company, or corporation drive on foot or transport in private conveyance from one State or Territory to another, or from any State into the District of Co- lumbia, or from the District into any State, any live stock, knowing them to be affected with any contagious, infectious, or conjmunicable disease, and especially the disease known as pleuro-pneumonia : Provided, That the so-called splenetic, or Texas, fever shall not be considered a contagious, infectious, or communicable disease within the meaning of sections four, five, six, and seven of this Act, as to cattle being transported by rail to market for slaughter, when the same are unloaded only to be fed and watered in lots on the way thereto. Notification to Carrier. Sec. 7. That it shall be the duty of the Commissioner of Agriculture to notify, in writing, the proper officials or agents of any railroad, steam- boat, or other transportation company doing business in or through any infected locality, and by publication in such newspapers as he may select, of the existence of said contagion ; and any person or persons operating any such railroad, or master or owner of any boat or vessel, or owner or custodian of or person having control over such cattle or other live stock within such infected district, who shall knowingly violate the provisions of section six of this Act, shall be guilty of a misdemeanor, and, upon con- viction, shall be punished by a fine of not less than one hundred dollars nor more than five thousand dollars, or be imprisoned for not more than one year, or by both such fine and imprisonment. 60 Important Federal Laws Power of Quarantine. Sec. 8. That whenever any contagious, infectious, or communicable disease affecting domestic animals, and especially the disease known as pleuro-pneumonia, shall be brought into or shall break out in the District of Columbia, it shall be the duty of the Commissioners of said District to take measures to suppress the same promptly and to prevent the same from spreading; and for this purpose the said Commissioners are hereby empowered to order and require that any premises, farm, or farms, where such disease exists, or has existed, be put in quarantine ; to order all or any animals coming into the District to be detained at any place or places for the purpose of inspection and examination ; to prescribe regulations for and require the destruction of animals affected with contagious, infec- tious, and communicable disease, and for the .proper disposition of their hides and carcasses ; to prescribe regulations for disinfection, and such other regulations as they may deem necessary to prevent infection or contagion being communicated, and shall report to the Commissioner of Agriculture whatever they may do in pursuance of the provisions of this section. Prosecutions. Sec. 9. That it shall be the duty of the several United States dis- trict attorneys to prosecute all violations of this act which shall be brought to their notice or knowledge by any person making the complaint under oath; and the same shall be heard before any district or circuit court of the United States or Territorial court holden within the district in which the violation of this act has been committed. Appropriations. Sec. 10. That the sum of one hundred and fifty thousand dollars, to be immediately available, or so much thereof as may be necessary, is hereby appropriated, out of any moneys in the Treasury not otherwise appropriated, to carry into effect the provisions of this act. Report. Sec. 11. That the Commissioner of Agriculture shall report annually to Congress, at the commencement of each session, a list of the names of all persons employed, an itemized statement of all expenditures under this act, and full particulars of means adopted and carried into effect for the suppression of contagious, infectious, or communicable diseases among domestic animals. SUPPRESSION OF ANIMAL DISEASES. Act of February 2, 1903. An Act to enable the Secretary of Agriculture to more effectually suppress and prevent the spread of contagious and infectious diseases of live stock, and for other purposes. Rules and Regulations for Transporting Stock. Sec. 1. That in order to enable the Secretary of Agriculture to effectually suppress and extirpate contagious pleuro-pneumonia, foot-and- Animal Diseases 61 mouth disease, and other dangerous, contagious, infectious, and com- municable diseases in cattle and other live stock, and to prevent the spread of such diseases, the powers conferred on the Secretary of the Treasury by sections four and five of an Act entitled "An Act for the establishment of a Bureau of Animal Industry, to prevent the exportation of diseased cattle, and to provide means for the suppression and extirpa- tion of pleuro-pneumonia and other contagious diseases among domestic animals," approved May twenty-ninth, eighteen hundred and eighty-four (twenty-third United States Statutes, thirty-one), are hereby conferred on the Secretary of Agriculture, to be exercised exclusively by him. He is hereby authorized and directed, from time to time, to establish such rules and regulations concerning the exportation and transportation of live stock from any place within the United States where he may have reason to believe such diseases may exist into and through any State or Terri- tory, including the Indian Territory, and into and through the District of Columbia, and to foreign countries, as he may deem necessary, and all such rules and regulations shall have the force of law. Whenever any inspector or assistant inspector of the Bureau of Animal Industry shall issue a certificate showing that such officer had inspected any cattle or other live stock which were about to be shipped, driven, or transported from such locality to another, as above stated, and had found them free from Texas, or splenetic, fever infection, pleuro-pneumonia, foot-and- mouth disease, or any other infectious, contagious, or communicable dis- ease, such animals so inspected and certified may be shipped, driven, or transported from such place into and through any State or Territory, in- cluding the Indian Territory, and into and through the District of Colum- bia, or they may be exported from the United States without further in- spection or the exaction of fees of any kind, except such as may at any time be ordered or exacted by the Secretary of Agriculture ; and all such animals shall at all times be under the control and supervision of the Bureau of Animal Industry of the Agricultural Department for the pur- poses of such inspection. Power to Seize Goods or Stock. Sec. 2. That the Secretary of Agriculture shall have authority to make such regulations and take such measures as he may deem proper to prevent the introduction or dissemination of any contagious, infectious, or communicable disease of animals from a foreign country into the United States or from one State or Territory of the United States or the District of Columbia to another, and to seize, quarantine, and dispose of any hay, straw, forage, or similar material, or any meats, hides, or other animal products coming from an infected foreign country to the United States, or from one State or Territory or the District of Columbia in transit to another State or Territory or the District of Columbia when- ever in his judgment such action is advisable in order to guard against the introduction or spread of such contagion. 62 Important Federal Laws Penalty. Sec. 3. That any person, company, or corporation knowingly vio- lating the provisions of this act or the orders or regulations made in pursuance thereof shall be guilty of a misdemeanor, and on conviction shall be punished by a fine of not less than one hundred dollars nor more than one thousand dollars, or by imprisonment not more than one year, or by both such fine and imprisonment. QUARANTINE OF ANIMALS. Act of May 3, 1905. An Act to enable the Secretary of Agriculture to establish and maintain quar- antine districts, to permit and regulate the movement of cattle and other live stock therefrom, and for other purposes. Quarantine. Sec. 1. That the Secretary of Agriculture is authorized and directed to quarantine any State or Territory or the District of Columbia, or any portion of any State or Territory or the District of Columbia, when he shall determine the facts that cattle or other live stock in such State or Territory or District of Columbia are affected with any conta- gious, infectious, or communicable disease ; and the Secretary of Agri- culture is directed to give written or printed notice of the establishment of quarantine to the proper officers of railroad, steamboat, or other trans- portation companies doing business in or through any quarantined State or Territory or the District of Columbia, and to publish in such news- papers in the quarantined State or Territory or the District of Columbia, as the Secretary of Agriculture may select, notice of the establishment of quarantine. Transportation Prohibited in Certain Cases. Sec. 2. That no railroad company or the owners or masters of any steam or sailing or other vessel or boat shall receive for transportation or transport from any quarantined State or Territory or the District of Columbia, or from the quarantined portion of any State or Territory or the District of Columbia, into any other State or Territory or the Dis- trict of Columbia, any cattle or other live stock, except as hereinafter provided ; nor shall any person, company, or corporation deliver for such transportation to any railroad company, or to the master or owner of any boat or vessel any cattle or other live stock, except as hereinafter pro- vided ; nor shall any person, company, or corporation drive on foot, or cause to be driven on foot, or transport in private conveyance or cause to be transported in private conveyance, from a quarantined State or Territory or the District of Columbia, or from the quarantined portion of any State or Territory or the District of Columbia, into anv other State or Territory or the District of Columbia, any cattle or other live stock, except as hereinafter provided. Rules and Regulations. Sec. 3. That it shall be the duty of the Secretary of Agriculture, Animal Diseases 63 and he is hereby authorized and directed, when the public safety will permit, to make and promulgate rules and regulations which shall per- mit and govern the inspection, disinfection, certification, treatment, handling, and method and manner of delivery and shipment of cattle or other live stock from a quarantined State or Territory or the District of Columbia, and from the quarantined portion of any State or Territory or the District of Columbia, into any other State or Territory or the District of Columbia ; and the Secretary of Agriculture shall give notice of such rules and regulations in the manner provided in section two of this act for notice of establishment of quarantine. Transportation Only as Approved. Sec. 4. That cattle or other live stock may be moved from a quar- antined State or Territory or the District of Columbia, or from the quar- antined portion of any State or Territory or the District of Columbia, into any other State or Territory or the District of Columbia, under and in compliance with the rules and regulations of the Secretary of Agricul- ture, made and promulgated in pursuance of the provisions of section three of this act; but it shall be unlawful to move, or to allow to be moved, any cattle or other live stock from any quarantined State or Territory or the District of Columbia, or from the quarantined portion of any State or Territory or the District of Columbia, into any other State or Territory or the District of Columbia, in manner or method or under conditions other than those prescribed by the Secretary of Agriculture. Resistance to Enforcement. Sec. 5. That every person who forcibly assaults, resists, opposes, prevents, impedes, or interferes with any officer or employee of the Bureau of Animal Industry of the United States Department of Agri- culture in the execution of his duties, or on account of the execution of his duties, shall be fined not less than one hundred dollars nor more than one thousand dollars, or be imprisoned not less than one month nor more than one year, or by both such fine and imprisonment ; and every person who discharges any deadly weapon at any officer or employee of the Bureau of Animal Industry of the United States Department of Agri- culture, or uses any dangerous or deadly weapon in resisting him in the execution of his duties, with intent to commit a bodily injury upon him or to deter or prevent him from discharging his duties, or on account of the performance of his duties, shall, upon conviction, be imprisoned at hard labor for a term not more than five years or fined not to exceed one thousand dollars. Penalty. Sec. 6. That any person, company or corporation violating the pro- visions of sections two or four of this act shall be guilty of a misde- meanor, and on conviction shall be punished by a fine of not less than one hundred dollars nor more than one thousand dollars, or by imprison- ment not more than one year, or by both such fine and imprisonment. 64 Important Federal Laws CRUELTY TO ANIMALS. Act of June 29, 1906. An Act to prevent cruelty to animals while in transit by railroad or other means of transportation from one State or Territory or the District of Columbia into or through another State or Territory or the District of Columbia, and repealing sections forty-three hundred and eighty-six, forty- three hundred and eighty-seven, forty-three hundred and eighty-eight, forty-three hundred and eighty-nine, and forty-three hundred and ninety of the United States Revised Statutes. Cruelty to Animals Transported. Sec. 1. That no railroad, express company, car company, common carrier other than by water, or the receiver, trustee, or lessee of any of them, whose road forms any part of a line of road over which cattle, sheep, swine, or other animals shall be conveyed from one State or Ter- ritory or the District of Columbia into or through another State or Ter- ritory or the District of Columbia, or the owners or masters of steam, sailing, or other vessels carrying or transporting cattle, sheep, swine, or other animals from one State or Territory or the District of Columbia into or through another State or Territory or the District of Columbia, shall confine the same in cars, boats, or vessels of any description for a period longer than twenty-eight consecutive hours without unloading the same in a humane manner, into properly equipped pens for rest, water, and feeding, for a period of at least five consecutive hours, unless pre- vented by storm or by other accidental or unavoidable causes which can not be anticipated or avoided, by the exercise of due diligence and fore- sight : Provided, That upon the written request of the owner or person in custody of that particular shipment, which written request shall be separate and apart from any printed bill of lading, or other railroad form, the time of confinement may be extended to thirty-six hours. In esti- mating such confinement, the time consumed in loading and unloading shall not be considered, but the time during which the animals have been confined without such rest or feed or water on connecting roads shall be included, it being the intent of this act to prohibit their continuous con- finement beyond the period of twenty-eight hours, except upon the con- tingencies hereinbefore stated : Provided, That it shall not be required that sheep be unloaded in the nighttime, but where the time expires in the nighttime in case of sheep the same may continue in transit to a suit- able place for unloading, subject to the aforesaid limitation of thirty- six hours. Feeding and Watering. Sec. 2. That animals so unloaded shall be properly fed and watered during such rest either by the owner or person having the custody there- of, or in case of his default in so doing then by the railroad, express company, car company, common carrier other than by water, or the re- ceiver, trustee, or lessee of any of them, or by the owners or masters of boats or vessels transporting the same, at the reasonable expense of the owner or person in custody thereof, and such railroad, express com- Cruelty to Animals 65 pany, car company, common carrier other than by water, receiver, trus- tee, or lessee of any of them, owners or masters, shall in such case have a lien upon such animals for food, care, and custody furnished, collect- ible at their destination in the same manner as the transportation charges are collected, and shall not be liable for any detention of such animals, when such detention is of reasonable duration, to enable compliance with section one of this act; but nothing in this section shall be construed to prevent the owner or shipper of animals from furnishing food therefor if he so desires. Penalty. Sec. 3. That any railroad, express company, car company, common carrier other than by water, or the receiver, trustee, or lessee of any of them, or the master or owner of any steam, sailing, or other vessel who knowingly and wilfully fails to comply with the provisions of the two preceding sections shall for every such failure be liable for and forfeit and pay a penalty of not less than one hundred nor more than five hun- dred dollars : Provided, That when animals are carried in cars, boats, or other vessels in which they can and do have proper food, water, space, and opportunity to rest the provisions in regard to their being unloaded shall not apply. Civil Action. Sec. 4. That the penalty created by the preceding section shall be recovered by civil action in the name of the United States in the circuit or district court holden within the district where the violation may have been committed or the person or corporation resides or carries on busi- ness ; and it shall be the duty of United States attorneys to prosecute all violations of this act reported by the Secretary of Agriculture, or which come to their notice or knowledge by other means. Repeal. Sec. 5. That sections forty-three hundred and eighty-six, forty- three hundred and eighty-seven, forty-three hundred and eighty-eight, forty-three hundred and eighty-nine, and forty-three hundred and ninety of the Revised Statutes of the United States be, and the same are, hereby repealed. Extract from act approved March 4, 1913 (37 Stat., 831). That hereafter all the provisions of the said act approved March third, nineteen hundred and five, shall apply to any railroad company or other common carrier, whose road or line forms any part of a route over which cattle or other live stock are transported in the course of shipment from any quarantined State or Territory or the District of Columbia, or from the quarantined portion of any State or Territory or the District of Columbia, into any other State or Territory or the Dis- trict of Columbia ; * * * (5) 66 Important Federal Laws THE GRAIN STANDARDS ACT. Act of August 11, 1916. Part B. That this Part, to be known as the United States grain standards Act, be and is hereby enacted, to read and be effective hereafter as follows : Definitions. "That this Act shall be known by the short title of the 'United States grain standards Act.' The word 'person,' wherever used in this Act, 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 Act, mean, 'from any State, Territory, or District to or throtigh any other State, Territory, or District, or to or through any foreign country, or within any Territory or District.' When construing and enforcing the provisions of this Act, the act, omission, or failure of any official, agent, or other person acting for or employed by any asso- ciation, 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. Standards to be Fixed. "Sec. 2. That the Secretary of Agriculture is hereby authorized to investigate the handling, grading, and transportation of grain and to fix and establish as soon as may be after the enactment hereof standards of quality and condition for corn (maize), wheat, rye, oats, barley, flax- seed, 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. Official Grain Standards. "Sec. 3. That the standards so fixed and established shall be known as the official grain standards of the United States. Grain to be Graded. "Sec. 4. That whenever standards shall have been fixed and estab- lished under this Act 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 Act and the grade by which it is sold, offered for sale, or consigned Grain Standards Act 67 for sale be one of the grades 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 Tiny such grain sold, offered for sale, or consigned for sale by grade may be shipped or delivered for shipment in interstate or for- eign commerce without inspection at point of shipment by an inspector licensed under this Act, to or through any place at which an inspector Hcensed under this Act 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 pro- vided in section six of this Act: 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 Act. to a place at which there is no such inspector, subject to the right of either party to the transaction to refer any dispute as to the grade of the grain to the Secretary of Agriculture, who may determine the true grade thereof. No person shall in any certificate or in any contract or agreement of sale or agreement to sell by grade, either oral or written, involving, or in any invoice or bill of lading or other shipping document relating to, the shipment or delivery for shipment, in interstate or foreign commerce, of any grain for which standards shall have been fixed and established under. this Act, 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. Misrepresentation. • '■'Sec. 5. That no person, except as permitted in section four, shall represent that any grain shipped or delivered for shipment in interstate or foreign commerce is of a grade fixed in the official grain standards other than as shown by a certificate therefor issued in compliance with this Act ; and the Secretary of Agriculture is authorized to cause exam- inations to be made of any grain for which standards shall have been fixed and established under this Act, and which has been certified to con- form to anv grade fixed therefor in such official grain standards, or which has been shipped or delivered for shipment in interstate or foreign com- merce. Whenever, after opportunity for hearing is given to the owner or shipper of the grain involved, and to the inspector thereof if the same 68 Important Federal Laws has been inspected, it is determined by the Secretary that any quantity of grain has been incorrectly certified to conform to 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. Appeals to Secretary of Agriculture. "Sec. 6. That whenever standards shall have been fix' of any issue of fact joined in any such case, and all such proceedings shall be at the suit of and in the name of the United States. Regulation of Importation. Sec. 11. That the Secretary of the Treasury shall deliver to the Secretary of Agriculture, upon his request, from time to time, samples of insecticides, Paris greens, lead arsenates, and fungicides which are being imported into the United States or offered for import, giving notice thereof to the owner or consignee, who may appear before the Secretary of Agriculture and have the right to introduce testimony; and if it appear from the examination of such samples that any insecticides, or Paris green, or lead arsenate, or fungicide offered to be imported into the United States is adulterated or misbranded within the meaning of this Act, or is otherwise dangerous to the health of the people of the United States, or is of a kind forbidden entry into or forbidden to be sold or restricted in sale in the country in which it is made or from which it is exported, or is otherwise falsely labeled in any respect, the said article shall be refused admission, and the Secretary of the Treasury shall refuse delivery to the consignee and shall cause the destruction of any goods refused delivery which shall not be exported by the consignee within three months from the date of notice of such refusal under such regulations as the Secretary of the Treasury may prescribe: Provided, That the Secretary of the Treasury may deliver to the consignee such goods pending examination and decision in the matter on execution of a penal bond for the amount of the full invoice value of such goods, together with the duty thereon, and on refusal to return such goods for any cause to the custody of the Secretar}^ of the Treasury, when de- Insecticides 95 manded, for the purpose of excluding them from the country, or for any other purpose, said consignee shall forfeit the full amount of the bond: And provided further, That all charges for storage, cartage, and labor on goods which are refused admission or delivery shall be paid by the owner or consignee, and in default of such payment shall con- stitute a lien against any future importation made by such owner or consignee. Definitions. Sec. 12. That the term "Territory," as used in this Act, shallin- clude the District of Alaska and the insular possessions of the United States. The word "person," as used in this Act, shall be construed to import both the plural and the singular, as the case demands, and shall include corporations, companies, societies, and associations. When con- struing and enforcing the provisions of this Act, the act, omission, or failure of any officer, agent, or other person acting for or employed by any corporation, company, society, or association, within the scope of his employment or office, shall in every case be also deemed to be the act, omission, or failure of such corporation, company, society, or asso- ciation, as well as that of the other person. Title of Act. Sec. 13. That this Act shall be known and referred to as "The insecticide Act of 1910." Date of Effect. Sec. 14. That this Act shall be in force and effect from and after the first day of January, nineteen hundred and eleven. VOCATIONAL EDUCATION ACT. Act of February 23, 1917. An Act to provide for the promotion of vocational education; to provide for co-operation with the States in the promotion of such education In agricul- ture and the trades and industries; to provide for co-operation v^^ith the States in the preparation of teachers of vocational subjects; and to appro- priate money and regulate Its expenditure. Appropriation. Sec. 1. That there is hereby annually appropriated, out of any money in the Treasury not otherwise appropriated, the sums provided in sections two, three, and four of this Act, to be paid to the respective States for the purpose of co-operating with the States in paying the salaries of teachers, supervisors, and directors of agricultural subjects, and teachers of trade, home economics, and industrial subjects, and in the prepara- tion of teachers of agricultural, trade, industrial, and home economics subjects ; and the sum provided for in section seven for the use of the Federal Board for Vocational Education for the administration of this Act and for the purpose of making studies, investigations, and reports to aid in the organization and conduct of vocational education, which sums shall be expended as hereinafter provided. Appropriations for Agricultural Education. Sec. 2. That for the purpose of co-operating with the States in paying the salaries of teachers, supervisors, or directors of agricultural subjects there is hereby appropriated for the use of the States, subject to the provisions of this Act, for the fiscal year ending June thirtieth, nineteen hundred and eighteen, the sum of $500,000; for the fiscal year ending June thirtieth, nineteen hundred and nineteen, the sum of $750,000; for the fiscal year ending June thirtieth, nineteen hundred and twenty, the sum of $1,000,000; for the fiscal year ending June thirtieth, nineteen hundred and twenty-one, the sum of $1,250,000; for the fiscal year ending June thirtieth, nineteen hundred and twenty-two, the sum of $1,500,000; for the fiscal year ending June thirtieth, nine- teen hundred and twenty-three, the sum of $1,750,000; for the fiscal year ending June thirtieth, nineteen hundred and twenty-four, the sum of $2,000,000; for the fiscal year ending June thirtieth, nineteen hun- dred and twenty-five, the sum of $2,500,000; for the fiscal year ending June thirtieth, nineteen hundred and twenty-six, and annually there- after, the sum of $3,000,000. Said sums shall be allotted to the States in the proportion which their rural population bears to the total rural population in the United States, not including outlying possessions, VocATiONAi. Education 97 according to the last preceding United States census : Provided, That the allotment of funds to any State shall be not less than a minimum of $5,000 for any fiscal year prior to and including the fiscal year ending June thirtieth, nineteen hundred and twenty-three, nor less than $10,000 for any fiscal year thereafter, and there is hereby appropriated the fol- lowing sums, or so much thereof as may be necessary, which shall be used for the purpose of providing the minimum allotment to the States provided for in this section : For the fiscal year ending June thirtieth, nineteen hundred and eighteen, the sum of $48,000; for the fiscal year ending June thirtieth, nineteen hundred and nineteen, the sum of $34,000 : for the fiscal year ending June thirtieth, nineteen hundred and twenty, the sum of $24,000; for the fiscal year ending June thirtieth, nineteen hundred and twenty-one, the sum of $18,000; for the fiscal year ending June thirtieth, nineteen hundred and twenty-two, the sum of $14,000; for the fiscal year ending June thirtieth, nineteen hundred and twenty-three, the sum of $11,000; for the fiscal year ending June thirtieth, nineteen hundred and twenty-four, the sum of $9,000; for the fiscal year ending June thirtieth, nineteen hundred and twenty-five, the sum of $34,000 ; and annually thereafter the sum of $27,000. Appropriations for Industrial Education. Sec. 3. That for the purpose of co-operating with the States in paying the salaries of teachers of trade, home economics, and industrial subjects there is hereby appropriated for the use of the States, for the fiscal year ending June thirtieth, nineteen hundred and eighteen, the sum of $500,000 ; for the fiscal year ending June thirtieth, nineteen hundred and nineteen, the sum of $750,000; for the fiscal year ending June thirtieth, nineteen hundred and twenty, the sum of $1,000,000; for the fiscal year ending June thirtieth, nineteen hundred and twenty- one, the sum of $1,250,000; for the fiscal year ending June thirtieth, nineteen hundred and twenty-two, the sum of $1,500,000; for the fiscal year ending June thirtieth, nineteen hundred and twenty-three, the sum of $1,750,000; for the fiscal year ending June thirtieth, nineteen hun- dred and twenty-four, the sum of $2,000,000; for the fiscal year ending June thirtieth, nineteen hundred and twenty-five, the sum of $2,500,000; for the fiscal year ending June thirtieth, nineteen hundred and twenty- six, the sum of $3.000.000 ; and annually thereafter the sum of $3,000,- 000. Said sums shall be allotted to the States in the proportion which their urban population bears to the total urban population in the United States, not including outlying possessions, according to the last preced- ing United States census : Provided, That the allotment of funds to any State shall be not less than a minimum of $5,000 for any fiscal year prior to and including the fiscal year ending June thirtieth, nineteen hundred and twenty-three, nor less than $10,000 for any fiscal year thereafter, and there is hereby appropriated the following sums, or so much thereof as may be needed, which shall be used for the purpose (7) 98 Important Federal Laws of providing the minimum allotment to the States provided for in this section : For the fiscal year ending June thirtieth, nineteen hundred and eighteen, the sum of $66,000; for the fiscal year ending June thirtieth, nineteen hundred and nineteen, the sum of $46,000; for the fiscal year ending June thirtieth, nineteen hundred and twenty, the sum of $34,000 ; for the fiscal vear ending June thirtieth, nineteen hundred and twenty- one, the sum of $28,000 ; for the fiscal year ending June thirtieth, nine- teen hundred and twenty-two, the sum of $25,000; for the fiscal year ending June thirtieth, nineteen hundred and twenty-three, the sum of $22,000; for the fiscal year ending June thirtieth, nineteen hundred and twenty-four, the sum of $19,000; for the fiscal year ending June thirtieth, nineteen hundred and twenty-five, the sum of $56,000; for the fiscal year ending June thirtieth, nineteen hundred and twenty-six, and annually thereafter, the sum of $50,000. That not more than twenty per centum of the money appropriated under this Act for the payment of salaries of teachers of trade, home economics, and industrial subjects, for any year, shall be expended for the salaries of teachers of home economics subjects. Appropriations for Training Vocational Teachers. Sec. 4. That for the purpose of co-operating with the States in preparing teachers, supervisors, and directors of agricultural subjects and teachers of trade and industrial and home economics subjects there is hereby appropriated for the use of the States for the fiscal year ending June thirtieth, nineteen hundred and eighteen, the sum of $500,- 000; for the fiscal year ending June thirtieth, nineteen hundred and nineteen, the sum of' $700,000; for the fiscal year ending June thirtieth, nineteen hundred and twenty, the sum of $900,000; for the fiscal year ending June thirtieth, nineteen hundred and twenty-one, and annually thereafter, the sum of $1,000,000. Said sums shall be allotted to the States in the proportion which their population bears to the total popu- lation of the United States, not including outlying possessions, accord- ing to the last preceding United States census : Provided, That the allotment of funds to any State shall be not less than a minimum of $5,000 for any fiscal year prior to and including the fiscal year ending June thirtieth, nineteen hundred and nineteen, nor less than $10,000 "for any fiscal year thereafter. And there is hereby appropriated the following sums, or so much thereof as may be needed, which shall be used for the purpose of providing the minimum allotment provided for in this section : For the fiscal year ending June thirtieth, nineteen hundred and eighteen, the sum of $46,000; for the fiscal year ending June thirtieth, nineteen hundred and nineteen, the sum of $32,000; for the fiscal year ending June thirtieth, nineteen hundred and twenty, the sum of $24,000; for the fiscal year ending June thirtieth, nineteen hun- dred and twenty-one, and annually thereafter, the sum of $90,000. Vocational Education 99 Acceptance by States. Sec. 5. That in order to secure the benefits of the appropriations provided for in sections two, three, and four of this Act, any State shall, through the legislative authority thereof, accept the provisions of this Act and designate or create a State board, consisting of not less than three members, and having all necessary power to co-operate, as herein provided, with the Federal Board for Vocational Education in the administration of the provisions of this Act. The State board of education, or other board having charge of the administration of public education in the State, or any State board having charge of the admin- istration of any kind of vocatio.nal education in the State may, if the State so elect, be designated as the State board, for the purposes of this Act. , t In any State the legislature of which does not meet in nineteen hundred and seventeen, if the governor of that State, so far as he is authorized to do so, shall accept the provisions of this Act and desig- nate or create a State board of not less than three members to act in co-operation with the Federal Board for Vocational Education, the Federal board shall recognize such local board for the purposes of this Act until the legislature of such State meets in due course and has been in session sixty days. Any State may accept the benefits of any one or more of the re- spective funds herein appropriated, and it may defer the acceptance of the benefits of any one or more of such funds, and shall be required to meet only the conditions relative to the fund or funds the benefits of which it has accepted : Provided, That after June thirtieth, nineteen hundred and twenty, no State shall receive any appropriation for sal- aries of teachers, supervisors, or directors of agricultural subjects, until it shall have taken advantage of at least the minimum amount appro- priated for the training of teachers, supervisors, or directors of agri- cultural subjects, as provided for in this Act, and that after said date no State shall receive any appropriation for the salaries of teachers of trade, home economics, and industrial subjects until it shall have taken advantage of at least the minimum amount appropriated for the training of teachers of trade, home economics, and industrial subjects, as provided for in this Act. Federal Board for Vocational Education. Sec. 6. That a Federal Board for Vocational Education is hereby created, to consist of the Secretary of Agriculture, the Secretary of Commerce, the Secretary of Labor, the United States Commissioner of Education, and three citizens of the United States to be appointed by the President, by and with the advice and consent of the Senate. One of said three citizens shall be a representative of the manufac- turing and commercial interests, one a representative of the agricul- tural interests, and one a representative of labor. The board shall 100 Important Federal Laws elect annually one of its members as chairman. In the first instance, one of the citizen members shall be appointed for one year, one for two years, and one for three years, and thereafter for three years each. The members of the board other than the members of the Cabinet and the United States Commissioner of Education shall receive a salary of $5,000 per annum. The board shall have power to co-operate with State boards in carrying out the provisions of this Act. It shall be the duty of the Federal Board for Vocational Education to make, or cause to have made studies, investigations, and reports, with particular reference to their use in aiding the States in the establishment of vocational schools and classes and in giving instruction in agriculture, trades and indus- tries, commerce and commercial pursuits, and home economics. Such studies, investigations, and reports shall include agriculture and agri- cultural processes and requirements upon agricultural workers ; trades, industries, and apprenticeships, trade and industrial requirements upon industrial workers, and classification of industrial processes and pur- suits ; commerce and commercial pursuits and requirements upon com- mercial workers; home management, domestic science, and the study of related facts and principles ; and problems of administration of voca- tional schools and of courses of study and instruction in vocational subjects. When the board deems it advisable such studies, investigations, and reports concerning agriculture, for the purposes of agricultural education, may be made in co-operation with or through the Depart- ment of Agriculture; such studies, investigations, and reports concern- ing trades and industries, for the purposes of trade and industrial edu- cation, may be made in co-operation with or through the Department of Labor; such studies, investigations, and reports concerning com- merce and commercial pursuits, for the purposes of commercial educa- tion, may be made in co-operation with or through the Department of Commerce ; such studies, investigations, and reports concerning the ad- ministration of vocational schools, courses of study and instruction in vocational subjects, may be made in co-operation with or through the Bureau of Education. Thfe Commissioner of Education may make such recommendations to the board relative to the administration of this Act as he may from time to time deem advisable. It shall be the duty of the chairman of the board to carry out the rules, regulations, and decisions which the board may adopt. The Federal Board for Vocational Education shall have power to employ such assistants as may be necessary to carry out the provisions of this Act. Appropriation for Federal Board. Sec. 7. That there is hereby appropriated to the Federal Board for Vocational Education the sum of $200,000 annually, to be available Vocational Education 101 from and after the passage of this Act, for the purpose of making or co-operating in making the studies, investigations, and reports provided for in section six of this Act, and for the purpose of paying tlie sal- aries of the officers, the assistants, and such office and other expenses as the board may deem necessary to the execution and administration of this Act. States to Prepare Plans. Sec. 8. That in order to secure the benefits of the appropriation for any purpose specified in this Act, the State board shall prepare plans, showing the kinds of vocational education for which it is pro- posed that the appropriation shall be used ; the kinds of schools and equipment ; courses of study ; methods of instruction ; qualifications of teachers ; and, in the case of agricultural subjects, the qualifications of supervisors or directors ; plans for the training of teachers ; and, in the case of agricultural subjects, plans for the supervision of agricultural education, as provided ^ for in section ten. Such plans shall be sub- mitted by the State board to the Federal Board for Vocational Edu- cation, and if the Federal board finds the same to be in confonnity with the provisions and purposes of this Act, the same shall be ap- proved. The State board shall make an annual report to the Federal Board for Vocational Education, on or before September first of each year, on the work done in the State and the receipts and expenditures of money under the provisions of this Act. Conditions on Grants. Sec. 9. That the appropriation for the salaries of teachers, super- visors, or directors of agricultural subjects and of teachers of trade, home economics, and industrial subjects shall be devoted exclusively to the payment of salaries of such teachers, supervisors, or directors having the minimum qualifications set up for the State by the State board, with the approval of the Federal Board for Vocational Edu- cation. The cost of instruction supplementary to the instruction in agricultural and in trade, home economics, and industrial subjects provided for in this Act, necessary to build a well-rounded course of training, shall be borne by the State and local communities, and no part of the cost thereof shall be borne out of the appropriations herein made. The moneys expended under the provisions of this Act, in co-operation with the States, for the salaries of teachers, supervisors, or directors of agricultural subjects, or for the salaries of teachers of trade, home economics, and industrial subjects, shall be conditioned that for each dollar of Federal money expended for such salaries the State or local community, or both, shall expend an equal amount for such salaries ; and that appropriations for the training of teachers of vacational subjects, as herein provided, shall be conditioned that such money be expended for maintenance of such training and that for each dollar of Federal money so expended for maintenance, the State 102 Important Federal Laws or local community, or both, shall expend an equal amount for the maintenance of ssch training. Requirements for Agricultural Education. Sec. 10. That any State may use the appropriation for agricultural purposes, or any part thereof allotted to it, under the provisions of this Act, for the salaries of teachers, supervisors, or directors of agricultural subjects, either for the salaries of teachers of such subjects in schools or classes or for the salaries of supervisors or directors of such subjects under a plan of supervision for the State to be set up by the State board, with the approval of the Federal Board for Vocational Educa- tion. That in order to receive the benefits of such appropriation for ttie salaries of teachers, supervisors, or directors of agricultural sub- jects the State board of any State shall provide in its plan for agri- cultural education that such education shall be that which is under public supervision or control ; that the controlling purpose of such education shall be to fit for useful employment ; that such education shall be of less than college grade and be designed to meet the needs of persons over fourteen years of age who have entered upon or who are preparing to enter upon the work of the farm or of the farm home ; that the State or local community, or both, shall provide the neces- sary plant and equipment determined upon by the State board, with the approval of the Federal Board for Vocational Education, as the minimum requirement for such education in schools and classes in the State ; that the amount expended for the maintenance of such education in any school or class receiving the benefit of such appro- priation shall be not less annually than the amount fixed by the State board, with the approval of the Federal board as the minimum for such schools or classes in the State ; that such schools shall provide for directed or supervised practice in agriculture, either on a farm provided for by the school or other farm, for at least six months per year; that the teachers, supervisors, or directors of agricultural sub- jects shall have at least the minimum qualifications determined for the State by the State board, with the approval of the Federal Board for Vocational Education. Requirements for Industrial and Home Economics Education. Sec. 11. That in order to receive the benefits of the appropria- tion for the salaries of teachers of trade, home economics, and indus- trial subjects the State board of any State shall provide in its plan for trade, home economics, and industrial education that such edu- cation shall be given in schools or classes under public supervision or control ; that the controlling purpose of such education shall be to fit for useful employment ; that such education shall be of less than college grade and shall be designed to meet the needs of per- sons over fourteen years of age who are preparing for a trade or industrial pursuit or who have entered upon the work of a trade or Vocational Education 103 industrial pursuit; that the State or local community, or both, shall provide the necessary plant and equipment determined upon by the State board, with the approval of the Federal Board for Vocational Education, as the minimum requirement in such State for education for any given trade or industrial pursuit; that the total amount ex- pended for the maintenance of such education in any school or class receiving the benefit of such appropriation shall be not less annually than the amount fixed by the State board, with the approval of the Federal board, as the minimum for such schools or classes in the State; that such schools or classes giving instruction to persons who have not entered upon employment shall require that at least half of the time of such instruction be given to practical work on a useful or productive basis, such instruction to extend over not less than nine m-onths per vear and not less than thirty hours per week ; that at least one-third of the sum appropriated to any State for the salaries of teach- ers of trade, home economics, and industrial subjects shall, if expended, be applied to part-time schools or classes for workers over fourteen years of age who have entered upon employment, and such subjects in a part-time school or class may mean any subject given to enlarge the civic or vocational intelligence of such workers over fourteen and less than eighteen vears of age; that such part-time schools or classes shall provide for not less than one hundred and forty-four hours of classroom instruction per year; that evening industrial schools shall fix the age of sixteen years as a minimum entrance requirement and shall confine instruction to that which is supplemental to the daily employment; that the teachers of any trade or industrial subject in any State shall have at least the minimum qualifications for teachers oi such subject determined upon for such State by the State board, with the approval of the Federal Board for Vocational Education : Provided, That for cities and towns of less than twenty-five thousand popula- tion, according to the last preceding United States census, the State board, with the approval of the Federal Board for Vocational Edu- cation, mav modify the conditions as to the length of course and hours of instruction per we^k for schools and classes giving instruction to those who have not entered upon employment, in order to meet the particular needs of such cities and towns. Requirements for Training Teachers. Sec. 12. That in order for any State to receive the benefits of the appropriation in this Act for the training of teachers, supervisors, or directors of agricultural subjects, or of teachers of trade, industrial or home economics subjects, the State board of such State shall provide in its plan for such training that the same shall be carried out under the supervision of the State board ; that such training shall be given in schools or classes under public supervision or control ; that such train- ing shall be given only to persons who have had adequate vocational 104 Important Federal Laws experience or contact in the line of work for which they are preparing themselves as teachers, supervisors, or directors, or who are acquiring such experience or contact as a part of their training; and that the State board, with the approval of the Federal board, shall establish minimum requirements for such experience or contact for teachers, supervisors, or directors of agricultural subjects and for teachers of trade, industrial, and home economics subjects ; that not more than sixty per centum nor less than twenty per centum of the money appropriated under this Act for the training of teachers of voca- tional subjects to any State for any year shall be expended for any one of the following purposes : For the preparation of teachers, super- visors, or directors of agricultural subjects, or the preparation of teachers of trade and industrial subjects, or the preparation of teachers of home economics subjects. State Treasurer Custodian of Fund. Sec. 13. That in order to secure the benefits of the appropriations for the salaries of teachers, supervisors, or directors of agricultural subjects, or for the salaries of teachers of trade, home economics, and industrial subjects, or for the training of teachers as herein provided, any State shall, through the legislative authority thereof, appoint as custodian for said appropriations its State treasurer, who shall receive and provide for the proper custody and disbursements of all money paid to the State from said appropriations. Investigation by Federal Board. Sec. 14. That the Federal Board for Vocational Education shall annually ascertain whether the several States are using, or are pre- pared to use, the money received by them in accordance with the pro- visions of this Act. On or before the first day of January of each year the Federal Board for Vocational Education shall certify to the Sec- retary of the Treasury each State which has accepted the provisions of this Act and complied therewith, certifying the amounts which each State is entitled to receive under the provisions of this Act. Upon such certificate the Secretary of the Treasury shall pay quarterly to the custodian for vocational education of each State the moneys to which it is entitled under the provisions of this Act. The moneys so received by the custodian for vocational education for any State shall be paid out on the requisition of the State board as reimbursement for expenditures already incurred to such schools as are approved by said State board and are entitled to receive such moneys under the provi- sions of this Act. Deduction from Allotment. Sec. 15. That whenever any portion of the fund annually allotted to any State has not been expended for the purpose provided for in this Act, a sum equal to such portion shall be deducted by the Federal Vocational Education 105 board from the next succeeding annual allotment from such fund to such State. Federal Board May Withhold Allotment. Sec 16. That the Federal Board for Vocational Education may withhold the allotment of moneys to any State whenever it shall be determined that such moneys are not being expended for the pur- poses and under the conditions of this Act. If any allotment is withheld from any State, the State board of such State may appeal to the Congress of the United States, and if the Congress shall not direct such sum to be paid it shall be covered into the Treasury. Safeguarding the Trust. Sec. 17. That if any portion of the moneys received by the custo- dian for vocational education of any State under this Act, for any given purpose named in this Act, shall, by any action or contingency, be diminished or lost, it shall be replaced by such State, and until so replaced no subsequent appropriation for such education shall be paid to such State. No portion of any moneys appropriated under this Act for the benefit of the States shall be applied, directly or indirectly, to the purchase, erection, preservation, or repair of any building or build- ings or equipment, or for the purchase or rental of lands, or for the support of any religious or privately owned or conducted school or college. Report. Sec. 18. That the Federal Board for Vocational Education shall make an annual report to Congress on or before December first, on the administration of this Act and shall include in such report the reports made by the State boards on the administration of this Act by each State and the expenditure of the money allotted to each State. BANKING. THE FEDERAL RESERVE ACT. Act of December 23, 1913. Sec. 1. ' That the short title of this Act shall be the "Federal Re- serve Act." Definition of Terms. Wherevea- the word "bank" is used in this Act, the word shall be held to include State bank, banking association and trust company, ex- cept where national banks or Federal reserve banks are specifically re- ferred to. The terms "national bank" and "national banking association" used in this Act shall be held to be synonymous and interchangeable. The term "member bank" shall be held to mean any national bank, State bank, or bank or trust company which has become a member of one of the reserve banks created by this Act. The term "board" shall be held to mean Federal Reserve Board ; the term "district" shall be held to mean Federal reserve district; the term "reserve bank" shall be held to mean Federal reserve bank. Federal Reserve Districts — Organization Committee. Sec. 2. As soon as practicable, the Secretary of the Treasury, the Secretary of Agriculture and the Comptroller of the Currency, acting as "The Reserve Bank Organization Committee," shall designate not less than eight nor more than twelve cities to be known as Federal reserve cities, and shall divide the continental United States, excluding Alaska, into districts, each district to contain only one of such Federal reserve cities. The determination of said organization committee shall not be subject to review except by the Federal Reserve Board when organized: Provided, That the districts shall be apportioned with due regard to the convenience and customary course of business and shall not neces- sarily be coterminous with any State or States. The districts thus cre- ated may be readjusted and new districts may from time to time be cre- ated by the Federal Reserve Board, not to exceed twelve in all. Such districts shall be known as Federal reserve districts and may be desig- nated by number. A majority of the organization committee shall con- stitute a quorum with authority to act. Said organization committee shall be authorized to employ counsel arid expert aid, to take testimony, to send for persons and papers, to administer oaths and to make such investigation as may be deemed neces- sary by the said committee in determining the reserve districts and in designating the cities within such districts where such Federal reserve Federal Reserve Act 107 banks shall be severally located. The said committee shall supervise the organization in each of the cities designated of a Federal reserve bank, which shall include in its title the name of the city in which it is situated, as "Federal Reserve Bank of Chicago." Under regulations to be prescribed by the organization committee, every national banking association in the United States is hereby required, and every eligible bank in the United States and every trust company within the District of Columbia, is hereby authorized to signify in writ- ing, within sixty days after the passage of this Act, its acceptance of the terms and provisions hereof. Subscriptions to Capital Stock. When the organization committee shall have designated the cities in which Federal reserve banks are to be organized and fixed the geograph- ical limits of the Federal reserve districts, every national banking asso- ciation within that district shall be required within thirty days after notice from the organization committee, to subscribe to the capital stock of such Federal reserve bank in a sum equal to six per centum of the paid-up capital stock and surplus of such bank, one-sixth of the subscription to be payable on call of the organization committee or of the Federal Re- serve Board, one-sixth within three months and one-sixth within six months thereafter, and the remainder of the subscription, or any part thereof, shall be subject to call when deemed necessary by the Federal Reserve Board, said payments to be in gold or gold certificates. Responsibility of Shareholders. The shareholders of every Federal reserve bank shall be held indi- vidually responsible, equally and ratably, and not one for another, for all contracts, debts and engagements of such bank to the extent of the amount of their subscriptions to such stock at the par value thereof in addition to the amount subscribed, whether such subscriptions have been paid up in whole or in part, under the provisions of this Act. Failure of National Banks to Accept Terms of Act — Penalty. Any national bank failing to signify its acceptance of the terms of this Act within the sixty days aforesaid, shall cease to act as a reserve agent, upon thirty days' notice, to be given within the discretion of the said organization committee or of the Federal Reserve Board. Failure of National Banks to Become Member Banks — Penalty. Should any national banking association in the United States now organized fail within one year after the passage of this Act to become a member bank or fail to comply with any of the provisions of this Act applicable thereto, all of the rights, privileges and franchises of such association granted to it under the national bank Act, or under the pro- visions of this Act, shall be thereby forfeited. Any noncompliance with or violation of this Act shall, however, be determined and adjudged by any court of the United States of competent jurisdiction in a suit brought 108 Important Federal Laws for that purpose in the district or territory in which such bank is located, under direction of the Federal Reserve Board, by the Comptroller of the Currency in his own name before the association shall be declared dis- solved. In cases of such noncompliance or violation, other than the failure to become a member bank under the provisions of this Act, every director who participated in or assented to the same shall be held liable in his personal or individual capacity for all damages which said bank, its shareholders or any other person shall have sustained in consequence of such violation. Such dissolution shall not take away or impair any remedy against such corporation, its stockholders or officers, for any liability or penalty which shall have been previously incurred. Public Subscriptions. Should the subscriptions by banks to the stock of said Federal re- serve banks or any one or more of them be, in the judgment of the organ- ization committee, insufficient to provide the amount of capital required therefor, then and in that event the said organization committee may, under conditions and regulations to be prescribed by it, offer to public subscription at par such an amount of stock in said Federal reserve banks, or any one or more of them, as said committee shall determine, subject to the same conditions as to payment and stock liability as provided for member banks. Limit to Stock. No individual, copartnership or corporation other than a member bank of its district shall be permitted to subscribe for or to hold at any time more than $25,000 par value of stock in any Federal reserve bank. Such stock shall be known as public stock and may be transferred on the books of the Federal reserve bank by the chairman of the board of directors of such bank. Allotment of Stock to United States. Should the total subscriptions by banks and the public to the stock of said Federal reserve banks, or any one or more of them, be, in the judgment of the organization committee, insufficient to provide the amount of capital required therefor, then and in that event the said organization committee shall allot to the United States such an amount of said stock as said committee shall determine. Said United States stock shall be paid for at par out of any money in the Treasury not otherwise appropriated, and shall be held by the Secretary of the Trea- sury and disposed of for the benefit of the United States in such manner, at such times, and at such price, not less than par, as the Secretary of the Treasury shall determine. Voting Power. Stock not held by member banks shall not be entitled to voting power. Federal Reserve Act 109 Transfer of Stock. The Federal Reserve Board is hereby empowered to adopt and promulgate rules and regulations governing the transfers of said stock. Minimum Capital of Federal Reserve Bank. Xo Federal reserve bank shall commence business with a subscribed capital less than $4,000,000. Reserve Cities, Status of. The organization of reserve districts and Federal reserve cities shall not be construed as changing the present status of reserve cities and cen- tral reserve cities, except in so far as this Act changes the amount of reserves that may be carried with approved reserve agents located therein. Authority of Organization Committee to Employ Assistants. The organization committee shall have power to appoint such assist- ants and incur such expenses in carrying out the provisions of this Act as it shall deem necessary, and such expenses shall be payable by the Treasurer of the United States upon voucher approved by the Secretary of the Treasury, and the sum of $100,000, or so much thereof as may be necessary, is hereby appropriated, out of any moneys in the Treasury not otherwise appropriated, for the payment of such expenses. Branches of Federal Reserve Banks. "Sec. 3. The Federal Reserve Board may permit or require any Federal reserve bank to establish branch banks within the Federal reserve district in which it is located or within the district of any Federal reserve bank which may have been suspended. Such branches, subject to such rules and regulations as the Federal Reserve Board may prescribe, shall be operated under the supervision of a board of directors to consist of not more than seven nor less than three directors, of whom a majority of one shall be appointed by the Federal reserve bank of the district, and the remaining directors by the Federal Reserve Board. Directors of branch banks shall hold oflfice during the pleasure of the Federal Reserve Board." (As amended June 21, 1917.) Organization of Federal Reserve Banks. Sec. 4. When the organization committee shall have established Federal reserve districts as provided in section two of this Act, a cer- tificate shall be filed with the Comptroller of the Currency showing the geographical limits of such districts and the Federal reserve city desig- nated in each of such districts. Tlie Comptroller of the Currency shall thereupon cause to be forwarded to each national bank located in each district, and to such other banks declared to be eligible by the organization committee which may apply therefor, an application blank in form to be approved by the organization committee, which blank shall contain a resolution to be adopted by the board of directors of each bank executing such application, authorizing a subscription to the capital stock of the 110 Important Federal Laws Federal reserve bank organizing in that district in accordance with the provisions of this Act. Organization Certificate. When the minimum amount of capital stock prescribed by this Act for the organization of any Federal reserve bank shall have been sub- scribed and allotted, the organization committee shall designate any five banks of those whose applications have been received, to execute a cer- tificate of organization, and thereupon the banks so designated shall, under their seals, make an organization certificate which shall specifically state the name of such Federal reserve bank, the territorial extent of the district over which the operations of such Federal reserve bank are to be carried on, the city and State in which said bank is to be located, the amount of capital stock and the number of shares into which the same is divided, the name and place of doing business of each bank executing such certificate and of all banks which have subscribed to the capital stock of such Federal reserve bank and the number of shares subscribed by each, and the fact that the certificate is made to enable those banks executing same, and all banks which have subscribed or may thereafter subscribe to the capital stock of such Federal reserve bank, to avail them- selves of the advantages of this Act. The said organization certificate shall be acknowledged before a judge of some court of record or notary public; and shall be, together with the acknowledgment thereof, authenticated by the seal of such court, or notary, transmitted to the Comptroller of the Currency, who shall file, record and carefully preserve the same in his office. Powers of Federal Reserve Banks. Upon the filing of such certificate with the Comptroller of the Cur- rency as aforesaid, the said Federal reserve bank shall become a body corporate and as such, and in the name designated in such organization certificate, shall have power — First. To adopt and use a corporate seal. Second. To have succession for a period of twenty years from its organization unless it is sooner dissolved by an Act of Congress, or unless its franchise becomes forfeited by some violation of law. Third. To make contracts. Fourth. To sue and be sued, complain and defend, in any court of law or equity. Fifth. To appoint by its board of directors, such officers and em- ployees as are not otherwise provided for in this Act, to define their duties, require bonds of them and fix the penalty thereof, and to dismiss at pleasure such officers or employees. Sixth. To prescribe by its board of directors, by-laws not incon- sistent with law, regulating the manner in which its general business may be conducted, and the privileges granted to it by law may be exer- cised and enjoyed. Federal Reserve Act 111 Seventh. To exercise by its board of directors, or duly authorized officers or agents, all powers specifically granted by the provisions of this Act and such incidental powers as shall be necessary to carry on the business of banking within the limitations prescribed by this Act. Eighth. Upon deposit with the Treasurer of the United States of any bonds of the United States in the manner provided by existing law relating to national banks, to receive from the Comptroller of the Cur- rency circulating notes in blank, registered and countersigned as pro- vided by law, equal in amount to the par value of the bonds so deposited, such notes to be issued under the same conditions and provisions of law as relate to the issue of circulating notes of national banks secured by bonds of the United States bearing the circulating privilege, except that the issue of such notes shall not be limited to the capital stock of such Federal reserve bank. But no Federal reserve bank shall transact any business except such as is incidental and necessarily preliminary to its organization until it has been authorized by the Comptroller of the Currency to commence business under the provisions of this Act. Directors of Federal Reserve Banks. Every Federal reserve bank shall be conducted under the supervision and control of a board of directors. The board of directors shall perform the duties usually appertaining to the office of directors of banking associations and all such duties as are prescribed by law. Said board shall administer the affairs of said bank fairly and im- partially and without discrimination in favor of or against any member bank or banks and shall, subject to the provisions of law and the orders of the Federal Reserve Board, extend to each member bank such dis- counts, advancements and accommodations as may be safely and reason- ably made with due regard for the claims and demands of other member banks. Classification of Directors. Such board of directors shall be selected as hereinafter specified and shall consist of nine members, holding office for three years, and divided into three classes, designated as classes A, B and C. Class A shall consist of three members, who shall be chosen by and be representative of the stock-holding banks. Class B shall consist of three members, who at the time of their elec- tion shall be actively engaged in their district in commerce, agriculture or some other industrial pursuit. Class C shall consist of three members who shall be designated by the Federal Reserve Board. When the necessary subscriptions to the capital stock have been obtained for the organization of any Federal re- serve bank, the Federal Reserve Board shall appoint the class C directors and shall designate one of such directors as chairman of the board to be 112 Important Federal Laws selected. Pending the designation of such chairman, the organization committee shall exercise the powers and duties appertaining to the office of chairman in the organization of such Federal reserve bank. No Senator or Representative in Congress shall be a member of the Federal Reserve Board or an officer or a director of a Federal reserve bank. No director of class B shall be an officer, director or employee of any bank. No director of class C shall be an officer, director, employee or stockholder of any bank. Election of Class A and Class B Directors. Directors of class A and class B shall be chosen in the following manner : The chairman of the board of directors of the Federal reserve bank of the district in which the bank is situated or, pending the appointment of such chairman, the organization committee shall classify the member banks of the district into three general groups or divisions. Each group shall contain as nearly as may be one-third of the aggregate number of the member banks of the district and shall consist, as nearly as may be, of banks of similar capitalization. The groups shall be designated by number by the chairman. At a regularly called meeting of the board of directors of each mem- ber bank in the district it shall elect by ballot a district reserve elector and shall certify his name to the chairman of the board of directors of the Federal reserve bank of the district. The chairman shall make lists of the district reserve electors thus named by banks in each of the afore- said three groups and shall transmit one list to each elector in each group. Each member bank shall be permitted to nominate to the chairman -one candidate for director of class A and one candidate for director of <:lass B. The candidates so nominated shall be listed by the chairman, indicating by whom nominated and a copy of said list shall, within fifteen days after its completion, be furnished by the chairman to each elector. Every elector shall, within fifteen days after the receipt of the said list, certify to the chairman his first, second, and other choices of a director of class A and class B, respectively, upon a preferential ballot, on a form furnished by the chairman of the board of directors of the Federal reserve bank of the district. Each elector shall make a cross opposite the name of the first, second and other choices for a director of class A and for a director of class B, but shall not vote more than one choice for any one candidate. Anv candidate having a majority of all votes cast in the column of first choice shall be declared elected. If no candidate have a majority of all the votes in the first column, then there shall be added together the votes cast by the electors for such candidates in the second column and the votes cast for the several candidates in the first column. If anv Federal Reserve Act 113 candidate then have a majority of the electors voting, by adding together the first and second choices, he shall be declared elected. If no candidate have a majority of electors voting when the first and second choices shall have been added, then the votes cast in the third column for other choices shall be added together in like manner and the candidate then having the highest number of votes shall be declared elected. An immediate report of election shall be declared. Appointment of Class C Directors — Federal Reserve Agents, Duties of. Class C directors shall be appointed by the Federal Reserve Board. They shall have been for at least two years residents of the district for which they are appointed, one of whom shall be designated by said board as chairman of the board of directors of the Federal reserve bank and as 'Federal reserve agent.' He shall be a person of tested banking expe- rience, and in addition to his duties as chainnan of the board of directors of the Federal reserve bank he shali be required to maintain, under regulations to be established by the Federal Reserve Board, a local office of said board on the premises of the Federal reserve bank. He shall make regular reports to the Federal Reserve Board and shall act as its official representative for the performance of the functions conferred upon it by this Act. He shall receive an annual compensation to be fixed by the Federal Reserve Board and paid monthly by the Federal reserve bank to which he is designated. One of the directors of class C shall be appointed by the Federal Reserve Board as deputy chairman to exercise the powers of the chairman of the board when necessary. In case of the absence of the chairman and deputy chairman, the third class C director shall preside at meetings of the board. Subject to the approval of the Federal Reserve Board, the Federal reserve agent shall appoint one or more assistants. Such assistants, who shall be persons of tested banking experience, shall assist the Federal reserve agent in the performance of his duties and shall also have power to act in his name and stead during his absence or disability. The Federal Reserve Board shall require such bonds of the assistant Federal reserve agents as it may deem necessary for the protection of the United States. Assistants to the Federal reserve agent shall receive an annual compen- sation, to be fixed and paid in the same manner as that of the Federal reserve agent. (As amended June 21, 1917.) Compensation of Directors. Directors of Federal reserve banks shall receive, in addition to any compensation otherwise provided, a reasonable allowance for necessary expenses in attending meetings of their respective boards, which amount shall be paid by the respective Federal reserve banks. Any compensation that may be provided by boards of directors of Federal reserve banks for directors, officers or employees shall be subject to the approval of the Federal Reserve Board. (8) 114 Important Federal Laws Organization of Federal Reserve Banks — Authority of Organization Committee. The Reserve Bank Organization Committee may, in organizing Fed- eral reserve banks, call such meetings of bank directors in the several dis- tricts as may be necessary to carry out the purposes of this Act, and may exercise the functions herein conferred upon the chairman of the board of directors of each Federal reserve bank pending the complete organ- ization of such bank. First Meeting of Directors — Designation of Terms of Office. At the first meeting of the full board of directors of each Federal reserve bank, it shall be the duty of the directors of Classes A, B and C, respectively, to designate one of the members of each class whose term of office shftll expire in one year from the first of January- nearest the date of such meeting, one whose term of office shall expire at the end of two years from said date, and one whose term of office shall expire at the end of three years from said date. Thereafter every director of a Federal reser\% bank chosen as hereinbefore provided shall hold office for a term of three years. Vacancies that may occur in the several classes of directors of Federal reserve banks may be filled in the manner provided for the original selection of such directors, such appointees to hold office for the unexpired terms of their predecessors. Increase and Decrease of Capital Stock. Sec. 5. The capital stock of each Federal reserve bank shall be divided into shares of $100 each. The outstanding capital stock shall be increased from time to time as member banks increase their capital stock and surplus or as additional banks become members, and may be de- creased as member banks reduce their capital stock or surplus or cease to be members. Increase of Capital Stock. Shares of the capital stock of Federal reserve banks owned by mem- ber banks shall not be transferred or hypothecated. When a member bank increases its capital stock, or surplus, it shall thereupon subscribe for an additional amount of capital stock of the Federal reserve bank of its district equal to six per centum of the said increase, one-half of said subscription to be paid in the manner hereinbefore provided for original subscription, and one-half subject to call of the Federal Reserve Board. Applications for Capital Stock. A bank applying for stock in a Federal reserve bank at any time after the organization thereof must subscribe for an amount of the cap- ital stock of the Federal reserve bank equal to six per centum of the paid- up capital stock and surplus of said applicant bank, paying therefor its par value plus one-half of one per centum a month from the period of the last dividend. Federal Reserve Act 115 Certificate of Increase in Stock of Federal Reserve Bank. When the capital stock of any Federal reserve bank shall have been increased either on account of the increase of capital stock of member banks or on account of the increase in the number of member banks, the board of directors shall cause to be executed a certificate to the Comp- troller of the Currency showing the increase in capital stock, the amount paid in, and by whom paid. Reduction of Capital Stock. When a member bank reduces its capital stock it shall surrender a proportionate amount of its holdings in the capital of said Federal re- serve bank, and when a member bank voluntarily liquidates it shall sur- render all of its holdings of the capital stock of said Federal reserve bank and be released from its stock subscription not previously called. In either case the shares surrendered shall be canceled and the member bank shall receive in payment therefor, under regulations to be prescribed by the Federal Reserve Board, a sum equal to its cash-paid subscriptions on the shares surrendered and one-half of one per centum per month from the period of the last dividend, not to exceed the book value thereof, less any liability of such member bank to the Federal reserve bank. Insolvency of Member Bank. Sec. 6. If any member bank shall be declared insolvent and a re- ceiver appointed therefor, the stock held by it in said Federal reserve bank shall be canceled, without impairment of its liability, and all cash- paid subscriptions on said stock, with one-half of one per centum per month from the period of last dividend, not to exceed the book value thereof, shall be first applied to all debts of the insolvent member bank to the Federal reserve bank, and the balance, if any, shall be paid to the receiver of the insolvent bank. Whenever the capital stock of a Federal reserve bank is reduced, either on account of a reduction in capital stock of any member bank or of the liquidation or insolvency of such bank, the board of directors shall cause to be executed a certificate to the Comptroller of the Currency showing such reduction of capital stock and the amount repaid to such bank. Division of Earnings. Sec. 7. After all necessary expenses of a Federal reserve bank have been paid or provided for, the stockholders shall be entitled to re- ceive an annual dividend of six per centum on the paid-in capital stock, which dividend shall be cumulative. After the aforesaid dividend claims have been fully met, all the net earnings shall be paid to the United States as a franchise tax, except that one-half of such net earnings shall be paid into a surplus fund until it shall amount to forty per centum of the paid- in capital stock of such banft. The net earnings derived by the United States from Federal reserve banks shall, in the discretion of the Secretary, be used to supplement the gold reserve held against outstanding United States notes, or shall be ap- 116 Important Federal Laws plied to the reduction of the outstanding bonded indebtedness of the United States under regulations to be prescribed by the Secretary of the Treasur}\ Should a Federal reserve bank be dissolved or go into liquida- tion, any surplus remaining, after the payment of all debts, dividend re- quirements as hereinbefore provided, and the par value of the stock, shall be paid to and become the property of the United States and shall be similarly applied. Tax Exemptions. Federal reserve banks, including the capital stock and surplus therein, and the income derived therefrom shall be exempt from Federal, State and local taxation, except taxes upon real estate. Conversion of State Banks Into National Banks. Sec. 8. Section fifty-one hundred and fifty-four. United States Re- vised Statutes, is hereby amended to read as follows : Any bank incorporated by special law of any State or of the United States or organized under the general laws of any State or of the United States and having an unimpaired capital sufficient to entitle it to become a national banking association under the provisions of the existing laws may, by the vote of the shareholders owning not less than fifty-one per centum of the capital stock of such bank or banking association, with the approval of the Comptroller of the Currency be converted into a national banking association, with any name approved by the Comp- troller of the Currency: Provided, however. That said conversion shall not be in contravention of the State law. In such case the articles of association and organization certificate may be executed by a majority of the directors of the bank or banking institution, and the certificate shall declare that the owners of fifty-one per centum of the capital stock have authorized the directors to make such certificate and to change or convert the bank or banking institution into a national association. A majority of the directors, after executing the articles of association and the organization certificate, shall have power to execute all other papers and to do whatever may be required to make its organization perfect and complete as a national association. The shares of any such bank may continue to be for the same amount each as they were before the conversion, and the directors may continue to be directors of the associa- tion until others are elected or appointed in accordance with the pro- visions of the statutes of the United States. When the Comptroller has given to such bank or banking association a certificate that the provisions of this Act have been complied with, such bank or banking association, and all its stockholders, officers and employees, shall have the same powers and privileges and shall be subject to the same duties, liabilities and regulations, in all respects, as shall have been prescribed by the Federal Reserve Act and by the national banking Act for associations originally organized as national banking associations. Federal Reserve Act 117 State Banks May Subscribe. Sec. 9. Any bank incorporated by special law of any State, or organized under the general laws of any State or of the United States, desiring to become a member of the Federal Reserve System, may make application to the Federal Reserve Board, under such rules and regula- tions as it may prescribe, for the right to subscribe to the stock of the Federal reserve bank organized within the district in which the applying bank is located. Such application shall be for the same amount of stock that the applying bank would be required to subscribe to as a national bank. The Federal Reserve Board, subject to such conditions as it may prescribe, may permit the applying bank to become a stockholder of such Federal reserve bank. In acting upon such applications the Federal Reserve Board shall consider the financial condition of the applying bank, the general char- acter of its management, and whether or not the corporate powers exer- cised are consistent with the purposes of this Act. Whenever the Federal Reserve Board shall permit the applying bank to become a stockholder in the Federal reserve bank of the district its stock subscription shall be payable on call of the Federal Reserve Board, and stock issued to it shall be held subject to the provisions of this Act. All banks admitted to membership under authority of this section shall be required to comply with the reserve and capital requirements of this Act and to conform to those provisions of law imposed on national banks which prohibit such banks from lending on or purchasing their own stock, which relate to the withdrawal or impairment of their capital stock, and which relate to the payment of unearned dividends. Such banks and the officers, agents, and employees thereof shall also be subject to the provisions of and to the penalties prescribed by section fifty-two hundred and nine of the Revised Statutes, and shall be required to make reports of condition and of the payment of dividends to the Federal reserve bank of which they become a member. Not less than three of such reports shall be made annually on call of the Federal reserve bank on dates to be fixed by the Federal Reserve Board. Failure fo make such reports within ten days after the date they are called for shall subject the ofi'ending bank to a penalty of $100 a day for each day that it fails to transmit such report ; such penalty to be collected by the Federal reserve bank by suit or otherwise. As a condition of membership such banks shall likewise be subject to examinations made by direction of the Federal Reserve Board or of the Federal reserve bank by examiners selected or approved by the Fed- eral Reserve Board. Whenever the directors of the Federal reserve bank shall approve the examinations made by the State authorities, such examinations and the reports thereof may be accepted in lieu of examinations made by examiners selected or approved by the Federal Reserve Board. Pro- 118 Important Federal Laws vided. however, That when it deems it necessary the board may order special examinations by examiners of its own selection and shall in all cases approve the form of the report. The expenses of all examinations, other than those made by State authorities, shall be assessed against and paid by the banks examined. If at any time it shall appear to the Federal Reserve Board that a member bank has failed to comply with the provisions of this section or the regulations of the Federal Reserve Board made pursuant thereto, it shall be within the power of the board after hearing to require such bank to surrender its stock in the Federal reserve bank and to forfeit all rights and privileges of membership. The Federal Reserve Board may restore membership upon due proof of compliance with the conditions imposed by this section. Any State bank or trust company desiring to withdraw from mem- bership in a Federal reserve bank may do so, after six months' written notice shall have been filed with the Federal Reserve Board, upon the surrender and cancellation of all of its holdings of capital stock in the Federal reserve bank : Provided, however, That no Federal reserve bank shall, except under express authority of the Federal Reserve Board, cancel within the same calendar year more than twenty-five per centum of its capital stock for the purpose of effecting voluntary withdrawals during that year. All such applications shall be dealt with in the order in which they are filed with the board. Whenever a member bank shall surrender its stock holdings in a Federal reserve bank, or shall be ordered to do so by the Federal Reserve Board, under authority of law, all of its rights and privileges as a member bank shall thereupon cease and determine, and after due provision has been made for any indebtedness due or to become due to the Federal reserve bank it shall be entitled to a refund of its cash paid subscription with interest at the rate of one-half of one per centum per month from date of last dividend, if earned, the amount refunded in no event to exceed the book value of the stock at that time, and shall likewise be entitled to repayment of deposits and of any other balance due from the Federal reserve bank. No applying bank shall be admitted to membership in a Federal reserve bank unless it possesses a paid-up, unimpaired capital suflficient to entitle it to become a national banking association in the place where it is situated under the provisions of the national-bank Act. Banks becoming members of the Federal Reserve System under authoritv of this section shall be subject to the provisions of this section and to those of this Act which relate specifically to member banks, but shall not be subject to examination under the provisions of the first two paragraphs of section fifty-two hundred and forty of the Revised Statutes as amended by section tw'entv-one of this Act. Subject to the provisions of this Act and to the regulations of the board made pursuant thereto. any bank becoming a member of the Federal Reserve System shall retain its full charter and statutory rights as a State bank or trust company, Federal Reserve Act 119 and may continue to exercise all corporate powers granted it by the State in which it was created, and shall be entitled to all privileges of member banks : Provided, however, That no Federal reserve bank shall be per- mitted to discount for any State bank or trust company notes, drafts, or bills of exchange of any one borrower who is liable for borrowed money to &uch State bank or trust company in an amount greater than ten per centum of the capital and surplus of such State bank or trust company, but the discount of bills of exchange drawn against actually existing value and the discount of commercial or business paper actually owned by the person negotiating the same shall not be considered as borrowed money within the meaning of this section. The Federal reserve bank, as a condition of the discount of notes, drafts, and bills of exchange for such State bank or trust company, shall require a certificate or guaranty to the effect that the borrower is not Hable to such bank hi excess of the amount provided by this section, and will not be permitted to become liable in excess of this amount while such notes, drafts, or bills of exchange are under discount with the Federal reserve bank. It shall be unlawful for any officer, clerk, or agent of any bank admitted to membership under authority of this section to certify any check drawn upon such bank unless the person or company drawing the check has on deposit therewith at the time such check is certified an amount of money equal to the amount specified in such check. xA.ny check so certified by duly authorized officers shall be a good and valid obligation against such bank, but the act of any such officer, clerk, or agent in violation of this section may subject such bank to a. forfeiture of its membership in the Federal Reserve System upon hearing by the Federal Reserve Board. (As amended June 21, 1917.) Federal Reserve Board. Sec. 10. A Federal Reserve Board is hereby created which shall consist of seven members, including the Secretary of the Treasury and the Comptroller of the Currency, who shall be members ex officio and five members appointed by the President of the United States, by and with the advice and consent of the Senate. In selecting the five ap- pointive members of the Federal Reserve Board,- not more than one of whom shall be selected from any one Federal reserve district, the Presi- dent shall have due regard to a 'fair representation of the different com- mercial, industrial and geographical divisions- of the country. The five members of the Federal Reserve Board appointed by the President and confirmed as aforesaid shall devote their entire time to the business of the Federal Reserve Board and shall each receive an annual salary of $12,000, payable monthly together with actual necessary traveling ex; penses, and the Comptroller of the Currency, as ex officio member of the Federal Reserve Board, shall, in addition to the' salary now paid him as Comptroller of the Currency, receive the sum of $7,000 annually f'6'rTiis services as a member of said Board. ' ' „, '^ The members of said board, the Secretary of the Treasury, tlie 'As- 120 Important Federal Laws sistant Secretaries of the Treasury, and the Comptroller of the Currency shall be ineligible during the time they are in office and for two years thereafter to hold any office, position, or employment in any member bank. Of the five members thus appointed by the President at least two shall be persons experienced in banking or finance. One shall be designated by the President to serve for two. one for four, one for six, one for eight and one for ten years and thereafter each member so ap- pointed shall serve for a term of ten years unless sooner removed for cause by the President. Governor and Vice Governor ; Officers ; Qualification of Members. Of the five persons thus appointed, one shall be designated by the President as governor and one as vice-governor of the Federal Reserve Board. The governor of the Federal Reserve Board, subject to its super- vision, shall be the active executive officer. The Secretary of the Trea- sury may assign offices in the Department of the Treasviry for the use of the Federal Reserve Board. Each member of the Federal Reserve Board shall within fifteen days after notice of appointment make and subscribe to the oath of office. Provision for Expenses. The Federal Reserve Board shall have power to levy semi-annually upon the Federal reserve banks, in proportion to their capital stock and surplus, an assessment sufficient to pay its estimated expenses and the salaries of its members and employees for the half year succeeding the levying of such assessment, together with any deficit carried forward from the preceding half year. First Meeting of Board — Secretary of Treasury Chairman of Board. The first meeting of the Federal Reserve Board shall be held in Washington, District of Columbia, as soon as may be after the passage of this Act, at a date to be fixed by the Reserve Bank Organization Com- mittee. The Secretary of the Treasury shall be ex officio chairman of the Federal Reserve Board. Member of Federal Reserve Board Not to be Officer, Director, or Stockholder in Any Banking Institution or Trust Company. No member of the Federal Reserve Board shall be an officer or director of any bank, banking institution, trust company, or Federal re- serve bank nor hold stock in any bank, banking institution, or trust com- pany; and before entering upon his duties as a member of the Federal Reserve Board he shall certify under oath to the Secretary of the Trea- sury that he has complied with this requirement. Vacancies on Board — How Filled. Whenever a vacancy shall occur, other than by expiration of term, among the five members of the Federal Reserve Board appointed by the President, as above provided, a successor shall be appointed by the Presi- dent, with the advice and consent of the Senate to fill such vacancy and Federal Reserve Act 121 when appointed he shall hold office for the unexpired term of the mem- ber whose place he is selected to fill. The President shall have power to fill all vacancies that may happen on the Federal Reserve Board during the recess of the Senate, by grant- ing commissions which shall expire thirty days after the next session of the Senate convenes. Powers of Secretary of Treasury. Nothing in this Act contained shall be construed as taking away any powers heretofore vested by law in the Secretary of the Treasury which relate to the supervision, management and control of the Treasury De- partment and bureaus under such department and wherever any power vested by this Act in the Federal Reserve Board or the Federal reserve agent appears to conflict with the powers of the Secretary of the Treasury, such powers shall be exercised subject to the supervision and control of the Secretary. Federal Reserve Board to Make Annual Report to Speaker of the House of Representatives. The Federal Reserve Board shall annually make a full report of its operations to the Speaker of the House of Representatives, who shall cause the same to be printed for the information of the Congress. Comptroller of the Currency. Section three hundred and twenty-four of the Revised Statutes of the United States shall be amended so as to read as follows : There shall be in the Department of the Treasury a bureau charged with the execution of all laws passed by Congress relating to the issue and regu- lation of national currenxry secured by United States bonds and, under the general supervision of the Federal Reserve Board, of all Federal reserve notes, the chief officer of which bureau shall be called the Comp- troller of the Currency and shall perform his duties under the general directions of the Secretary of the Treasury. Powers of Federal Reserve Board. Sec. 11. The Federal Reserve Board shall be authorized and em- powered : (a) To examine at its discretion the accounts, books and affairs of each Federal reserve bank and of each member bank and to require such statements and reports as it may deem necessary. The said board shall publish once each week a statement showing the condition of each Federal reserve bank and a consolidated statement for all Federal re- serve banks. Such statements shall show in detail the assets and liabil- ities of the Federal reserve banks, single and combined, and shall furnish full information regarding the character of the money held as reserve and the amount, nature and maturities of the paper and other investments owned or held by Federal reserve banks. (b) To permit, or, on the affirmative vote of at least five members of the Reserve Board to require Federal reserve banks to rediscount the 122 Important Federal Laws discounted paper of other Federal reserve banks at rates of interest to be fixed by the Federal Reserve Board. (c) To suspend for a period not exceeding thirty days, and from time to time to renew such suspension for periods not exceeding fifteen days, any reserve requirement specified in this Act: Provided, That it shall establish a graduated tax upon the amounts by which the reserve requirements of this Act may be permitted to fall below the level herein- after specified : And provided further, That when the gold reserve held against Federal reserve notes falls below forty per centum, the Federal Reserve Board shall establish a graduated tax of not more than one per centum per annum upon such deficiency until the reserves fall to thirty- two and one-half per centum, and when said reserve falls below thirty- two and one-half per centum, a tax at the rate increasingly of not less than one and one-half per centum per annum upon each two and one- half per centum or fraction thereof that such reserve falls below thirty- two and one-half per centum. The tax shall be paid by the reserve bank, but the reserve bank shall add an amount equal to said tax to the rates of interest and discount fixed by the Federal Reserve Board. (d) To supervise and regulate through the bureau under the charge of the Comptroller of the Currency the issue and retirement of Federal reserve notes, and to prescribe rules and regulations under which such notes may be delivered by the Comptroller to the Federal reserve agents .applying therefor. (e) To add to the number of cities classified as reserve and central reserve cities under existing law in which national banking associations are subject to the reserve requirements set forth in section twenty of this Act : or to reclassify existing reserve and central reserve cities or to terminate their designation as such. (f) To suspend or remove any officer or director of any Federal reserve bank, the cause of such removal to be forthwith communicated in writing by the Federal Reserve Board to the removed officer or director and to said bank. (g) To require the writing off of doubtful or worthless assets upon the books and balance sheets of Federal reserve banks. (h) To suspend, for the violation of any of the provisions of this Act, the operations of any Federal reserve bank, to take possession thereof, administer the same during the period of suspension, and, when deemed advisable, to liquidate or reorganize such bank. (i) To require bonds of Federal reserve agents, to make regula- tions for the safeguarding of all collateral, bonds, Federal reserve notes, money or property of any kind deposited in the hands of such agents, and said board shall perform the duties, functions or services specified in this Act, and make all rules and regulations necessary to enable said board effectively to perform the same. (i) To exercise general supervision over said Federal reserve banks. Federal Reserve Act 123 (k) To grant by special permit to national banks applying therefor, when not in contravention of State or local law, the right to act as trustee, executor, administrator or registrar of stocks and bonds under such rules and regulations as the said board may prescribe. (1) To employ such attorneys, experts, assistants, clerks, or other employees as may be deemed necessary to conduct the business of the board. All salaries and fees shall be fixed in advance by said board and shall be paid in the same manner as the salaries of the meriibers of said board. All such attorneys, experts, assistants, clerks and other employees shall be appointed without regard to the provisions of the /Vet of January sixteenth, eighteen hundred and eighty-three (volume twenty-two, United States Statutes at Large, page four hundred and three), and amendments thereto, or any rule or regulation made in pursuance thereof : Provided, That nothing herein shall prevent the President from placing said em- ployees in the classified service. (m) Upon the affirmative vote of not less than five of its members the Federal Reserve Board shall have power, from time to time, by gen- eral ruling, covering all districts alike, to permit member banks to carry in the Federal reserve banks of their respective districts any portion of their reserves now required by section nineteen of this Act to be held in their own vaults. Federal Advisory Council. Sec. 12. There is hereby created a Federal Advisory Council, which shall consist of as many members as there are Federal reserve districts. Each Federal reserve bank by its board of directors shall annually select from its own Federal reserve district one member of said council, who shall receive such compensation and allowances as may be fixed by his board of directors subject to the approval of the Federal Reserve Board. The meetings of said advisory council shall be held at Washington, Dis- trict of Columbia, at least four times each year, and oftener if called by the Federal Reserve Board. The council may in addition to the meetings above provided for hold such other meetings in Washington, District of Columbia, or elsewhere, as it may deem necessary, may select its own officers and adopt its own methods of procedure, and a majority of its members shall constitute a quorum for the transaction of business. Vac- ancies in the council shall be filled by the respective reserve banks, and members sielected to fill vacancies, shall serve for the unexpired term. The Federal Advisory Council shall have power, by itself or through its officers (1) to confer directly with the Federal Reserve Board on gen- eral business conditions; (2) to make oral or written representations concerning matters within the jurisdiction of said board; (3) to call for information and to make recommendations in regard to discount rates, rediscount business, note issues, reserve conditions in the various districts, the purchase and sale of gold or securities by reserve banks, open-market 124 Important Federal Laws operations by said banks, and the general affairs of the reserve banking system. Powers of Federal Reserve Bank. Sec. 13. Any Federal reserve bank may receive from any of its member banks, and from the United States, deposits of current funds in lawful money, national-bank notes, Federal reserve notes, or checks, and drafts, payable upon presentation, and also, for collection, maturing notes and bills ; or, solely for purposes of exchange or of collection may receive from other Federal reserve banks deposits of current funds in lawful money, national-bank notes, or checks upon other Federal reserve banks, and checks and drafts, payable upon presentation within its district, and maturing notes and bills payable within its district ; or, solely for the purposes of exchange or of collection, may receive from any nonmember bank or trust company deposits of current funds in lawful money, national-bank notes, Federal reserve notes, checks and drafts payable upon presentation, or maturing notes and bills : Provided, Such non- member bank or trust company maintains with the Federal reserve bank of its district a balance sufficient to offset the items in transit held for its account by the Federal reserve bank : Provided further. That nothing in this or any other section of this Act shall be construed as prohibiting a member or nonmember bank from making reasonable charges, to be determined and regulated by the Federal Reserve Board, but in no case to exceed 10 cents per $100 or fraction thereof, based on the total of checks and drafts presented at any one time, for collection or payment of checks and drafts and remission therefor by exchange or otherwise ; but no such charges shall be made against the Federal reserve banks. (As amended June 21, 1917.) Upon the indorsement of any of its member banks, which shall be deemed a waiver of demand, notice and protest by such bank as to its own indorsement exclusively, any Federal reserve bank may discount notes, drafts and bills of exchange arising out of actual commercial trans- actions ; that is, notes, drafts and bills of exchange issued or drawn for agricultural, industrial or commercial purposes, or the proceeds of which have been used, or are to be used, for such purposes, the Federal Re- serve Board to have the right to determine or define the character of the paper thus eligible for discount, within the meaning of this Act. Nothing in this Act contained shall be construed to prohibit such notes, drafts and bills of exchange, secured by staple agricultural products, or other goods, wares or merchandise from being eligible for such discount ; but such definition shall not include notes, drafts or bills covering merely invest- ments or issued or drawn for the purpose of carrying or trading in stocks, bonds or other investment securities, except bonds and notes of the Gov- ernment of the United States. Notes, drafts and bills admitted to dis- count under the terms of this paragraph must have a maturity at the time of discount of not more than ninety days, exclusive of days of grace: Provided, That notes, drafts and bills drawn or issued for agricultural Federal Reserve Act 125 purposes or based on live stock and having a maturity not exceeding six months, exclusive of days of grace, may be discounted in an amount to be limited to a percentage of the assets of the Federal reserve bank, to be ascertained and fixed by the Federal Reserve Board. The aggregate of such notes, drafts and bills bearing the signature or indorsement of any one borrower, whether a person, company, firm or corporation, rediscounted for any one bank shall at no time exceed ten per centum of the unimpaired capital and surplus of said bank ; but this restriction shall not apply to the discount of bills of exchange drawn in good faith against actually existing values. Any Federal reserve bank may discount acceptances of the kinds hereinafter described, which have a maturity at the time of discount of not more than three months' sight, exclusive of days of grace, and which are indorsed by at least one member bank. Any member bank may accept drafts or bills of exchange drawn upon it having not more than six months sight to run, exclusive of days of grace, which grow out of transactions involving the importation or •exportation of goods ; or which grow out of transactions involving the domestic shipment of goods provided shipping documents conveying or securing title are attached at the time of acceptance ; or which are secured at the time of acceptance by a warehouse receipt or other such document conveying or securing title covering readily marketable staples. No mem- l»er bank shall accept, whether in a foreign or domestic transaction, for any one person, company, firm, or corporation to an amount equal at any time in the aggregate to more than ten per centum of its paid-up and miimpaired capital stock and surplus, unless the bank is secured either by attached documents or by some other actual security growing out of the same transaction as the acceptance ; and no bank shall accept such bills to an amount equal at any time in the aggregate to more than one-half of its paid-up and unimpaired capital stock and surplus : Provided, how- ever, That the Federal Reserve Board, under such general regulations as it may prescribe, which shall apply to all banks alike regardless of the amount of capital stock and surplus, may authorize any member bank to accept such bills to an amount not exceeding at anv time in the aggregate one hundred per centum of its paid-up and unimpaired capital stock and surplus: Provided, further, That the aggregate of acceptances growing out of domestic transactions shall in no event exceed fifty per centum of such capital stock and surplus. (As amended June 21, 1917.) Any Federal reserve bank may make advances to its member banks on their promissory notes for a period not exceeding fifteen days at rates to be established by such Federal reserve banks, subject to the review and determination of the Federal Reserve Board, provided such promis- sory notes are secured by such notes, drafts, bills of exchange, or bank- ers' acceptances as are eligible for rediscount or for purchase by Federal reserve banks under the provisions of this Act, or by the deposit or pledge of bonds or notes of the United States. 126 Important Federal Laws Section fifty-two hundred and two of the Revised Statutes of the United States is hereby amended so as to read as follows : No national banking association shall at any time be indebted, or in any way liable to an amount exceeding the amount of its capital stock at such time actually paid in and remaining undiminished by losses or otherwise, ex- cept on account of demands of the nature following: First. Notes of circulation. Second. Moneys deposited with or collected by the association. Third. Bills of exchange or drafts drawm against money actually on deposit to the credit of the association or due thereto. Fourth. Liabilities to the stockholders of the association for divi- dends and reserve profits. Fifth. Liabilities incurred under the provisions of the Federal re- serve Act. The discount and rediscount and the purchase and sale by any Fed- eral reserve bank of any bills receivable and of domestic and foreign bills of exchange, and of acceptances authorized by this Act, shall be subject to such restrictions, limitations and regulations as may be imposed by the Federal Reserve Board. That in addition to the powers now vested by law in national bank- ing associations organized under the laws of the United States any such association located and doing business in any place the population of which does not exceed five thousand inhabitants, as shown by the last preceding decennial census, may, under such rules and regulations as may be prescribed by the Comptroller of the Currency, act as the agent for' any fire, life or other insurance company authorized by the authorities of the' State in which said bank is located to do business in said State, by soliciting and selling insurance and collecting premiwms on policies issued by such company ; and may receive for services so rendered such fees or commissions as may be agreed upon between the said association and the insurance company for wdiich it may act as agent; and may also act as the broker or agent for others in making or procuring loans on real estate located within one hundred miles of the place in which said bank may be located, receiving for such services a reasonable fee or commission : Pro- vided, however. That no such bank shall in any case guarantee either the principal or interest of any such loans or assume or guarantee the payment of any premium on insurance policies issued through its agency by its principal : And provided further, That the bank shall not guar- antee the truth of any statement made by an assured in filing his applica- tion for insurance. Any member bank may accept drafts or bills of exchange drawn upon it having not more than three months' sight to run, exclusive of days of grace, drawn under regulations to be prescribed by the Federal Reserve Board by banks or bankers in foreign countries or dependencies or insular possessions of the United States for the purpose of furnishing Federal Reserve Act 127 dollar exchange as required by the usages of trade in the respective countries, dependencies or insular possessions. Such drafts or bills may be acquired by Federal reserve banks in such amounts and subject to such regulations, restrictions and limitations as may be prescribed by the Federal Reserve Board : Provided, however. That no member bank shall accept such drafts or bills of exchange referred to in this paragraph for any one bank to an amount exceeding in the aggregate ten per centum of the paid-up and unimpaired capital and surplus of the accepting bank un- less the draft or bill of exchange is accompanied by documents conveying or securing title or by some other adequate security : Provided further, That no member bank shall accept such drafts or bills in an amount exceeding at any time the aggregate of one-half of its paid-up and unim- paired capital and surplus. Open Market Operations. Sec. 14. Any Federal reserve bank may, under rules and regula- tions prescribed by the Federal Reserve Board, purchase and sell in the open market, at home or abroad, either from or to domestic or foreign banks, firms, corporations or individuals, cable transfers and bankers' acceptances and bills of exchange of the kinds and maturities by this Act made eligible for rediscount, with or without the indorsement of a mem- ber bank. Every Federal reserve bank shall have power: (a) To deal in gold coin and bullion at home or abroad, to make loans thereon, exchange Federal reserve notes for gold, gold coin, or gold certificates, and to contract for loans of gold coin or bullion, giving therefor, when necessary, acceptable security, including the hypothecation of United States bonds or other securities which Federal reserve banks are authorized to hold ; (b) To buy and sell, at home or abroad, bonds and notes of the United States, and bills, notes, revenue bonds, and warrants wnth a ma- turity from date of purchase of not exceeding six months, issued in an- ticipation of the collection of taxes or in -anticipation of the receipt of assured revenues by any State, county, district, political subdivision, or municipality in the continental United States, including irrigation, drain- age and reclamation districts, such purchases to be made in accordance with rules and regulations prescribed by the Federal Reserve Board ; (c) To purchase from member banks and to sell, with or without its endorsement, bills of exchange arising out of commercial transac- tions, as hereinbefore defined ; (d) To establish from time to time, subject to review and deter- mination of the Federal Reserve Board, ratee of discount to be charged by the Federal reserve bank for each class of paper, which shall be fixed with a view of accommodating commerce and business; (e) To establish accounts with other Federal reserve banks for exchange purposes and, with the consent or upon the order and direction 128 Important Federal Laws of the Federal Reserve Board and under regulations to be prescribed by said board, to open and maintain accounts in foreign couatries, appoint correspondents, and establish agencies in such countries wheresoever it may be deemed best for the purpose of purchasing, selling, and collecting bills of exchange, and to buy and sell, with or without its indorsement, through such correspondents or agencies, bills of exchange (or accept- ances) arising out of actual commercial transactions which have not more than ninety days to run, exclusive of days of grace, and which bear the signature of two or more responsible parties, and, with the consent of the Federal Reserve Board, to open and maintain banking accounts for such foreign correspondents or agencies. Whenever any such account has been opened or agency or correspondent has been appointed by a Federal reserve bank, with the consent of or under the order and direction of the Federal Reserve Board, any other Federal reserve bank may, with the consent and approval of the Federal Reserve Board, be permitted to carry on or conduct, through the Federal reserve bank opening such account or appointing such agency or correspondent, any transaction authorized by this section under rules and regulations to be prescribed by the board. (As amended June 21, 1917.) Government Deposits. Sec. 15. The moneys held in the general fund of the Treasury, except the five per centum fund for the redemption of outstanding na- tional-bank notes and the funds provided in this Act for the redemption of Federal reserve notes may, upon the direction of the Secretary of the Treasury, be deposited in Federal reserve banks, which banks, when required by the Secretary of the Treasury, shall act as fiscal agents of the United States ; and the revenues of the Government or any part thereof may be deposited in such banks, and disbursements may be made by checks drawn against such deposits. No public funds of the Philippine Islands, or of the postal savings, or any Government funds, shall be deposited in the continental United States in any bank not belonging to the system established by this Act : Provided, however, That nothing in this Act shall be construed to deny the right of the Secretary of the Treasury to use member banks as de- positories. Federal Reserve Notes Authorized. Sec. 16. Federal reserve notes, to be issued at the discretion of the Federal Reserve Board for the purpose of making advances to Fed- eral reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are hereby authorized. The said notes shall be obligations of the United States and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other public dues. They shall be redeemed in gold on de- mand at the Treasury Department of the United States, in the city of Washington, District of (Columbia, or in gold or lawful money at any Federal reserve bank. Federal Reserve Act 129 Applications for Federal Reserve Notes. Any Federal reserve bank may make application to the local Fed- eral reserve agent for such amount of the Federal reserve notes herein- before provided for as it may require. Such application shall be accom- panied with a tender to the local Federal reserve agent of collateral in amount equal to the sum of the Federal reserve notes thus applied for and issued pursuant to such application. The collateral security thus offered shall be notes, drafts, bills of exchange, or acceptances acquired under the provisions of section thirteen of this Act, or bills of exchange in- dorsed by a member bank of any Federal reserve district and purchased under the provisions of section fourteen of this Act, or bankers' accept- ances purchased under the provisions of said section fourteen, or gold or gold certificates ; but in no event shall such collateral security, whether gold, gold certificates, or eligible paper, be less than the amount of Fed- eral reserve notes applied for. The Federal reserve agent shall each day notify the Federal Reserve Board of all issues and withdrawals of Fed- eral reserve notes to and by the Federal reserve bank to which he is accredited. The said Federal Reserve Board may at any time call upon a Federal reserve bank for additional security to protect the Federal reserve notes issued to it. (As amended September 7, 1916.) Reserve Requirements for Federal Reserve Banks. Every Federal reserve bank shall maintain reserves in gold or law- ful money of not less than thirty-five per centum against its deposits and reserves in gold of not less than forty per centum against its Federal reserve notes in actual circulation: Provided, however. That when the Federal reserve agent holds gold or gold certificates as collateral for Fed- eral reserve notes issued to the bank such gold or gold certificates shall be counted as part of the gold reserve which such bank is required to maintain against its Federal reserve notes in actual circulation. Notes so paid out shall bear upon their faces a distinctive letter and serial number which shall be assigned by the Federal Reserve Board to each Federal reserve bank. Whenever Federal reserve notes issued through one Fed- eral reserve bank shall be received by another Federal reserve bank, they shall be promptly returned for credit or redemption to the Federal reserve bank through which they were originally issued or, upon direction of such Federal reserve bank, they shall be forwarded direct to the Treasurer of the United States to be retired. No Federal reserve bank shall pay out notes issued through another under penalty of a tax of ten per centum upon the face value of notes so paid out. Notes presented for redemp- tion at the Treasury of the United States shall be paid out of the redemp- tion fund and returned to the Federal reserve banks through which thev were originally issued, and thereupon such Federal reserve bank shall, upon demand of the Secretary of the Treasury, reimburse such redemp- tion fund in lawful money or, if such Federal reserve notes have been redeemed by the Treasurer in gold or gold certificates, then such funds shall be reimbursed to the extent deemed necessary by the Secretary of (9) 130 Important Federal Laws the Treasury in gold or gold certificates, and such Federal reserve bank shall, so long as any of its Federal reserve notes remain outstanding, maintain with the Treasurer in gold an amount sufficient in the judgment of the Secretary to provide for all redemptions to be made by the Treas- urer. Federal reserve notes received by the Treasurer otherwise than for redemption may be exchanged for gold out of the redemption fund here- inafter provided and returned to the reserve bank through which they were originally issued, or they may be returned to such bank for the credit of the United States. Federal reserve notes unfit for circulation shall be returned by the Federal reserve agents to the Comptroller of the Currency for cancellation and destruction. Issuance and Redemption of Federal Reserve Notes. The Federal Reserve Board shall require each Federal reserve bank to maintain on deposit in the Treasury of the United States a sum in gold sufficient in the judgment of the Secretary of the Treasury for the re- demption of the Federal reserve notes issued to such bank, but in no event less than five per centum of the total amount of notes issued less the amount of gold or gold certificates held by the Federal reserve agent as collateral security ; but such deposit of gold shall be counted and included as part of the forty per centum reserve hereinbefore required. The board shall have the right, acting through the Federal reserve agent, to grant, in whole or in part, or to reject entirely the application of any Federal reserve bank for Federal reserve notes ; but to the extent that such appli- cation may be granted the Federal Reserve Board shall, through its local Federal reserve agent, supply Federal reserve notes to the banks so apply- ing, and such bank shall be charged with the amount of notes issued to it and shall pay such rate of interest as may be established by the Federal Reserve Board on only that amount of such notes which equals the total amount of its outstanding Federal reserve notes less the amount of gold or gold certificates held by the Federal reserve agent as collateral security. Federal reserve notes issued to any such bank shall, upon delivery, to- gether with such notes of such Federal reserve bank as may be issued under section eighteen of this Act upon security of United States two per centum Government bonds, become a first and paramount lien on all the assets of such bank. Any Federal reserve bank may at any time reduce its liability for outstanding Federal reserve notes by depositing with the Federal reserve agent its Federal reserve notes, gold, gold certificates, or lawful money of the United States. Federal reserve notes so deposited shall not be re- issued, except upon compliance with the conditions of an original issue. The Federal reserve agent shall hold such gold, gold certificates, or lawful money available exclusively for exchange for the outstanding Fed- eral reserve notes when oft'ered by the reserve bank of which he is a director. Upon the request of the Secretary of the Treasury the Federal Reserve Board shall require the Federal reserve agent to transmit to the Treasurer of the United States so much of the gold held by I'im as col- Federal Reserve Act 131 lateral security for Federal reserve notes as may be required for the exclusive purpose of the redemption of such Federal reserve notes, but such gold when deposited with the Treasurer shall be counted and con- sidered as if collateral security on deposit with the Federal reserve agent. Any Federal reserve bank may at its discretion withdraw collateral deposited with the local Federal reserve agent for the protection of its Federal reserve notes issued to it and shall at the same time substitute therefor other collateral of equal amount with the approval of the Fed- eral reserve agent under regulations to be prescribed by the Federal Re- serve Board. Any Federal reserve bank may retire any of its Federal reserve notes by depositing them with the Federal reserve agent or with the Treasurer of the United States, and such Federal reserve bank shall thereupon be entitled to receive back the collateral deposited with the Federal reserve agent for the security of such notes. Federal reserve banks shall not be required to maintain the reserve or the redemption fund heretofore provided for against Federal reserve notes which have been retired. Federal reserve notes so deposited shall not be reissued except upon compliance with the conditions of an original issue. All Federal reserve notes and all gold, gold certificates, and lawful money issued to or deposited with any Federal reserve agent under the provisions of the Federal reserve Act shall hereafter be held for such agent, under such rules and regulations as the Federal Reserve Board may prescribe, in the joint custody of himself and the Federal reserve bank to which he is accredited. Such agent and such Federal reserve bank shall be jointly liable for the safe-keeping of such Federal reserve notes, gold, gold certificates, and lawful money. Nothing herein contained, how- ever, shall be construed to prohibit a Federal reserve agent from deposit- ing gold or gold certificates with the Federal Reserve Board, to be held by such board subject to his order, or with the Treasurer of the United States for the purposes authorized by law. (As amended June 21, 1917.) Preparation of Federal Reserve Notes, In order to furnish suitable notes for circulation as Federal reserve notes, the Comptroller of the Currency shall, under the direction of the Secretary of the Treasury, cause plates and dies to be engraved in the best manner to guard against counterfeits and fraudulent alterations, and shall have printed therefrom and numbered such quantities of such notes of the denominations of $5, $10, $20, $50, $100, as may be re- quired to supply the Federal reserve banks. Such notes shall be in form and tenor as directed by the Secretary of the Treasury under the pro- visions of this Act and shall bear the distinctive numbers of the several Federal reserve banks through which they are issued. When such notes have been prepared, they shall be deposited in the Treasury, or in the subtreasury or mint of the United States nearest the place of business of each Federal reserve bank and shall be held for the use of such bank subject to the order of the Comptroller of the Cur- rency for tleir delivery, as provided by this Act. 132 Important Federal Laws The plates and dies to be procured by the Comptroller of the Cur- rency for the printing of such circulating notes shall remain under his control and direction, and the expenses necessarily incurred in executing the laws relating to the procuring of such notes, and all other expenses incidental to their issue and retirement, shall be paid by the Federal re- serve banks, and the Federal Reserve Board shall include in its estimate of expenses levied against the Federal reserve banks a sufficient amount to cover the expenses herein provided for. The examination of plates, dies, bed pieces, and so forth, and regu- lations relating to such examination of plates, dies, and so forth, of na- tional-bank notes provided for in section fifty-one hundred and seventy- four Revised Statutes, is hereby extended to include notes herein pro- vided for. Any appropriation heretofore made out of the general funds of the Treasury for engraving plates and dies, the purchase of distinctive paper, or to cover any other expense in connection with the printing of national-bank notes or notes provided for by the Act of May thirtieth, nineteen hundred and eight, and any distinctive paper that may be on hand at the time of the passage of this Act may be used in the discre- tion of the Secretary for the purposes of this Act, and should the appro- priations heretofore made be insufficient to meet the requirements of this Act in addition to circulating notes provided for by existing law, the Secretary is hereby authorized to use so much of any funds in the Treasury not otherwise appropriated for the purpose of furnishing the notes aforesaid : Provided, however, That nothing in this section con- tained shall be construed as exempting national banks or Federal reserve banks from their liability to reimburse the United States for any ex- penses incurred in printing and issuing circulating notes. When Federal Reserve Bank Shall Receive Checks and Drafts on Deposit at Par. Every Federal reserve bank shall receive on deposit at par from member banks or from Federal reserve banks checks and drafts drawn upon any of its depositors, and when remitted by a Federal reserve bank, checks and drafts drawn by any depositor in any other Federal reserve bank or member bank upon funds to the credit of said depositor in said reserve bank or member bank. Charges for Collection and For Sale of Exchange. Nothing herein "contained shall be construed as prohibiting a mem- ber bank from charging its actual expense incurred in collecting and re- mitting funds, or for exchange sold to its patrons. The Federal Reserve Board shall, by rule, fix the charges to be collected by the member banks from its patrons whose checks are cleared through the Federal reserve bank and the charge which may be imposed for the service of clearing or collection rendered by the Federal reserve bank. The Federal Reserve Board shall make and promulgate from time Federal Reserve Act 133 to time regulations governing the transfer of funds and charges there- for among Federal reserve banks and their branches, and may at its dis- cretion exercise the functions of a clearing house for such Federal re- serve banks, or may designate a Federal reserve bank to exercise such functions, and may also require each such bank to exercise the functions of a clearing house for its member banks. ' That the Secretary of the Treasury is hereby authorized and directed to receive deposits of gold coin or of gold certificates with the Treasurer or any assistant treasurer of the United States when tendered by any Federal reserve bank or Federal reserve agent for credit to its or his account with the Federal Reserve Board. The Secretary shall pre- scribe by regulation the form of receipt to be issued by the Treasurer or Assistant Treasurer to the Federal reserve bank or Federal reserve agent making the deposit, and a duplicate of such receipt shall be delivered to the Federal Reserve Board by the Treasurer at Washington upon proper advices from any assistant treasurer that such deposit has been made. Deposits so made shall be held subject to the orders of the Federal Re- serve Board and shall be payable in gold coin or gold certificates on the order of the Federal Reserve Board to any Federal reserve bank or Fed- eral reserve agent at the Treasury or at the Subtreasury of the United States nearest the place of business of such Federal reserve bank or such Federal reserve agent : Provided, however. That any expense incurred in shipping gold to or from the Treasury or Subtreasuries in order to make such payments, or as a result of making such payments, shall be paid by the Federal Reserve Board and assessed against the Federal reserve banks. The order used by the Federal Reserve Board in making such payments shall be signed by the governor or vice governor, or such other officers or members as the board may by regulation prescribe. The form of such order shall be approved by the Secretary of the Treasury. The expenses necessarily incurred in carrying out these provisions, including the cost of the certificates or receipts issued for deposits re- ceived, and all expenses incident to the handling of such deposits shall be paid by the Federal Reserve Board and included in its assessments against the several Federal reserve banks. Gold deposits standing to the credit of any Federal reserve bank with the Federal Reserve Board shall, at the option of said bank, be counted as part of the lawful reserve which it is required to maintain against outstanding Federal reserve notes, or as a part of the reserve it is required to maintain against deposits. Nothing in this section shall be construed as amending section six of the Act of March fourteenth, nineteen hundred, as amended by the Acts of March fourth, nineteen hundred and seven, March second, nineteen hundred and eleven, and June twelfth, nineteen hundred and sixteen, nor shall the provisions of this section be construed to apply to the deposits made or to the receipts or certificates issued under those Acts. (Added by Act of June 21, 1917.) 134 Important Federal Laws National Banks not Required to Make Deposit of United States Bonds Prior to Commencement of Business. Sec. 17. So much of the provisions of section fifty-one hundred and fifty-nine of the Revised Statutes of the United States, and section four of the Act of June twentieth, eighteen hundred and seventy-four, and section eight of the Act of July twelfth, eighteen hundred and eighty- two, and of any other provisions of existing statutes as require that before any national banking association shall be authorized to commence banking business it shall transfer and deliver to the Treasurer of the United States a stated amount of United States registered bonds, and so much of those provisions or of any other provisions of existing statutes as require any national banking association now or hereafter organized to maintain a minimum deposit of such bonds w^ith the Treasurer is hereby repealed. (As amended June 21, 1917.) Refunding Bonds, Retirement of Circulating Notes. Sec. 18. After two years from the passage of this Act, and at any time during a period of twenty years thereafter, any member bank de- siring to retire the whole or any part of its circulating notes, may file with the Treasurer of the United States an application to sell for its account, at par and accrued interest. United States bonds securing cir- culation to be retired. Purchase of United States Bonds by Federal Reserve Banks. The Treasurer shall, at the end of each quarterly period, furnish the Federal Reserve Board with a list of such applications, and the Fed- eral Reserve Board may, in its discretion, require the Federal reserve banks to purchase such bonds from the banks whose applications have been filed with the Treasurer at least ten days before the end of any quarterly period at which the Federal Reserve Board may direct the purchase to be made : Provided, That Federal reserve banks shall not be permitted to purchase an amount to exceed $25,000,000 of such bonds in any one year, and which amount shall include bonds acquired under section four" of this Act by the Federal reserve bank. Provided further. That the Federal Reserve Board shall allot to each Federal reserve bank such proportion of such bonds as the capital and surplus of such bank shall bear to the aggregate capital and surplus of all the Federal reserve banks. Upon notice from the Treasurer of the amount of bonds so sold for its account, each member bank shall duly assign and transfer, in writing, such bonds to the Federal reserve bank purchasing the same, and such Federal reserve bank shall, thereupon, deposit law^ful money with the Treasurer of the United States for the purchase price of such bonds, and the Treasurer shall pay to the member bank selling such bonds any balance due after deducting a sufficient sum to redeem its outstanding notes secured by such bonds, which notes shall be canceled and perma- nently retired when redeemed. Federal Reserve Act 135 Issue of Circulating Notes to Federal Reserve Banks. The Federal reserve banks purchasing such bonds shall be permitted to take out an amount of circulating notes equal to the par value of such bonds. Upon the deposit with the Treasurer of the United States of bonds so purchased, or any bonds with the circulating privilege acquired under section four of this Act, any Federal reserve bank making such deposit in the manner provided by existing law, shall be entitled to receive from the Comptroller of the Currency circulating notes in blank, registered and countersigned as provided by law, equal in amount to the par value of the bonds so deposited. Such notes shall be the obligations of the Federal reserve bank procuring the same, and shall be in form pre- scribed by the Secretary of the Treasury, and to the same tenor and effect as national-bank notes now provided by law. They shall be issued and redeemed under the same terms and conditions as national-bank notes except that they shall not be limited to the amount of the capital stock of the Federal reserve bank issuing them. Issue of Gold Notes of the United States in Exchange for Certain United States Bonds. Upon application of any Federal reserve bank, approved by the Federal Reserve Board, the Secretary of the Treasury may issue, in ex- change for United States two per centum gold bonds bearing the circu- lation privilege, but against which no circulation is outstanding, one- year gold notes of the United States without the circulation privilege, to an amount not to exceed one-half of the two per centum bonds so tendered for exchange, and thirty-year three per centum gold bonds without the circulation privilege for the remainder of the two per centum bonds so tendered : Provided, That at the time of such exchange the Federal reserve bank obtaining such one-year gold notes shall enter into an obligation with the Secretary of the Treasury binding itself to purchase from the United States for gold at the maturity of such one- year notes, an amount equal to those delivered in exchange for such bonds, if so requested by the Secretary, and at each maturity of one- year notes so purchased by such Federal reserve bank, to purchase from the United States such an amount of one-year notes as the Secretary may tender to such bank, not to exceed the amount issued to such bank in the first instance, in exchange for the two per centum United States gold bonds : said obligation to purchase at maturity such notes shall con- tinue in force for a period not to exceed thirty years. For the purpose of making the exchange herein provided for, the Secretary of the Treasury is authorized to issue at par Treasury notes in coupon or registered form as he may prescribe in denominations of one hundred dollars, or any multiple thereof, bearing interest at the rate of three per centum per annum, payable quarterly, such Treasury notes to be payable not more than one year from the date of their issue in gold 136 Important Federal Laws coin of the present standard value, and to be exempt as to principal and interest from the payment of all taxes and duties of the United States except as provided by this Act, as well as from taxes in any form by or under State, municipal, or local authorities. And for the same purpose, the Secretary is authorized and empowered to issue United States gold bonds at par, bearing three per centum interest payable thirty years from date of issue, such bonds to be of the same general tenor and effect and to be issued under the same general terms and conditions as the United States three per centum bonds without the circulation privilege now issued and outstanding. In its vaults for a period of thirty-six months after said date, six- fifteenths thereof, and permanently thereafter five-fifteenths. In the Federal reserve bank of its district for a period of twelve months after the date aforesaid, at least three-fifteenths, and for each succeeding six months an additional one-fifteenth, until six-fifteenths have been so deposited, which shall be the amount permanently required. For a period of thirty-six months after said date the balance of the reserves may be held in its own vaults, or in the Federal reserve bank, or in national banks in central reserve cities, as now defined by law. After said thirty-six months' period all of said reserves, except those hereinbefore required to be held permanently in the vaults of the member bank and in the Federal reserve bank, shall be held in its vaults or in the Federal reserve bank or in both, at the option of the member bank. Reserve Requirements. (c) A bank in a central reserve city, as now or hereafter defined, shall hold and maintain a reserve equal to eighteen per centum of the aggregate amount of its demand deposits and five per centum of its time deposits, as follows : In its vaults, six-eighteenths thereof. In the Federal reserve bank, seven-eighteenths. The balance of said reserves shall be held in its own vaults or in the Federal reserve bank, at its option. Any Federal reserv^e bank may receive from the member banks as reserves not exceeding one-half of each installment, eligible paper as described in section thirteen properly indorsed and acceptable to the said reserve bank. If a State bank or trust company is required or permitted by the law of its State to keep its reserves either in its own vaults or with an- other State bank or trust company or with a national bank, such reserve deposits so kept in such State bank, trust company, or national bank shall be construed within the meaning of this section as if they were re- serve deposits in a national bank in a reserve or central reserve city for a period of three years after the Secretary of the Treasury shall have ofificially announced the establishment of a Federal reserve bank in the district in which such State bank or trust company is situate. Upon application of any Federal reserve bank, approved by the Fed- Federal Reserve Act 137 eral Reserve Board, the Secretary may issue at par such three per centum bonds in exchange for the one-year gold notes herein provided for. (As amended Aug. 14, 1914.) Demand and Time Deposits Defined. Sec. 19. Demand deposits within the meaning of this Act shall comprise all deposits payable within thirty days, and time deposits shall comprise all deposits payable after thirty days, all savings accounts and certificates of deposit which are subject to not less than thirty days' notice before payment, and all postal savings deposits. Reserve Requirements. Every bank, banking association, or trust company which is or which becomes a member of any Federal reserve bank shall establish and maintain reserve balances with its Federal reserve bank as follows : (a) If not in a reserve or central reserve city, as now or hereafter defined, it shall hold and maintain with the Federal reserve bank of its district an actual net balance equal to not less than seven per centum of the aggregate amount of its demand deposits and three per centum of its time deposits. (b) If in a reserve city, as now or hereafter defined, it shall hold and maintain with the Federal reserve bank of its district an actual net balance equal to not less than ten per centum of the aggregate amount of its demand deposits and three per centum of its time deposits. (c) If in a central reserve city, as now or hereafter defined, it shall hold and maintain with the Federal reserve bank of its district an actual net balance equal to not less than thirteen per centum of the aggre- gate amount of its demand deposits and three per centum of its time deposits. No member bank shall keep on deposit with any State bank or trust company which is not a member bank a sum in excess of ten per centum of its own paid-up capital and surplus. No member bank shall act as the medium or agent of a nonmember bank in applying for or receiving discounts from a Federal reserve bank under the provisions of this Act, except by permission of the Federal Reserve Board. The required balance carried by a member bank with a Federal reserve bank may, under the regulations and subject to such penalties as may be prescribed by the Federal Reserve Board, be checked against and withdrawn by such member bank for the purpose of meeting existing liabilities : Provided, however. That no bank shall at any time make new loans or shall pay any dividends unless and until the total balance by law is fully restored. In estimating the balances required by this Act, the net difference of amounts due to and from other banks shall be taken as the basis for ascertaining the deposits against which required balances with Federal reserve banks shall be determined. National banks, or banks organized under local laws, located in Alaska or in a dependency or insular possession or any part of the United 138 Important Federal Laws States outside the continental United States may remain non-member banks, and shall in that event maintain reserves and comply with all the conditions now provided by law regulating them ; or said banks may, with the consent of the Reserve Board, become member banks of any one of the reserv-e districts, and shall in that event take stock, maintain reserves, and be subject to all the other provisions of this Act." As amended June 21, 1917. Other than the usual salary or director's fee paid to any officer, director, employee, or attorney of a member bank, and other than a rea- sonable fee paid by said bank to such officer, director, employee, or attor- ney for services rendered to such bank, no officer, director, employee, or attorney of a member bank shall be a beneficiary of or receive, directly or indirectly, any fee, commission, gift, or other consideration for on in con- nection with any transaction or business of the bank : Provided, how- ever, That nothing in this Act contained shall be construed to prohibit a director, officer, employee, or attorney from receiving the same rate of interest paid to other depositors for similar deposits made with such bank : And provided further, That notes, drafts, bills of exchange, or other evidences of debt executed or indorsed by directors or attorneys of a member bank may be discounted with such member bank on the same terms and conditions as other notes, drafts, bills of exchange, or evidences of debt upon the affinnative vote or written assent of at least a majority of the members of the board of directors of such member bank. (As amended June 21, 1917.) Redemption Fund With Treasurer Not to be Counted as Reserve. Sec. 20. So much of sections two and three of the Act of June twentieth, eighteen hundred and seventy-four, entitled "An Act fixing the amount of United Stales notes, providing for a redistribution of the national-bank currency, and for other purposes," as provides that the fund deposited by any national banking association with the Treas- urer of the United States for the redemption of its notes shall be counted as a part of its lawful reserve as provided in the Act aforesaid, is hereby repealed. And from and after the passage of this Act such fund of five per centum shall in no case be counted by any national banking associa- tion as a part of its lawful reserve. Examination — Appointment and Powers of Examiners. Sec. 21. Section fifty-two hundred and forty, United States Re- vised Statutes, is amended to read as follows : The Comptroller of the Currency, with the approval of the Secre- tary of the Treasury, shall appoint examiners who shall examine every member bank at least twice in each calendar year and oftener if consid- ered necessary : Provided, however. That the Federal Reserve Board may authorize examination by the State authorities to be accepted in the case of State banks and trust companies and may at any time direct the holding of a special examination of State banks or trust companies that are stockholders in any Federal reserve bank. The examiner making Federal Reserve Act 139 the examination of any national bank, or of any other member bank, shall have power to make a thorough examination of all the affairs of the bank and in doing so he shall have power to administer oaths and to ex- amine any of the officers and agents thereof under oath and shall make a full and detailed report of the condition of said bank to the Comp- troller of the Currency. The Federal Reserve Board, upon the recommendation of the Comp- troller of the Currency, shall fix the salaries of all bank examiners and make report thereof to Congress. The expense of the examinations herein provided for shall be assessed by the Comptroller of the Cur- rency upon the banks examined in proportion to assets or resources held by the banks upon the dates of examination of the various banks. In addition to the examinations made and conducted by the Comp- troller of the Currency, every Federal reserve bank may, with the ap- proval of the Federal reserve agent or the Federal Reserve Board, pro- vide for special examination of member banks within its district. The expense of such examinations shall be borne by the bank examined. Such examinations shall be so conducted as to inform the Federal re- sen-e bank of the condition of its member banks and of the lines of credit which are being extended by them. Every Federal reserv^e bank shall at all times furnish to the Federal Reserve Board such information as mav be demanded concerning the condition of any member bank within the district of the said Federal reserve bank. No bank shall be subject to any visitatorial powers other than such as are authorized by law, or vested in the courts of justice or such as shall be or shall have been exercised or directed by Congress, or by either House thereof or by any committee of Congress or of either House duly authorized. The Federal Reserve Board shall, at least once each year, order an examination of each Federal reserve bank, and upon joint application of ten member banks the Federal Reserve Board shall order a special ex- amination and report of the condition of any Federal reserve bank. Loans and Gratuities to Bank Examiners Forbidden. Sec. 22. No member bank or any officer, director, or employee thereof shall hereafter make any loan or grant any gratuity to any bank examiner. Any bank officer, director, or employee violating this provi- sion shall be deemed guilty of a misdemeanor and shall be imprisoned not exceeding one year or fined not more than $5,000, or both ; and may be fined a further sum equal to the money so loaned or gratuity given. Any examiner accepting a loan or gratuity from any bank examined by him or from an officer, director, or employee thereof shall be deemed guilty of a misdemeanor and shall be imprisoned not exceeding one year or fined not more than $5,000, or both ; and may be fined a further sum equal to the money so loaned or gratuity given ; and shall forever there- after be disqualified from holding office as a national bank examiner. No national-bank examiner shall perform any other service for com- 140 Important Federal Laws pensation while holding such office for any bank or officer, director, or employee thereof. Other than the usual salary or director's fee paid to any officer, director, or employee of a member bank and other than a reasonable fee paid by said bank to such officer, director, or employee for services rend- ered to such bank, no officer, director, employee, or attorney of a mem- ber bank shall be a beneficiary of or receive, directly or indirectly, any fee, commission, gift, or other consideration for or in connection with any transaction or business of the bank. No examiner, public or private, shall disclose the names of borrowers or the collateral for loans of a member bank to other than the proper officers of such bank without first having obtained the express permission in writing from the Comp- troller of the Currency, or from the board of directors of such bank, except when ordered to do so by a court of competent jurisdiction, or by direction of the Congress of the United States, or of either House thereof, or any committee of Congress or of either House duly author- ized. Any person violating any provision of this section shall be pun- ished by a fine of not exceeding $5,000 or by imprisonment not exceed- ing one year, or both. Except as provided in existing laws, this provision shall not take efifect until sixty days after the passage of this Act. Liability of Stockholders of National Banks. Sec. 23. The stockholders of every national banking association shall be held individually responsible for all contracts, debts, and engage- ments of such association, each to the amount of his stock therein, at the par value thereof in addition to the amount invested in such stock. The stockholders in any national banking association who shall have trans- ferred their shares or registered the transfer thereof within sixty days next before the date of the failure of such association to meet its obliga- tions, or with knowledge of such impending failure, shall be liable to the same extent as if they had made no such transfer, to the extent that the subsecjuent transferee fails to meet such liability ; but this provision shall not be construed to affect in any way any recourse which such share- holders might otherwise have against those in whose names such shares are registered at the time of such failure. Loans on Farm Lands. Sec. 24. Any national banking association not situated in a central reserve city may make loans secured by improved and unencumbered farm land situated within its Federal reserve district or within a radius of one hundred miles of the place in which such bank is located, irre- spective of district lines, and may also make loans secured by improved and unencumbered real estate located within one hundred miles of the place in which such bank is located, irrespective of district lines ; but no loan made upon the security of such farm land shall be made for a longer time than five years, and no loan made upon the security of such real estate as distinguished from farm land shall be made for a longer time than one year nor shall the amount of any such loan, whether upon Federal Reserve Act 141 such farm land or upon such real estate, exceed fifty per centum of the actual value of the property offered as security. Any such bank may make such loans, whether secured by such farm land or such real estate, in an aggregate sum equal to twenty-five per centum of its capital and surplus or to one-third of its time deposits and such banks may continue hereafter as heretofore to receive time deposits and to pay interest on the same. The Federal Reserve Board shall have power from time to time to add to the list of cities in which national banks shall not be permitted to make loans secured upon real estate in the manner described in this section. (As amended September 7, 1916.) Foreign Branches. Sec. 25. Any national banking association possessing a capital and surplus of $1,000,000 or more may file application with the Federal Reserve Board for permission to exercise, upon such conditions and under such regulations as may be prescribed by the said board, either or both of the following powers : First. To establish branches in foreign countries or dependencies or insular possessions of the United States for the furtherance of the foreign commerce of the United States, and to act if required to do so as fiscal agents of the United States. Second. To invest an amount not exceeding in the aggregate ten per centum of its paid-in capital stock and surplus in the stock of one or more banks or corporations chartered or incorporated under the laws of the United States or of any State thereof, and principally engaged in international or foreign banking, or banking in a dependency or insular possession of the United States either directly or through the agency, ownership, or control of local institutions in foreign countries, or in such dependencies or insular possessions. Such application shall specify the name and capital of the banking association filing it, the powers applied for, and the place or places where the banking operations proposed are to be carried on. The Federal Reserve Board shall have power to approve or to reject such application in whole or in part if for any reason the granting of such application is deemed inexpedient, and shall also have power from time to time to in- crease or decrease the number of places where such banking operations may be carried on. Every national banking association operating foreign branches shall be required to furnish information concerning the condition of such branches to the Comptroller of the Currency upon demand, and every member bank investing in the capital stock of banks or corporations described under subparagraph two of the first paragraph of this section shall be required to furnish information concerning the condition of such banks or corporations to the Federal Reserve Board upon demand, and the Federal Reserve Board may order special examinations of the said branches, banks, or corporations at such time or times as it may deem best. 142 Important Federal Laws Before any national bank shall be permitted to purchase stock in any such corporation the said corporation shall enter into an agreement or undertaking with the Federal Reserve Board to restrict its operations or conduct its business in such manner or under such limitations and restrictions as the said board may prescribe for the place or places where- in such business is to be conducted. If at any time the Federal Reserve- Board shall ascertain that the regulations prescribed by it are not being complied with, said board is hereby authorized and empowered to in- stitute an investigation of the matter and to send for persons and papers, subpoena witnesses, and administer oaths in order to satisfy itself as to the actual nature of the transactions referred to. Should such investiga- tion result in establishing the failure of the corporation in question, or of the national bank or banks which m.ay be stockholders therein, to comply with the regulations laid down by the said Federal Reserve Board, such national banks may be required to dispose of stock holdings in the said corporation upon reasonable notice. Every such national banking association shall conduct the accounts of each foreign branch independently of the accounts of other foreign branches estaljlished by it and of its home ofifice, and shall at the end of each fiscal period transfer to its general ledger the profit or loss accrued at each branch as a separate item. Any director or other officer, agent, or employee of any member bank may, with the approval of the Federal Reserve Board, be a director or other officer, agent, or employee of any such bank or corporation above mentioned in the capital stock of which such member bank shall have invested as hereinbefore provided, without being subject to the pro- visions of section eight of the Act approved October fifteenth, nineteen hundred and fourteen, entitled "An Act to supplement existing laws against unlawful restraints and monopolies, and for other purposes." (As amended September 7, 1916.) Repeal of Provisions of Law Inconsistent With the Provisions of the Federal Reserve Act. Sec. 26. All provisions of law inconsistent with or superseded by any of the provisions of this Act are to that extent and to that extent only hereby repealed : Provided, Nothing in this Act contained shall be construed to repeal the parity provision or provisions contained in an Act approved Alarch fourteenth, nineteen hundred, entitled "An Act to define and fix the standard of value, to maintain the parity of all forms of money issued or coined by the United States, to refund the public debt, and for other purposes," and the Secretary of the Treasury may for the purpose of maintaining such parity and to strengthen the gold reserve, borrow gold on the security of United States bonds authorized. by section two of the Act last referred to or for one-year gold notes bearing interest at a rate of not to exceed three per centum per annum, or sell the same if necessary to obtain gold. When the funds of the Treasury on hand justify, he may purchase and retire such outstanding bonds and notes. Federal Reserve Act 143 Act of May 30, 1908, Extended. Sec. 27. The provisions of the Act of May thirtieth, nineteen hun- dred and eight, authorizing national currency associations, the issue of additional national-bank circulation, and creating a National Monetary Commission, which expires by limitation under the terms of such Act on the thirtieth day of June, nineteen hundred and fourteen, are hereby extended to June thirtieth, nineteen hundred and fifteen, and sections fifty-one hundred and fifty-three, fifty-one hundred and seventy-two, fifty-one hundred and ninety-one, and fifty-two hundred and fourteen of the Revised Statutes of the United States, which were amended by the Act of May thirtieth, nineteen hundred and eight, are hereby reenacted to read as such sections read prior to May thirtieth, nineteen hundred and eight, subject to such amendments or modifications as are prescribed in this Act : Provided, however. That section nine of the Act first referred to in this section is hereby amended so as to change the tax rates fixed in said Act by making the portion applicable thereto read as follows : National banking association having circulating notes secured otherwise than by bonds of the United States, shall pay for the first three months a tax at the rate of three per centum per annum upon the aver- age amount of such of their notes in circulation as are based upon the deposit of such securities, and afterwards an additional tax rate of one- half of one per centum per annum for each month until a tax of six per centum per annum is reached, and thereafter such tax of six per centum per annum upon the average amount of such notes: Provided further. That whenever in his judgment he may deem it desirable, the Secretary of the Treasury shall have power to suspend the limitations imposed by section one and section three of the Act referred to in this section, which prescribe that such additional circulation secured otherwise than by bonds of the United States shall be issued only to National banks having circulating notes outstanding secured by the deposit of bonds of the United States to an amount not less than forty per centum of the cap- ital stock of such banks, and to suspend also the conditions and limita- tions of section five of said Act except that no bank shall be permitted to issue circulating notes in excess of one hundred and twenty-five per centum of its unimpaired capital and surplus. He shall require each bank and currency association to maintain on deposit in the Treasury of the United States a sum in gold sufficient in his judgment for the re- demption of such notes, but in no event less than five per centum. He may permit National banks, during the period for which such provisions are suspended, to issue additional circulation under the terms and condi- tions of the Act referred to as herein amended : Provided further, That the Secretary of the Treasury, in his discretion, is further authorized to extend the benefits of this Act to all qualified State banks and trust com- panies, which have joined the Federal reserve system, or which may con- tract to join within fifteen days after the passage of this Act. (As amended Aug. 15, 1914.) 144 Important Federal Laws « Reduction of Capital of National Banks. Sec. 28. Section fifty-one hundred and forty-three of the Revised Statutes is hereby amended and reenacted to read as follows : Any association formed under this title may, by the vote of shareholders owning two-thirds of its capital stock, reduce its capital to any sum not below the amount required by this title to authorize the formation of associations ; but no such reduction shall be allowable which will reduce the capital of the association below the amount required for its out- standing circulation, nor shall any reduction be made until the amount of the proposed reduction has been reported to the Comptroller of the Currency and such reduction has been approved by the said Comptroller of the Currency and by the Federal Reserve Board, or by the organiza- tion committee pending the organization of the Federal Reserve Board. Invalidation of Clause, Etc., in Act Not to Invalidate Remainder of Act, Sec. 29. If any clause, sentence, paragraph, or part of this Act shall for any reason be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not afifect, impair, or invalidate the remainder of this Act, 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. Reservation of Right to Amend or Repeal. Sec. 30. The right to amend, alter, or repeal this Act is hereby expressly reserved. THE POSTAL SAVINGS ACT. Act of June 25, 1910. An Act to establish postal savings depositories for depositing savings at interest with the security of the government for repayment thereof, and for other purposes. Board of Trustees — Report. That there be, and is hereby, created a board of trustees for the control, supervision, and administration of the postal savings depository offices designated and established under the provisions of this act, and of the funds received as deposits at such postal savings depository offices by virtue thereof. Said board shall consist of the Postmaster General, the Secretary of the Treasury, and the Attorney General, severally, acting ex officio, and shall have power to make all necessary and proper regula- tions for the receipt, transmittal, custody, deposit, investment, and repay- ment of the funds deposited at postal savings depository offices. The board of trustees shall submit a report to Congress at the begin- ning of each regular session showing by States and Territories (for the preceding fiscal year) the number and names of post offices receiving deposits, the aggregate amount of deposits made therein, the aggregate Postal Savings 145 amount of withdrawals therefrom, the number of depositors in each, the total amount standing to the credit of all depositors at the conclusion of the year, the amount of such deposits at interest, the amount of interest received thereon, the amount of interest paid thereon, the amount of deposits surrendered by depositors for bonds issued by authority of this Act, and the number and amount of unclaimed deposits. Also the amount invested in Government securities by the trustees, the amount of extra expense of the Post Office Department and the postal service incident to the operation of the postal savings depository system and all other facts which it may deem pertinent and proper to present. Law Governing Other Official Mail Made Applicable to Postal Sav- ings Matter. Sec. 2. That provisions of section three of the act of July fifth,, eighteen hundred and eighty-four, entitled "An act making appropria- tions for the service of the Post Office Department for the fiscal year ending June thirtieth, eighteen hundred and eighty-five, and for other purposes," are hereby extended and made applicable to all official mail matter pertaining to the business of the postal savings system ; and here- after the board of trustees for the control, supervision, and administration of the postal savings depository system shall not be required to show in the annual report prescribed by section one of the act of June twenty- fifth, nineteen hundred and ten, establishing such system, the amount of work done for that system by the Post Office Department and postal service in the transportation of free mail. (As amended September 23, 1914.) Postal Savings Depository Offices. Sec. 3. That said board of trustees is hereby authorized and em- powered to designate such post offices as it may select to be postal savings depository offices, and each and every post office so designated by order of said board is hereby declared to be a postal savings depository office within the meaning of this act and to be authorized and required to receive deposits of funds from the public and to account for and dispose of the same, according to the provisions of this act and the regulations made in pursuance thereof. Each postal savings depository office shall be kept open for the transaction of business during such hours as the Postmaster General, with the approval of the board of trustees, shall direct. Opening of Accounts, Sec. 4. That accounts may be opened and deposits made in any postal savings depository established under this act by any person of the age of ten years or over, in his or her own name, and by a married woman in her own name and free from any control or interference by her hus- band ; but no person shall at the same time have more than one postal savings account in his or her own right. (10) 146 Important Federal Laws Pass Books. Sec. 5. That the postmaster at a postal savings depository office shall, upon the making of an application to open an account under this act and the submission of an initial deposit, deliver to the depositor a pass book free of cost, upon which shall be written the name and signa- ture or mark of. the depositor and such other memoranda as may be necessary for purposes of identification, in which pass book entries of all deposits and withdrawals shall be made in both figures and writing: Provided, That the Postmaster General may, with the approval of the board of trustees, adopt some other device or devices in lieu of a pass book as a means of making and preserving evidence of deposits and with- drawals. Deposits — Size of ; Postal Savings Cards and Stamps. Sec. 6. That at least one dollar, or a larger amount in multiples thereof, must be deposited before an account is opened with the person depositing the same, and one dollar, or multiples thereof, may be de- posited after such account has been opened, but the balance to the credit of any person upon which interest is payable shall not exceed one thou- sand dollars exclusive of accumulated interest : Provided. That in order that smaller amounts may be accumulated for deposit any person may purchase for ten cents from any depository office a postal savings card to which may be attached specially prepared adhesive stamps, to be known as "postal savings stamps," and when the stamps so attached amount to one dollar, or a larger sum in multiples thereof, including the ten-cent postal savings card, the same may be presented as a deposit for opening an account, and additions may be made to any account by means of such card and stamps in amounts of one dollar, or multiples thereof, and when a card and stamps thereto attached are accepted as a deposit the post- master shall immediately cancel the same. It is hereby made the duty of the Postmaster General to prepare such postal savings cards and postal savings stamps of denominations of ten cents, and to keep them on sale at every postal savings depository office, and to prescribe all necessary rules and regulations for the issue, sale, and cancellation thereof. (As amended May 18, 1916.) Interest on Deposits. Sec. 7. That interest at the rate of two per centum per annum shall be allowed and entered to the credit of each depositor once in each year, the same to be computed on such basis and under such rules and regulations as the board of trustees may prescribe ; but interest shall not be computed or allowed on fractions of a dollar: Provided, That the board of trustees may, in their discretion, and under such regulations as such board may promulgate, accept additional deposits not to exceed in the aggregate one thousand dollars for each depositor but upon which no interest shall be paid. (As amended May 18, 1916.) Postal Savings 147 Withdrawal of Deposits. Sec. 8. That any depositor may withdraw the whole or any part of the funds deposited to his or her credit, with the accrued interest, upon demand and under such regulations as the board of trustees may pre- scribe. Withdrawals shall be paid from the deposits in the State or Ter- ritory, so far as the postal funds on deposit in such State or Territory may be sufficient for the purpose, and, so far as practicable, from the deposits in the community in which the deposit was made. No bank in which postal savings funds shall be deposited shall receive any exchange or other fees or compensation on account of the cashing or collection of any checks or the performance of any other service in connection with the postal savings depository system. Depository Banks — Regulations. '-"..- ;, -,i • Act of May IS, 1916. Sec. 2.^ That postal savings funds received under the provisions of this act shall be deposited in solvent banks, whether organized under National or State laws, and whether member banks or not of the Federal reserve system established by the act approved December twenty-third, nineteen hundred and thirteen, being subject to National or State super- vision and examination, and the sums deposited shall bear interest at the rate of not less than two and one-fourth per centum per annum, which rate shall be uniform throughout the United States and Territories there- of ; but five per centum of such funds shall be withdrawn by the board of trustees and kept with the Treasurer of the United States, who shall be treasurer of the board of trustees, in lawful money as a reserve. The board of trustees shall take from such banks such security in public bonds or other securities, authorized by act of Congress or supported by the tax- ing power, as the board may prescribe, approve, and deem sufficient and necessary to insure the safety and prompt payment of such deposits on demand. The funds received at the postal savings depository offices in each city, town, village, and other locality shall be deposited in banks located therein (substantially in proportion to the capital and surplus of each such bank) willing to receive such deposits under the terms of this act and the regulations made by authority thereof: Provided, however, If one or more member banks of the Federal reserve system established by the act approved December twenty-third, nineteen hundred and thir- teen, exists in the city, town, village, or locality where the postal savings deposits are made, such deposits shall be placed in such qualified member banks substantially in proportion to the capital and surplus of each such bank, but if such member banks fail to qualify to receive such deposits, then any other bank located therein may, as hereinbefore provided, qualify and receive the same. If no such member bank and no other qualified bank exists in any city, town, village, or locality, or if none where such deposits are made will receive such deposits on the terms prescribed, then 1 This section supersedes section 9 of the original act. 148 Important Federal. Laws such funds shall be deposited under the terms of this act in the bank most convenient to such locality. If no such bank in any State or Terri- tory is willing to receive such deposits on the terms prescribed, then such funds shall be deposited with the treasurer of the board of trustees and shall be counted in making up the reserve of five per centum. Such funds may be withdrawn from the treasurer of said board of trustees, and all other postal savings funds, or any part of such funds, may be at any time withdrawn from the banks and savings depository offices for the repayment of postal savings depositors when required for that purpose. If at any time the postal savings deposits in any State or Territory shall exceed the amount which the qualified banks therein are willing to receive under the terms of this act, and such excess amount is not required to make up the reserve fund of five per centum hereinbefore provided for, the board of trustees may invest all or any part of such excess amount in bonds or other securities of the United States. When, in the judgment of the President, the general welfare and interests of the United States so require, the board of trustees may invest all or any part of the postal savings funds, except the reserve fund of five per centum herein provided for, in bonds or other securities of the United States. The board of trustees may in its discretion purchase from the holders thereof bonds which have been or may be issued under the provisions of section ten of the act of June twenty-fifth, nineteen hundred and ten. Interest and profit accruing from the deposits or investment of postal savings funds shall be applied to the payment of interest due to postal savings depositors, as hereinbefore provided, and the excess thereof, if any, shall be covered into the Treasury of the United States as a part of the postal revenue: Provided further, That postal savings funds in the treasury of said board shall be subject to disposition as provided in this act, and not otherwise : And provided further, That the board of trustees may at any time dispose of bonds held as postal savings investments and use the proceeds to meet withdrawals of deposits by depositors. For the purposes of this act the word "Territory" as used herein shall be held to include the District of Columbia, the District of Alaska, and Porto Rico, and the word "bank" shall be held to include savings banks and trust companies doing a bank- ing business. Postal Savings Bonds. Sec. 10. That any depositor in a postal savings depository may surrender his deposit, or any part thereof, in sums of twenty dollars, forty dollars, sixty dollars, eighty dollars, one hundred dollars, and multi- ples of one hundred dollars and five hundred dollars, and receive in lieu of such surrendered deposits, under such regulations as may be established by the board of trustees, the amount of the surrendered deposits in United States coupon or registered bonds of the denominations of twenty dollars, forty dollars, sixty dollars, eighty dollars, one hundred dollars, and five hundred dollars, which bonds shall bear Postal Savings 149 interest at the rate of two and one-half per centum per annum, payable semi-annually, and be redeemable at the pleasure of the United States after one year from the date of their issue and payable twenty years from such date, and both principal and interest shall be payable in United States gold coin of the present standard of value: Provided, That the bonds herein authorized shall be issued only (first) when there are outstanding bonds of the United States subject to call, in which case the proceeds of the bonds shall be applied to the redemption at par of outstanding bonds of the United States subject to call, and (second) at times when under authority of law other than that contained in this act the Government desires to issue bonds for the purpose of replenishing the Treasury, in whicl^ case the issue of bonds under authority of this act shall be in lieu of the issue of a like amount of bonds issuable under authority of law other than that contained in this act : Provided further, That the bonds authorized by this act shall be issued by the Secretary of the Treasury under such regulations as he may prescribe : And provided further, That the authority contained in section nine of this act for the investment of postal savings funds in United States bonds shall include the authority to invest in the bonds herein authorized whenever such bonds may be law- fully issued : And provided further. That the bonds herein authorized shall be exempt from all taxes or duties of the United States as well as from taxation in any form by or under State, municipal, or local author- ity : And provided further. That no bonds authorized by this act shall be receivable by the Treasurer of the United States as security for the issue of circulating notes by national associations. Investment in United States Bonds. Sec. U. That whenever the trustees of the postal savings fund have in their possession funds available for investment in United States bonds they may notify the Secretary of the Treasury of the amount of such funds in their hands which they desire to invest in bonds of the United States subject to call, whereupon, if there are United States bonds sub- ject to call, the Secretary of the Treasury shall call for redemption an amount of such bonds equal to the amount of the funds in the hands of the trustees which the trustees desire to thus invest, and the bonds so called shall be redeemed at par with accrued interest at the Treasury of the United States on and after three months from the date of such call, and interest on the said bonds shall thereupon cease : Provided, That the said bonds when redeemed shall be reissued at par to the trustees without change in their terms as to rate of interest and date of maturity : And provided further, That the bonds so reissued may, in the discretion of the Secretary of the Treasury, be called for redemption from the trustees in like manner as they were originally called for redemption from their former owners whenever there are funds in the Treasury of the United States available for such redemption. 150 Important Federal Laws Postal Savings Funds to be Kept Separate by Postmasters. Sec. 12. That postal savings depository funds shall be kept separate from other funds by postmasters and other officers and employees of the postal service, who shall be held to the same accountability under their bonds for such funds as for public moneys ; and no person connected with the Post Office Department shall disclose to any person other than the depositor the amount of any deposits, unless directed so to do by the Postmaster General. All statutes relating to the safekeeping of and proper accounting for postal receipts are made applicable to postal sav- ings funds, and the Postmaster General may require postmasters, assistant postmasters, and clerks at postal savings depositories to give any addi- tional bond he may deem necessary. Compensation. Sec. 13. Postmasters, assistant postmasters, clerks or other em- ployees at post offices of the presidential grade, and postmasters at post offices of the fourth class shall not be allowed or paid any additional com- pensation for the transaction of postal savings depository business. (As amended September 23, 1914.) Appropriation. Sec, 14. That the sum of one hundred thousand dollars is hereby appropriated, out of any money in the Treasury not otherwise appro- priated, or so much thereof as may be necessary, to enable the Postmaster General and the board of trustees to establish postal savings depositories in accordance with the provisions of this act, including the reimbursement of the Secretary of the Treasury for expenses incident to the preparation, issue, and registration of the bonds authorized in this act; and the Post- master General is authorized to require postmasters and other postal officers and employees to transact, in connection with their other duties, such postal savings depository business as may be necessary; and he is also authorized to make, and with the approval of the board of trustees to promulgate, and from time to time to modify or revoke, subject to the approval of said board, such rules and regulations not in conflict with law as he may deem necessary to carry the provisions of this act into effect. Protective and Criminal Statutes Made Applicable to Postal Savings Funds. Sec. 15. That all the safeguards provided by law for the protection of public moneys, and all statutes relating to the embezzlement, conver- sion, improper handling, retention, use, or disposal of postal and money- order funds and the punishments provided for such offenses are hereby extended and made applicable to postal savings depository funds, and all statutes relating to false returns of postal and money-order business, the forgery, counterfeiting, alteration, improper use or handling of postal and money-order blanks, forms, vouchers, accounts, and records, and the Postal Savings 151 dies, plates, and engravings therefor, with the penalties provided in such statutes, are hereby extended and made applicable to postal savings de- pository business, and the forgery, counterfeiting, alteration, improper use or handling of postal savings depository blanks, forms, vouchers, accounts, and records, and the dies, plates, and engravings therefor. Pledge for Repayment of Deposits. Sec. 16. That the faith of the United States is solemnly pledged to the payment of the deposits made in postal savings depository offices, with accrued interest thereon as herein provided. Adjudication of Courts Will be conclusive as to Rights in Postal Savings Funds. Sec. 17. That the final judgment, order, or decree of any court of competent jurisdiction adjudicating any right or interest in the credit of any sums deposited by any person with a postal savings depository if the same shall not have been appealed from and the time for appeal has expired shall, upon submission to the Postmaster General of a copy of the same, duly authenticated in the manner provided by the laws of the United States for the authentication of the records and judicial proceed- ings of the courts of any State or Territory or of any possession subject to the jurisdiction of the United States, when the same are proved or admitted within any other court within the United States, be accepted and pursued by the board of trustees as conclusive of the title, right, interest, or possession so adjudicated, and any payment of said sum in accordance with such order, judgment, or decree shall operate as a full and complete discharge of the United States from the claim or demand of any person or persons, to the same. Act of August 24, 1912. An Act making appropriations for the service of the Post Office Department for the fiscal year ending June thirtieth, nineteen hundred and thirteen, and for other pui'poses. Postmaster-General to Designate Offices — To be Executive Head of System. Sec. 10. * * * And provided further, That all expenditures in the postal savings system shall be audited by the Auditor for the Post Office Department : And provided further. That the Postmaster General shall select and designate the post offices which are to be postal savings depository offices, and shall appoint and fix the compensation of such superintendents, inspectors, and other employees as may be necessary in conducting, supervising, and directing the business of such offices, includ- ing the employees of a central office at Washington, District of Columbia, and shall prescribe the hours during which postal savings depository offices shall remain open. He shall also from time to time make rules and regulations with respect to the deposits in and withdrawals of moneys 152 Important Federal Laws from postal savings depositories and the issue of pass books or such other devices as he may adopt as evidence of such deposits or with- drawals. The provisions of the Act approved June twenty-fifth, nineteen hundred and ten, are hereby modified accordingly. ****** * THE NATIONAL BANK ACT. Act of Juue 20, 1S74. ( i ) Section 1. An Act entitled "An Act to provide a national cur- rency secured by a pledge of United States bonds, and to provide for the circulation and redemption thereof," approved June 3, 1864, shall here- after be known as "the national-bank Act." Formation of National Banking Associations. Sec. 5133. Associations for carrying on the business of banking under this Title may be formed by any number of natural persons, not less in any case than five. They shall enter into articles of association, which shall specify in general terms the object for which the association is formed, and may contain any other provisions, not inconsistent with law, which the association may see fit to adopt for the regulation of its business and the conduct of its afifairs. These articles shall be signed by the persons uniting to form the association, and a copy of them shall be forwarded to the Comptroller of the Currency, to be filed and pre- served in his office. Requisites of Organization Certificate. Sec. 5134. The persons uniting to form such an association shall, under their hands, make an organization certificate, which shall specifi- cally state : • First. The name assumed by such association; which name shall be subject to the approval of the Comptroller of the Currency. Second. The place where its operations of discount and deposit are to be carried on, designating the State, Territory, or district, and the particular county and city, town, or village. Third. The amount of capital stock and the number of shares into which the same is to be divided. Fourth. The names and places of residence of the shareholders and the number of shares held by each of them. Fifth. The fact that the certificate is made to enable such persons to avail therliselves of the advantages of this Title. 1 References to sections are to the U. S. Revised Statutes and to acts as indicated. National Bank Act 153 How Certificate Shall be Acknowledged and Filed. Sec. 5135. The organization certificate shall be acknowledged be- fore a judge of some court of record, or notary public; and shall be, together with the acknowledgment thereof, authenticated by the seal of such court, or notary, transmitted to the Comptroller of the Currency, who shall record and carefully preserve the same in his office. Corporate Powers of Association. Sec. 5136. Upon duly making and filing articles of association and an organization certificate, the association shall become, as from the date of the execution of its organization certificate, a body corporate, and as such, and in the name designated in the organization certificate, it shall have power — First. To adopt and use a corporate seal. Second. 'To have succession for the period of twenty years from its organization, unless it is sooner dissolved according to the provisions of its articles of association, or by the act of its shareholders owning two-thirds of its stock, or unless its franchise becomes forfeited by some violation of law. Third. To make contracts. Fourth. To sue and be sued, complain and defend, in any court of law and equity, as fully as natural persons. Fifth. To elect or appoint directors, and by its board of directors to appoint a president, vice-president, cashier, and other officers, define their duties, require bonds of them and fix the penalty thereof, dismiss such officers or any of them at pleasure, and appoint others to fill their places. Sixth. To prescribe, by its board of directors, by-laws not incon- sistent with law, regulating the manner in which its stock shall be trans- ferred, its directors elected or appointed, its officers appointed, its prop- erty transferred, its general business conducted, and the privileges granted to it by law exercised and enjoyed. Seventh. To exercise by its board of directors, or duly authorized officers or agents, subject to law, all such incidental powers as shall be necessary to carry on the business of banking; by discounting and nego- tiating promissory notes, drafts, bills of exchange, and other evidences of debt ; by receiving deposits ; by buying and selling exchange, coin, and bullion ; by loaning money on personal security ; and by obtaining, issuing, and circulating notes according to the provisions of this Title. But no association shall transact any business except such as is inci- dental and necessarily preliminary to its organization, until it has been authorized by the Comptroller of the Currency to commence the business of banking. 154 Important Federal Laws Change of Name and Location of Bank. (Act May 1, 1886.) Sec. 2. Any national banking association may change its name or the place where its operations of discount and deposit are to be carried on, to an}^ other place within the same State, not more than thirty miles distant, with the approval of the Comptroller of the Currency, by the vote of shareholders owning two-thirds of the stock of such associa- tion. A duly authenticated notice of the vote and of the new name or location selected shall be sent to the ofifice of the Comptroller of the Currency ; but no change of name or location shall be valid until the Comptroller shall have issued his certificate of approval of the same. Debts Not Affected by Change. (Act ]\Iay 1, 1886.) Sec. 3. All debts, liabilities, rights, provisions, and powers of the association under its old name shall devolve upon and inure to the asso- ciation under its new name. No Release From Liabilities. (Act Alay 1. 1886.) Sec. 4. Nothing in this act contained shall be so construed as in any manner to release any national banking association under its old name or at its old location from any liability, or afifect any action or proceeding in law in which said association may be or become a party or interested. National Banks Deemed Citizens of States in Which Located. (Act August 13. 1888.) Sec. 4. All national banking associations established under the laws of the United States shall, for the purposes of all actions by or against them, real, personal, or mixed, and all suits in equity, be deemed citizens of the States in which they are respectively located ; and in such cases the circuit and district courts shall not have jurisdiction other than such as they would have in cases between individual citizens of the same State. The provisions of this section shall not be held to afifect the jurisdiction of the courts of the United States in cases commenced by the United States or by direction of any officer thereof, or cases for winding up the affairs of any such bank. Extension of Corporate Existence. (Act July 12, 1882.) Sec. 1. That any national banking association organized under the acts of February twenty-fifth, eighteen hundred and sixty-three, June third, eighteen hundred and sixty-four, and February fourteen, eighteen hundred and eighty, or under sections fifty-one hundred and thirty-three, fifty-one hundred and thirty-four, fifty-one hundred and thirty-five, fifty-one hundred and thirty-six, and fifty-one hvmdred and fifty- four of the Revised Statutes of the United States, may, at any time within the two years next previous to the date of the expiration of its corporate existence under present law, and with the approval of the Comptroller of the Currency, to be granted, as hereinafter provided, extend its period of succession by amending its articles of association for a term of not National Bank Act 155 more than twenty years from the expiration of the period of succession named in said articles of association, and shall have succession for such extended period, unless sooner dissolved by the act of shareholders own- ing two-thirds of its stock, or unless its franchise becomes forfeited by some violation of law, or unless hereafter modified or repealed. Consent of Two-Thirds Necessary. (Act July 12, 1882.) Sec. 2. That such amendment of said articles of association shall be authorized by the consent in writing of shareholders o^^^ling not less than two-thirds of the capital stock of the association; and the board of directors shall cause such consent to be certified under the seal of the association, by the president or cashier, to the Comptroller of the Currency, accompanied by an application made by the president or cashier for the approval of the amended articles of association by the Comptroller ; and such amended articles of association shall not be valid until the Comptroller shall give to such association a certificate under his hand and seal that the association has complied with all the provi- sions required to be complied with, and is authorized to have succes- sion for the extended period named in the amended articles of associa- tion. Special Examination of Bank and Issue of Certificate of Approval by Comptroller. (Act July 12, 1882.) Sec. 3. That upon the receipt of the application and certificate of the association provided for in the preceding section, the Comptroller of the Currency shall cause a special examination to be made, at the expense of the association, to determine its condition ; and if after such examination or otherwise, it appears to him that said association is in a satisfactory condition, he shall grant his certificate of approval provided for in the preceding sectrion, or if it appears that the condition of said association is not satisfactory, he shall withhold such certificate of ap- proval. * Status Not Changed by Extension. Jurisdiction of Suits by or Against National Banks. (Act July 12, 1882.) Sec. 4. That any association so extending the period of its suc- cession shall continue to enjoy all the rights and privileges _ and imrnuni- ties granted and shall continue to be subject to all the duties, liabilities, and restrictions imposed by the Revised Statutes of the United States and other acts having reference to national banking associations, and it shall continue to be in all respects the identical association it was before the extension of its period of succession ; Provided, however. That the jurisdiction for suits hereafter brought by or against any association established under any law providing for national banking associations, except suits between them and the United States or its officers and agents, shall be the same as, and not other than, the jurisdiction for suits by or against banks not organized under any law of the United States which do or might do, banking business where such national 156 Important Federal Laws banking association may be doing business when such suits niay be begun : And all laws and parts of laws of the United States inconsistent with this proviso be, and the same are hereby, repealed. Dissenting Shareholders May Withdraw. (Act July 12, 1882.) Sec. 5. That when any national banking association has amended its articles of association as provided in this act, and the Comptroller has granted his certificate of approval, any shareholder not assenting to such amendment may give notice in writing to the directors, within thirty days from the date of the certificate of approval, of his desire to withdraw from said association, in which case he shall be entitled to receive from said banking association the value of the shares so held by him, to be ascertained by an appraisal made by a committee of three persons, one to be selected by such shareholder, one by the directors, and the third by the first two : and in case the value so fixed shall not be satisfactory to any such shareholder, he may appeal to the Comp- troller of the Currency, who shall cause a reappraisal to be made, which shall be final and binding; and if said reappraisal shall exceed the value fixed by said committee, the bank shall pay the expenses of said reap- praisal, and otherwise the appellant shall pay said expenses ; and the value so ascertained and determined shall be deemed to be a debt due, and be forthwith paid, to said shareholder, from said bank ; and the shares so surrendered and appraised shall, after due notice, be sold at public sale, within thirty days after the final appraisal provided in this section : Provided, That in the organization of any banking association intended to replace any existing banking association, and retaining the name thereof, the holders of stock in the expiring association shall be entitled to preference in the allotment of the shares of the new asso- ciation in proportion to the number of shares held by them respectively in the expiring association. Redemption of Circulating Notes Issued Prior to Extension. (Act July 12. 1882.) Sec. 6. That the circulating notes of any association so extending the period of its succession which shall have been issued to it prior to such extension shall be redeemed at the Treasury of the United States, as provided in section three of the Act of June twentieth, eighteen hun- dred and seventy-four, entitled "An Act fixing the amount of United States notes, providing for redistribution of national bank currency, and for other purposes," and such notes when redeemed shall be forwarded to the Comptroller of the Currency, and destroyed, as now provided by law ; and at the end of three years from the date of the extension of the corporate existence of each bank the association so extended shall deposit lawful money with the Treasurer of the United States sufficient to redeem the remainder of the circulation which was outstanding at the date of its extension, as provided in sections fifty-two hundred and twenty-two, fifty-two hundred and twenty-four, and fifty-two hundred' National Bank Act 157 and twenty-five of the Revised Statutes ; and any gain that may arise from the failure to present such circulating notes for redemption shall inure to the benefit of the United States ; and from time to time, as such notes are redeemed or lawful money deposited therefor as pro- vided herein, new circulating notes shall be issued as provided by this act, bearing such devices, to be approved by the Secretary of the Treas- ury, as shall make them readily distinguishable from the circulating notes heretofore issued : Provided, however, That each banking asso- ciation which shall obtain the benefit of this act shall reimburse to the Treasurv the cost of preparing the plate or plates for such new circu- lating notes as shall be issued to it. Dissolution of Banks Not Extending Period of Succession. (Act July 12. 1882.) Sec. 7. That national banking associations whose corporate exist- ence has expired or shall hereafter expire, and which do not avail themselves of the provisions of this act, shall be required to comply with the provisions of sections fifty-two hundred and twenty-one and fifty-two hundred and twenty-two of the Revised Statutes in same manner as if the shareholders had voted to go into liquidation, as pro- vided in section fifty-two hundred and twenty of the Revised Statutes ; and the provisions of sections fifty-two hundred and twenty-four and fifty-two hundred and tw^enty-five of the Revised Statutes shall also be applicable to such associations, except as modified by this act ; and the franchise of such associations is hereby extended for the sole pur- pose of liquidating their affairs until such affairs are finally closed. Reextension of Corporate Existence. (Acts of April 12, 1902.) That the Comptroller of the Currency is hereby authorized, in the manner provided by. and under the conditions and limitations of, the Act of July 12. 1882. to extend for a further period of twenty years the charter of any national banking association extended under said act wdiich shall desire to continue its existence after the expiration of its charter. Power to Hold Real Property. (Act of June 3, 1864.) Sec. 5137. A national banking association may purchase, hold, and convey real estate for the following purposes, and for no others : First. Such as shall be necessary for its immediate accommoda- tion in the transaction of its business. Second. Such as shall be mortgaged to it in good faith by w^ay of security for debts previously contracted. Third. Such as shall be conveyed to it in satisfaction of debts previously contracted in the course of its dealings. Fourth. Such as it shall purchase at sales under judgments, decrees, or mortgages held by the association, or shall purchase to secure debts due to it. But no such association shall hold the possession of any real estate 158 Important Federal Laws under mortgage, or the title and possession of any real estate purchased to secure any debts due to it, for a longer period than five years. Note. — For power to loan on farm lands, see Federal Reserve Act. Requisite Amount of Capital. Sec. 5138. No association shall be organized with a less capital than one hundred thousand dollars, except that banks with a capital of not less than fifty thousand dollars may, with the approval of the Secretary of the Treasury, be organized in any place the population of which does not exceed six thousand inhabitants, and except that banks with a capital of not less than twenty-five thousand dollars may, with the sanction of the Secretary of the Treasury, be organized in any place the population of which does not exceed three thousand inhabitants. No association shall be organized in a city the population of which exceeds fifty thousand persons with a capital of less than two hundred thousand dollars. (As amended IMarch 14, 1900.) Shares of Stock and Transfers. Sec. 5139. The capital stock of each association shall be divided into shares of one hundred dollars each, and be deemed personal prop- erty, and transferable on the books of the association in such manner as may be prescribed in the by-laws or articles of association. Every person becoming a shareholder by such transfer shall, in proportion to his shares, succeed to all the rights and liabilities of the prior holder of such shares ; and no change shall be made in the articles of asso- ciation by which the rights, remedies, or security of the existing cred- itors of the association shall be impaired. How Payment of the Capital Stock Must be Made and Certified. Sec. 5140. At least fifty per centum of the capital stock of every association shall be paid in before it shall be authorized to commence business ; and the remainder of the capital stock of such association shall be paid in installments of at least ten per centum each, on the w4iole amount of the capital, as frequently as one installment at the end of each succeeding month from the time it shall be authorized by the Comptroller of the Currency to commence business ; and the pay- ment of each installment shall be certified to the Comptroller, under oath, by the president or cashier of the association. Proceedings if Shareholder Fails to Pay Installments. Sec. 5141. Whenever any shareholder, or his assignee, fails to pay any installment on the stock when the same is required by the preceding section to be paid, the directors of such association may sell the stock of such delinquent shareholder at public auction, having given three weeks' previous notice thereof in a newspaper published and of general circulation in the city or county where the association is located, or if no newspaper is published in said city or county, then in a news- paper published nearest thereto, to any person who will pay the highest price therefor, to be not less than the amount then due thereon, with National Bank Act 159 the expenses of advertisement and sale ; and the excess, if any, shall be paid to the delinquent shareholder. If no bidder can be found who will pay for such stock the amount due thereon to the association, and the cost of advertisement and sale, the amount previously paid shall be forfeited to the association, and such stock shall be sold as the directors may order, within six months from the time of such for- feiture, and if not sold it shall be canceled and deducted from the capital stock of the association. If any such cancellation and reduction shall reduce the capital of the association below the minimum of capital required by law, the capital stock shall, within thirty days from the date of such cancellation, be increased to the required amount; in default of which a receiver may be appointed, according to the pro- visions of section fifty-two hundred and thirty-four, to close up the business of the association. National Banks May Increase Capital Stock. Sec. 5142. Any association formed under this title may, by its articles of association, provide for an increase of its capital from time to time, as may be deemed expedient, subject to the limitations of this title. But the maximum of such increase to be provided in the arti- cles of association shall be determined by the Comptroller of the Cur- rencv ; and no increase of capital shall be valid until the whole amount of such increase is paid in, and notice thereof has been transmitted to the Comptroller of the Currency, and his certificate obtained specifying the amount of such increase of capital stock, with his approval thereof, and that it has been duly paid in as part of the capital of such association. Increase of Capital Stock. (Acts of May 1, 1886.) Sec. 1. That any national banking association may, with the ap- proval of the Comptroller of the Currency, by the vote of shareholders owning two-thirds of the stock of such association, increase its capital stock, in accordance with existing laws, to any sum approved by_ the said Comptroller, notwithstanding the limit fixed in its original articles of association and determined by said Comptroller ; and no increase of the capital stock of any national banking association either within or beyond the limit fixed in its original articles of association shall be made except in the manner herein provided. Reduction of Capital Stock. Sec. 5143. Any association formed under this title may, by the vote of shareholders owning two-thirds of its capital stock, reduce its capital to any sum not below the amount required by this title to authorize the formation of associations ; but no such reduction shall be allowable which will reduce the capital of the association below the amount required for its outstanding circulation, nor shall any reduc- tion be made until the amount of the proposed reduction has been reported to the Comptroller of the Currency and such reduction has been approved by the said Comptroller of the Currency and by the 160 Important Federal Laws. Federal Reserve Board, or by the organization committee pending the organization of the Federal Reserve Board. (As amended December 23, 1913.) Right of Shareholders to Vote; Proxies Authorized. Sec. 5144. In all elections of directors, and in deciding all ques- tions at meetings of shareholders, each shareholder shall be entitled to one vote on each share of stock held by him. Shareholders may vote by proxies duly authorized in writing; but no officer, clerk, teller, or bookkeeper of such association shall act as proxy ; and no shareholder whose liability is past due and unpaid shall be allowed to vote. Election of Directors. Sec. 5145. The affairs of each association shall be managed by not less than five directors, who shall be elected by the shareholders at a meeting to be held at any time before the association is authorized by the Comptroller of the Currency to commence the business of bank- ing ; and afterward at meetings to be held on such day in January of each year as is specified therefor in the articles of association. The directors shall hold office for one year, and until their successors are elected and have qualified. Requisite Qualification of Directors. Sec. 5146. Every director must, during his whole term of serv- ice, be a citizen of the United States, and at least three-fourths of the directors must have resided in the State, Territory, or District in which the association is located for at least one year immediately preceding their election and must be residents therein during their continuance in office. Every director must own in his own right at least ten shares of the capital stock of the association of which he is a director, unless the capital of the bank shall not exceed twenty-five thousand dollars, in which case he must own in his own right at least five shares of such capital stock. And director who ceases to be the owner of the required number of shares of the stock, or who becomes in any other manner disqualified, shall therebv vacate his place. (As amended Feb- ruary 28, 1905.) Oath Required From Directors. Sec. 5147. Each director, when appointed or elected, shall take an oath that he will, so far as the duty devolves on him, diligently and honestly administer the affairs of such association, and will not know- ingly violate, or willingly permit to be violated, any of the provisions of this title, and that he is the owner in good faith, and in his own right, of the number of shares of stock required by this title, subscribed by him, or standing in his name on the books of the association, and that the same is not hypothecated, or in any way pledged, as security for any loan or debt. Such oath, subscribed by the director making it, and certified by the officer before whom it is taken, shall be immediately National Bank Act 161 transmitted to the Comptroller of the Currency, and shall be filed and preserved in his office. Filling Vacancies. Sec. 5148. Any vacancy in the board shall be filled by appoint- ment by the remaining directors, and any director so appointed shall hold his place until the next election. Proceedings Where no Election is Held on the Proper Day. Sec. 5149. If, from any cause, an election of directors is not made at the time appointed, the association shall not for that cause be dissolved, but an election may be held on any subsequent day, thirty days' notice thereof in all cases having been given in a newspaper pub- lished in the city, town, or county in which the association is located ; and if no newspaper is published in such city, town, or county, such notice shall be published in a newspaper published nearest thereto. If the articles of association do not fix the day on which the election shall be held, or if no election is held on the day fixed, the day for the elec- tion shall be designated by the board of directors in their by-laws, or otherwise ; or if the directors fail to fix the day, shareholders repre- senting two-thirds of the shares may do so. Election of President of the Board. Sec. 5150. One of the directors, to be chosen by the board, shall be the president of the board. Individual Liability of Shareholders. Sec. 5151. The shareholders of every national banking associa- tion shall be held individually responsible, equally and ratably, and not one for another, for all contracts, debts, and engagements of such asso- ciation, to the extent of the amount of their stock therein, at the par value thereof, in addition to the amount invested in such shares ; except that shareholders of any banking association now existing under State laws, having not less than five millions of dollars of capital actually paid in, and a surplus of twenty per centum on hand, both to be deter- mined by the Comptroller of the Currency, shall be liable only to the amount invested in their shares ; and such surplus of twenty per centum shall be kept undiminished, and be in addition to the surplus provided for in this title ; and if at any time there is a deficiency in such surplus ■of twenty per centum, such association shall not pay any dividends to its shareholders until the deficiency is made good ; and in case of such deficiency, the Comptroller of the Currency may compel the association to close its business and wind up its affairs under the provisions of chapter four of this title. Executors, Trustees, Etc., Not Personally Liable. Sec. 5152. Persons holding s,tock as executors, administrators, guardians, or trustees shall not be personally subject to any liabilities as stockholders ; but the estates and funds in their hands shall be liable (11) 162 Important Federal Laws in like manner and to the same extent as the testator, intestate, ward, or person interested in such trust-funds would be, if living and compe- tent to act and hold the stock in his own name. National Banking Associations to be Depositaries of Public Moneys. Sec. 5153. All national banking associations, designated for that purpose by the Secretary of the Treasury, shall be depositories of public money, under such regulations as may be prescribed by the Secretary; and they may also be employed as financial agents of the government ; and they shall perform all such reasonable duties, as depositories of public money and financial agents of the government, as may be re- quired of them. The Secretary of the Treasury shall require the asso- ciations thus designated to give satisfactory security, by the deposit of United States bonds and otherwise, for the safe-keeping and prompt payment of the public money deposited with them, and for the faith- ful performance of their duties as financial agents of the government : Provided, That the Secretary shall, on or before the first of January of each year, make a public statement of the securities required during that year for such deposits. And every association so designated as receiver or depository of the public money shall take and receive at par all the national currency bills, by whatever association issued, which have been paid into the government for internal revenue, or for loans or stocks: Provided, That the Secretary of the Treasury shall distribute the deposits herein provided for, as far as practicable, equitably between the different States and sections. (As amended March 4, 1907.) Conversion of State Banks Into National Banking Associations. Sec. 5154. Any bank incorporated by special law of any State or of the United States or organized under the general laws of any State or of the United States and having an unimpaired capital suffi- cient to entitle it to become a national banking association under the provisions of the existing laws may, by the vote of the shareholders owning not less than fifty-one per centum of the capital stock of such bank or banking association, with the approval of the Comptroller of the Currency be converted into a national banking association, with any name approved by the Comptroller of the Currency: Provided, how- ever. That said conversion shall not be in contravention of the State law. In such case the articles of association and organization cettificate may be executed by a majority of the directors of the bank or banking institution, and the certificate shall declare that the owners of fifty-one per centum of the capital stock have authorized the directors to make such certificate and to change or convert the bank or banking institu- tion into a national association. A majority of the directors, after executing the articles of association and the organization certificate, shall have power to execute all other papers and to do whatever may be required to make its organization perfect and complete as a national association. The shares of any such bank may continue to be for the National Bank Act 163 same amount each as they were before the conversion, and the directors may continue to be directors of the association until others are elected or appointed in accordance with the provisions of the statutes of the United States. When the Comptroller has given to such bank or bank- ing association a certificate that the provisions of this Act have been complied with, such bank or banking association, and all its stock- holders, officers, and employees, shall have the same powers and privi- leges, and shall be subject to the same duties, liabilities, and regulations, in all respects, as shall have been prescribed by the Federal Reserve Act and by the national banking Act for associations originally organ- ized as national banking associations. (As amended December 23, 1913.) State Banks Having Branches. (Act of March 3, 1865.) Sec. 5155. It shall be lawful for any bank or banking association organized under State laws, and having branches, the capital being joint and assigned to and used by the mother-bank and branches in definite proportions, to become a national banking association in conformity with existing laws, and to retain and keep in operation its branches, or such one or more of them as it may elect to retain ; the amount of the circulation redeemable at the mother-bank, and each branch, to be regulated by the amount of capital assigned to and used by each. Reservation of Rights of Associations Organized Under Act of 1863. Sec. 5156. Nothing in this title shall affect any appointments mad^e, acts done, or proceedings had or commenced prior to the third day of June, eighteen hundred and sixty-four, in or toward the organization of any national banking association under the Act of February twenty- five, eighteen hundred and sixty-three; but all associations which on the third day of June, eighteen hundred and sixty-four, were organized or commenced to be organized under that Act shall enjoy all the rights, and privileges granted, and be subject to all the duties, liabilities,\nd restrictions imposed by this title, notwithstanding all the steps pre- scribed by this title for the organization of associations were not pur- sued, if such associations were duly organized under that act. IMMIGRATION AND NATURALIZATION. THE IMMIGRATION ACT. Passed over veto of President. Act of February 5, 1917. An Act to regulate the imoiigration of aliens to, and the residence of aliens in, the United States. Definitions. Sec. 1. That the word "ahen" wherever vised in this Act shall include any person not a native-born or naturalized citizen of the United States ; but this definition shall not be held to include Indians of the United States not taxed or citizens of the islands under the jurisdiction of the United States. That the term "United States" as used in the title as well as in the various sections of this Act shall be construed to mean the United States, and any waters, territory, or other place subject to the jurisdiction thereof, except the Isthmian Canal Zone; but if any alien shall leave the Canal Zone or any insular possession of the United States and attempt to enter any other place under the jurisdiction of the United States, nothing contained in this Act shall be construed as per- mitting him to enter under any other conditions than those applicable to all aliens. That the term "seaman" as used in this Act shall include every person signed on the ship's articles and employed in any capacity on board any vessel arriving in the United States from any foreign port or place. , Jhat this Act shall be enforced in the Philippine Islands by officers of the general government thereof, unless and until it is superseded by an act passed by the Philippine Legislature and approved by the Pres- ident of the United States to regulate immigration in the Philippine Islands as authorized in the Act entitled "An Act to declare the purpose of the people of the United States as to the future political status of the people of the Philippine Islands, and to provide a more autonomous government for those islands," approved August twenty-ninth, nineteen hundred and sixteen. Tax. Sec. 2. That there shall be levied, collected, and paid a tax of $8 for every alien, including alien seamen regularly admitted as provided in this Act, entering the United States : Provided, That children under sixteen years of age who accompany their father or their mother shall not be subject to said tax. The said tax shall be paid to the collector of customs of the port or customs district to which said alien shall come, or, if there be no collector at such port or district, then to the collector nearest thereto, by the master, agent, owner, or consignee of the vessel, transportation line, or other conveyance or vehicle bringing such alien Immigration Act 165 to the United States, or by the alien himself if he does not come by a vessel, transportation line, or other conveyance or vehicle or when col- lection from the master, agent, owner, or consignee of the vessel, trans- portation line, or other conveyance, or vehicle bringing such alien to the United States is impracticable. The tax imposed by this section shall be a lien upon the vessel or other vehicle of carriage or transportation bringing such aliens to the United States, and shall be a debt in favor of the United States against the owner or owners of such vessel or other vehicle, and the payment of such tax may be enforced by any legal or equitable remedy. That the said tax shall not be levied on account of aliens who enter the United States after an uninterrupted residence of at least one year immediately preceding such entrance in the Dominion of Canada, Newfoundland, the Republic of Cuba, or the Republic of Mexico, for a temporary stay, nor on account of otherwise admissible residents or citizens of any possession of the United States, nor on ac- count of aliens in transit through the United States, nor upon aliens who have been lawfully admitted to the United States and who later shall go in transit from one part of the United States to another through for- eign contiguous territory, and the Commissioner General of Immigra- tion with the approval of the Secretary of Labor shall issue rules and regulations and prescribe the conditions necessary to prevent abuse of these exceptions: Provided, That the Commissioner General of Immi- gration, under the direction or with the approval of the Secretary of Labor, by agreement with transportation lines, as provided in section twenty-three of this Act, may arrange in some other manner for the pay- ment of the tax imposed by this section upon any or all aliens seeking admission from foreign contiguous territory : Provided further, That said tax, when levied upon aliens entering the Philippine Islands, shall be paid into the treasury of said islands, to be expended for the benefit of such islands : Provided further, That in the cases of aliens applying for ad- mission from foreign contiguous territory and rejected, the head tax collected shall upon application, upon a blank which shall be furnished and explained to him, be refunded to the alien. Who Excluded. Sec. 3. That the following classes of aliens shall be excluded from admission into the United States : All idiots, imbeciles, feeble-minded persons, epileptics, insane persons ; persons who have had one or more attacks of insanity at any time previously; persons of constitutional psychopathic inferiority; persons with chronic alcoholism; paupers; pro- fessional beggars ; vagrants ; persons afflicted with tuberculosis in any form or with a loathsome or dangerous contagious disease; persons not comprehended within any of the foregoing excluded classes who are found to be and are certified by the examining surgeon as being men- tallv or physically defective, such physical defect being of a nature which may affect the ability of such alien to earn a living; persons who have been convicted of or admit having committed a felony or other crime 166 Important Federal Laws or misdemeanor involving moral turpitude ; polygamists, or persons who practice polygamy or believe in or advocate the practice of polygamy; anarchists, or persons who believe in or advocate the overthrow by force or violence of the Government of the United States, or of all forms of law, or who disbelieve in or are opposed to organized government, or who advocate the assassination of public officials, or who advocate or teach the unlawful destruction of property; persons who are members of or affiliatt^d with any organization entertaining and teaching disbelief in or opposition to organized government, or who advocate or teach the duty, necessity, or propriety of the unlawful assaulting or killing of any officer or officers, either of specific individuals or of officers generally, of the Government of the United States or of any other or- ganized government, because of his or their official character, or who advocate or teach the unlawful destruction of property; prostitutes, or persons coming into the United States for the purpose of prostitution or for any other immoral purpose; persons who directly or indirectly procure or attempt to procure or import prostitutes or persons for the purpose of prostitution or for any other immoral purpose; persons who are supported by or receive in whole or in part the proceeds of prosti- tution ; persons hereinafter called contract laborers, who have been in- duced, assisted, encouraged, or solicited to migrate to this country by offers or promises of employment, whether such offers or promises are true or false, or in consequence of agreements, oral, written or printed, express or implied, to perform labor in this country of any kind, skilled or unskilled ; persons who have come in consequence of advertisements for laborers printed, published, or distributed in a foreign country ; per- sons likely to become a public charge ; persons who have been deported under any of the provisions of this Act, and who may again seek admis- sion within one year from the date of such deportation, unless prior to their reembarkation at a foreign port or their attempt to be admitted from foreign contiguous territory the Secretary of Labor shall have con- sented to their reapplying for admission ; persons whose tickets or pas- sage is paid for with the money of another, or who are assisted by others to come, unless it is affirmatively and satisfactorily shown that such per- sons do not belong to one of the foregoing excluded classes ; persons whose ticket or passage is paid for by any corporation, association, so- ciety, municipality, or foreign Government, either directly or indirectly ; stowaways, except that any such stowaway, if otherwise admissible, may be admitted in the discretion of the Secretary of Labor : all children under sixteen years of age, unaccompanied by or not coming to one or both of their parents, except that any such children may, in the dis- cretion of the Secretary of Labor, be admitted if in his opinion they are not likely to become a public charge and are otherwise eligible ; un- less otherwise provided for by existing treaties, persons who are na- tives of islands not possessed by the United States adjacent to the Con- tinent of Asia, situate south of the twentieth parallel latitude north, west of the one hundred and sixtieth meridian of longitude east from Green- Immigration Act 167 wich, and north of the tenth parallel of latitude south, or who are na- tives of any country, province, or dependency situate on the Continent of Asia west of the one hundred and tenth meridian of longitude east from Greenwich and east of the fiftieth meridian of longitude east from Greenwich and south of the fiftieth parallel of latitude north, except that portion of said territory situate between the fiftieth and the sixty-fourth meridians of longitude east from Greenwich and the twenty-fourth and thirty-eighth parallels of latitude north, and no alien now in any way excluded from, or prevented from entering, the United States shall be admitted to the United States. The provision next foregoing, however, shall not apply to persons of the following status or occupations : Gov- ernment officers, ministers or religious teachers, missionaries, lawyers, physicians, chemists, civil engineers, teachers, students, authors, artists, merchants, and travelers for curiosity or pleasure, nor to their legal wives or their children under sixteen years of age who shall accompany them or who subsequently may apply for admission to the United States, but such persons or their legal wives or foreign-born children who fail to maintain in the United States a status or occupation placing them within the excepted classes shall be deemed to be in the United States contrary to law, and shall be subject to deportation as provided in section nineteen of this Act. That after three months from the passage of this Act, in addition to the aliens who are by law now excluded from admission into the United States, the following persons shall also be excluded from ad- mission thereto, to wit : Literacy Test. All aliens over sixteen years of age, physically capable of reading, who can not read the English language, or some other language or dia- lect, including Hebrew or Yiddish : Provided, That any admissible alien, or any alien heretofore or hereafter legally admitted, or any citizen of the United States, may bring in or send for his father or grandfather over fifty-five years of age, his wife, his mother, his grandmother, or his unmarried or widowed daughter, if otherwise admissible, whether such relative can read or not ; and such relative shall be permitted to enter. That for the purpose of ascertaining whether aliens can read the immigrant inspectors shall be furnished with slips of uniform size, prepared under the direction of the Secretary of Labor, each containing not less than thirty nor more than forty words in ordinary use, printed in plainly legible type in some one of the var- ious languages or dialects of immigrants. Each alien may designate the particular language or dialect in which he desires the examination to be made, and shall be required to read the words printed on the slip in such language or dialect. That the following classes of persons shall be exempt from the operation of the illiteracy test, to wit : All aliens who shall prove to the satisfaction of the proper immigration officer or to the Secretary of Labor that they are seeking admission to the United 168 Important Federal Laws States to avoid religious persecution in the country of their last perma- nent residence, whether such persecution be evidenced by overt acts or by laws or governmental regulations that discriminate against the alien or the race to which he belongs because of his religious faith ; all aliens who have been lawfully admitted to the United States and who have resided therein continuously for five years and who return to the United States within six months from the date of their departure therefrom ; all aliens in transit through the United States ; all aliens who have been lawfully admitted to the United States and who later shall go in transit from one part of the United States to another through foreign con- tiguous territory : Provided, That nothing in this Act shall exclude, if otherwise admissible, persons convicted, or who admit the commission, or who teach or advocate the commission, of an offense purely political : Provided further. That the provisions of this Act, relating to the pay- ments for tickets or passage by any corporation, association, society, municipality, or foreign Government shall not apply to the tickets or passage of aliens in immediate and continuous transit through the United States to foreign contiguous territory : Provided further, That skilled labor, if otherwise admissible, may be imported if labor of like kind un- employed can not be found in this country, and the question of the neces- sity of importing such skilled labor in any particular instance may be determined by the Secretary of Labor upon the application of any person interested, such application to be made before such importation, and such determination by the Secretary of Labor to be reached after a full hearing and an investigation into the facts of the case: Provided further. That the provisions of this law applicable to contract labor shall not be held to exclude professional actors, artists, lecturers, singers, nurses, ministers of any religious denomination, professors for colleges or semi- naries, persons belonging to any recognized learned profession, or per- sons employed as domestic servants : Provided further, That whenever the President shall be satisfied that passports issued by any foreign Gov- ernment to its citizens or subjects to go to any country other than the United States, or to any insular possession of the United States or to the Canal Zone, are being used for the purpose of enabling the holder to come to the continental territory of the United States to the detriment of labor conditions therein, the President shall refuse to permit such cit- izens or subjects of the country issuing such passports to enter the con- tinental territory of the United States from such other country or from such insular possession or from the Canal Zone : Provided further. That aliens returning after a temporary absence to an unrelinquished United States domicile of seven consecutive years may be admitted in the dis- cretion of the Secretary of Labor, and under such conditions as he may prescribe : Provided further. That nothing in the contract-labor or read- ing-test provisions of this Act shall be construed to prevent, hinder, or restrict any alien exhibitor, or holder of concession or privilege for any fair or exposition authorized by Act of Congress, from bringing into the Immigration Act 169 United States, under contract, such otherwise admissible aHen mechan- ics, artisans, agents, or other employees, natives of his country as may be necessary for installing or conducting his exhibit or for preparing for installing or conducting any business authorized or permitted under any concession or privilege which may have been or may be granted by any such fair or exposition in connection therewith, under such rules and regulations as the Commissioner General of Immigration, with the ap- proval of the Secretary of Labor, may prescribe both as to the admis- sion and return of such persons: Provided further. That the Commis- sioner General of Immigration with the approval of the Secretary of Labor shall issue rules and prescribe conditions, including exaction of such bonds as may be necessary, to control and regulate the admission and return of otherwise inadmissible aliens applying for temporary ad- mission : Provided further. That nothing in this Act shall be construed to apply to accredited officials of foreign Governments, nor to their suites, families, or guests. Immigration for Immoral Purposes. Sec. 4. That the importation into the United States of any alien for the purpose of prostitution, or for any other immoral purpose, is hereby forbidden ; and whoever shall, directly or indirectly, import, or attempt to import into the United States any alien for the purpose of prostitution or for any other immoral purpose, or shall hold or attempt to hold any alien for any such purpose in pursuance of such illegal im- portation, or shall keep, maintain, control, support, employ, or harbor in any house or other place, for the purpose of prostitution or for any other immoral purpose, any alien, in pursuance of such illegal importa- tion, shall in every such case be deemed guilty of a felony, and on con- viction thereof shall be punished by imprisonment for a term of not more than ten years and by a fine of not more than $5,000. Jurisdiction for the trial and punishment of the felonies hereinbefore set forth shall be in any district to or into which said alien is brought in pursuance of said importation by the person or persons accused, or in any district in which a violation of any of the foregoing provisions of this section occurs. That any alien who shall, after he has been excluded and de- ported or arrested and deported in pursuance of the provisions of this Act which relate to prostitutes, procurers, or other like immoral per- sons, attempt thereafter to return to or to enter the United States shall be deemed guiltv of a misdemeanor, and on conviction thereof shall be punished by imprisonment for a term of not more than two years. In all prosecutions under this section the testimony of a husband or wife shall be admissible and competent evidence against each other. Contract Labor. Sec. 5. That it shall be unlawful for any person, company, part- nership, or corporation, in any manner whatsoever, to prepay the trans- portation or in any way to induce, assist, encourage, or solicit, or 170 Important Federal Laws attempt to induce, assist, encourage, or solicit, the importation or migra- tion of any contract laborer or contract laborers into the United States, unless such contract laborer or contract laborers are ex- empted under the fifth proviso of section three of this Act, or have been imported with the pemiission of the Secretary of Labor in accord- ance with the fourth proviso of said section, and for every violation of any of the provisions of this section the person, partnership, company, or corporation violating the same shall forfeit and pay for every such offense the sum of $1,^0, which may be sued for and recovered by the United States, as debts of like amount are now recovered in the courts of the United States. For every violation of the provisions hereof the person violating the same may be prosecuted in a criminal action for a misdemeanor, and on conviction thereof shall be punished by a fine of $1,000. or bv imprisonment for a term of not less than six months nor more than two years ; and under either the civil or the criminal proce- dure mentioned separate suits or prosecutions may be brought for each alien thus offered or promised employment as aforesaid. The Depart- ment of Justice, with the approval of the Department of Labor, may from any fines or penalties received pay rewards to persons other than Govemment employees who may furnish information leading to the recovery of any such penalties, or to the arrest and punishment of any person, as in this section provided. Advertisements in Foreign Country. Sec. 6. That it shall be unlawful and be deemed a violation of sec- tion five of this Act to induce, assist, encourage, or solicit or attempt to induce, assist, encourage, or solicit any alien to come into the United States by promise of employment through advertisements printed, pub- lished, or distributed in any foreign country, whether such promise is true or false, and either the civil or criminal penalty or both imposed by said section shall be applicable to such a case. Transportation Companies — Restrictions Upon. Sec. 7. That it shall be unlawful for any person, association, society, company, partnership, corporation, or others engaged in the business of transporting aliens to or within the United States, including owners, masters, officers, and agents of vessels, directly or indirectly, by writing, printing, oral representation, payment of any commissions to an alien coming into the United States, allowance of any rebates to an' alien coming into the United States, or otherwise to solicit, invite, or encourage or attempt to solicit, invite, or encourage any alien to come into the United States, and anyone violating any provision hereof shall be subject to either the civil or the criminal prosecution, or both, prescribed by section five of this Act ; or if it shall appear to the satis- faction of the Secretary of Labor that any owner, master, officer, or agent of a vessel has brought or caused to be brought to a port of the United States any alien so solicited, invited, or encouraged to come by such owner, master, officer, or agent, such owner, master, officer or Immigration Act 171 agent shall pay to the collector of customs of the customs district in which the port of arrival is located, or in which any vessel of the line may be found, the sum of $400 for each and every such violation ; and no vessel shall be granted clearance pending the determination of the question of the liability to the payment of such fine, or while the fine imposed remains unpaid, nor shall such fine be remitted or refunded : Provided, That clearance may be granted prior to the determination of such questions upon the deposit with the collector of customs of a sum sufficient to cover such fine : Provided further. That whenever it shall be shown to the satisfaction of the Secretary of Labor that the provisions of this section are persistently violated by or on behalf of any transportation company, it shall be the duty of said Secretary to deny to such company the privilege of landing alien immigrant passen- gers of any or all classes at United States ports for such a period as in his judgment may be necessary to insure an observance of such pro- visions : Provided further, That this section shall not be held to prevent transportation companies from issuing letters, circulars, or advertise- ments, confined strictly to stating the sailing of their vessels and terms and facilities of transportation therein : Provided further. That under sections five, six, and seven hereof it shall be presumed from the fact that any person, company, partnership, corporation, association, or society induces, assists, encourages, solicits or invites, or attempts to induce, assist, encourage, solicit or invite the importation, migration or coming of an alien from a country foreign to the United States, that the offender had knowledge of such person's alienage. Aiding Unlawful Entry — Penalty, Sec. 8. That any person, including the master, agent, owner, or consignee of any vessel, who shall bring into or land in the United States, by vessel or otherwise, or shall attempt, by himself or through another, to bring into or land in the United States, by vessel or other- wise, or shall conceal or harbor, or attempt to conceal or harbor, or assist or abet another to conceal or harbor in any place, including anv building, vessel, railway car, conveyance, or vehicle, any alien not duly admitted by an immigrant inspector or not lawfully entitled to enter or to reside within the United States under the terms of this Act, shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punished by a fine not exceeding $2,000 and by imprisonment for a term not exceeding five years, for each and every alien so landed or brought in or attempted to be landed or brought in. Defectives — Penalty for Bringing. Sec. 9. That it shall be unlawful for any person, including any transportation company other than railway lines entering the United States from foreign contiguous territory, or the owner, master, agent, or consignee of any vessel to bring to the United States either from a foreign country or any insular possession of the United States any alien afflicted with idiocy, insanity, imbecility, feeble-mindedness, epilepsy, 172 Important Federal Laws constitutional psychopathic inferiority, chronic alcoholism, tuberculosis in any form, or a loathsome or dangerous contagious disease, and if it shall appear to the satisfaction of the Secretary of Labor that any alien so brought to the United States was afflicted with any of the said dis- eases or disabilities at the time of foreign embarkation, and that the existence of such disease or disability might have been detected by means of a competent medical examination at such time, such person or transportation company, or the master, agent, owner, or consignee of any such vessel shall pay to the collector of customs of the customs dis- trict in which the port of arrival is located the sum of $200, and in addi- tion a sum equal to that paid by such alien for his transportation from the initial point of departure, indicated in his ticket, to the port of arri- val for each and every violation of the provisions of this section, such latter sum to be delivered by the collector of customs to the ahen on whose account assessed. It shall also be unlawful for any such person to bring to any port of the United States any alien afflicted with any mental defect other than those above specifically named, or physical defect of a nature which may afifect his ability to earn a living, as con- templated in section three of this Act, and if it shall appear to the satis- faction of the Secretary of Labor that any alien so brought to the United States was so afflicted at the time of foreign embarkation, and that the existence of such mental or physical defect might have been detected by means of a competent medical examination at such time, such per- son shall pay to the collector of customs of the customs district in which the port of arrival is located the sum of $25, and in addition a sum equal to that paid by such alien for his transportation from the initial point of departure, indicated in his ticket, to the port of arrival, for each and every violation of this provision, such latter sum to be deliv- ered by the collector of customs to the alien for whose account assessed. It shall also be unlawful for any such person to bring to any port of the United States any alien who is excluded by the provisions of section three of this Act because unable to read, or who is excluded by the terms of section three of this Act as a native of that portion of the Continent of Asia and the islands adjacent thereto described in said section, and if it shall appear to the satisfaction of the Secretary of Labor that these disabilities might have been detected by the exercise of reasonable pre- caution prior to the departure of such aliens from a foreign port, such person shall pay to the collector of customs of the customs district in w^hich the port of arrival is located the sum of $200, and in addition a sum equal to that paid by such alien for his transportation from the initial point of departure, indicated in his ticket, to the port of arrival, for each and every violation of this provision, such latter sum to be delivered by the collector of customs to the alien on whose account assessed. And no vessel shall be granted clearance papers pending the determination of the question of the liability to the payment of such fines, or while the fines remain unpaid, nor shall such fines be remitted Immigratiox Act 173 or refunded : Provided, That clearance may be granted prior to the determination of such questions upon the deposit of a sum sufficient to cover such fines : Provided further, That nothing contained in this sec- tion shall be construed to subject transportation companies to a fine for bringing to ports of the United States aliens who are by any of the provisos or exceptions to section three hereof exempted from the ex- cluding provisions of said section. Places of Entry — Unlawful to Land Aliens Elsewhere. Sec. 10. That it shall be the duty of every person, including own- ers, officers, and agents of vessels or transportation lines, or interna- tional bridges or toll roads, other than railway lines which may enter into a contract as provided in section twenty-three of this Act, bringing an alien to, or providing a means for an alien to come to, any seaport or land border port of the United States, to prevent the landing of such alien in the United States at any time or place other than as designated by the immigration officers, and the failure of any such person, owner, officer, or agent to comply with the foregoing requirements shall be deemed a misdemeanor and on conviction thereof shall be punished by a fine in each case of not less than $200 nor more than $1,000, or by imprisonment for a term not exceeding one year, or by both such fine and imprisonment; or, if in the opinion of the Secretary of Labor it is impracticable or inconvenient to prosecute the person, owner, master, officer or agent of any such vessel, a penalty of $1,000 shall be a lien upon the vessel whose owner, master, officer, or agent violates the pro- visions of this section, and such vessel shall be libeled therefor in the appropriate United States court. Duties of Secretary of Labor. Sec. 11. That for the purpose of determining whether aliens ar- riving at ports of the United States belong to any of the classes ex- cluded by this Act, either by reason of being afflicted with any of the diseases or mental or physical defects or disabilities mentioned in section three hereof, or otherwise, or whenever the Secretary of Labor has received information showing that any aliens are coming from a country or have embarked at a place where any of said diseases are prevalent or epidemic, the Commissioner General of Immigration, with the ap- proval of the Secretary of Labor, may direct that such aliens shall be detained on board the vessel bringing them, or in a United States immi- gration station at the expense of such vessel, as circumstances may require or justify, a sufficient time to enable the immigration officers and medical officers stationed at such ports to subject aliens to an observa- tion and examination sufficient to determine whether or not they belong to the said excluded classes by reason of being afflicted in the manner indicated : Provided. That, with a view to avoid undue delay in landing passengers or interference with commerce, the Commissioner General of Immigration may, with the approval of the Secretary of Labor, issue 174 Important Federal Laws such regulations, not inconsistent with law, as may be deemed neces- sary to eliect the purposes of this section : Provided further. That it shall be the duty oi immigrant inspectors to report to the Commissioner General of Immigration the condition of all vessels bringing aliens to United States ports. Arrangements With Foreign Countries. Sec. 11a. That the Secretary of Labor is hereby authorized and directed to enter into negotiations, through the Department of State, with countries vessels of which brmg aliens to the United States, with a view to detailing inspectors and matrons of the United States Immi- gration Service for duty on vessels carrying immigrant or emigrant pas- sengers between foreign ports and ports of the United States. When such inspectors and matrons are detailed for said duty they shall remain in that part of the vessel where immigrant passengers are carried ; and it shall be their duty to observe such passengers during the voyage and report to the immigration authorities in charge at the port of landing any information of value in determining the admissibility of such pas- sengers that may have become known to them during the voyage. Information Furnished to Immigration Officials. Sec. 12. That upon the arrival of any alien by water at any port within the United States on the North American Continent from a for- eign port or a port of the Phihppine Islands, Guam, Porto Rico, or Hawaii, or at any port of the said insular possessions from any foreign port, from a port in the United States on the North American Continent, or from a port of another insular possession of the United States, it shall be the duty of the master or commanding officer, owners, or con- signees of the steamer, sailing, or other vessel having said alien on board to deliver to the immigration officers at the port of arrival type- written or printed lists or manifests made at the time and place of embarkation of such alien on board such steamer or vessel, which shall, in answer to questions at the top of said list, contain full and accurate information as to each alien as follows : Full name, age, and sex ; whether married or single ; calling or occupation ; personal description (including height, complexion, color of hair and eyes, and marks of identification); whether able to read or write; nationality; country of birth ; race ; country of last permanent residence ; name and address of the nearest relative in the country from which the alien came ; seaport for landing in the United States; final destination, if any, beyond the port of landing; whether having a ticket through to such final destina- tion; by whom passage was paid; whether in possession of $50, and, if less, how much; whether going to join a relative or friend, and, if so, what relative or friend, and his or her name and complete address ; whether ever before in the United States, and if so, w'hen and where; w^hether ever in prison or almshouse or an institution or hospital for the care and treatment of the insane; whether ever supported by charity; Immigration^ Act 175 whether a polygamist ; whether an anarchist ; whether a person who behaves in or advocates the overthrow by force or violence of the Gov- ernment of the United States or of all forms of law, or who disbelieves in or is opposed to organized government, or who advocates the assas- sination of public officials, or who advocates or teaches the unlawful destruction of property, or is a member of or affiliated with any organi- zation entertaining and teaching disbelief in or opposition to organized government, or which teaches the unlawful destruction of property, or who advocates or teaches the duty, necessity, or propriety of the unlaw- ful assaulting or killing of any officer or officers, either of specific indi- viduals or of officers generally, of the Government of the United States or of any other organized government because of his or their official character; whether coming by reason of any offer, solicitation, promise, or agreement, express or implied, to perform labor in the United States ; the alien's condition of health, mental and physical; whether deformed or crippled, and if so, for how long and from what cause ; whether com- ing with the intent to return to the country whence such alien comes after temporarily engaging in laboring pursuits in the United States ; and such other items of information as will aid in determining whether any such alien belongs to any of the excluded classes enumerated in section three hereof ; and such master or commanding officer, owners, or consignees shall also furnish information in relation to the sex, age, class of travel, and the foreign port of embarkation of arriving pas- sengers who are United States citizens. That it shall further be the duty of the master or commanding officer of every vessel taking pas- sengers from any port of the United States on the North American Continent to a foreign port or a port of the .Philippine Islands, Guam, Porto Rico, or Hawaii, or from any port of the said insular possessions to any foreign port, to a port of the United States on the North Amer- ican Continent, or to a port of another insular possession of the United States to file with the immigration officials before departure a list which shall contain full and accurate information in relation to the following matters regarding all alien passengers, and all citizens of the United States or insular possessions of the United States departing with the stated intent to reside permanently in a foreign country, taken on board : Name, age, and sex ; whether married or single ; calling or occupation ; whether able to read or write ; nationality ; country of birth ; country of which citizen or subject; race; last permanent residence in the United States or insular possessions thereof ; if a citizen of the United States or of the insular possessions thereof, whether native born or naturalized ; if native born, the place and date of birth, or if naturalized the city or town in which naturalization has been had; intended future permanent residence ; and time and port of last arrival in the United States, or insular possessions thereof ; and such master or commanding officer shall also furnish information in relation to the sex, age, class of travel, and port of debarkation of the United States citizens departing who do 176 Important Federal Laws not intend to reside permanently in a foreign country, and no master of any such vessel shall be granted clearance papers for his vessel until he has deposited such list or lists with the immigration officials at the port of departure and made oath that they are full and complete as to the name and other information herein required concerning each person of the classes specified taken on board his vessel ; and any neglect or omis- sion to comply with the requirements of this section shall be punishable as provided in section fourteen of this Act : Provided, That in the case of vessels making regular trips to ports of the United States the Com- missioner General of Immigration, with the approval of the Secretary of Labor, may, when expedient, arrange for the delivery of such lists of outgoing aliens at a later date : Provided further. That it shall be the duty of immigration officials to record the following information regarding every resident alien and citizen leaving the United States by way of the Canadian or Mexican borders for permanent residence in a foreign country : Name, age, and sex ; whether married or single ; calling or occupation ; whether able to read or write ; nationality ; country of birth; country of which citizen or subject; race; last permanent resi- dence in the United States ; intended future permanent residence ; and time and port of last arrival in the United States ; and if a United States citizen, whether native born or naturalized. Arranging Lists. Sec. 13. That all aliens arriving by water at the ports of the United States shall be listed in convenient groups, the names of those coming from the same locality to be assembled so far as practicable, and no one list or manifest shall contain more than thirty names. To each alien or head of a family shall be given a ticket on which shall be written his name, a number or letter designating the list in which his name, and other items of information required by this Act, are con- tained, and his number on said list, for convenience of identification on arrival. Each list or manifest shall be verified by the signature and the oath or affirmation of the master or commanding officer, or the first or second below him in command, taken before an immigration officer at the port of arrival, to the efifect that he has caused the surgeon of said vessel sailing therewith to make ?. physical and mental exam- ination of each of said aliens, and that from the report of said surgeon and from his own investigation he believes that no one of said aliens is of any of the classes excluded from admission into the United States by section three of this Act, and that also according to the best of his knowledge and belief the information in said lists or manifests concern- ing each of said aliens named therein is correct and true in every re- spect. That the surgeon of said vessel sailing therewith shall also sign each of said lists or manifests and make oath or affirmation in like manner before an immigration officer at the port of arrival, stating his professional experience and c^ualifications as a physician and surgeon, and that he has made a personal examination of each of the said aliens Immigration Act 177 named therein, and that the said Hst or manifest, according to the best of his knowledge and beHef, is full, correct, and true in all particulars relative to the mental and physical condition of said aliens. If no sur- geon sails with any vessel bringing aliens, the mental and physical exam- inations and the verifications of the lists or manifests shall be made by some competent surgeon employed by the owners of the said vessels, and the manifests shall be verified by such surgeon before a United States consular officer or other officer authorized to administer oaths : Provided. That if any changes in the condition of such aliens occur or develop during the voyage of the vessel on which they are traveling, such changes shall be noted on the manifest before the verification thereof. Penalty for Master of Ship. Sec. 14. That it shall be unlawful for the master or commanding officer of any vessel bringing aliens into or carrying aliens out of the United States to refuse or fail to deliver to the immigration officials the accurate and full manifests or statements or information regarding all aliens on board or taken on board such vessel required by this Act, and if it shall appear to the satisfaction of the Secretary of Labor that there has been such a refusal or failure, or that the lists delivered are not accurate and full, such master or commanding officer shall pay to the collector of customs at the port of arrival or departure the sum of $10 for each alien concerning whom such accurate and full manifest or statement or information is not furnished, or concerning whom the man- ifest or statement or information is not prepared and sworn to as pre- scribed by this Act. No vessel shall be granted clearance pending the determination of the question of the liability to the payment of such fine, or while it remains unpaid, nor shall such fine be remitted or re- funded : Provided, That clearance may be granted prior to the determi- nation of such question upon the deposit with the collector of customs of a sum sufficient to cover such fine. Inspectors of Ships. Sec. 15. That upon the arrival at a port of the United States of any vessel bringing aliens it shall be the duty of the proper immigration officials to go or to send competent assistants to the vessel and there inspect all such aliens, or said immigration officials may order a tem- porary removal of such aliens for examination at a designated time and place, but such temporary removal shall not be considered a landing, nor shall it relieve vessels, the transportation lines, masters, agents, owners, or consignees of the vessel upon which said aliens are brought to any port of the United States from any of the obligations which, in case such aliens remain on board, would under the provisions of this Act bind the said vessels, transportation lines, masters, agents, owners, or consignees : Provided, That where removal is made to premises owned or controlled by the United States, said vessels, transportation lines, masters, agents, owners, or consignees, and each of them, shall, so long as detention there lasts, be relieved of responsibility for the safekeeping (12) 178 Important Federal Laws of such aliens. Whenever a temporary removal of aliens is made the vessels or transportation lines which brought them and the masters, owners, agents, and consignees of the vessel upon which they arrive shall pay all expenses of such removal and all expenses arising during subsequent detention, pending decision on the aliens' eligibility to enter the United States and until they are either allowed to land or returned to the care of the line or to the vessel which brought them, such ex- penses to include those of maintenance, medical treatment in hospital or elsewhere, burial in the event of death, and transfer to the vessel in the event of deportation, excepting only where they arise under the terms of any of the provisos of section eighteen hereof. Any refusal or failure to comply with the provisions hereof shall be punished in the manner specified in section eighteen of this Act. Physical and Mental Examination. Sec. 16. That the physical and mental examination of all arriving aliens shall be made by medical officers of the United States Public Health Service who shall have had at least two years' experience in the practice of their profession since receiving the degree of doctor of medicine, and who shall conduct all medical examinations and shall certify, for the information of the immigration officers and the boards of special inquiry hereinafter provided for, any and all physical and mental defects or diseases observed by said medical officers in any such alien ; or, should medical officers of the United States Public Health Service be not available, civil surgeons of not less than four years' pro- fessional experience may be employed in such emergency for such ser- vice upon such terms as may be prescribed by the Commissioner Gen- eral of Immigration, under the direction or with the approval of the Secretary of Labor. All aHens arriving at ports of the United States shall be examined by not less than two such medical officers at the dis- cretion of the Secretary of Labor, and under such administrative regu- lations as he may prescribe and under medical regulations prepared by the Surgeon General of the United States Public Health Service. ]\Ied- ical officers of the United States Public Health Service who have had especial training in the diagnosis of insanity and mental defects shall be detailed for duty or employed at all ports of entry designated by the Secretary of Labor, and such medical officers shall be provided with suitable facilities for the detention and examination of all arriving aliens in whom insanity or mental defect is suspected, and the services of in- terpreters shall be provided for such examination. Any alien certified for insanity or mental defect may appeal to the board of medical officers of the United States Public Health Service, which shall be convened by the Surgeon General of the United States Public Health Service, and said alien may introduce before such board one expert medical witness at his own cost and expense. That the inspection, other than the phys- ical and mental examination, of aliens, including those seeking admis- sion or readmission to or the privilege of passing through or residing Immigration Act 179 in the United States, and the examination of ahens arrested within the United States under this Act, shall be conducted by immigrant inspec- tors, except as hereinafter provided in regard to boards of special in- quiry. All aliens arriving at ports of the United States shall be exam- ined by at least two immigrant inspectors at the discretion of the Secre- tary of Labor and under such regulations as he may prescribe. Immi- grant inspectors are hereby authorized and empowered to board and search for aliens any vessel, railway car, or any other conveyance, or vehicle in which they believe aliens are being brought into the United States. Said inspectors shall have power to administer oaths and to take and consider evidence touching the right of any alien to enter, reenter, pass through, or reside in the United States, and, where such action may be necessary, to make a written record of such evidence ; and any person to whom such an oath has been administered, under the provisions of this Act, who shall knowingly or willfully give false evi- dence or swear to any false statement in any way affecting or in rela- tion to the right of any alien to admission, or readmission to, or to pass through, or to reside in the United States shall be deemed guilty of perjury and be punished as provided by section one hundred and twenty- five of the Act approved March fourth, nineteen hundred and nine, entitled "An Act to codify, revise, and amend the penal laws of the United States." All aliens coming to the United States shall be required to state under oath the purposes for which they come, the length of time they intend to remain in the United States, whether or not they intend to abide in the United States permanently and become citizens thereof, and such other items of information regarding themselves as will aid the immigration officials in determining whether they belong to any of the excluded classes enumerated in section three hereof. Any commis- sioner of immigration or inspector in charge shall also have power to require by subpoena the attendance and testimony of witnesses before said inspectors and the production of books, papers, and documents touching the right of any alien to enter, reenter, reside in, or pass through the United States, and to that end may invoke the aid of any court of the United States ; and any district court within the jurisdic- tion of which investigations are being conducted by an immigrant in- spector may, in the event of neglect or refusal to respond to a subpoena issued by any commissioner of immigration or inspector in charge or refusal to testify before said immigrant inspector, issue an order re- quiring such person to appear before said immigrant inspector, produce books, papers, and documents if demanded, and testify; and any failure to obey such order of the court may be punished by the court as a contempt thereof. That any person, including employees, officials, or agents of transportation companies, who shall assault, resist, prevent, impede, or interfere with any immigration official or employee in the performance of his duty under this Act shall be deemed guilty of a misdemeanor, and on conviction thereof shall be punished by imprison- 180 Important Federal Laws ilient for a term of not more than one year, or by a fine of not more than $2,000, or both ; and any person who shall use any deadly or dan- gerous weapon in resisting any immigration official or employee in the performance of his duty shall be deemed guilty of a felony and shall, on conviction thereof, be punished by imprisonment for not more than ten years. Every alien who may not appear to the examining immi- grant inspector at the port of arrival to be clearly and beyond a doubt entitled to land shall be detained for examination in relation thereto by a board of special inquiry. In the event of rejection by the board of special inquiry, in all cases where an appeal to the Secretary of Labor is permitted by this Act, the alien shall be so informed and shall have the right to be represented by counsel or other adviser on such appeal. The decision of an immigrant inspector, if favorable to the admission of any alien, shall be subject to challenge by any other immigrant in- spector and such challenge shall operate to take the alien whose right to land is so challenged before a board of special inquiry for its investi- gation. Boards of Special Inquiry. Sec. 17. That boards of special inquiry shall be appointed by the commissioner of immigration or inspector in charge at the various ports of arrival as may be necessary for the prompt determination of all cases of immigrants detained at such ports under the provisions of the law. Each board shall consist of three members, who shall be selected from such of the immigrant officials in the service as the Commissioner Gen- eral of Immigration, with the approval of the Secretary of Labor, shall from time to time designate as qualified to serve on such boards. When in the opinion of the Secretary of Labor the maintenance of a perma- nent board of special inquiiw for service at any sea or land border port is not warranted, regularly constituted boards may be detailed from other stations for temporary service at such port, or, if that be impracticable, the Secretary of Labor shall authorize the creation of boards of special inquiry by the immigration officials in charge at such ports, and shall determine what Government officials or other persons shall be eligible for service on such boards. Such boards shall have authority to deter- mine whether an alien who has been duly held shall be allowed to land or shall be deported. All hearings before such boards shall be separate and apart from the public, but the immigrant may have one friend or relative present under such regulations as may be prescribed by the Secretary of Labor. Such boards shall keep a complete permanent record of their proceedings and of all such testimony as may be pro- duced before them ; and the decisions of any two members of the board shall prevail, but either the alien or any dissenting member of the said board may appeal through the commissioner of immigration at the port of arrival and the Commissioner General of Immigration to the Secre- tary of Labor, and the taking of such appeal shall operate to stay any Immigration Act 181 action in regard to the final disposal of any alien whose case is so ap- pealed until the receipt by the commissioner of immigration at the port of arrival of such decision which shall be rendered solely upon the evi- dence adduced before the board of special inquiry. In every case where an alien is excluded from admission into the United States, under any law or treaty now existing or hereafter made, the decision of a board of special inquiry adverse to the admission of such alien shall be final, unless reversed on appeal to the Secretary of Labor: Provided, That the decision of a board of special inquiry shall be based upon the certifi- cate of the examining medical officer and, except as provided in section twenty-one hereof, shall be final as to the rejection of aliens afifected with tuberculosis in any form or with a loathsome or dangerous con- tagious disease, or with any mental or physical disability which would bring such aliens within any of the classes excluded from admission to the United States under section three of this Act. Deportation. 'i Sec. is. That all aliens brought to this country in violation of law shall be immediately sent back, in accommodations of the same class in which they arrived, to the country whence they respectively came, on the vessels bringing them, unless in the opinion of the Secretary of Labor immediate deportation is not practicable or proper. The cost of their maintenance while on land, as well as the expense of the return of such aliens, shall be borne by the owner or owners of the vessels on which they respectively came. That it shall be unlawful for any master, purser, person in charge, agent, owner, or consignee of any such vessel to refuse to receive back on board thereof, or on board of any other vessel owned or operated by the same interests, such aliens ; or to fail to detain them thereon ; or to refuse or fail to return them in the manner aforesaid to the foreign port from which they came ; or to fail to pay the cost of their maintenance while on land ; or to make any charge for the return of any such alien, or to take any security for the payment of such charge; or to take any consideration to be returned in case the alien is landed ; or knowingly to bring to the United States at any time within one year from the date of deportation any alien rejected or arrested and deported under any provision of this Act, unless prior to reembarkation the Secre- tary of Labor has consented that such alien shall reapply for admis- sion, as required by section three hereof; and if it shall appear to the satisfaction of the Secretary of Labor that such master, purser, per- son in charge, agent, owner, or consignee has violated any of the fore- going provisions, or any of the provisions of section fifteen hereof, such master, purser, person in charge, agent, owner, or consignee shall pay to the collector of customs of the district in which the port of arrival is located, or in which any vessel of the line may be found, the sum ot $300 for each and every violation of any provision of said sections ; and no vessel shall have clearance from any port of the United States while any such fine is unpaid, nor shall such fine be 182 Important Federal Laws remitted or refunded : Provided, That clearance may be granted prior to the determination of such question upon the deposit with the col- lector of customs of a sum sufficient to cover such fine. If the vessel by which any aHen ordered deported came has left the United States and it is impracticable for any reason to deport the alien within a reasonable time by another vessel owned by the same interests, the cost of deportation may be paid by the Government and recovered by civil suit from any agent, owner, or consignee of the vessel : Provided further. That the Commissioner General of Immigration, with the approval of the Secretary of Labor, may suspend, upon conditions to be prescribed by the Commissioner General of Immigration, the de- portation of any aliens found to have come in violation of any pro- vision of this Act if, in his judgment, the testimony of such alien is necessary on behalf of the United States Government in the prosecu- tion of offenders against any provision of this Act or other laws of the United States ; and the cost of maintenance of any person so de- tained resulting from such suspension of deportation, and a witness fee in the sum of $1 per day for each day such person is so detained, may be paid from the appropriation for the enforcement of this Act, or such alien may be released under bond, in the penalty of not less than $500, with surety approved by the Secretary of Labor, condi- tioned that such alien shall be produced when required as a witness and for deportation. No alien certified, as provided in section six- teen of this Act, to be suffering from tuberculosis in any form, or from a loathsome or dangerous contagious disease other than one of quarantinable nature, shall be permitted to land for medical treat- ment thereof in any hospital in the United States, unless the Secre- tary of Labor is satisfied that to refuse treatment would be inhumane or cause unusual hardship or suffering, in which case the alien shall be treated in the hospital under the supervision of the immigration officials at the expense of the vessel transporting him : Provided further, That upon the certificate of an examining medical officer to the effect that the health or safety of an insane alien would be unduly imperiled by immediate deportation, such alien may, at the expense of the appropriation for the enforcement of this Act, be held for treat- ment until such time as such alien may, in the opinion of such medical officer, be safely deported : Provided further, That upon the certificate of an examining medical officer to the effect that a re- jected alien is helpless from sickness, mental or physical disability, or infancy, if such alien is accompanied by another alien, whose pro- tection or guardianship is required by such rejected alien, such ac- companying alien may also be excluded, and the master, agent, owner, or consignee of the vessel in which such alien and accompanying alien are brought shall be required to return said alien and accom- panying alien in the same manner as vessels are required to return other rejected aliens. Immigration Act ,183 Deportation Within Five Years. Sec. 19. That at any time within five years after entry, any aHen who at the time of entry was a member of one or more of the classes excluded by law ; any alien who shall have entered or who shall be found in the United States in violation of this Act, or in violation of any other law of the United States; any alien who at any time after entry shall be found advocating or teaching the unlawful destruc- tion of property, or advocating or teaching anarchy, or the overthrow by force or violence of the Government of the United States or of all forms of law or the assassination of public officials ; any alien who within five years after entry becomes a public charge from causes not affirmatively shown to have arisen subsequent to landing; except as hereinafter provided, any alien who is hereafter sentenced to im- prisonment for a term of one year or more because of conviction in this country of a crime involving moral turpitude, committed within five years after the entry of the alien to the United States, or who is hereafter sentenced more than once to such a term of imprisonment because of conviction in this country of any crime involving moral turpitude, committed at any time after entry ; any alien who shall be found an inmate of or connected with the management of a house of prostitution or practicing prostitution after such alien shall have entered the United States, or who shall receive, share in, or derive benefit from any part of the earnings of any prostitute ; any alien who manages or is employed by, in, or in connection with any house of prostitution or music or dance hall or other place of amusement or resort habitually fre- quented by prostitutes, or where prostitutes gather, or who in any way assists any prostitute or protects or promises to protect from arrest any prostitute; any alien who shall import or attempt to import any person for the purpose of prostitution or for any other immoral pur- pose ; any alien who, after being excluded and deported or arrested and deported as a prostitute, or as a procurer, or as having been con- nected with the business of prostitution or importation for prostitu- tion or other immoral purposes in any of the ways hereinbefore speci- fied, shall return to and enter the United States ; any alien convicted and imprisoned for a violation of any of the provisions of section four hereof ; any alien who was convicted, or who admits the com- mission, prior to entry, of a felony or other crime or misdemeanor involving moral turpitude ; at any time within three years after entry, any alien who shall have entered the United States by water at any time or place other than as designated by immigration officials, or by land, at any place other than one designated as a port of entry for aliens by the Commissioner General of Immigration, or at anv time not designated by immigration officials, or who enters without inspection, shall, upon the warrant of the Secretary of Labor, be taken into custody and deported : Provided, That the marriage to an American citizen of a female of the sexually immoral classes the exclusion or deporta- 184 Important Federal Laws tion of which is prescribed by this Act shall not invest such female with United States citizenship if the marriage of such alien female shall be solemnized after her arrest or after the commission of acts which make her liable to deportation under this Act: Provided further, That the provision of this section respecting the deportation of aliens convicted of a crime involving moral turpitude shall not apply to one who has been pardoned, nor shall such deportation be made or directed if the court, or judge thereof, sentencing such alien for such crime shall, at the time of imposing judgment or passing sentence or within thirty days thereafter, due notice having hrst been given to repre- sentatives of the State, make a recommendation to the Secretary of Labor that such alien shall not be deported in pursuance of this Act; nor shall any alien convicted as aforesaid be deported until after the termination of his imprisonment: Provided further, That the pro- visions of this section, with the exceptions hereinbefore noted, shall be applicable to the classes of aliens therein mentioned irrespective of the time of their entry into the United States: Provided further. That the provisions of this section shall also apply to the cases of aliens who come to the mainland of the United States from the insular pos- sessions thereof: Provided further, That any person who shall be arrested' under the provisions of this section, on the ground that he has entered or been found in the United States in violation of any other law thereof which imposes on such person the burden of proving his right to enter or remain, and who shall fail to establish the existence of the right claimed, shall be deported to the place specified in such other law. In every case where any person is ordered deported from the United States under the provisions of this Act, or of any law or treaty, the decision of the Secretary of Labor shall be final. Place and Manner of Deportation. Sec. 20. That the deportation of aliens provided for in this Act shall, at the option of the Secretary of Labor, be to the country whence they came or to the foreign port at which such aliens embarked for the United States ; or, if such embarkation was for foreign contiguous territory, to the foreign port at which they embarked for such territory ; or, if such aliens entered foreign contiguous territory from the United States and later entered the United States, or if such aliens are held by the country from which they entered the United States not to be subjects or citizens of such country, and such country refuses to permit their reentry, or imposes any condition upon permitting reentry, then to the country of which such aliens are subjects or citizens, or to the country in which they resided prior to entering the country from which they entered the United States. If deportation proceedings are insti- tuted at any time within five years after the entry of the alien, such deportation, including one-half of the entire cost of removal to the port of deportation, shall be at the expense of the contractor, procurer, or other person by whom the alien was unlawfully induced to enter Immigration Act 185 the United States, or, if that can not be done, then the cost of removal to the port of deportation shall be at the expense of the appropriation for the enforcement of this Act, and the deportation from such port shall be at the expense of the owner or owners of such vessels or trans- portation line by which such aliens respectively came, or, if that is not practicable, at the expense of the appropriation for the enforcement of this Act. If deportation proceedings are instituted later than five years after the entry of the alien; or, if the deportation is made by reason of causes arising subsequent to entry, the cost thereof shall be payable from the appropriation for the enforcement of this Act. A failure or refusal on the part of the masters, agents, owners, or consignees of vessels to comply with the order of the Secretary of Labor to take on board, guard safely, and transport to the destina- tion specified any alien ordered to be deported under the provisions of this Act shall be punished by the imposition of the penalties pre- scribed in section eighteen of this Act : Provided, That when in the opinion of the Secretary of Labor the mental or physical condition of such alien is such as to require personal care and attendance, the said Secretary shall when necessary employ a suitable person for that purpose, who shall accompany such alien to his or her final destina- tion, and the expense incident to such service shall be defrayed in the same manner as the expense of deporting the accompanied alien is defrayed. Pending the final disposal of the case of any alien so taken into custody, he may be released under a bond in the penalty of not less than $500 with security approved by the Secretary of Labor, conditioned that such alien shall be produced when required for a hearing or hearings in regard to the charge upon which he has been taken into custody, and for deportation if he shall be found to be unlawfully within the United States. Bond. Sec. 21. That any alien liable to be excluded because likely to become a public charge or because of physical disability other than tuberculosis in any form or a loathsome or dangerous contagious dis- ease may, if otherwise admissible, nevertheless be admitted in the dis- cretion of the Secretary of Labor upon the giving of a suitable and proper bond or undertaking, approved by said Secretary, in such amount and containing such conditions as he may prescribe, to the United States and to all States, Territories, counties, towns, munici- palities and districts thereof, holding the United States and all States, Territories, counties, towns, municipalities and districts thereof harmless against such alien becoming a public charge. In lieu of such bond, such alien may deposit in cash with the Secretary of Labor such amount as the Secretary of Labor may require, which amount shall be deposited by said Secretary in the United States Postal Savings Bank, a receipt therefor to be given the person furnishing said sum, showing the fact and object of its receipt 186 Important Federal Laws and such other information as said Secretary may deem advisable. All accruing interest on said deposit during the time same shall be held in the United States Postal Savings Bank shall be paid to the person furnishing the sum for deposit. In the event of such alien becoming a public charge, the Secretary of Labor shall dispose of said deposit in the same manner as if same had been collected under a bond as pro- vided in this section. In the event of the permanent departure from the United States, the naturalization, or the death of such alien, the said sum shall be returned to the person by whom furnished, or to his legal representatives. The admission of such alien shall be a considera- tion for the giving of such bond, undertaking, or cash deposit. Suit may be brought thereon in the name and by the proper law officers either of the United States Government or of any State, Territory, District, county, town, or municipality in which such alien becomes a public charge. Wives and Minors of Naturalized Citizens Thereafter Arriving. Sec. 22. That whenever an alien shall have been naturalized or shall have taken up his permanent residence in this country, and there- after shall send for his wife or minor children to join him, and said wife or any of said minor children shall be found to be affected with any contagious disorder, such wife or minor children shall be held, under such regulations as the Secretary of Labor shall prescribe, until it shall be determined whether the disorder will be easily curable or whether they can be permitted to land without danger to other persons ; and they shall not be either admitted or deported until such facts have been ascertained; and if it shall be determined that the disorder is easily curable and the husband or father or other responsible person is willing to bear the expense of the treatment, they may be accorded treatment in hospital until cured and then be admitted, or if it shall be determined that they can be permitted to land without danger to other persons, they may, if otherwise admissible, thereupon be admitted : Provided, That if the person sending for wife or minor children is naturalized, a wife to whom married or a minor child born subsequent to such husband or father's naturalization shall be admitted without de- tention for treatment in hospital, and with respect to a wife to whom married or a minor child born prior to such husband or father's naturali- zation the provisions of this section shall be observed, even though such person is unable to pay the expense of treatment, in which case the expense shall be paid from the appropriation for the enforcement of this Act. Commissioner General of Immigration — Duties. Sec. 23. That the Commissioner General of Immigration shall per- form all his duties under the direction of the Secretary of Labor. Under such direction he shall have charge of the administration of all laws relating to the immigration of aliens into the United States, and shall have the control, direction, and supervision of all officers. Immigration Act 187 clerks, and employees appointed thereunder; he shall establish such rules and regulations, prescribe such forms of bond, reports, entries, and other papers, and shall issue from time to time such instructions . not inconsistent with law, as he shall deem best calculated for carry- ing out the provisions of this Act and for protecting the United States and aliens migrating thereto from fraud and loss, and _ shall have authority to enter into contract for the support and relief of such aliens as may fall into distress or need public aid, and to remove to their native country, at any time within three years after entry, at the expense of the appropriations for the enforcement of this Act, such as fall into distress or need public aid from causes arising subsequent to their entry and are desirous of being so removed ; he shall prescribe rules for the entry and inspection of aliens coming to the United States from or through Canada and Mexico, so as not unnecessarily to delay, impede, or annov persons in ordinary travel between the United States and said countries, and shall have power to enter into contracts with transportation lines for the said purpose. It shall be the duty of the Commissioner General of Immigration to detail officers of the Immigration Service from time to time as may be necessary, in his judgment, to secure information as to the number of aliens detained in the penal, reformatory, and charitable institutions (public and private) of the several States and Territories, the District of Columbia, and other territory of the United States, and to inform the officers of such institutions of the provisions of law in relation to the deportation of aliens who have become public charges. He may, with the approval of the Secretary of Labor, whenever in his judgment such action may be necessary to accomplish the purposes^ of this Act, detail immigration officers for service in foreign countries; and, upon his request, approved by the Secretary of Labor, the Secre- tary of the Treasury may detail medical officers of the United States Public Health Service for the performance of duties in foreign countries in connection with the enforcement of this Act. The duties of com- missioners of immigration and other immigration officials in charge of districts, ports, or stations shall be of an administrative character, to be prescribed in detail by regulations prepared under the direction or with the approval of the Secretary of Labor: Provided, That no person, com- pany, or transportation line engaged in carrying alien passengers for hire from Canada or Mexico to the United States, whether by land or water, shall be allowed to land any such passengers in the United States without providing suitable and approved landing stations, con- veniently located, at the point or points of entry. The Commissioner General of Immigration is hereby authorized and empowered to pre- scribe the conditions, not inconsistent with law, under which the above- mentioned landing stations shall be deemed suitable within the meaning of this section. Any person, company, or transportation line landing an alien passenger in the United States without compliance with the 188 Important Federai^ Laws requirements herein set forth shall be deemed to have violated section eight of this Act, and upon conviction shall be subject to the penalty therein prescribed : Provided further, That for the purpose of making effective the provisions of this section relating to the protection of aliens from fraud and loss, and also the provisions of section thirty of this Act, relating to the distribution of aliens, the Secretary of Labor shall establish and maintain immigrant stations at such interior places as may be necessary, and, in the discretion of the said Secretary, aliens in transit from ports of landing to such interior stations shall be accom- panied by immigrant inspectors : Provided further. That in prescribing rules and making contracts for the entry and inspection of aliens apply- ing for admission from or through foreign contiguous territory, due care shall be exercised to avoid any discriminatory action in favor of foreign transportation companies transporting to such territory aliens destined to the United States, and all such transportation companies shall be required, as a condition precedent to the inspection or examina- tion under such rules and contracts at the ports of such contiguous territory of aliens brought thereto by them, to submit to and comply with all the requirements of this Act which would apply were they bringing such aliens directly to seaports of the United States, and, from and after the taking efifect of this Act, no alien applying for admission from foreign contiguous territory shall be permitted to enter the United States unless upon proving that he was brought to such territory by a transportation company which had submitted to and complied with all the requirements of this Act, or that he entered, or has resided in, such territory more than two years prior to the date of his application for admission to the United States. Inspectors and Assistants — Appointment, Etc. Sec. 24. That immigrant inspectors and other immigration officers, clerks, and employees shall hereafter be appointed and their compen- sation fixed and raised or decreased from time to time by the Sec- retary of Labor, upon the recommendation of the Commissioner Gen- eral of Immigration and in accordance with the provisions of the civil- service Act of January sixteen, eighteen hundred and eighty-three : Provided, That said Secretary, in the enforcement of that portion of this Act which excludes contract laborers and induced and assisted immi- grants, may employ, for such purposes and for detail upon additional service under this Act when not so engaged, without reference to the provisions of the said civil-service Act, or to the various Acts relative to the compilation of the Official Register, such persons as he may deem advisable and from time to time fix, raise, or decrease their compensa- tion. He may draw annually from the appropriation for the enforce- ment of this Act $100,000, or as much thereof as may be necessary, to be extended for the salaries and expenses of persons so employed and for expenses incident to such employment : and the accounting officers of the Treasury shall pass to the credit of the proper disbursing officer Immigration Act 189 expenditures from said sum without itemized account whenever the Secretary of Labor certifies that an itemized account would not be for the best interests of the Government: Provided further, That nothing herein contained shall be construed to alter the mode of appointing commissioners of immigration at the several ports of the United States as provided by the sundry civil appropriation Act approved August eighteenth, eighteen hundred and ninety-four, or the official status of such commissioners heretofore appointed. Jurisdiction of District Courts. Sec. 25. That the district courts of the United States are hereby invested with full jurisdiction of all causes, civil and criminal, arising under any of the provisions of this Act. That it shall be the duty of the United States district attorney of the proper district to prosecute every such suit when brought by the United States under this Act. Such prosecutions or suits may be instituted at any place in the United States at which the violation may occur or at which the person charged with such violation may be found. That no suit or proceeding for a violation of the provisions of this Act shall be settled, compromised, or discontinued without the consent of the court in which it is pending, entered of record, with the reasons therefor. Concessions and Privileges. Sec. 26. That all exclusive privileges of exchanging money, trans- porting passengers or baggage, or keeping eating houses, and all other like privileges in connection with any United States immigrant station, shall be disposed of to the lowest responsible and capable bidder, after public competition, notice of such competitive bidding having been made in two newspapers of general circulation for a period of two weeks, subject to such conditions and limitations as the Commissioner General of Immigration, under the direction or with the approval of the Secre- tarv of Labor, may prescribe, and all receipts accruing from the disposal of privileges shall be paid into the Treasury of the United States. No such contract shall be awarded to an alien. No intoxicating liquors shall be sold at any such immigration statjion. Law Enforcement Officers Admitted to Stations. Sec. 27. That for the preservation of the peace and in order that arrests may be made for crimes under the laws of the States and Territories of the United States where the various immigrant stations are located, the officers in charge of such stations, as occasion may require, shall admit therein the proper State and municipal officers charged with the enforcement of such laws, and for the purpose of this section the jurisdiction of such officers and of the local courts shall extend over such stations. Penalty for Aiding Anarchists to Enter. Sec. 28. That any person who knowingly aids or assists any an- archist or any person who believes in or advocates the overthrow by 190 Important Federal Laws force or violence of the Government of the United States, or who dis- believes in or is opposed to organized government, or all forms of law, or who advocates the assassination of public officials, or who is a member of or affiliated with any organization entertaining or teaching disbelief in or opposition to organized government, or who advocates or teaches the duty, necessity, or propriety of the unlawful assaulting or killing of any officer or officers, either of specific individuals or of officers generally, of the Government of the United States or of any other organized government, because of his or their official character, to enter the United States, or who connives or conspires with any per- son or persons to allow, procure, or permit any such anarchist or per- son aforesaid to enter therein, shall be deemed guilty of a felony, and on conviction thereof shall be punished by a fine of not more than $5,000 or by imprisonment for not more than five years, or both. Any person who knowingly aids or assists any alien who advocates or teaches the unlawful destruction of property to enter the United States shall be deemed guilty of a misdemeanor and on conviction there- of shall be punished by a fine of not more than $1,000, or by imprison- ment for not more than six months, or by both such fine and imprison- ment. International Conference. Sec. 29. That the President of the United States is authorized, in the name of the Government of the United States, to call, in his discretion, an international conference, to assemble at such point as may be agreed upon, or to send special commissioners to any foreign country, for the purpose of regulating by international agreement, sub- ject to the advice and consent of the Senate of the United States, the immigration of aliens to the United States ; of providing for the mental, moral, and physical examination of such aliens by American consuls or other officers of the United States Government at the ports of em- barkation, or elsewhere : of securing the assistance of foreign Govern- ments in their own territories to prevent the evasion of the laws of the United States governing immigration to the United States ; of entering into such international agreements as may be proper to prevent the immi- gration of aliens who, under the laws of the United States, are or may be excluded from entering the United States, and of regulating any mat- ters pertaining to such immigration. Division of Information. Sec. 30. That there shall be maintained a division of information in the Bureau of Immigration ; and the Secretary of Labor shall provide such clerical and other assistance as may be necessary. It shall be the duty of said division to promote a beneficial distribution of aliens admitted into the United States among the several States and Territories desiring immigration. Correspondence shall be had with the proper officials of the States and Territories, and said division shall gather from all avail- Immigration Act 191 able sources useful information regarding the resources, products, and physical characteristics of each State and Territory, and shall publish such information in different languages and distribute the publications among all admitted aliens at the immigrant stations of the United States and to such other persons as may desire the same. When any State or Terri- tory appoints and maintains an agent or agents to represent it at any of the immigrant stations of the United States, such agents shall, under regu- lations prescribed by the Commissioner General of Immigration, subject to the approval of the Secretary of Labor, have access to aliens who have been admitted to the United States for the purpose of presenting, either orally or in writing, the special inducements offered by such State or Territory to aliens to settle therein. While on duty at any immigrant station such agents shall be subject to all the regulations prescribed by the Commissioner General of Immigration, who, with the approval of the Secretary of Labor, may, for violation of any such regulations, deny to the agent guilty of such violation any of the privileges herein granted. Penalty for Aiding Member of Crew to Enter Unlawfully. Sec. 31. That any person, including the owner, agent, consignee, or master of any vessel arriving in the United States from any foreign port or place, who shall knowingly sign on the ship's articles, or bring to the United States as one of the crew of such vessel, any alien, with intent to permit such alien to land in the United States in violation of the laws and treaties of the United States regulating the immigration of aliens, or who shall falsely and knowingly represent to the immigration authorities at the port of arrival that any such alien is a bona fide member of the crew, shall be liable to a penalty not exceeding $5,000, for which sum the said vessel shall be liable and may be seized and proceeded against by way of libel in any district court of the United States having jurisdic- tion of the offense. Excluded Aliens Not to Land. Sec. 22. That no alien excluded from admission into the United States by any law, convention, or treaty of the United States regulating the immigration of aliens, and employed on board any vessel arriving in the United States from any foreign port or place, shall be permitted to land in the United States, except temporarily for medical treatment, or ])ursuant to regulations prescribed by the Secretary of Labor providing for the ultimate removal or deportation of such alien from the United States, and the negligent failure of the owner, agent, consignee, or master of such vessel to detain on board any such alien after notice in writ- ing by the immigration officer in charge at the port of arrival, and to deport such alien, if required by such immigration officer or by the Secre- tary of Labor, shall render such owner, agent, consigne, or master liable to a penalty not exceeding $1,000, for which sum the said vessel shall be liable, and may be seized and proceeded against by way of libel in any district court of the United States having jurisdiction of the offense. 192 Important Federal Laws Employees of Vessels Not to be Discharged. Sec. 33. That it shall be unlawful and be deemed a violation of the preceding section to pay off or discharge any alien employed on board any vessel arriving in the United States from any foreign port or place, unless duly admitted pursuant to the laws and treaties of the United States regulating the immigration of aliens: Provided, That in case any such alien intends to reship on board any other vessel bound to any foreign port or place, he shall be allowed to land for the purpose of so reshipping, under such regulations as the Secre- tary of Cabor may prescribe to prevent aliens not admissible under any law, convention, or treaty from remaining permanently in the United States, and may be paid off, discharged, and permitted to remove his effects, anything in such laws or treaties or in this Act to the con- trary notwithstanding, provided due notice of such proposed action be given by the master or the seaman himself to the principal immigra- tion officer in charge at the port of arrival. Alien Seameru Sec. 34. That any alien seaman who shall land in a port of the United States contrary to the provisions of this Act shall be deemed to be unlawfully in the United States, and shall, at any time within three years thereafter, upon the warrant of the Secretary of Labor, be taken into custody and brought before a board of special inquiry for examination as to his qualifications for admission to the United States, and if not admitted said alien seaman shall be deported at the expense of the appropriation for this Act as provided in section twenty of this Act. Defective Employees. Sec. 35. That it shall be unlawful for any vessel carrying passen- gers between a port of the United States and a port of a foreign country, upon arrival in the United States, to have on board employed thereon any alien afflicted with idiocy, imbecility, insanity, epilepsy, tuber- culosis in any form, or a loathsome or dangerous contagious disease, if it appears to the satisfaction of the Secretary of Labor, from an ex- amination made by a medical officer of the United States Public Health Service, and is so certified by such officer, that any such alien was so afflicted at the time he was shipped or engaged and taken on board such vessel and that the existence of such affliction might have been detected by means of a competent medical examination at such time; and for every such alien so afflicted on board any such vessel at the time of arrival tlie owner, agent, consignee, or master thereof shall pay to the collector of customs of the customs district in which the port of arrival is located the sum of $50, and pending departure of the vessel the alien shall be detained and treated in hospital under supervision of immigration officials at the expense of thevessel; and no vessel shall be granted clearance pending the determination of the question of the liability to the payment of such fine and while it remains unpaid: Pro- Immigration Act 193 vided, That clearance may be granted prior to the determination of such question upon the deposit of a sum sufficient to cover such fine : Pro- vided further, That such fine may, in the discretion of the Secretary of Labor, be mitigated or remitted. Lists of Employed Aliens. Sec. 36. That upon arrival of any vessel in the United States from any foreign port or place it shall be the duty of the owner, agent, consignee, or master thereof to deliver to the principal immigration officer in charge of the port of arrival lists containing the names of all aliens employed on such vessel, stating the positions they respec- tively hold in the ship's company, when and where they were respec- tively shipped or engaged, and specifying those to be paid off and dis- charged in the port of arrival ; or lists containing so much of such information as the Secretary of Labor shall by regulation prescribe ; and after the arrival of any such vessel it shall be the duty of such owner, agent, consignee, or master to report to such immigration officer, in writing, as soon as discovered, all cases in which any such alien has ille- gally landed from the vessel, giving a description of such alien, together with any information likely to lead to his apprehension ; and before the departure of any such vessel it shall be the duty of such owner, agent, consignee, or master to deliver to such immigration officer a further list containing the names of all alien employees who were not employed thereon at the time of the arrival but who will leave port thereon at the time of her departure, and also the names of those, if any, who have been paid off and discharged, and of those, if any, who have deserted or landed ; and in case of the failure of such owner, agent, consignee, or master so to deliver either of the said lists of such aliens arriving and departing, respectively, or so to report such cases of desertion or landing, such owner, agent, consignee, or master shall, if required by the Secretary of Labor, pay to the collector of customs of the customs district in which the port of arrival is located the sum of $10 for each alien concerning whom correct lists are not delivered or a true report is not made as above required ; and no such vessel shall be granted clearance pending the determination of the question of the liability to the payment of such fine, and, in the event such fine is imposed, while it remains unpaid ; nor shall such fine be remitted or refunded : Provided, That clearance may be granted prior to the determination of such question upon deposit of a sum sufficient to cover such fine. Definition of "Person." Sec. Z7 . That the word "person" as used in this Act shall be con- strued to import both plural and the singular, as the case may be, and shall include corporations, companies, and associations. When con- struing and enforcing the provisions of this Act, the act, omission, or failure of any director, officer, agent, or employee of any corpora- tion, company, or association acting within the scope of his employ- (13) 194 Important Federal Laws ment or office shall in every case be deemed to be the act, omission, or failure of such corporation, company, or association, as well as that of the person acting for or in behalf of such corporation, com- pany, or association. Date to Take Effect. Sec. 38. That this Act, except as otherwise provided in section three, shall take effect and be enforced on and after May first, nine- teen hundred and seventeen. The Act of March twenty-sixth, nine- teen hundred and ten, amending the Act of February twentieth, nine- teen hundred and seven, to regulate the immigration of aliens into the United States ; the Act of February twentieth, nineteen hundred and seven, to regulate the immigration of aliens into the United States, ex- cept section thirty-four thereof ; the Act of March third, nineteen hun- dred and three, to regulate the immigration of aliens into the United States, except section thirty-four thereof ; and all other Acts and parts of Acts inconsistent with this Act are hereby repealed on and after the taking eft'ect of this Act : Provided, That this Act shall not be con- strued to repeal, alter, or amend existing laws relating to the immigra- tion or exclusion of Chinese persons or persons of Chinese descent, except as provided in section nineteen hereof, nor to repeal, alter, or amend section six, chapter four hundred and fifty-three, third session. Fifty-eighth Congress, approved February sixth, nineteen hundred and five, nor to repeal, alter, or amend the Act, approved August second, eighteen hundred and eighty-two, entitled "An Act to regulate the car- riage of passengers by sea," and amendments thereto, except as pro- vided in section eleven hereof : Provided further. That nothing con- tained in this Act shall be construed to affect any prosecution, suit, action, or proceedings brought, or any act, thing, or matter, civil or criminal, done or existing at the time of the taking effect of this Act, except as mentioned in the third proviso of section nineteen hereof ; but as to all such prosecutions, suits, actions, proceedings, acts, things, or matters, the laws or parts of laws repealed or amended by this Act are hereby continued in force and effect. NATURALIZATION LAWS. Act of June 29, 1906, as amended March 4, 1909, June 25, 1910, and March 4, 1913, creating the Department of Labor. An Act to provide for a uniform rule for the naturalization of aliens through- out the United States, and establishing the Bureau of Naturalization. [Portion of Act creating the Department of Labor.] The Bureau of Naturalization. Sec. 1. That the Bureau of Naturalization, under the direction and control of the Secretary of Labor, shall have charge of all matters concerning the naturalization of aliens. That it shall be the duty of the Bureau of Immigration to provide, for use at the various immigra- Naturalization Laws 195 tion stations throughout the United States, books of record, wherein the commissioners of immigration shall cause a registry to be made in the case of each alien arriving in the United States from and after the passage of this act of the name, age, occupation, personal descrip- tion (including height, complexion, color of hair and eyes), the place of birth, the last residence, the intended place of residence in the United States, and the date of arrival of said alien and, if entered through a port, the name of the vessel in which he comes. And it shall be the duty of said commissioners of immigration to cause to be granted to such alien a certificate of such registry, with the particulars thereof. Sec. 2. [This section is omitted, as it merely authorized the Sec- retary of Commerce and Labor to provide the necessary offices in the city of Washington.] Courts Which May Naturalize. Sec. 3. That exclusive jurisdiction to naturalize aliens as citizens of the United States is hereby conferred upon the following specified courts : United States circuit and district courts now existing, or which may hereafter be established by Congress in any State, United States district courts for the Territories of Arizona, New Mexico, Oklahoma, Hawaii, and Alaska, the supreme court of the District of Columbia, and the United States courts for the Indian Territory; also all courts of record in any State or Territory now existing, or which may hereafter be created, having a seal, a clerk, and jurisdiction in actions at laW or equity, or law and equity, in which the amount in controversy is unlimited. That the naturalization jurisdiction of all courts herein specified, State, Territorial, and Federal, shall extend only to aliens resident within the respective judicial districts of such courts. The courts herein specified shall, upon the requisition of the clerks of such courts, be furnished from time to time by the Bureau of Naturalization with such blank forms as may be required in the nat- uralization of aliens, and all certificates of naturalization shall be con- secutively numbered and printed on safety paper furnished by said bureau. Method of Naturalization. Sec. 4. That an alien may be admitted to become a citizen of the United States in the following manner and not otherwise : First. He shall declare on oath before the clerk of any court author- ized by this Act to naturalize aliens, or his authorized deputy, in the district in which such alien resides, two years at least prior to his admission, and after he has reached the age of eighteen years, that it is bona fide his intention to become a citizen of the United States, and to renounce forever all allegiance and fidelity to any foreign prince, potentate, state, or sovereignty, and particularly, by name, to the prince. 196 Important Federal Laws potentate, state, or sovereignty of which the ahen may be at the time a citizen or subject. And such declaration shall set forth the name, age, occupation, personal description, place of birth, last foreign resi- dence and allegiance, the date of arrival, the name of the vessel, if any, in which he came to the United States, and the present place of residence in the United States of said alien : Provided, however, That no alien who, in conformity with the law in force at the date of his declaration, has declared his intention to become a citizen of the United States shall be required to renew such declaration. Second. Not less than two years nor more than seven years after he has made such declaration of intention he shall make and file, in duplicate, a petition in writing signed by the applicant in his own handwriting and duly verified, in which petition such applicant shall state his full name, his place of residence (by street and number, if possible), his occupation, and, if possible, the date and place of his birth; the place from which he emigrated, and the date and place of his arrival in the United States, and, if he entered through a port, the name of the vessel on which he arrived ; the time when and the place and name of the court where he declared his intention to become a citizen of the United States ; if he is married he shall state the name of his wife and, if possible, the countr}- of her nativity and her place of residence at the time of filing his petition ; and if he has children, the name, date, and place of birth and place of residence of each child living at the time of the filing of his petition : Provided, That if he has filed his declaration before the passage of this Act he shall not be required to sign the petition in his own handwriting. The petition shall set forth that he is not a disbeliever in or op- posed to organized government, or a member of or affiliated with any organization or body of persons teaching disbeHef in or opposed to organized government, a polygamist or believer in the practice of polyg- amy, and that it is his intention to become a citizen of the United States and to renounce absolutely and forever all allegiance and fidelity to any foreign prince, potentate, state, or sovereignty, and particularly by name to the prince, potentate, state, or sovereignty of which he at the time of filing of his petition may be a citizen or subject, and that it is his intention to reside permanently within the United States, and whether or not he has been denied admission as a citizen of the United States, and, if denied, the ground or grounds of such denial, the court Or courts in which such decision was rendered, and that the cause for such denial has since been cured or removed, and every fact mate- rial to his naturalization and required to be proved upon the final hearing of his application. The petition shall also be verified by the affidavits of at least two credible witnesses, who are citizens of the United States, and who shall state in their affidavits that they have personally known the applicant to be a resident of the United States for a period of at least Naturalization Laws 197 five years continuously, and of the State, Territory, or District in which the application is made for a period of at least one year immediately preceding the date of the filing of his petition, and that they each have personal knowledge that the petitioner is a person of good moral character, and that he is in every way qualified, in their opinion, to be admitted as a citizen of the United States. At the time of filing his petition there shall be filed with the clerk of the court a certificate from the Department of Labor, if the peti- tioner arrives in the United States after the passage of this act, stat- ing the date, place, and manner of his arrival in the United States, and the declaration of intention of such petitioner, which certificate and declaration shall be attached to and made a part of said petition. Third. He shall, before he is admitted to citizenship, declare on oath in open court that he will support the Constitution of the United States, and that he absolutely and entirely renounces and abjures all allegiance and fidelity to any foreign prince, potentate, state, or sover- eignty, and particularly by name to the prince, potentate, state, or sover- eignty of which he was before a citizen or subject; that he will sup- port and defend the Constitution and laws of the United States against all enemies, foreign and domestic, and bear true faith and allegiance to the same. Fourth. It shall be made to appear to the satisfaction of the court admitting any alien to citizenship that immediately preceding the date of his application he has resided continuously within the United States five years at least, and within the State or Territory where such court is at the time held one year at least, and that during that time he has behaved as a man of good moral character, attached to the principles of the Constitution of the United States, and well disposed to the good order and happiness of the same. In addition to the oath of the applicant, the testimony of at least two witnesses, citizens of the United States, as to the facts of residence, moral character, and attach- ment to the principles of the Constitution shall be required, and the name, place of residence, and occupation of each witness shall be set forth in the record. Fifth. In case the alien applying to be admitted to citizenship has borne any hereditary title, or has been of any of the orders of nobility in the kingdom or state from which he came, he shall, in addition to the above requisites, make an express renunciation of his title or order of nobility in the court to which his application is made, and his renun- ciation shall be recorded in the court. Sixth. When any alien who has declared his intention to become a citizen of the United States dies before he is actually naturalized the widow and minor children of such alien may, by complying with the other provisions of this act, be naturalized without making any declara- tion oif intention. 198 Important Federal Laws Aliens Who Erroneously Believed Themselves Citizens Exempt From Certain Formalities. (Act of June 25, 1910.) Sec. 3. That paragraph 2 of section 4 of an act entitled "An act to estabhsh a Bureau of Immigration and NaturaHzation, and to pro- vide for a uniform rule for the naturalization of aliens throughout the United States," approved June 29, 1906, be amended by adding after the proviso in paragraph 2 of section 4 of said act the following: "Provided further, That any person belonging to the class of per- sons authorized and qualified under existing law to become a citizen of the United States who has resided constantly in the United States dur- ing a period of five years next preceding May first, nineteen hundred and ten, who, because of misinformation in regard to his citizenship or the requirements of the law governing the naturalization of citizens has labored and acted under the impression that he was or could become a citizen of the United States and has in good faith exercised the rights or duties of a citizen or intended citizen of the United States because of such wrongful information and belief may, upon making a showing of such facts satisfactory to a court having jurisdiction to issue papers of naturalization to an alien, and the court in its judgment believes that such person has been for a period of more than five years entitled upon proper proceedings to be naturalized as a citizen of the United States, receive from the said court a final certificate of naturalization, and said court may issue such certificate without requiring proof of former declaration by or on the part of such person of their intention to be- come a citizen of the United States, but such applicant for naturaliza- tion shall comply in all other respects with the law relative to tbe issu- ance of final papers of naturalization to aliens." Notice of Petition by Clerk. Sec. 5. That the clerk of the court shall, immediately after filing the petition, give notice thereof by posting in a public and conspicu- ous place in his office, or in the building in which his office is situated, under an appropriate heading, the name, nativity, and residence of the alien, the date and place of his arrival in the United States, and the date, as nearly as may be, for the final hearing of his petition, and the names of the witnesses whom the applicant expects to summon in his behalf ; and the clerk shall, if the applicant requests it, issue a subpoena for the witnesses so named by the said applicant to appear upon the day set for the final hearing, but in case such witnesses can not be produced upon the final hearing other witnesses may be summoned. Docketing of Petition, Naturalization Before Election Prohibited. Sec. 6. That petitions for naturalization may be made and filed during term time or vacation of the court and shall be docketed the same day as filed, but final action thereon shall be had only on stated days, to be fixed by rule of the court, and in no case shall final action be had upon a petition until at least ninety days have elapsed after Naturalization Laws 199 filing and posting the notice of such petition: Provided, That no per- son shall be naturalized nor shall any certificate of naturalization be issued by any court within thirty days preceding the holding of any general election within its territorial jurisdiction. It shall be lawful at the time and as a part of the naturalization of any alien, for the court, in its discretion, upon the petition of such alien, to make a decree changing the name of said alien, and his certificate of naturali- zation shall be issued to him in accordance therewith. Anarchists Prohibited. Sec. 7. That no person who disbelieves in or who is opposed to organized government, or who is a member of or affiliated with any organization entertaining and teaching such disbelief in or opposition to organized government, or who advocates or teaches the duty, neces- sity, or propriety of the unlawful assaulting or killing of any officer or officers, either of specific individuals or of officers generally, of the Government of the United States, or of any other organized gov- ernment, because of his or their official character, or who is a polyg- amist, shall be naturalized or be made a citizen of the United States. Applicant Must Speak English. Sec. 8. That no alien shall hereafter be naturahzed or admitted as a citizen of the United States who can not speak the English language : Provided, That this requirement shall not apply to aliens who _ are physically unable to comply therewith, if they are otherwise qualified to become citizens of the United States: And provided further. That the requirements of this section shall not apply to any alien who has prior to the passage of this act declared his intention to become a citizen of the United States in conformity with the law in force at the date of making such declaration: Provided further, That the require- ments of section eight shall not apply to aliens who shall hereafter declare their intention to become citizens and who shall make home- stead entries upon the public lands of the United States and comply in all respects with the laws providing for homestead entries on such lands. Final Hearing. Sec. 9. That every final hearing upon such petition shall be had in open court before a judge or judges thereof, and every final order which may be made upon such petition shall be under the hand of the court and entered in full upon a record kept for that purpose, and upon such final hearing of such petition the applicant and witnesses shall be examined under oath before the court and in the presence of the court. Proving Residence. Sec. 10. That in case the petitioner has not resided in the State, Territory, or District for a period of five years continuously and immediately preceding the filing of his petition he may establish by 200 Important Federal Laws two witnesses, both in his petition and at the hearing, the time of his residence within the State, provided that it has been for more than one year, and the remaining portion of his five years' residence within the United States required by law to be estabHshed may be proved by the depositions of two or more witnesses who are citizens of the United States, upon notice to the Bureau of NaturaUzation and the United States attorney for the district in which said witnesses may reside. Cross-Examination of Petitioner. Sec. 11. That the United States shall have the right to appear before any court or courts exercising jurisdiction in naturalization proceedings for the purpose of cross-examining the petitioner and the witnesses produced in support of his petition concerning any matter touching or in any way affecting his right to admission to citizenship, and shall have the right to call witnesses, produce evidence, and be heard in opposition to the granting of any petition in naturalization proceedings. Clerk to File Declarations and Certificates With Bureau of Naturaliza- tion. Sec. 12. That it is hereby made the duty of the clerk of each and every court exercising jurisdiction in naturalization matters under the provisions of this act to keep and file a duplicate of each declaration of intention made before him and to send to the Bureau of Naturali- zation at Washington, within thirty days after the issuance of a cer- tificate of citizenship, a duplicate of such certificate, and to mak,e and keep on file in his office a stub for each certificate so issued by him, whereon shall be entered a memorandum of all the essential facts set forth in such certificate. It shall also be the duty of the clerk of each of said courts to report to the said bureau, within thirty days after the final hearing and decision of the court, the name of each and every alien who shall be denied naturalization, and to furnish to said bureau duplicates of all petitions within thirty days after the filing of the same, and certified copies of such other proceedings and orders instituted in or issued out of said court affecting or relating to the naturalization of aliens as may be required from time to time by the said bureau. In case any such clerk or officer acting under his direction shall refuse or neglect to comply with any of the foregoing provisions he shall forfeit and pay to the United States the sum of twenty-five dol- lars in each and every case in which such violation or omission occurs, and the amount of such forfeiture may be recovered by the United States in an action of debt against such clerk. Clerks of courts having and exercising jurisdiction in naturalization matters shall be responsible for all blank certificates of citizenship received by them from time to time from the Bureau of Naturaliza- tion, and shall account for the same to the said bureau whenever required so to do by such bureau. No certificate of citizenship re- Naturalization Laws 201 ceived by any such clerk which may be defaced or injured in such manner as to prevent its use as herein provided shall in any case be destroyed, but such certificate shall be returned to the said bureau; and in case any such clerk shall fail to return or properly account for any certificate furnished by the said bureau, as herein provided, he shall be liable to the United States in the sum of fifty dollars, to be recovered in an action of debt, for each and every certificate not properly accounted for or returned. • Fees. ' Sec. 13. That the clerk of each and every court exercising juris- diction in naturalization cases shall charge, collect, and account for the following fees in each proceeding: For receiving and filing a declaration of intention and issuing a duplicate thereof, one dollar. For making, filing, and docketing the petition of an alien for admission as a citizen of the United States and for the final hearing thereon, two dollars ; and for entering the final order and the issuance of the certificate of citizenship thereunder, if granted, two dollars. The clerk of any court collecting such fees is hereby authorized to retain one-half of the fees collected by him in such naturalization proceeding; the remaining one-half of the naturalization fees in each case collected by such clerks, respectively, shall be accounted for in their quarterly accounts, which they are hereby required to render the Bureau of Naturalization, and paid over to such bureau within thirty days from the close of each quarter in each and every fiscal year, and the moneys so received shall be paid over to the disbursing clerk of the Department of Labor, who shall thereupon deposit them in the Treasury of the United States, rendering an account therefor quarterly to the Auditor for the State and other departments, and the said dis- bursing clerk shall be held responsible under his bond for said fees so received. In addition to the fees herein required, the petitioner shall, upon the filing of his petition to become a citizen of the United States, deposit with and pay to the clerk of the court a sum of money suffi- cient to cover the expenses of subpoenaing and paying the legal fees of any witnesses for whom he may request a subpoena, and upon the final discharge of such witnesses they shall receive, if they demand the same from the clerk, the customary and usual witness fees from the moneys which the petitioner shall have paid to such clerk for such purpose, and the residue, if any, shall be returned by the clerk to the petitioner: Provided. That the clerks of courts exercising juris- diction in naturalization proceedings shall be permitted to retain one- half of the fees in any fiscal year up to the sum of three thousand dollars, and that all fees received by such clerks in naturalization pro- ceedings in excess of such amount shall be accounted for and paid over to said bureau as in case of other fees to which the United States 202 Important Federal Laws may be entitled under the provisions of this act. The clerks of the various courts exercising jurisdiction in naturalization proceedings shall pay all additional clerical force that may be required in performing the duties imposed by this act upon the clerks of courts from fees received by such clerks in naturalization proceedings. And in case the clerk of any court exercising naturalization juris- diction collects fees in excess of the sum of six thousand dollars in any fiscal year the Secretary of Labor may allow salaries, for natural- ization purposes only, to pay for clerical assistance, to be selected and employed by that clerk, additional to the clerical force, for which clerks of courts are required by this section to pay from fees received by such clerks in naturalization proceedings, if in the opinion of said Secretary the naturalization business of such clerks warrants further additional assistance : Provided, That in no event shall the whole amount allowed the clerk of a court and his assistants exceed the one-half of the gross receipts of the office of said clerk from naturalization fees during such fiscal year : Provided further, That when, at the close of any fiscal year, the business of such clerk of court indicates in the opinion of the Secretary of Labor that the naturalization fees for the succeeding fiscal year will exceed six thousand dollars the Secretary of Labor may authorize the continuance of the allowance of salaries for the additional clerical assistance herein provided for and employed on the last day of the fiscal year until such time as the remittances indicate in the opinion of said Secretary that the fees for the then cur- rent fiscal year will not be sufficient to allow the additional clerical assistance authorized by this act. That payment for the additional clerical assistance herein author- ized shall be in the manner and under such regulations as the Secre- tary of Labor may prescribe. (As amended June 25, 1910.) Binding Declarations and Petitions. Sec. 14. That the declarations of intention and the petitions for naturalization shall be bound in chronological order in separate vol- umes, indexed, consecutively numbered, and made part of the records of the court. Each certificate of naturalization issued shall bear upon its face, in a place prepared therefor, the volume number and page number of the petition whereon such certificate was issued, and the volume number and page number of the stub of such certificate. Suits to Set Aside Citizenship. Sec. 15. That it shall be the duty of the United States district at- torneys for the respective districts, upon affidavit showing good cause therefor, to institute proceedings in any court having jurisdiction to naturalize aliens in the judicial district in which the naturalized citizen may reside at the time of bringing the suit, for the purpose of setting aside and canceling the certificate of citizenship on the ground of fraud or on the ground that such certificate of citizenship was illegally pro- cured. In any such proceedings the party holding the certificate of Naturalization Laws 203 citizenship alleged to have been fraudulently or illegally procured shall have sixty days personal notice in which to make answer to the petition of the United States ; and if the holder of such certificate be absent from the United States or from the district in which he last had his residence, such notice shall be given by publication in the manner pro- vided for the service of summons by publication or upon absentees by the laws of the State or the place where such suit is brought. If any alien who shall have secured a certificate of citizenship under the provisions of this Act shall, within five years after the is- suance of such certificate, return to the country of his nativity, or go to any other foreign country, and take permanent residence therein, it shall be considered prima facie evidence of a lack of intention on the part of such alien to become a permanent citizen of the United States at the time of filing his application for citizenship, and, in the absence of countervailing evidence, it shall be sufficient in the proper proceeding to authorize the cancellation of his certificate of citizenship as fraudulent, and the diplomatic and consular officers of the United States in foreign countries shall from time to time, through the De- partment of State, furnish the Department of Justice with the names of those within their respective jurisdictions who have such certificates of citizenship and who have taken permanent residence in the country of their nativity, or in any other foreign country, and such statements dulv certified, shall be admissible in evidence in all courts in proceed- ings to cancel certificates of citizenship. Whenever any certificate of citizenship shall be set aside or can- celed, as herein provided, the court in which such judgment or decree is rendered shall make an order canceling such certificate of citizenship and shall send a certified copy of such order to the Bureau of Natural- ization ; and in case such certificate was not originally issued by the court making such order it shall direct the clerk of the court to trans- mit a copy of such order and judgment to the court out of which such certificate of citizenship shall have been originally issued. And it shall thereupon be the duty of the clerk of the court receiving such certified copy of the order and judgment of the court to enter the same of record and to cancel such original certificate of citizenship upon the records and to notify the Bureau of Naturalization of such can- cellation. The provisions of this section shall apply not only to certificates of citizenship issued under the provisions of this Act, but to all certifi- cates of citizenship which may have been issued heretofore by any court exercising jurisdiction in naturalization proceedings under prior I r\ W S Sec. 16. [Superseded by Act of Mar. 4, 1909. See pp. 713-716.] Sec. 17. [Superseded by Act of Mar. 4, 1909. See pp. 713-716.] Penalty for False Issuance. Sec. 18. That it is hereby made a felony for any clerk or other 204 Important Federal Laws person to issue or be a party to the issuance of a certificate of citi- zenship contrary to the provisions of this Act, except upon a final order under the hand of a court having jurisdiction to make such order, and upon conviction thereof such clerk or other person shall be punished by imprisonment for not more than five years and by a fine of not more than five thousand dollars, in the discretion of the court. Sec. 19. [Superseded by Act of Alar. 4, 1909. See pp. 713-716.] Penalty for False Return of Accounts. Sec. 20. That any clerk or other officer of a court having power under this act to naturalize aliens, who willfully neglects to render true accounts of moneys received by him for naturalization proceedings or who willfully neglects to pay over any balance of such moneys due to the United States within thirty days after said payment shall become due and demand therefor has been made and refused, shall be deemed guilty of embezzlement of the public moneys, and shall be punishable by imprisonment for not more than five years, or by a fine of not more than five thousand dollars, or both. Unlawful to Receive Other Fees. Sec. 21. That it shall be unlawful for any clerk of any court or his authorized deputy or assistant exercising jurisdiction in naturali- zation proceedings to demand, charge, collect, or receive any other or additional fees or moneys in naturalization proceedings save the fees and moneys herein specified ; and a violation of any of the provisions of this section or any part thereof is hereby declared to be a misde- meanor and shall be punished by imprisonment for not more than two years, or by a fine of not more than one thousand dollars, or by both such fine and imprisonment. False Statements by Clerk. Sec. 22. That the clerk of any court exercising jurisdiction in nat- uralization proceedings, or any person acting under authority of this act, who shall knowingly certify that a petitioner, affiant, or witness named in an affidavit, petition, or certificate of citizenship, or other paper or writing required to be executed under the provisions of this act, personally appeared before him and was sworn thereto, or ac- knowledged the execution thereof or signed the same, when in fact such petitioner, affiant, or witness did not personally appear before him, or was not sworn thereto, or did not execute the same, or did not ac- knowledge the execution thereof, shall be punished by a fine not ex- ceeding five thousand dollars, or by imprisonment not to exceed five years. Fraudulent Naturalization. Sec. 23. That any person who knowingly procures naturalization in violation of the provisions of this act shall be fined not more than five thousand dollars, or shall be imprisoned not more than five years, Naturalization Laws 205 or both, and upon conviction the court in which such conviction is had shall thereupon adjudge and declare the final order admitting such person to citizenship void. Jurisdiction is hereby conferred on the courts having jurisdiction of the trial of such offense to make such adju- dication. Any person who knowingly aids, advises, or encourages any person not entitled thereto to apply for or to secure naturalization, or to file the preliminary papers declaring an intent to become a citizen of the United States, or who in any naturalization proceeding know- ingly procures or gives false testimony as to any material fact, or who knowingly makes an affidavit false as to any material fact required to be proved in such proceeding, shall be fined not more than five thousand dollars, or imprisoned not more than five years, or both. Prosecution to Be Within Five Years. Sec. 24. That no person shall be prosecuted, tried, or punished for any crime arising under the provisions of this act unless the indict- ment is found or the information is filed within five years next after the commission of such crime. Old Acts in Force. Sec. 25. That for the purpose of the prosecution of all crimes and oiTenses against the naturalization laws of the United States which may have been committed prior to the date when this act shall go into effect, the existing naturalization laws shall remain in full force and effect. Repeal. Sec. 26. That sections twenty-one hundred and sixty-five, twenty- one hundred and sixty-seven, twenty-one hundred and sixty-eight, twenty-one hundred and seventy-three of the Revised Statutes of the United States of America, and section thirty-nine of chapter one thou- sand and twelve of the Statutes at Large of the United States of Amer- ica for the year nineteen hundred and three, and all acts or parts of acts inconsistent with or repugnant to the provisions of this act are hereby repealed. Form of Petition and Certificate. Sec. 27. That substantially the following forms shall be used in the proceedings to which they relate : declaration of intention. (Invalid for all purposes seven years after the date hereof.) , ss: I, , aged years, occupation , do declare on oath (affirm) that my personal description is: Color , com- plexion , height , weight , color of hair , color of eyes , other visible distinctive marks ; I was born in , on the day of , anno Domini ; I now reside at ; I emigrated to the United States of America 206 Important Federal Laws from on the vessel ; my last foreign residence was It is my bona fide intention to renounce forever all allegiance and fidelity to any foreign prince, potentate, state, or sovereignty, and particularly to , of which I am now a citizen (subject) ; I ar- rived at the (port) of , in the State (Territory or District) of , on or about the day of , anno Domini; I am not an anarchist ; I am not a polygamist nor a believer in the practice of polygamy ; and it is my intention in good faith to become a citizen of the United States of America and to permanently reside therein. So help me God. (Original signature of declarant) Subscribed and sworn to (affirmed) before me this day of , anno Domini [l. s.] _ , (Official character of attestor. PETITIOX FOR NATURALIZATION. Court of In the matter of the petition of to be admitted as a citizen of the United States of America. To the Court: The petition of respectfully shows: First. Aly full name is Second. My place of residence is number street, city of , State (Territory or District) of Third. My occupation is Fourth. I was born on the day of at Fifth. I emigrated to the United States from , on or about the day of , anno Domini , and arrived at the port of , in the United States, on the vessel Sixth. I declared my intention to become a citizen of the United States on the day of , at , in the court of Seventh. I am married. My wife's name is She was born in and now resides at I have chil- dren, and the name, date, and place of birth and place of residence of each of said children is as follows: ; ; Eighth. I am not a disbeliever in or opposed to organized gov- ernment or a member of or affiliated with any organization or body of persons teaching disbelief in organized government. I am not a poly- gamist nor a believer in the practice of polygamy. I am attached to the principles of the Constitution of the United States, and it is my in- tention to become a citizen of the United States and to renounce abso- lutely and forever all allegiance and fidelity to any foreign prince, potentate, state, or sovereignty, and particularly to , of which at this time I am a citizen (or subject), and it is my intention to reside permanently in the United States. Naturalization Laws 207 Ninth. I am able to speak the EngHsh language. Tenth. I have resided continuously in the United States of America for a term of five years at least immediately preceding the date of this petition, to wit, since , anno Domini , and in the State (Territory or District) of for one year at least next preceding the date of this petition, to wit, since day of , anno Domini Eleventh. I have not heretofore made petition for citizenship to any court. (I made petition for citizenship to the court of at , and the said petition was denied by the said court for the following reasons and causes, to wit, , and the cause of such denial has since been cured or removed.) Attached hereto and made a part of this petition are my declara- tion of intention to become a citizen of the United States and the cer- tificate from the Department of Labor required by law. Wherefore your petitioner prays that he may be admitted a citizen of the United States of America. Dated .c<. . . .-.■ \ (Signature of petitioner) , ss: being duly sworn, deposes and says that he is the petitioner in the above-entitled proceeding; that he has read the fore- going petition and knows the contents thereof ; that the same is true of his own knowledge, except as to matters therein stated to be alleged upon information and belief, and that as to those matters he believes it to be true. Subscribed and sworn to before me this day of , anno Domini [l. s.] , Clerk of the Court. affidavit of witnesses. Court of In the matter of the petition of to be admitted a citizen of the United States of America. , ss : , occupation , residing at , and , occupation , residing at , each being severally, duly, and respectively sworn, deposes and says that he is a citizen of the United States of America; that he has personally known , the petitioner above mentioned, to be a resident of the United States for a period of at least five years continuously immediately preceding the date of filing his petition, and of the State (Territory or District) in which the above-entitled application is made for a period of years immediately preceding the date of filing his petition; and that he has personal knowledge that the said petitioner is a person of good moral character, attached to the principles of the Constitution 208 Important Federal Laws of the United States, and that he is in every way qualified, in his opinion, to be admitted as a citizen of the United States. Subscribed and sworn to before me this day of , nineteen hundred and [l. s.] , (Official character of attestor.) CERTIFICATE OF NATURALIZATION. Number Petition, volume , page Stub, volume , page (Signature of holder) Description of holder: Age, ; height, ; color, __ ; complexion, ; color of eyes, ; color of hair, •, visi- ble distinguishing marks, Name, age, and place of residence of wife, , , Names, ages, and places of residence of minor children, , , ; , , ; , ss : Be it remembered, that at a term of the court of held at on the day of , in the year of our Lord nineteen hundred and , who previous to his (her) naturalization was a citizen or subject of , at present residing at number street, city (town), ___ State (Territory or District), having applied to be admitted a citizen of the United States of America pursuant to law, and the court haying found that the petitioner had resided continuously within the United States for at least five years and in this State for one year immediately pre- ceding the date of the hearing of his (her) petition, and that said peti- tioner intends to reside permanently in the United States, had in all respects complied with the law in relation thereto, and that __he was entitled to be so admitted, it was thereupon ordered by the said court that he be admitted as a citizen of the United States of America. Li testimony whereof the seal of said court is hereunto affixed on the day of , in the year of our Lord nineteen hundred and and of our independence the [l. s.] , (Official character of attestor.) STUB OF CERTIFICATE OF NATURALIZATION. No. of certificate, Name, ; age Declaration of intention, volume , page Petition, volume , page Name, age, and place of residence of wife, __ , , Names, ages, and places of residence of minor children, , , Naturalization Laws 209 Date of order, volume , page (Signature of holder) Sec. 28. That the Secretary of Labor shall have power to make such rules and regulations as may be necessary for properly carrying into execution the various provisions of this act. Certified copies of all papers, documents, certificates, and records required to be used, filed, recorded, or kept under any and all of the provisions of this act shall be admitted in evidence equally with the originals in any and all proceedings under this act and in all cases in which the originals thereof might be admissible as evidence. Sec. 29. Omitted. Temporary appropriation. Applicability in Certain Instances. Sec. 30. That all the applicable provisions of the naturalization laws of the United States shall apply to and be held to authorize the admission to citizenship of all persons not citizens who owe perma- nent allegiance to the United States, and who may become residents of any State or organized Territory of the United States, with the follow- ing modifications : The applicant shall not be required to renounce allegiance to any foreign sovereignty ; he shall make his declaration of intention to become a citizen of the United States at least two years prior to his admission ; and residence within the jurisdiction of the United States, owing such permanent allegiance, shall be regarded as residence within the United States within the meaning of the five years' residence clause of the existing law. Taking Effect. Sec. 31. That this act shall take effect and be in force from and after ninety days from the date of its passage : Provided, That sec- tions one. two, twenty-eight, and twenty-nine shall go into effect from and after the passage of this act. Naturalization Limited to White Persons and Those of the African Race. (Act of July 14, 1870.) Sec. 2169. The provisions of this Title shall apply to aliens being free white persons and to aliens of African nativity and to persons of African descent. (As amended February 18, 1875.) Naturalization of Chinese Prohibited. (Act of May 6, 1882.) Sec. 14. That hereafter no State court or court of the United States shall admit Chinese to citizenship; and all laws in conflict with this act are hereby repealed. Residence Within the United States Required for Five Years Con- tinuously. (Act of March 3, 1813.) Sec. 2170. No alien shall be admitted to become a citizen who (14) 210 Important Federal Laws has not for the conthiued term of five years next preceding his admis- sion resided within the United States. Residence in Hawaii for Naturalization Purposes. (Act of April 30, 1900.) Sec. 100. That for the purpose of naturalization under the laws of the United States residence in the Hawaiian Islands prior to the taking effect of this act shall be deemed equivalent to residence in the United States and in the Territory of Hawaii, and the requirement of a previous declaration of intention to become a citizen of the United States and to renounce former allegiance shall not apply to persons who have resided in said islands at least five years prior to the taking effect of this act : but all other provisions of the laws of the United States relating to naturalization shall, so far as applicable, apply to per- sons in the said islands. Naturalization of Alien Enemies Prohibited. (Act of April 14, 1802.) Sec. 2171. No alien who is a native citizen or subject, or a denizen of any country, State, or sovereignty wnth which the United States are at war at the time of his application, shall be then admitted to become a citizen of the United States ; but persons resident within the United States, or the Territories thereof, on the eighteenth day of June, in the year one thousand eight hundred and twelve, who had before that date made a declaration, according to law, of their intention to become citizens of the United States, or who were on that day entitled to become citizens without making such declaration, may be admitted to become citizens thereof, notwithstanding they were alien enemies at the time and in the manner prescribed by the laws heretofore passed on that subject; nor shall anything herein contained be taken or con- strued to interfere with or prevent the apprehension and removal agree- ably to law, of any alien enemy at any time previous to the actual nat- uralization of such alien. (As amended July 30, 1813.) Alien Seamen of Merchant Vessels. (Act of July 7, 1872.) Sec. 2174. Every seaman, being a foreigner, who declares his in- tention of becoming a citizen of the United States in any competent court, and shall have served three years on board of a merchant vessel of the United States subsequent to the date of such declaration, may, on his application to any competent court, and the production of his certificate of discharge and good conduct during that time, together with the certificate of his declaration of intention to become a citizen, be admitted a citizen of the United States ; and every seaman, being a foreigner, shall, after his declaration of intention to become a citizen of the United States, and after he shall have served such three years, be deemed a citizen of the United States for the purpose of manning and serving on board any merchant vessel of the United States, any- thing to the contrary in any act of Congress notwithstanding; but such seaman shall, for all purposes of protection as an American citizen, be Naturalization Laws 211 deemed such after the fiUng of his declaration of intention to become such citizen. Honorably Discharged Soldiers Exempt From Certain Formalities. (Act of July 17, 1862.) Sec. 2166. Any alien of the age of twenty-one years and upward who has enhsted, or may enHst, in the armies of the United States, either the Regular or the Volunteer forces, and has been, or may be hereafter, honorably discharged, shall be admitted to become a citizen of the United States, upon his petition, without any previous declara- tion of his intention to become such ; and he shall not be required to prove more than one year's residence within the United States pre- vious to his application to become such citizen ; and the court admit- ting such alien shall, in addition to such proof of residence and good moral character, as now provided by law, be satisfied by competent proof of such person's having been honorably discharged from the service of the United States. Aliens Honorably Discharged From Service in Navy or Marine Corps. (Act of July 26, 1894.) Any alien of the age of twenty-one years and upward who has enlisted or may enlist in the United States Navy or Marine Corps, and has served or may hereafter serve five consecutive years in the United States Navy or one enlistment in the United States Marine Corps, and has been or may hereafter be honorably discharged, shall be admitted to become a citizen of the United States upon his petition, without any previous declaration of his intention to become such ; and the court admitting such alien shall, in addition to proof of good moral character, be satisfied by competent proof of such person's service in and honor- able discharge from the United States Navy or Marine Corps. (28 Stat. L., p. 124.) Aliens Honorably Discharged From Service in Navy, Marine Corps, Revenue-Cutter Service, or Naval Auxiliary Service. (Act of June 30, 1914.) Any alien of the age of twenty-one years and upward who may, under existing law, become a citizen of the United States, who has served or may hereafter serve for one enlistment of not less than four years in the United States Navy or Marine Corps, and who has re- ceived therefrom an honorable discharge or an ordinary discharge, with recommendation for re-enlistment, or who has completed four years in the Revenue-Cutter Service and received therefrom an honorable discharge or an ordinary discharge with recommendation for re-enlist- ment, or who has completed four years of honorable service in the naval auxiliary service, shall be admitted to become a citizen of the United States upon his petition without any previous declaration of his inten- tion to become such, and without proof of residence on shore, and the court admitting such alien shall, in addition to proof of good moral 212 Important Federal Laws character, be satisfied by competent proof from naval or revenue-cutter sources of such service : Provided, That an honorable discharge from the Navy, Marine Corps, Revenue-Cutter Service, or the naval auxiUary service, or an ordinary discharge with recommendation for re-enhst- ment, shall be accepted as proof of good moral character: Provided further. That any court which now has or may hereafter be given juris- diction to naturahze aHens as citizens of the United States may imme- diately naturaHze any alien applying under and furnishing the proof prescribed by the foregoing provisions. CITIZENSHIP. Citizenship by Birth. Sec. 1. All persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States and of the State wherein they reside * * * (Constitution, Art. XIV.) Citizenship of Children Born Abroad of Citizens. (Act of April 14, 1802.) Sec. 1993. All children heretofore born or hereafter born out of the limits and jurisdiction of the United States, whose fathers were or may be at the time of their birth citizens thereof, are declared to be citizens of the United States; but the rights of citizenship shall not descend to children whose fathers never resided in the United States. (As amended February 10, 1855.) Citizenship of Women by Marriage. (Act of February 10, 1855.) Sec. 1994. Any woman who is now or may hereafter be married to a citizen of the United States, and who might herself be lawfully naturalized, shall be deemed a citizen. Children of Persons Naturalized Under Certain Laws to Be Citizens. (Act of April 14, 1802.) Sec. 2172. The children of persons who have been duly natural- ized under any law of the United States, or who, previous to the passing of any law on that subject, by the Government of the United States, may have become citizens of any one of the States, under the laws thereof, being under the age of twenty-one years at the time of the naturalization of their parents, shall, if dwelling in the United States, be considered as citizens thereof ; and the children of persons who now are, or have been, citizens of the United States, shall, though born out of the limits and jurisdiction of the United States, be considered as citi- zens thereof ; but no person heretofore proscribed by any State, or who has been legally convicted of having joined the army of Great Britain during the Revolutionary War, shall be admitted to become a citizen without the consent of the legislature of the State in which such person was proscribed. Naturalization Laws 213 Expatriation of Citizens and Their Protection Abroad. (Act of March 2, 1907.) That the Secretary of State shall be authorized, in his discretion, to issue passports to persons not citizens of the United States as follows: Where any person has made a declaration of intention to become such a citizen as provided by law and has resided in the United States for three years a passport may be issued to him entitling him to the protec- tion of the Government in any foreign country: Provided, That such passport shall not be valid for more than six months and shall not be renewed, and that such passport shall not entitle the holder to the protection of this Government in the country of which he was a citizen prior to making such declaration of intention. Sec. 2. That any American citizen shall be deemed to have ex- patriated himself when he has been naturalized in any foreign state in conformity with its laws, or when he has taken an oath of allegiance to any foreign state. When any naturalized citizen shall have resided for two years in the foreign state from which he came, or for five years in any other foreign state it shall be presumed that he has ceased to be an American citizen, and the place of his general abode shall be deemed his place of residence during said years : Provided, however. That such presump- tion may be overcome on the presentation of satisfactory evidence to a diplomatic or consular ofificer of the United States, under such rules and regulations as the Department of State may prescribe : And pro- vided also, That no American citizen shall be allowed to expatriate him- self when this country is at war. Sec. 3. That any American woman who marries a foreigner shall take the nationality of her husband. At the termination of the marital relation she may resume her American citizenship, if abroad, by regis- tering as an American citizen within one year with a consul of the United States, or by returning to reside in the United States, or, if residing in the United States at the termination of the marital relation, by continuing to reside therein. Sec. 4. That any foreign woman who acquires American citizen- ship by marriage to an American shall be assumed to retain the same after the termination of the marital relation if she continue to reside in the United States, unless she makes formal renunciation thereof be- fore a court having jurisdiction to naturalize aliens, or if she resides abroad she may retain her citizenship by registering as such before a United States consul within one year after the termination of such mar- ital relation. Sec. 5. That a child born without the United States of alien par- ents shall be deemed a citizen of the United States by virtue of the nat- uralization of or resumption of American citizenship by the parent: Provided, That such naturalization or resumption takes place during the minority of such child : And provided further, That the citizenship 214 Important Federal Laws of such minor child shall begin at the time such minor child begins to reside permanently in the United States. Sec. 6. That all children born outside the limits of the United States who are citizens thereof in accordance with the provisions of section nineteen hundred and ninety-three of the Revised Statutes of the United States and who continue to reside outside the United States shall, in order to receive the protection of this Government, be required upon reaching the age of eighteen years to record at an American con- sulate their intention to become residents and remain citizens of the United States and shall be further required to take the oath of alle- giance to the United States upon attaining their majority. Sec. 7. That duplicates of any evidence, registration, or other acts required by this act shall be filed with the Department of State for record. REGULATION OF BUSINESS. TRADE COMMISSION ACT. Act of September 26, 1914. An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes. Commission Created. Sec. 1. That a commission is hereby created and established, to be known as the Federal Trade Commission (hereinafter referred to as the commission), which shall be composed of five commissioners, who shall be appointed by the President, by and with the advice and consent of the Senate. Not more than three of the commissioners shall be members of the same political party. The first commissioners appointed shall con- tinue in office for terms of three, four, five, six, and seven years, respectively, from the date of the taking- efifect of this Act, the term of each to be designated by the President, but their successors shall be appointed for terms of seven years, except that any person chosen to fill a vacancy shall be appointed only for the unexpired term of the commissioner whom he shall succeed. The commission shall choose a chairman from its own membership. No commissioner shall engage in any other business, vocation, or employment. Any com- missioner may be removed by the President for inefficiency, neglect of duty, or malfeasance in office. A vacancy in the commission shall not impair the right of the remaining commissioners to exercise all the powers of the commission. The commission shall have an official seal, which shall be judicially noticed. Salaries and Assistants. Skc. 2. That each commissioner shall receive a salary of $10,000 a year, payable in the same manner as the salaries of the judges of the courts of the United States. The commission shall appoint a secretary, who shall receive a salary of $5,000 a year, payable in like manner, and it shall have authority to employ and fix the compensa- tion of such attorneys, special experts, examiners, clerks, and other employees as it may from time to time find necessary for the proper performance of its duties and as may be from time to time appro- priated for by Congress. With the exception of the secretary, a clerk to each com- missioner, the attorneys, and such special experts and examiners as the commission may from time to time find necessary for the conduct of its work, all employees of the commission shall be a 216 Important Federal Laws part of the classified civil service, and shall enter the service under such rules and regulations as may be prescribed by the commission and by the Civil Service Commission. All of the expenses of the commission, including all necessary expenses for transportation incurred by the commissioners or by their employees under their orders, in making any investigation, or upon official business in any other places than in the city of Wash- ington, shall be allowed and paid on the presentation of itemized vouchers therefor approved by the commission. Until otherwise provided by law, the commission may rent suitable offices for its use. The Auditor for the State and other departments shall receive and examine all accounts of expenditures of the commission. Bureau of Corporations Transferred. Sec. 3. That upon the organization of the commission and election of its chairman, the Bureau of Corporations and the offices of Commissioner and Deputy Commissioner of Corporations shall cease to exist; and all pending investigations and proceedings of the Bureau of Corporations shall be continued by the commission. All clerks and employees of the said bureau shall be transferred to and become clerks and employees of the commission at their present grades and salaries. All records, papers, and property of the said bureau shall become records, papers, and property of the commission, and all unexpended funds and appropriations for the use and maintenance of the said bureau, including any allotment already made to it by the Secretary of Comrherce from the contingent appropriation for the Department of Commerce for the fiscal year nineteen hundred and fifteen, or from the departmental printing fund for the fiscal year nineteen hundred and fifteen, shall become funds and appropriations available to be expended by the commission in the exercise of the powers, authority, and duties conferred on it by this Act. The principal office of the commission shall be in the city of Washington, but it may meet and exercise all its powers at any other place. The commission may, by one or more of its members, or by such examiners as it may designate, prosecute any inquiry necessary to its duties in any part of the United States. Definitions. Sec. 4. That the words defined in this section shall have the following meaning when found in this Act, to-wit : "Commerce" means commerce among the several States or with foreign nations, or in any Territory of the United States or in the District of Columbia, or between any such Territory and another, or between any such Territory and any State or foreign nation, or between the District of Columbia and any State or Territory or foreign nation. Trade Commission Act 217 "Corporation" means any company or association incorporated or unincorjx)rated, which is organized to carry on business for profit and has shares of capital or capital stock, and any company or association, incorporated or unincorporated, without shares of capital or capital stock, except partnerships, w-hich is organized to carry on business for its own profit or that of its members. "Documentary evidence" means all documents, papers, and cor- respondence in existence at and after the passage of this Act. "Acts to regulate commerce" means the Act entitled "An Act to regulate commerce," approved February fourteenth, eighteen hundred and eighty-seven, and all Acts amendatory thereof and supplementary thereto. "Antitrust acts" means the Act entitled "An Act to protect trade and commerce against unlawful restraints and monopolies," approved July second, eighteen hundred and ninety ; also the sections seventy- three to seventy-seven, inclusive, of an Act entitled "An Act to reduce taxation, to provide revenue for the Government, and for other purposes," approved August twenty-seventh, eighteen hundred and ninety-four; and also the Act entitled "An Act to amend sections seventy-three and seventy-six of the Act of August twenty-seventh, eighteen hundred and ninety- four, entitled *An Act to reduce taxation, to provide revenue for the Government, and for other purposes,' " ap- proved February twelfth, nineteen hundred and thirteen. Unfair Methods Illegal. Sec. 5. That unfair methods of competition in commerce are here- by declared unlawful. The commission is hereby empowered and directed to prevent per- sons, partnerships, or corporations, except banks and common carriers subject to the Acts to regulate commerce, from using unfair methods of competition in commerce. Whenever the commission shall have reason to believe that any such person, partnership, or corporation has been or is using any unfair method of competition in commerce, and if it shall appear to the com- mission that a proceeding by it in respect thereof would be to the inter- est of the public, it shall issue and serve upon such person, partnership, or corporation a complaint stating its charges in that respect, and con- taining a notice of a hearing upon a day and at a place therein fixed at least thirty days after the service of said complaint. The person, part- nership, or corporation so complained of shall have the right to appear at the place and time so fixed and show cause why an order should not be entered by the commission requiring such person, partnership, or cor- poration to cease and desist from the violation of the law so charged in said complaint. Any person, partnership, or corporation may make ap- plication, and upon good cause shown may be allowed by the commission, to intervene and appear in said proceeding by counsel or in person. The 218 Important Federal Laws testimony in any such proceeding shall be reduced to writing and filed in the office of the commission. If upon such hearing the commission sh^ll be of the opinion that the method of competition in question is pro- hibited by this Act, it shall make a report in writing in which it shall state its findings as to the facts, and shall issue and cause to be served on such person, partnership, or corporation an order requiring such per- son, partnership, or corporation to cease and desist from using such method of competition. Until a transcript of the record in such hearing shall have been filed in a circuit court of appeals of the United States, as hereinafter provided, the commission may at any time, upon such notice and in such manner as it shall deem proper, modify or set aside, in whole or in part, any report or any order made or issued by it under this section. If such person, partnership, or corporation fails or neglects to obey such order of the commission while the same is in effect, the commis- sion may apply to the circuit court of appeals of the United States, within any circuit where the method of competition in question was used or where such person, partnership, or corporation resides or carries on business, for the enforcement of its order, and shall certify and file with its application a transcript of the entire record in the proceeding, including all the testimony taken and the report and order of the com- mission. Upon such filing of the application and transcript the court shall cause notice thereof to be served upon such person, partnership, or corporation and thereupon shall have jurisdiction of the proceeding and of the question determined therein, and shall have power to make and enter upon the pleadings, testimony, and proceedings set forth in such transcript a decree alifirming. modifying, or setting aside the order of the commission. The findings of the commission as to the facts, if supported by testimony, shall be conclusive. If either party shall apply to the court for leave to adduce additional evidence, and shall show to the satis- faction of the court that such additional evidence is material and that there were reasonable grounds for the failure to adduce such evidence in the proceeding before the commission, the court may order such addi- tional evidence to be taken before the commission and to be adduced upon the hearing in such manner and upon such terms and conditions as to the court may seem proper. The commission may modify its findings as to the facts, or make new findings, by reason of the additional evi- dence so taken, and it shall file such modified or new findings, which, if supported by testimony, shall be conclusive, and its recommendation, if any, for the modification or setting aside of its original order, with the return of such additional evidence. The judgment and decree of the court shall be final, except that the same shall be subject to review by the Supreme Court upon certiorari as provided in section two hundred and forty of the Judicial Code. Any party required by such order of the commission to cease and desist from using such method of competition may obtain a review of such order in said circuit court of appeals by filing in the court a written Trade Commission Act 219 petition praying that the order of the commission be set aside. A copy of such petition shall be forthwith served upon the commission, and thereupon the commission forthwith shall certify and file in the court a transcript of the record as hereinbefore provided. Upon the filing of the transcript the court shall have the same jurisdiction to affirm, set aside, or modify the order of the commission as in the case of an applica- tion by the commission for the enforcement of its order, and the findings of the commission as to the facts, if supported by testimony, shall in like manner be conclusive. The jurisdiction of the circuit court of appeals of the United States to enforce, set aside, or modify orders of the commission shall be ex- clusive. Such proceedings in the circuit court of appeals shall be given precedence over other cases pending therein, and shall be in every way expedited. No order of the commission or judgment of the court to enforce the same shall in any wise relieve or absolve any person, part- nership, or corporation from any liability under the antitrust acts. Complaints, orders, and other processes of the commission under this section may be served by anyone duly authorized by the commission, either (a) 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 (b) by leaving a copy thereof at the principal office or place of busi- ness of such person, partnership, or corporation ; or (c) by registering and mailing a copy thereof addressed to such person, partnership, or corporation at his or its 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 service shall be proof of the same, and the return post-office receipt for said complaint, order, or other process registered and mailed as aforesaid shall be proof of the service of the same. Powers of Commission. Sec. 6. That the commission shall also have power — (a) To gather and compile information concerning, and to investi- gate 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) 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 writ- ing to specific questions, furnishing to the commission such information 220 Important Federal Laws as it may require as to the organization, business, conduct, practices, man- agement, and relation to other corporations, partnerships, and individuals of the respective corporations filing such reports or answers in writing. Such reports and ansv/ers 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) Whenever a final decree has been entered against any defend- ant 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 dis- cretion of the commission. (d) Upon the direction of the President or either House of Con- gress to investigate and report the facts relating to any alleged violations of the antitrust Acts by any corporation. (e) Upon the application of the Attorney-General to investigate and make recommendations for the readjustment of the business of any corporation alleged to be violating the antitrust Acts in order that the corporation may thereafter maintain its organization, management, and conduct of business in accordance with law. (f ) To make public from time to time such portions of the informa- tion obtained by it hereunder, except trade secrets and names of cus- tomers, as it shall deem expedient in the public interest ; and to make annual and special reports to the Congress and to submit therewith recom- mendations 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) From time to time to classify corporations and to make rules and regulations for the purpose of carrying out the provisions of this Act. (h) To investigate, from time to time, trade conditions in and with foreign countries where associations, combinations, or practices of manu- facturers, merchants, or traders, or other conditions, may afifect the for- eign trade of the United States, and to report to Congress thereon, with such recommendations as it deems advisable. Commission as Master in Chancery. Sec. 7. That in any suit in equity brought by or under the direc- tion of the Attorney-General as provided in the antitrust Acts, the court may, upon the conclusion of the testimony therein, if it shall be then of opinion that the complainant is entitled to relief, refer said suit to> the commission, as a master in chancery, to ascertain and report an Trade Commission Act 221 appropriate form of decree therein. The commission shall proceed upon such notice to the parties and under such rules of procedure as the court may prescribe, and upon the coming in of such report such exceptions may be filed and such proceedings had in relation thereto as upon the report of a master in other equity causes, but the court may adopt or reject such report, in whole or in part, and enter such decree as the nature of the case may in its judgment require. Departments to Furnish Information — Testimony. Sec. 8. That the several departments and bureaus of the Govern- ment when directed by the President shall furnish the commission, upon its request, all records, papers, and information in their possession relat- ing to any corporation subject to any of the provisions of this Act, and shall detail from time to time such officials and employees to the com- mission as he may direct. Sec. 9. That for the purposes of this Act 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 against; and the commission shall 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 com- mission may administer oaths and affirmations, examine witnesses, and receive evidence. Such attendance of witnesses, and the production of such docu- mentary 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 juris- diction of which such inquiry is carried on may, in case of contumacy or refusal to obey a subpoena issued to any corporation or other per- son, 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 con- tempt 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 per- son or corporation to comply with the provisions of this Act 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 this Act at any stage of 222 Important Federal Laws 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 documentary evidence in the same manner as witnesses may be compelled to appear and testify and produce documentary evidence before the commission as hereinbefore provided. Witnesses summoned 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. Xo 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 con- cerning which he may testify, or produce evidence, documentary or other- wise, 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 in so testifying. Penalties. Sec. 10. That any person who shall neglect or refuse to attend and testify, or to answer any lawful inquir\\ or to produce documentary evi- dence, if in his power to do so, in obedience to the subpoena or lawful requirement of the commission, 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 imprison- ment for not more than one year, or by both such fine and imprisonment. Any 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 this Act, 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 this Act, or 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 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 will- fully 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 Antitrust Laws 223 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 this Act to file any annual or special report shall fail so to do within the time fixed by the commission for fil- ing 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 district 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 appropria- tion 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. Antitrust Acts Not Affected. Sec. 11. Nothing contained in this Act shall be construed to pre- vent or interfere with the enforcement of the provisions of the antitrust Acts or the Acts to regulate commerce, nor shall anything contained in the Act be construed to alter, modify, or repeal the said antitrust Acts or the Acts to regulate commerce or any part or parts thereof. THE FEDERAL ANTITRUST LAWS. THE SHERMAN ACT. Act of July 2, 1S90. An Act to protect trade and commerce against unlawful restraint and monop- olies. Restraint of Trade Illegal — States. Sec. 1. Every contract, combination in the form of trust or other- wise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is hereby declared to be illegal. Every person who shall make any such contract or engage in any such combi- nation or conspiracy, shall be deemed guilty of a misdemeanor, and, on conviction thereof, shall be punished by fine not exceeding five thousand dollars, or by imprisonment not exceeding one year, or by both said punishments, in the discretion of the court. 224 Important Federal Laws Penalty. Sec. 2. Every person who shall monopolize, or attempt to monop- olize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a misdemeanor, and, on conviction thereof, shall be punished by fine not exceeding five thou- sand dollars or by imprisonment not exceeding one year, or by both said punishments, in the discretion of the court. Restraint of Trade Illegal — Territories. Sec. 3. Every contract, combination in form of trust or otherwise, or conspiracy, in restraint of trade or commerce in any Territory of the United States or of the District of Columbia, or in restraint of trade or commerce between any such Territory and another, or between any such Territory or Territories and any State or States or the District of Columbia, or with foreign nations, or between the District of Colum- bia and any State or States or foreign nations, is hereby declared illegal. Every person who shall make any such contract or engage in any such combination or conspiracy, shall be deemed guilty of a misde- meanor, and, on conviction thereof, shall be punished by fine not exceed- ing five thousand dollars, or by imprisonment not exceeding one year, or by both said punishments, in the discretion of the court. Jurisdiction of Courts. Sec. 4. The several circuit courts of the United States are hereby invested with jurisdiction to prevent and restrain violations of this act; and it shall be the duty of the several district attorneys of the United States, in their respective districts, under the direction of the Attorney General, to institute proceedings in equity to prevent and restrain such violations. Such proceedings may be by way of petition setting forth the case and praying that such violation shall be enjoined or otherwise prohibited. When the parties complained of shall have been duly noti- fied of such petition the court shall proceed, as soon as may be. to the hearing and determination of the case ; and pending such petition and before final decree, the court may at any time make such temporary restraining order or prohibition as shall be deemed just in the premises. Same. Sec. 5. Whenever it shall appear to the court before which any proceeding under section four of this act may be pending, that the ends of justice require that other parties should be brought before the court, the court may cause them to be summoned, whether they reside in the district in which the court is held or not ; and subpoenas to that end may be served in any district by the marshal thereof. Property Forfeited. Sec. 6. Any property owned under any contract or by any combi- nation, or pursuant to any conspiracy (and being the subject thereof) Antitrust Laws 225 mentioned in section one of this act, and being in the course of trans- portation from one State to another, or to a foreign country, shall be forfeited to the United States, and may be seized and condemned by like proceedings as those provided by law for the forfeiture, seizure, and condemnation of property imported into the United States contrary to law. Damages on Account of Restraint of Trade. Sec. 7. Any person who shall be injured in his business or prop- erty by any other person or corporation by reason of anything forbidden or declared to be unlawful by this act, may sue therefor in any circuit court of the United States in the district in which the defendant resides or is found, without respect to the amount in controversy, and shall recover threefold the damages by him sustained, and the costs of suit, including a reasonable attorney's fee. Definitions. Sec. 8. That the word "person," or "persons," wherever used in this act shall be deemed to include corporations and associations exist- ing under or authorized by the laws of either the United States, the laws of any of the Territories, the laws of any State, or the laws of any foreign country. THE CLAYTON ACT. Act of October 15, 1914. An Act to supplement existing laws against unlawful restraints and monopolies, and for other purposes. Scope of Antitrust Acts Definitions. Sec. I. That "antitrust laws," as used herein, includes the Act entitled "An Act to protect trade and commerce against unlawful restraints and monopolies," approved July second, eighteen hundred and ninety ; sections seventy-three to seventy-seven, inclusive, of an Act entitled "An Act to reduce taxation, to provide revenue for the Govern- ment, and for other purposes," of August twenty-seventh, eighteen hun- dred and ninety-four; an Act entitled "An Act to amend sections sev- enty-three and seventy-six of the Act of August twenty-seventh, eighteen hundred and ninety-four, entitled 'An Act to reduce taxation, to provide revenue for the Government, and for other purposes,' " approved Feb- ruary twelfth, nineteen hundred and thirteen; and also this Act. "Commerce," as used herein, means trade or commerce among the several States and with foreign nations, or between the District of Columbia or any Territory of the United States and any State, Terri- tory, or foreign nation, or between any insular possessions or other places under the jurisdiction of the United States, or between any such possession or place and any State or Territory of the United States or the District of Columbia or any foreign nation, or within the District (15) 226 Important Federal Laws of Columbia or any Territory or any insular possession or other place under the jurisdiction of the United States: Provided, That nothing in this Act contained shall apply to the Philippine Islands. The word "person" or "persons" wherever used in this Act shall be deemed to include corporations and associations existing under or authorized by the laws of either the United States, the laws of any of the Territories, the laws of any State, or the laws of any foreign country. Discriminations. Sec. 2. That it shall be unlawful for any person engaged in com- merce, in the course of such commerce, either directly or indirectly to discriminate in price between different purchasers of commodities, which commodities are sold for use, consumption, or resale within the United States or any Territory thereof or the District of Columbia or any insular possession or other place under the jurisdiction of the United States, where the effect of such discrimination may be to substantially lessen competition or tend to create a monopoly in any line of com- merce: Provided, That nothing herein contained shall prevent discrimi- nation in price between purchasers of commodities on account of dift'er- ences in the grade, quality, or quantity of the commodity sold, or that makes only due allowance for difference in the cost of selling or trans- portation, or discrimination in price in the same or different communities made in good faith to meet competition: And provided further, That nothing herein contained shall prevent persons engaged in selling goods, wares, or merchandise in commerce from selecting their own customers in bona fide transactions and not in restraint of trade. Unlawful to Compel Purchaser Not to Handle Competitor's Goods. Sec. 3. That it shall be unlawful for any person engaged in com- merce, in the course of such commerce, to lease or make a sale or con- tract for sale of goods, wares, merchandise, machinery, supplies or other commodities, whether patented or unpatented, for use. consumption or resale within the United States or any Territory thereof or the District of Columbia or any insular possession or other place under the jurisdic- tion of the United States, or fix a price charged therefor, or discount from, or rebate upon, such price, on the condition, agreement or under- standing that the lessee or purchaser thereof shall not use or deal in the goods, wares, merchandise, machinery, supplies or other commodities of a competitor or competitors of the lessor or seller, where the effect of such lease, sale, or contract for sale or such condition, agreement or understanding may be to substantially lessen competition or tend to create a monopoly in any line of commerce. Damages. Sec. 4. That any person who shall be injured in his business or property by reason of anything forbidden in the antitrust laws may sue therefor in any district court of the United States in the district in which the defendant resides or is found or has an agent, without respect Antitrust Laws 227 to the amount in controversy, and shall recover threefold the damages by him sustained, and the cost of suit, including a reasonable attorney's fee. Final Judgment Prima Facie Evidence in Other Suits. Sec. 5. That a final judgment or decree hereafter rendered in any criminal prosecution or in any suit or proceeding in equity brought by or on behalf of the United States under the antitrust laws to the effect that a defendant has violated said laws shall be prima facie evidence against such defendant in any suit or proceeding brought by any other party against such defendant under said laws as to all matters respecting which said judgment or decree would be an estoppel as between the parties thereto: Provided, This section shall not apply to consent judg- ments or decrees entered before any testimnoy has been taken: Pro- vided further. This section shall not apply to consent judgments or decrees rendered in criminal proceedings or suits in equity, now pend- ing, in which the taking of testimony has been commenced but has not been concluded, provided such judgments or decrees are rendered before any further testimony is taken. Whenever any suit or proceeding in equity or criminal prosecution is instituted by the United States to prevent, restrain or punish viola- tions of any of the antitrust laws, the running of the statute of limita- tions in respect of each and every private right of action arising under said laws and based in whole or in part on any matter complained of in said suit or proceeding shall be suspended during the pendency thereof. Human Labor Not a Commodity. Sec. 6. That the labor of a human being is not a commodity or article of commerce. Nothing contained in the antitrust laws shall be construed to forbid the existence and operation of labor, agricultural, or horticultural organizations, instituted for the purposes of mutual help, and not having capital stock or conducted for profit, or to forbid or restrain individual members of such organizations from lawfully carry- ing out the legitimate objects thereof; nor shall such organizations, or the members thereof, be held or construed to be illegal combinations or conspiracy in restraint of trade, under the antitrust laws. Monopoly Unlawful. Sec. 7. That no corporation engaged in commerce shall acquire, directly or indirectly, the whole or any part of the stock or other share capital of another corporation engaged also in commerce, where the effect of such acquisition may be to substantially lessen competition between the corporation whose stock is so acquired and the corporation making the acquisition, or to restrain such commerce in any section or community, or tend to create a monopoly of any line of commerce. No corporation shall acquire, directly or indirectly, the whole or any part of the stock or other share capital of two or more corporations engaged in commerce where the effect of such acquisition, or the use 228 Important Federal Laws of such stock by the voting or granting of proxies or otherwise, may be to substantially lessen competition between such corporations, or any of them, whose stock or other share capital is so acquired, or to restrain such commerce in any section or community, or tend to create a monop- oly of any line of commerce. This section shall not apply to corporations purchasing such stock solely for investment and not using the same by voting or otherwise to bring about, or in attempting to bring about, the substantial lessening of competition. Nor shall anything contained in this section prevent a corporation engaged in commerce from causing the formation of sub- sidiary corporations for the actual carrying on of their immediate lawful business, or the natural and legitimate branches or extensions thereof, or from owning and holding all or a part of the stock of such subsidiary corporations, when the effect of such formation is not to substantially lessen competition. Nor shall anything herein contained be construed to prohibit any common carrier subject to the laws to regulate commerce from aiding in the construction of branches or short lines so located as to become feed- ers to the main line of the company so aiding in such construction or from acquiring or owning all or any part of the stock of such branch lines, nor to prevent any such common carrier from acquiring and own- ing all or any part of the stock of a branch or short line constructed by an independent company where there is no substantial competition be- tween the company owning the branch line so constructed and the com- pany owning the main line acquiring the property or an interest therein, nor to prevent such common carrier from extending any of its lines through the medium of the acquisition of stock or otherwise of any other such common carrier where there is no substantial competition between the company extending its lines and the company whose stock, property, or an interest therein is so acquired. Nothing contained in this section shall be held to affect or impair any right heretofore legally acquired: Provided, That nothing in this section shall be held or construed to authorize or make lawful anything heretofore prohibited or made illegal by the antitrust laws, nor to exempt any person from the penal provisions thereof or the civil remedies therein provided. Interlocking Directorates Prohibited in Certain Cases. Sec. 8. That from and after two years from the date of the ap- proval of this Act no person shall at the same time be a director or other officer or employee of more than one bank, banking association or trust company, organized or operating under the laws of the United States, either of which has deposits, capital, surplus, and undivided profits aggregating more than $5,000,000; and no private banker or person who is a director in any bank or trust company, organized and operating under the laws of a State, having deposits, capital, surplus, Antitrust Laws 229 and undivided profits aggregating more than $5,000,000, shall be eligible to be a director in any bank or banking association organized or operat- ing under the laws of the United States. The eligibility of a director, officer, or employee under the foregoing provisions shall be determined by the average amount of deposits, capital, surplus and undivided profits as shown in the official statements of such bank, banking association, or trust company filed as provided by law during the fiscal year next preceding the date set for the annual election of directors, and when a director, officer, or employee has been elected or selected in accordance with the provisions of this Act it shall be lawful for him to continue as such for one year thereafter under said election or employment. No bank, banking association or trust company, organized or operat- ing under the laws of the United States, in any city or incorporated town or village of more than two hundred thousand inhabitants, as shown by the last preceding decennial census of the United States, shall have as a director or other officer or employee, any private banker or any director or other officer or employee of any other bank, bank- ing association or trust company located in the same place : Provided, That nothing in this section shall apply to mutual savings banks not hav- ing a capital stock represented by shares : Provided further. That a director or other officer or employee of such bank, banking association, or trust company may be a director or other officer or employee of not more than one other bank or trust company organized under the laws of the United States or any State where the entire capital stock of one is owned by stockholders in the other: And provided further, That nothing contained in this section shall forbid a director of class A of a Federal reserve bank, as defined in the Federal Reserve Act from being, an officer or director or both an officer and director in one member bank : And provided further. That nothing in this Act shall prohibit any officer, director, or employee of any member bank or class A director of a Federal Reserve Bank, who shall first procure the consent of the Federal Reserve Board, which board is hereby authorized, at its discre- tion, to grant, withhold, or revoke such consent, from being an officer, director, or employee of not more than two other banks, banking asssocia- tions, or trust companies, whether organized under the laws of the United States or any State, if such other bank, banking association, or trust company is not in substantial competition with such member bank. The consent of the Federal Reserve Board may be procured before the person applying therefor has been elected as a class A director of a Federal reserve bank or as a director of any member bank. (As amended May 15, 1916.) That from and after two years from the date of the approval of this Act no person at the same time shall be a director in any two or more corporations, any one of which has capital, surplus, and undivided profits aggregating more than $1,000,000, engaged in whole or in part in commerce, other than banks, banking associations, trust companies and 230 Important Federal Laws common carriers subject to the Act to regulate commerce, approved February fourth, eighteen hundred and eighty-seven, if such corpora- tions are or shall have been theretofore, by virtue of their business and location of operation, competitors, so that the elimination of competition by agreement between them would constitute a violation of any of the provisions of any of the antitrust laws. The eligibility of a director under the foregoing provision shall be determined by the aggregate amount of the capital, surplus, and undivided profits, exclusive of divi- dends declared but not paid to stockholders, at the end of the fiscal year of said corporation next preceding the election of directors, and when a director has been elected in accordance with the provisions of this Act it shall be lawful for him to continue as such for one year thereafter. When any person elected or chosen as a director or officer or selected as an employee of any bank or other corporation subject to the provi- sions of this Act is eligible at the time of his election or selection to act for such bank or other corporation in such capacity his eligibility to act in such capacity shall not be affected and he shall not become or be deemed amenable to any of the provisions hereof by reason of any change in the affairs of such bank or other corporation from whatsoever cause, whether specifically excepted by any of the provisions hereof or not, until the expiration of one year from the date of his election or employment. Penalty for Embezzlement. Sec. 9. Every president, director, officer or manager of any firm, association or corporation engaged in commerce as a common carrier, who embezzles, steals, abstracts or willfully misapplies, or willfully permits to be misapplied, any of the moneys, funds, credits, securities, property or assets of such firm, association or corporation, arising or accruing from, or used in, such commerce, in whole or in part, or will- fully or knowingly converts the same to his own use or to the use of another, shall be deemed guilty of a felony and upon conviction shall be fined not less than $500 or confined in the penitentiary not less than one year nor more than ten years, or both, in the discretion of the court. Prosecutions hereunder may be in the district court of the United States for the district wherein the offense may have been committed. That nothing in this section shall be held to take away or impair the jurisdiction of the courts of the several States under the laws thereof ; and a judgment of conviction or acquittal on the merits under the laws of any State shall be a bar to any prosecution hereunder for the same act or acts. Carriers — Regulation of Purchases. Sec. 10. That after two years from the approval of this Act no common carrier engaged in commerce shall have any dealings in secur- ities, supplies or other articles of commerce, or shall make or have any contracts for construction or maintenance of any kind, to the amount Antitrust Laws 231 of more than $50,000, in the aggregate, in any one year, with another corporation, firm, partnership or association when the said common car- rier shall have upon its board of directors or as its president, manager or as its purchasing or selling officer, or agent in the particular trans- action, any person who is at the same time a director, manager, or purchasing or selling officer of, or who has any substantial interest in, such other corporation, firm, partnership or association, unless and except such purchases shall be made from, or such dealings shall be with, the bidder whose bid is the most favorable to such common car- rier, to be ascertained by competitive bidding under regulations to be prescribed by rule or otherwise by the Interstate Commerce Commission. No bid shall be received unless the name and address of the bidder or the names and addresses of the officers, directors and general managers thereof, if the bidder be a corporation, or of the members, if it be a partnership or firm, be given with the bid. Any person who shall, directly or indirectly, do or attempt to do anything to prevent anyone from bidding or shall do any act to prevent free and fair competition among the bidders or those desiring to bid shall be punished as prescribed in this section in the case of an officer or director. Every such common carrier having any such transactions or making any such purchases shall within thirty days after making the same file v/ith the Interstate Commerce Commission a full and detailed statement of the transaction showing the manner of the competitive bidding, who were the bidders, and the names and addresses of the directors and officers of the corporations and the members of the firm or partnership bidding ; and whenever the said commission shall, after investigation or hearing, have reason to believe that the law has been violated in and about the said purchases or transactions it shall transmit all papers and documents and its own views or findings regarding the transaction to the Attorney General. If any common carrier shall violate this section it shall be fined not exceeding $25,000; and every such director, agent, manager or officer thereof who shall have knowingly voted for or directed the act consti- tuting such violation or who shall have aided or abetted in such viola- tion shall be deemed guilty of a misdemeanor and shall be fined not exceeding $5,000, or confined in jail not exceeding one year, or both, in the discretion of the court. (This section takes effect January 8, 1918, by resolution of Congress March 4, 1917.) Enforcement by Interstate Commerce Commission and the Federal Trade Commission. Sec. 11. That authority to enforce compliance with sections two, three, seven and eight of this Act by the persons respectively subject thereto is hereby vested : in the Interstate Commerce Commission where applicable to common carriers, in the Federal Reserve Board where 232 Important Federal Laws applicable to banks, banking associations and trust companies, and in the Federal Trade Commission where applicable to all other character of commerce, to be exercised as follows : Whenever the commission or board vested with jurisdiction thereof shall have reason to believe that any person is violating or has violated any of the provisions of sections two, three, seven and eight of this Act, it shall issue and serve upon such person a complaint stating its charges in that respect, and containing a notice of a hearing upon a day and at a place therein fixed at least thirty days after the service of said complaint. The person so complained of shall have the right to appear at the place and time so fixed and show cause why an order should not be entered by the commission or board requiring such person to cease and desist from the violation of the law so charged in said complaint. Any person may make application, and upon good cause shown may be allowed by the commission or board, to intervene and appear in said proceeding by coun- sel or in person. The testimony in any such proceeding shall be reduced to writing and filed in the office of the commission or board. If upon such hearing the commission or board, as the case may be, shall be ^f the opinion that any of the provisions of said sections have been or are being violated, it shall make a report in writing in which it shall state its findings as to the facts, and shall issue and cause to be served on such person an order requiring such person to cease and desist from such violations, and divest itself of the stock held or rid itself of the directors chosen contrary to the provisions of sections seven and eight of this Act, if any there be, in the manner and within the time fixed by said order. Until a transcript of the record in such hearing shall have been filed in a circuit court of appeals of the United States, as hereinafter provided, the commission or board may at any time, upon such notice and in such manner as it shall deem proper, modify or set aside, in whole or in part, any report or any order made or issued by it under this section. If such person fails or neglects to obey such order of the commis- sion or board while the same is in effect, the commission or board may apply to the circuit court of appeals of the United States, within any circuit where the violation complained of was or is being committed or where such person resides or carries on business, for the enforcement of its order, and shall certify and file with its application a transcript of the entire record in the proceeding, including all the testimony taken and the report and order of the commission or board. Upon such filing of the application and transcript the court shall cause notice thereof to be served upon such person and thereupon shall have jurisdiction of the proceeding and of the question determined therein, and shall have power to make and enter upon the pleadings, testimony, and proceedings set forth in such transcript a decree affirming, modifying, or setting aside the order of the commission or board. The findings of the commission or board as to the facts, if supported by testimony, shall be conclusive. If either party shall apply to the court for leave to adduce additional Antitrust Laws 233 evidence, and shall show to the satisfaction of the court that such addi- tional evidence is material and that there were reasonable grounds for the failure to adduce such evidence in the proceeding before the com- mission or board, the court may order such additional evidence to be taken before the commission or board and to be adduced upon the hear- ing in such manner and upon such terms and conditions as to the court may seem proper. The commission or board may modify its findings as to the facts, or make new findings, by reason of the additional evidence so taken, and it shall file such modified or new findings, which, if sup- ported by testimony, shall be conclusive, and its recommendation, if any, for the modification or setting aside of its original order, with the return of such additional evidence. The judgment and decree of the court shall be final, except that the same shall be subject to review by the Supreme Court upon certiorari as provided in section two hundred and forty of the Judicial Code. Any party required by such order of the commission or board to cease and desist from a violation charged may obtain a review of such order in said circuit court of appeals by filing in the court a written petition praying that the order of the commission or board be set aside. A copy of such petition shall be forthwith served upon the commission or board, and thereupon the commission or board forthwith shall certify and file in the court a transcript of the record as hereinbefore provided. Upon the filing of the transcript the court shall have the same jurisdiction to affirm, set aside, or modify the order of the commission or board as in the case of an application by the. commission or board for the enforcement of its order, and the findings of the commission or board as to the facts, if supported by testimony, shall in like manner be con- clusive. The jurisdiction of the circuit court of appeals of the United States to enforce, set aside, or modify orders of the commission or board shall be exclusive. Such proceedings in the circuit court of appeals shall be given prec- edence over other cases pending therein, and shall be in every way expedited. No order of the commission or board or the judgment of the court to enforce the same shall in any wise relieve or absolve any person from any liability under the antitrust Acts. Complaints, orders, and other processes of the commission or board under this section may be served by anyone duly authorized by the com- mission or board, either (a) 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 cor- poration to be served; or (b) by leaving a copy thereof at the principal office or place of business of such person ; or (c) by registering and mail- ing a copy thereof addressed to such person at his 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 234 Important Federal Laws service shall be proof of the same, and the return post-office receipt for said complaint, order, or other process registered and mailed as aforesaid shall be proof of the service of the same. Jurisdiction. Sec. 12. That any suit, action, or proceeding under the antitrust laws against a corporation may be brought not only in the judicial district whereof it is an inhabitant, but also in any district wherein it may be found or transacts business ; and all process in such cases may be served in the district of which it is an inhabitant, or wherever it may be found. Subpoenas. Sec. 13. That in any suit, action, or proceeding brought by or on behalf of the United States subpoenas for witnesses who are required to attend a court of the United States in any judicial district in any case, civil or criminal, arising under the antitrust laws may run into any other district : Provided, That in civil cases no writ of subpoena shall issue for witnesses living out of the district in which the court is held at a greater distance than one hundred miles from the place of holding the same without the permission of the trial court being first had upon proper application and cause shown. Directors Liable to Penalty. Sec. 14. That whenever a corporation shall violate any of the penal provisions of the antitrust laws, such violation shall be deemed to be also that of the individual directors, officers, or agents of such corpo- ration who shall have authorized, ordered, or done any of the acts con- stituting in whole or in part such violation, and such violation shall be deemed a misdemeanor, and upon conviction therefor of any such director, officer, or agent he shall be punished by a fine of not exceeding $5,000 or by imprisonment for not exceeding one year, or by both, in the discretion of the court. District Courts to Restrain Violations. Sec. 15. That the several district courts of the United States are hereby invested with jurisdiction to prevent and restrain violations of this Act, and it shall be the duty of the several district attorneys of the L'nited States, in their respective districts, under the direction of the Attorney General, to institute proceedings in equity to prevent and re- strain such violations. Such proceedings may be by way of petition set- ting forth the case and praying that such violation shall be enjoined or otherwise prohibited. When the parties complained of shall have been duly notified of such petition, the court shall proceed, as soon as may be, to the hearing and determination of the case ; and pending such petition, and before final decree, the court may at any time make such temporary restraining order or prohibition as shall be deemed just in the premises. Whenever it shall appear to the court before which any such proceeding may be pending that the ends of justice require that other parties should Antitrust Laws 235 be brought before the court, the court may cause them to be summoned whether they reside in the district in which the court is held or not, and subpoenas to that end may be served in any district by the marshal thereof. Injunctions. Sec. 16. That any person, firm, corporation, or association shall be entitled to sue for and have injunctive relief, in any court of the United States having jurisdiction over the parties, against threatened loss or damage by a violation of the antitrust laws, including sections two, three, seven and eight of this Act, when and under the same conditions and principles as injunctive relief against threatened conduct that will cause loss or damage is granted by courts of equity, under the rules governing such proceedings, and upon the execution of proper bond against damages for an injunction improvidently granted and a showing that the danger of irreparable loss or damage is immediate, a preliminary injunction may issue: Provided, That nothing herein contained shall be construed to entitle any person, firm, corporation, or association, except the United States, to bring suit in equity for injunctive relief against any common carrier subject to the provisions of the Act to regu- late commerce, approved February fourth, eighteen hundred and eighty- seven, in respect of any matter subject to the regulations, supervision, or other jurisdiction of the Interstate Commerce Commission. Preliminary Injunction Not to be Granted Without Notice. Sec. 17. That no preliminary injunction shall be issued without notice to the opposite party. No temporary restraining order shall be granted without notice to the opposite party unless it shall clearly appear from specific facts shown by affidavit or by the verified bill that immediate and irreparable injury, loss, or damage will result to the applicant before notice can be served and a hearing had thereon. Every such temporary restraining order shall be indorsed with the date and hour of issuance, shall be forthwith filed in the clerk's office and entered of record, shall define the injury and state why it is irreparable and why the order was granted without notice, and shall by its terms expire within such time after entry, not so exceed ten days, as the court or judge may fix, unless within the time so fixed the order is extended for a like period for good cause shown, and the reasons for such extension shall be entered of record. In case a temporary restraining order shall be granted without notice in the contingency specified, the matter of the issuance of a preliminary injunc- tion shall be set down for a hearing at the earliest possible time and shall take precedence of all matters except older matters of the same character; and when the same comes up for hearing the party obtaining the temporary restraining order shall proceed with the application for a preliminary injunction, and if he does not do so the court shall dissolve the temporary restraining order. Upon two days' notice to the party obtaining such temporary restraining order the opposite party may ap- 236 Important Federal Laws pear and move the dissolution or modification of the order, and in that event the court or judge shall proceed to hear and determine the motion as expeditiously as the ends of justice may require. Section two hundred and sixty-three of an Act entitled "An Act to codify, revise, and amend the laws relating to the judiciary," approved March third, nineteen hundred and eleven, is hereby repealed. Nothing in this section contained shall be deemed to alter, repeal, or amend section two hundred and sixty-six of an Act entitled "An Act to codify, revise, and amend the laws relating to the judiciary," approved March third, nineteen hundred and eleven. Bond Required. Sec. 18. That, except as otherwise provided in section 16 of this Act, no restraining order or interlocutory order of injunction shall issue, except upon the giving of security by the applicant in such sum as the court or judge may deem proper, conditioned upon the payment of such costs and damages as may be incurred or suffered by any party who may be found to have been wrongfully enjoined or restrained thereby. Injunction Specific. Sec. 19. That every order of injunction or restraining order shall set forth the reasons for the issuance of the same, shall be specific in terms, and shall describe in reasonable detail, and not by reference to the bill of complaint or other document, the act or acts sought to be restrained, and shall be binding only upon the parties to the suit, their cfificers, agents, servants, employees, and attorneys, or those in active concert or participating with them, and who shall, by personal service or otherwise, have received actual notice of the same. Injunctions in Labor Disputes. Sec. 20. That no restraining order or injunction shall be granted by any court of the United States, or a judge or the judges thereof, in any case between an employer and employees, or between employers and employees, or between employees, or between persons employed and per- sons seeking employment, involving, or growing out of, a dispute con- cerning terms or conditions of employment, unless necessary to prevent irreparable injury to property, or to a property right, of the party making the application, for which injury there is no adequate remedy at law, and such property or property right must be described with particularity in the application, which must be in writing and sworn to by the appli- cant or by his agent or attorney. And no such restraining order or injunction shall prohibit any per- son or persons, whether singly or in concert, from terminating any rela- tion of employment, or from ceasing to perform any work or labor, or from recommending, advising, or persuading others by peaceful means so to do ; or from attending at any place where any such person or persons may lawfully be, for the purpose of peacefully obtaining or com- municating information, or from peacefully persuading any person to Antitrust Laws 237 work or to abstain from working; or from ceasing to patronize or to employ any party to such dispute, or from recommending, advising, or persuading others by peaceful and lawful means so to do ; or from paying or giving to, or withholding from, any person engaged in such dispute, any strike benefits or other moneys or things of value; or from peaceably assembling in a lawful manner, and for lawful purposes; or from doing any act or thing which might lawfully be done in the absence of such dispute by any party thereto ; nor shall any of the acts specified in this paragraph be considered or held to be violations of any law of the United States. Penalty. Sec. 21. That any person who shall willfully disobey any lawful writ, process, order, rule, decree, or command of any district court of the United States or any court of the District of Columbia by doing any act or thing therein, or thereby forbidden to be done by him, if the act or thing so done by him be of such character as to constitute also a criminal offense under any statute of the United States, or under the laws of any State in which the act was committed, shall be proceeded against for his said contempt as hereinafter provided. Contempt Proceedings. Sec. 22. That whenever it shall be made to appear to any district court or judge thereof, or to any judge therein sitting, by the return of a proper officer on lawful process, or upon the affidavit of some credible person, or by information filed by any district attorney, that there is reasonable ground to believe that any person has been guilty of such contempt, the court or judge thereof, or any judge therein sitting, may issue a rule requiring the said person so charged to show cause upon a day certain why he should not be punished therefor, which rule, together with a copy of the affidavit or information, shall be served upon the per- son charged, with sufficient promptness to enable him to prepare for and make return to the order at the time fixed therein. If upon or by such return, in the judgment of the court, the alleged contempt be not suffi- ciently purged, a trial shall be directed at a time and place fixed by the court : Provided, however, That if the accused, being a natural person, fail or refuse to make return to the rule to show cause, an attachment may issue against his person to compel an answer, and in case of his continued failure or refusal, or if for any reason it be impracticable to dispose of the matter on the return day, he may be required to give reasonable bail for his attendance at the trial and his submission to the final judgment of the court. Where the accused is a body corporate, an attachment for the sequestration of its property may be issued upon like refusal or failure to answer. In all cases within the purview of this Act such trial may be by the court, or, upon demand of the accused, by a jury; in which latter event the court may impanel a jury from the jurors then in attendance, 238 Important Federal Laws or the court or the judge thereof in chambers may cause a sufficient number of jurors to be selected and summoned, as provided by law, to attend at the time and place of trial, at which time a jury shall be selected and impaneled as upon a trial for misdemeanor ; and such trial shall con- form, as near as may be, to the practice in criminal cases prosecuted by indictment or upon information. If the accused be found guilty, judgment shall be entered accord- ingly, prescribing the punishment, either by fine or imprisonment, or both, in the discretion of the court. Such fine shall be paid to the United States or to the complainant or other party injured by the act constitut- ing the contempt, or may, where more than one is so damaged, be divided or apportioned among them as the court may direct, but in no case shall the fine to be paid to the United States exceed, in case the accused is a natural person, the sum of $1,000, nor shall such imprisonment ex- ceed the term of six months : Provided, That in any case the court or a judge thereof may, for good cause shown, by affidavit or proof taken in open court or before such judge and filed with the papers in the case, dispense with the rule to show cause, and may issue an attachment for the arrest of the person charged with contempt ; in which event such person, when arrested, shall be brought before such court or a judge thereof without unnecessary delay and shall be admitted to bail in a reasonable penalty for his appearance to answer to the charge or for trial for the contempt ; and thereafter the proceedings shall be the same as provided herein in case the rule had issued in the first instance. Writ of Error. Sec. 23. That the evidence taken upon the trial of any persons so accused may be preserved by bill of exceptions, and any judgment of conviction may be reviewed upon writ of error in all respects as now provided by law in criminal cases, and may be affirmed, reversed, or modified as justice may require. Upon the granting of such writ of error, execution of judgment shall be stayed, and the accused, if thereby sentenced to imprisonment, shall be admitted to bail in such reasonable sum as may be required by the court, or by any justice, or any judge of any district court of the United States or any court of the District of Columbia. Contempts in Presence of Court Punishable as Other Contempts. Sec. 24. That nothing herein contained shall be construed to relate to contempts committed in the presence of the court, or so near thereto as to obstruct the administration of justice, nor to contempts committed in disobedience of any lawful writ, process, order, rule, de- cree, or command entered in any suit or action brought or prosecuted in the name of, or on behalf of, the United States, but the same, and all other cases of contempt not specifically embraced within section twenty- one of this Act, may be punished in conformity to the usages at law and in equity now prevailing. Cotton Futures Act 239 Contempt Proceedings to be Begun Within One Year, Sec. 25. That no proceedings for contempt shall be instituted against any person unless begun within one year from the date of the act complained of ; nor shall any such proceeding be a bar to any crim- inal prosecution for the same act or acts ; but nothing herein contained shall afifect any proceedings in contempt pending at the time of the passage of this Act. Saving Clause. Sec. 26. If any clause, sentence, paragraph, or part of this Act shall, for any reason, be adjudged by any court of competent jurisdic- tion 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, paragra{)h, or part thereof directly involved in the controversy in which such judgment shall have been rendered. COTTON FUTURES ACT. Act of August 11, 1916. An Act making appropriations for the Department of Agriculture for the fiscal year ending June thirtieth, nineteen hundred and seventeen, and for other purposes. Part A. That this Part, to be known as the United States cotton futures Act, be, and hereby is, enacted to read and be effective hereafter as follows : That this Act shall be known by the short title of the ''United States cotton futures Act." Definitions. Sec. 2. That, for the purposes of this Act, the term "contract of sale" shall be held to include sales, agreements of sale, and agreements to sell. That the word "person," wherever used in this Act, shall be construed to import the plural or singular, as the case demands, and shall include individuals, associations, partnerships, and corporations. When construing and enforcing the provisions of this Act, 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 offfce. shall, in every case, also be deemed the act, omission, or failure of such association, partnership, or corpora- tion as well as that of the person. Tax. Sec. 3. That upon each contract oi 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 is hereby levied a tax in the nature of an excise of 2 cents for each pound of the cotton involved in an}' such contract. 240 Important Federal Laws Contracts to be in Writing. Sec. 4. That each contract of sale of cotton for future delivery mentioned in section three of this Act shall be in writing- plainly stating, or evidenced by written memorandum showing, the terms of such con- tract, 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 con- tract or memorandum specify in bales the quantity of the cotton in- volved, without giving the weight, each bale shall, for the purposes of this Act, be deemed to weigh five hundred pounds. Contracts Not Taxed if They Comply With Conditions. Sec. 5. That no tax shall be levied under this Act on any contract of sale mentioned in section three hereof if the contract comply with each of the following conditions : First. Conform to the requirements of section four of, and the rules and regulations made pursuant to, this Act. Second. 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 subdivision of this section, 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 con- tract is to be fulfilled or settled : Provided, That middling shall be deemed the basis grade incorporated into the contract if no other basis grade be specified either in the contract or in the memorandum evi- dencing the same. Third. Provide that the cotton dealt with therein or delivered thereunder shall be of or within the grades for which standards are established by the Secretary of Agriculture except grades prohibited from being delivered on a contract made under this section by the fifth subdivision of this section and no other grade or grades. Fourth. Provide that in case cotton of grade other than the basis grade be tendered or delivered in settlement of such contract, the differ- ences above or below the contract price which the receiver shall pay for such grades other than the basis grade shall be the actual commercial differences, determined as hereinafter provided. Fifth. Provide that cotton that, because of the presence of extra- neous matter of any character, or irregularities or defects, is reduced in value below that of Good Ordinary, or cotton that is below the grade of Good Ordinary, or, if tinged, cotton that is below the grade of Low Middling, or, if stained, cotton that is below the grade of 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 immature staple, or cotton that Cotton Futures Act 241 is "gin cut" or reginned, or cotton that is "repacked" or "false packed" or "mixed packed" or "water packed," shall not be delivered on, under, or in settlement of such contract. Sixth. Provide that all tenders of cotton under such contract shall be the full number of bales involved therein, except that such variations of the number of bales may be permitted as is necessary to bring the total weight of the cotton tendered within the provisions of the contract as to weight; that, on the fifth business day prior to delivery, the person making the tender shall give to the person receiving the same written notice of the date of delivery, and that, on or prior to the date so fixed for delivery, and in advance of final settlement of the contract, the per- son 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. Seventh. Provide that, in case a dispute arises between the person making the tender and the person receiving the same, as to the classi- fication of any cotton tendered under the contract, either party may refer the question of the true classification of said cotton to the Secretary of Agriculture for determination, and that such dispute shall be referred and determined, and the costs thereof fixed, assessed, collected, and paid in such manner and in accordance with such rules and regulations as may be prescribed by the Secretary of Agriculture. The provisions of the third, fourth, fifth, sixth, and seventh sub- divisions of this section shall be deemed fully incorporated into any such contract if there be written or printed thereon, or on the memo- randum evidencing the same, at or prior to the time the same is signed, the phrase "Subject to United States cotton futures Act, section five." The Secretary of Agriculture is authorized to prescribe rules and regulations for carrying out the purposes of the seventh subdivision of this section, and his findings, upon any dispute referred to him under said seventh subdivision, made after the parties in interest have had an opportunity to be heard by him or such ofificer, officers, agent, or agents of the Department of Agriculture as he may designate, shall be accepted in the courts of the United States in all suits between such parties, or their privies, as prima facie evidence of the true classification of the cotton involved. Determining Price. Sec. 6. That for the purposes of section five of this Act the dififerences above or below the contract price which the receiver shall pay for cotton of grades above or below the basis grade in the settle- ment of a contract of sale for the future delivery of cotton shall be determined by the actual commercial dififerences in value thereof upon the sixth business day prior to the day fixed, in accordance with the sixth subdivision of section five, for the delivery of cotton on the con- (16) 242 Important Federal Laws tract, established by the sale of spot cotton in the market where the future transaction involved occurs and is consummated if such market be a bona fide spot market ; and in the event there be no bona fide spot market at or in the place in which such future transaction occurs, then, and in that case, the said differences above or below the contract price which the receiver shall pay for cotton above or below the basis grade shall be determined by the average actual commercial differences in value thereof, upon the sixth business day prior to the day fixed, in ac- cordance with the sixth subdivision of section five, for the delivery of cotton on the contract, in the spot markets of not less than five places designated for the purpose from time to time by the Secretary of Agri- culture, as such values were established by the sales of spot cotton, in such designated five or more markets : Provided, That for the purposes of this section such values in the said spot markets be based upon the standards for grades of cotton established by the Secretary of Agricul- ture: And provided further. That whenever the value of one grade is to be determined from the sale or sales of spot cotton of another grade or grades, such value shall be fixed in accordance with rules and regula- tions which shall be prescribed for the purpose by the Secretary of Agriculture. Tax Exemption in Certain Cases. Sec. 6A. That no tax shall be levied under this Act on any con- tract of sale mentioned in section three hereof if the contract provide that, in case cotton of grade or grades other than the basis grade speci- fied 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, and if the contract also comply with all the terms and conditions of section five hereof not inconsistent with this section : Provided, That nothing in this section shall be so construed as to relieve from the tax levied bv section three of this Act any contract in which, or in the set- tlement of or in respect to which, any device or arrangement whatever is resorted to. or any agreement is made, for the determination or ad- justment of the price of the grade or grades tendered other than the basis grade specified in the contract by any "fixed difference" system, or by arbitration, or by any other method not provided for by this Act. Contracts made in compliance with this section shall be known as "Section six A 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 Cotton Futures Act 243 prior to the time the same is signed, the phrase "Subject to United States cotton futures Act, section six A." Section ten of this Act shall not be construed to apply to any con- tract of sale made in compliance with section six A hereof. Markets to be Approved by Secretary of Agriculture. Sec. 7. That for the purposes of this Act 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. Kind of Markets to be Approved. Sec. 8. That in determining, pursuant to the provisions of this Act, what markets are bona fide spot markets, the Secretary of Agri- culture is directed to consider only markets in which spot cotton is sold in such volume and under such conditions as customarily to reflect ac- curately the value of middling cotton and the dififerences 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 Agri- culture: 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 six of this Act, 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 pur- pose, and in that event, differences in value of cotton of various grades involved in contracts made pursuant to section five of this Act shall be determined in compliance with such rules and regulations. Standards to be Determined. Sec. 9. That 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 purposes of this Act, shall be known as the "Official cotton standards of the United States," and to adopt, change, or replace the standard for any grade of cotton established under the Act making appropriations for the Department of Agriculture for the fiscal year ending June thirtieth, nine- teen hundred and nine (Thirty-fifth Statutes at Large, page two hundred and fifty-one), and Acts supplementary thereto: Provided, That any standard of any cotton established and promulgated under this Act by the Secretary of Agriculture shall not be changed or replaced within a 244 Important Federal Laws period less than one year from and after the date of the promulgation thereof by the Secretary of Agriculture: Provided further, That, sub- sequent to six months after the date section three of this Act becomes effective, no change or replacement of any standard of any cotton estab- lished and promulgated under this Act by the Secretary of Agriculture shall become ettective until after one year's public notice thereof, which notice shall specify the date when the same is to become effective. 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 Agricul- ture, 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. Tax Exemption. Sec. 10. That no tax shall be levied under this Act on any con- tract of sale mentioned in section three hereof, if the contract comply with each of the following conditions : First. Conform to the rules and regulations made pursuant to this Act. Second. Specify the grade, type, sample, or description of the cotton involved in the contract, the price per pound at which such cotton is contracted to be bought or sold, the date of the purchase or sale, and the time when shipment or delivery of such cotton is to be made. Third. 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. Fourth. 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. The provisions of the first, third, and fourth subdivisions of this section shall be deemed fully incorporated into any such contract if there be written or printed thereon, or on the document or memorandum evi- dencing the same, at or prior to the time the same is entered into, the words "Subject to United States cotton futures Act, section ten." This Act shall not be construed to impose a tax on any sale of spot cotton. This section shall not be construed to apply to any contract of sale made in compliance with section five of this Act. Cotton Futures Act 245 Tax Paid by Stamps. Sec. 11. That the tax imposed by section three of this Act shall be paid by the seller of the cotton involved in the contract of sale, by means of stamps which shall be afifixed to such contracts, or to the memoranda evidencing the same, and canceled in compliance with rules and regula- tions which shall be prescribed by the Secretary of the Treasury. Contracts Not Enforceable. Sec. 12. That no contract of sale of cotton for future delivery mentioned in section three of this Act which does not conform to the requirements of section four hereof and has not the necessary stamps affixed thereto as required by section eleven hereof shall be enforceable in any court of the United States by, or on behalf of, any party to such contract or his privies. Rules for Collection of Tax. Sec. 13. That the Secretary of the Treasury is authorized to make and promulgate such rules and regulations as he may deem necessary to collect the tax imposed by this Act and otherwise to enforce its provi- sions. Further to effect this purpose, he shall require all persons coming within its provisions to keep such records and statements of account, and may require such persons to make such returns verified under oath or otherwise, as will fully and correctly disclose all transactions mentioned in section three of this Act, including the making, execution, settlement, 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 three of this Act to keep such records and to make such returns as will fully and correctly disclose all facts in their possession relating to such transactions ; and he may appoint agents to conduct the inspection necessary to collect said tax and otherwise to enforce this Act and all rules and regulations made by him in pursuance hereof, and may fix the compensation of such agents. The provisions of the internal-revenue laws of the United States, so far as applicable, including sections thirty- one hundred and seventy-three, thirty-one hundred and seventy-four, and thirty-one hundred and seventy-five of the Revised Statutes, as amended, are hereby extended, and made to apply, to this Act. Penalty. Sec. 14. That any person liable to the payment of any tax im- posed by this Act who fails to pay, or evades or attempts to evade the payment of such tax, and any person who otherwise violates any provi- sion of this Act, or any rule or regulation made in pursuance hereof, shall be deemed guilty of a misdemeanor, and, upon conviction thereof, shall 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 24^) Important Federal Laws by imprisonment for not less than sixty days nor more than three years, in the discretion of the court. Civil Penalty. Sec. 15. That in addition to the foregoing punishment there is hereby imposed, on account of each violation of this Act, a penalty of $2,000, to be recovered in an action founded on this Act 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 this Act is furnished, to institute and prosecute actions for the recovery of the penalties prescribed by this section. Witnesses Not to be Immune. Sec. 16. That no person whose evidence is deemed material by the officer prosecuting on behalf of the United States in any case brought under any provision of this Act shall withhold his testimony because of complicity by him in any violation of this Act or of any regulation made pursuant to this Act, 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. Tax Not to Exempt From Liability. Sec. 17. That the payment of any tax levied by this Act shall not exempt any person from any penalty or punishment now or here- after provided by the laws of any State for entering into contracts of sale of cotton for future delivery, nor shall the payment of any tax im- posed by this Act be held to prohibit any State or municipality from imposing a tax on the same transaction. Appropriation. Sec. 18. That there is hereby appropriated, out of any moneys in the Treasury not otherwise appropriated, for the fiscal year ending June thirtieth, nineteen hundred and sixteen, the unexpended balance of the sum appropriated by the Act of March fourth, nineteen hundred and fifteen (Thirty-eighth Statutes at Large, page one thousand and seven- teen), for "collecting the cotton futures tax," or so much thereof as may be necessarv, to enable the Secretary of the Treasury to carry out the provisions of this Act and any duties remaining to be performed by him under the United States cotton futures Act of August eighteenth, nme- teen hundred and fourteen. Appropriation Regular. Sec. 19. That there is hereby appropriated out of any moneys m the Treasury not otherwise appropriated, available until expended, the unexpended balance of the sum of $150,000 appropriated by section twenty of the said Act of August eighteenth, nineteen hundred and four- teen and for the fiscal vear ending June thirtieth, nineteen hundred and Cotton Futures Act 247 sixteen, the unexpended balance of the sum of $75,000 appropriated for the "Enforcement of the United States cotton futures Act" by the Act making appropriations for the Department of Agriculture for the fiscal year ending June thirtieth, nineteen hundred and sixteen (Thirty-eighth Statutes at Large, page one thousand and eighty-six), or so much of each of said unexpended balances as may be necessary, to be used by the .Secretary of Agriculture for the same purpose, in carrying out the pro- visions of this Act, as those for which said sums, respectively, were originally appropriated, and to enable the Secretary of Agriculture to carry out any duties remaining to be performed by him under the said Act of August eighteenth, nineteen hundred and fourteen. The Secretary of Agriculture is hereby directed to publish from time to time the results of investigations made in pursuance of this Act. All sums collected by the Secretary of Agriculture as costs under section five, or for furnishing practical forms under section nine, of this Act, shall be deposited and covered into the Treasury as miscellaneous receipts. Time of Taking Effect. Sec. 20. That sections nine, eighteen, and nineteen of this Act and all provisions of this Act authorizing rules and regulations to be pre- scribed shall be eflfective immediately. All other sections of this Act shall become and be effective on and after the first day of the calendar month next succeeding the date of the passage of this Act : Provided, That nothing in this Act shall be construed to apply to any contract of sale of any cotton for future delivery mentioned in section three of this Act which shall have been made prior to the first day of the calendar month next succeeding the date of the passage of this Act. Repeals. Sec. 21. That the Act entitled "An Act to tax the privilege of dealing on exchanges, boards of trade, and similar places in contracts of sale of cotton for future delivery, and for other purposes," approved August eighteenth, nineteen hundred and fourteen (Thirty-eighth Stat- utes at Large, page six hundred and ninety-three), is hereby repealed, effective on and after the first day of the calendar month next succeeding the date of the passage of this Act: Provided, That nothing in this Act shall be construed to aft'ect any right or privilege accrued, any penalty or liability incurred, or any proceeding commenced under said Act of August eighteenth, nineteen hundred and fourteen, or to diminish any authority conferred by said Act on any official of the United States necessary to enable him to carry out any duties remaining to be per- formed by him under tke said Act, or to impair the efi^ect of the findings of the Secretary of Agriculture upon any dispute referred to him under said Act, or to affect any right in respect to, or arising out of, any con- tract mentioned in section three of said Act, made on or subsequent to February eighteenth, nineteen hundred and fifteen, and prior to the first day of the calendar month next succeeding the date of the passage of 248 Important Federal Laws this Act, but so far as concerns any such contract said Act of August eighteenth, nineteen hundred and fourteen, shall remain in force with the same effect as if this Act had not been passed. Saving Clause. Sec. 22. That if any clause, sentence, paragraph, or part of this Act shall for any reason be adjudged by any court of competent juris- diction 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. FOOD AND DRUGS. THE FOOD AND DRUGS ACT. Act of June 30, 1906, as amended. An Act for preventing the manufacture, sale, or transportation of adulterated or misbranded or poisonous or deleterious foods, drugs, medicines, and liquors, and for regulating traffic therein, and for other purposes. Adulterated and Misbranded Food Prohibited. Sec. 1. That it shall be unlawful for any person to manufacture within any Territory or the District of Columbia any article of food or drug which is adulterated or misbranded, within the meaning of this Act; and any person who shall violate any of the provisions of this section shall be guilty of a misdemeanor, and for each offense shall, upon conviction thereof, be fined not to exceed five hundred dollars or shall be sentenced to one year's imprisonment, or both such fine and imprisonment, in the discretion of the court, and for each subsequent offense and conviction thereof shall be fined not less than one thousand dollars or sentenced to one year's imprisonment, or both such fine and imprisonment, in the discretion of the court. Commerce in, Prohibited. Sec. 2. That the introduction into any State or Territory or the District of Columbia from any other State or Territory or the District of Columbia, or from any foreign country, or shipment to any foreign country of any article of food or drugs which is adulterated or mis- branded, within the meaning of this Act, is hereby prohibited; and any person who shall ship or deliver for shipment from any State or Terri- tory or the District of Columbia to any other State or Territory or the District of Columbia, or to a foreign country, or who shall receive in any State or Territory or the District of Columbia from any other State or Territory or the District of Columbia, or foreign country, and having so received, shall deliver, in original unbroken packages, for pay or otherwise, or ofifer to deliver to any other person, any such article so adulterated or misbranded within the meaning of this Act, or any person who shall sell or offer for sale in the District of Columbia or the Territories of the United States any such adulterated or misbranded foods or drugs, or export or offer to export the same to any foreign country, shall be guilty of a misdemeanor, and for such offense be fined not exceeding two hundred dollars for the first offense, and upon con- viction for each subsequent offense not exceeding three hundred dollars or be imprisoned not exceeding one year, or both, in the discretion of the court: Provided, That no article shall be deemed misbranded or adulterated within the provisions of this Act when intended for export 250 Important Federal Laws to any foreig-n country and prepared or packed according to the specifica- tions or directions of the foreign purchaser when no substance is used in the preparation or packing thereof in conflict with the laws of the foreign country to which said article is intended to be shipped ; but if said article shall be in fact sold or offered for sale for domestic use or consumption, then this proviso shall not exempt said article from the operation of any of the other provisions of this Act. Rules and Regulations. Sec. 3. That the Secretary of the Treasury, the Secretary of Agri- culture, and the Secretary of Commerce and Labor shall make uniform rules and regulations for carrying out the provisions of this Act, includ- ing the collection and examination of specimens of foods and drugs manufactured or offered for sale in the District of Columbia, or in any Territory of the United States, or which shall be offered for sale in unbroken packages in any State other than that in which they shell have been respectively manufactured or produced, or which shall be received from any foreign country', or intended for shipment to any foreign country, or which may be submitted for examination by the chief health, food, or drug officer of any State, Territory, or the District of Columbia, or at any domestic or foreign port through which such product is offered for interstate commerce, or for export or import between the United States and any foreign port or country. Examination of Foods and Drugs. Sec. 4. That the examinations of specimens of foods and drugs shall be made in the Bureau of Chemistry of the Department of Agricul- ture, or under the direction and supervision of such Bureau, for the purpose of determining from such examinations whether such articles are adulterated or misbranded within the meaning of this Act ; and if it shall appear from any such examination that any of such specimens is adulterated or misbranded within the meaning of this Act, the Secre- tary of Agriculture shall cause notice thereof to be given to the party from whom such sample was obtained. Any party so notified shall be given an opportunity to be heard, under such rules and regulations as may be prescribed as aforesaid, and if it appears that any of the provi- sions of this Act have been violated by such party, then the Secretary of Agriculture shall at once certify the facts to the proper United States district attorney, with a copy of the results of the analysis or the examination of such article duly authenticated by the analyst or officer making such examination, under the oath of such officer. After judgment of the court, notice shall be given by publication in such manner as may "be prescribed by the rules and regulations aforesaid. Duty of District Attorney. Sec. 5. That it shall be the duty of each district attorney to whom the Secretary of Agriculture shall report any violation of this Act, or to whom any health or food or drug officer or agent of any State, Terri- Food and Drug Act 251 tory, or the District of Columbia shall present satisfactory evidence of any such violation, to cause appropriate proceedings to be commenced and prosecuted in the proper courts of the United States, without delay, for the enforcement of the penalties as in such case herein provided. Definitions. Sec. 6. That the term "drug" as used in this Act, shall include all medicines and preparations recognized in the United States Pharma- copoeia or National Formulary for internal or external use, and any substance or mixture of substances intended to be used for the cure, mitigation, or prevention of disease of either man or other animals. The term "food," as used herein, shall include all articles used for food, drink, confectioner^', or condiment by man or other animals, whether simple, mixed, or compound. Meaning of Adulterated Drugs and Food. Sec. 7. That for the purposes of this Act an article shall be deemed to be adulterated : In case of drugs: First. If, when a drug is sold under or by a name recognized in the United States Pharmacopoeia or National Formulary, it differs from the standard of strength, quality, or purity, as determined by the test laid down in the United States Pharmacopoeia or National Formulary official at the time of investigation: Provided, That no drug defined in the United States Pharmacopoeia or National Formulary shall be deemed to be adulterated under this provision if the standard of strength, quality, or purity be plainly stated upon the bottle, box, or other container thereof although the standard may differ from that determined by the test laid down in the United States Pharmacopoeia or National Formu- lary. Second. If its strength or purity fall below the professed standard or quality under which it is sold. In the case of confectionery: If it contains terra alba, barytes, talc, chrome yellow, or other mineral substance or poisonous color or flavor, or other ingredient dele- terious or detrimental to health, or any vinous, malt, or spirituous liquor or compound or narcotic drug. In the case of food : First. If any substance has been mixed and packed with it so as to reduce or lower or injuriously affect its quality or strength. Second. If any substance has been substituted wholly or in part for the article. Third. If any valuable constituent of the article has been wholly or in part abstracted. Fourth. If it be mixed, colored, powdered, coated, or stained in a manner whereby damage or inferiority is concealed. Fifth. If it contain any added poisonous or other added deleterious 252 Important Federal Laws ingredient which may render such article injurious to health: Provided, That when in the preparation of food products for shipment they are preserved by any external application applied in such manner that the preservative is necessarily removed mechanically, or by maceration in water, or otherwise, and directions for the removal of said preservative shall be printed on the covering or the package, the provisions of this Act shall be construed as applying only when said products are ready for consumption. Sixth. If it consists in whole or in part of a filthy, decomposed, or putrid animal or vegetable substance, or any portion of an animal unfit for food, whether manufactured or not. or if it is the product of a diseased animal, or one that has died otherwise than by slaughter. Misbranded Food and Drugs. Sec. 8. That the term "misbranded," as used herein, shall apply to all drugs, or articles of food, or articles which enter into the composition of food, the package or label of which shall bear any statement, design, or device regarding such article, or the ingredients or substances con- tained therein which shall be false or misleading in any particular, and to any food or drug product which is falsely branded as to the State, Territory, or country in which it is manufactured or produced. That for the purposes of this Act an article shall also be deemed to be misbranded : In case of drugs : First. If it be an imitation of or offered for sale under the name of another article. Second. If the contents of the package as originally put up shall have been removed, in whole or in part, and other contents shall have been placed in such package, or if the package fail to bear a statement on the label of the quantity or proportion of any alcohol, morphine, opium, cocaine, heroin, alpha or beta eucaine, chloroform, cannabis indica. Chloral hydrate, or acetanilide, or any derivative or preparation of any such substance contained therein. Third. If its package or label shall bear or contain any statement, design, or device regarding the curative or therapeutic effect of such article or any of the ingredients or substances contained therein, which is false and fraudulent. (As amended August 23, 1912.) In the case of food: First. If it be an imitation of or offered for sale under the dis- tinctive name of another article. Second. If it be labeled or branded so as to deceive or mislead the purchaser, or purport to be a foreign product when not so, or if the contents of the package as originally put up shall have been removed in whole or in part and other contents shall have been placed in such package, or if it fail to bear a statement on the label of the quantity Food and Drug Act 253 or proportion of any morphine, opium, cocaine, heroin, alpha or beta eucaine, chloroform, cannabis indica, chloral hydrate or acetanilide, or any derivative or preparation of any of such substances contained therein. Third. If in package form, the quantity of the contents be not plainly and conspicuously marked on the outside of the package in terms of weight, measure, or numerical count: Provided, however, That rea- sonable variations shall be permitted, and tolerances and also exemptions as to small packages shall be established by rules and regulations made in accordance with the provisions of section three of this Act. (As amended March 3, 1913.) Fourth. If the package containing it or its label shall bear any statement, design, or device regarding the ingredients or the substances contained therein, which statement, design, or device shall be false or misleading in any particular : Provided, That an article of food which does not contain any added poisonous or deleterious ingredients shall not be deemed to be adulterated or misbranded in the following cases: First. In the case of mixtures or compounds which may be now or from time to time hereafter known as articles of food, under their own distinctive names, and not an imitation of or offered for sale under the distinctive name of another article, if the name be accompanied on the same label or brand with a statement of the place where said article has been manufactured or produced. Second. In the case of articles labeled, branded, or tagged so as to plainly indicate that they are compounds, imitations, or blends, and the word "compound," "imitation," or "blend," as the case may be, is plainly stated on the package in which it is offered for sale: Provided, That the term blend as used herein shall be construed to mean a mixture of like substances, not excluding harmless coloring or flavoring ingre- dients used for the purpose of coloring and flavoring only : And provided further, That nothing in this Act shall be construed as requiring or compelling proprietors or manufacturers of proprietary foods which contain no unwholesome added ingredient to disclose their trade formulas, except in so far as the provisions of this act may require to secure freedom from adulteration or misbranding. Guarantee by Wholesaler or Manufacturer. Sec. 9. That no dealer shall be prosecuted under the provisions of this Act when he can establish a guaranty signed by the wholesaler, jobber, manufacturer, or other party residing in the United States, from whom he purchases such articles, to the eflFect that the same is not adulterated or misbranded within the meaning of this Act, designating it. Said guaranty, to afford protection, shall contain the name and address of the party or parties making the sale of such articles to such dealer, and in such case said party or parties shall be arnenable to the prosecutions, fines and other penalties which would attach, in due course, to the dealer under the provisions of this Act. 254 Important Federal Laws Condemnation of Food and Drugs. Sec. 10. That any article of food, drug, or liquor that is adul- terated or misbranded within the meaning of this Act, and is being transported from one State, Territory, District, or insular possession to another for sale, or. having been transported, remains unloaded, unsold, or in original unbroken packages, or if it be sold or offered for sale in the District of Columbia or the Territories, or insular possessions of the United States, or if it be imported from a foreign country for sale, or if it is intended for export to a foreign country, shall be liable to be proceeded against in any district court of the United States within the district where the same is found, and seized for confiscation by a process of libel for condemnation. And if such article is condemned as being adulterated or misbranded, or of a poisonous or deleterious character, within the meaning of this Act, the same shall be disposed of by destruction or sale, as the said court may direct, and the proceeds thereof, if sold, less the legal costs and charges, shall be paid into the Treasury of the United States, but such goods shall not be sold in any jurisdiction contrary to the provisions of this Act or the laws of that jurisdiction: Provided, however, That upon the payment of the cost of such libel proceedings and the execution and delivery of a good and sufficient bond to the effect that such articles shall not be sold or other- wise disposed of contrary to the provisions of this Act, or the laws of any State, Territorj% District, or insular possession, the court may by order direct that such articles be delivered to the owner thereof. The proceedings of such libel cases shall conform, as near as may be, to the proceedings in admiralty, except that either party may demand trial by jury of any issue of fact joined in any such case, and all such pro- ceedings shall be at the suit of and in the name of the United States. Examination of Food Imported. Sec. 11. The Secretary of the Treasury shall deliver to the Secre- tary of Agriculture, upon his request from time to time, samples of foods and drugs which are being imported into the United States or offered for import, giving notice thereof to the owner or consignee, who may appear before the Secretary of Agriculture, and have the right to intro- duce testimony, and if it appear from the examination of such samples that any article of food or drug offered to be imported into the United States is adulterated or misbranded within the meaning of this Act, or is otherwise dangerous to the health of the people of the United States, or is of a kind forbidden entry into, or forbidden to be' sold or restricted in sale in the country in which it is made or from which it is exported, or is otherwise falsely labeled in any respect, the said article shall be refused admission, and the Secretary of the Treasury shall refuse delivery to the consignee and shall cause the destruction of any goods refused delivery which shall not be exported by the consignee within three months from the date of notice of such refusal under such regu- lations as the Secretary of the Treasury may prescribe: Provided, Meat Inspection Act 255 That the Secretary of the Treasury may deHver to the consignee such goods pending examination and decision in the matter on execution of a penal bond for the amount of the full invoice value of such goods, together with the duty thereon, and on refusal to return such goods for any cause to the custody of the Secretary of the Treasury, when demanded, for the purpose of excluding them from the country, or for any other purpose, said consignee shall forfeit the full amount of the bond: And provided further, That all charges for storage, cartage, and labor on goods which are refused admission or delivery shall be paid by the owner or consignee, and in default of such payment shall con- stitute a lien against any future importation made by such owner or consignee. Definitions. Sec. 12. That the term "Territory" as used in this Act shall include the insular possessions of the United States. The word "person" as used in this Act shall be construed to import both the plural and the singular, as the case demands, and shall include corporations, com- panies, societies and associations. When construing and enforcing the provisions of this Act, the act, omission, or failure of any officer, agent, or other person acting for or employed by any corporation, company, society, or association, within the scope of his employment or office, shall in every case be also deemed to be the act, omission, or failure of such corporation, company, society, or association as well as that of the person. Sec. 13. That this Act shall be in force and effect from and after the first day of January, nineteen hundred and seven. THE MEAT INSPECTION ACT. Act of March 4, 1907. Extract from an act of Congress entitled "An act making appropriations for the Department of Agriculture for the fiscal year ending June thirtieth, nineteen hundred and eight," approved March 4, 1907. Inspection of Meat. Sec. 1. That hereafter, for the purpose of preventing the use in interstate or foreign commerce, as hereinafter provided, of meat and meat food products which are unsound, unhealthful, unwholesome, or otherwise unfit for human food, the Secretary of Agriculture, at his discretion, may cause to be made, by inspectors appointed for that pur- pose, an examination and inspection of all cattle, sheep, swine and goats before they shall be allowed to enter into any slaughtering, packing, meat- canning, rendering, or similar establishment, in which they are to be slaughtered and the meat and meat food products thereof are to be used in interstate or foreign commerce ; and all cattle, swine, sheep and goats found on such inspection to show symptoms of disease shall be set apart 256 Important Federal Laws and slaughtered separately from all other cattle, sheep, swine, or goats, and when so slaughtered the carcasses of said cattle, sheep, swine or goats shall be subject to a careful examination and inspection, all as pro- vided by the rules and regulations to be prescribed by the Secretary of Agriculture as herein provided for. Inspection of Carcasses. Sec. 2. That for the purposes hereinbefore set forth the Secretary of Agriculture shall cause to be made by inspectors appointed for that purpose, as hereinafter provided, a post-mortem examination and inspec- tion of the carcasses and parts thereof of all cattle, sheep, swine and goats to be prepared for human consumption at any slaughtering, meat-canning, salting, packing, rendering, or similar establishment in any State, Terri- tory, or the District of Columbia for transportation or sale as articles of interstate or foreign commerce ; and the carcasses and parts thereof of all such animals found to be sound, healthful, wholesome and tit for human food shall be marked, stamped, tagged, or labeled as "Inspected and Passed" ; and said inspectors shall label, mark, stamp, or tag as "In- spected and Condemned," all carcasses and parts thereof of animals found to be unsound, unhealthful, unwholesome, or otherwise unfit for human food; and all carcasses and parts thereof thus inspected and condemned shall be destroyed for food purposes by the said establishment in the presence of an inspector, and the Secretary of Agriculture may remove inspectors from any such establishment which fails to so destroy any such condemned carcass or part thereof, and said inspectors, after said first inspection shall, when they deem it necessary, reinspect said carcasses or parts thereof to determine whether since the first inspection the same have become unsound, unhealthful, unwholesome, or in any way unfit for human food, and if any carcass or any part thereof shall, upon examina- tion and inspection subsequent to the first examination and inspection, be found to be unsound, unhealthful, unwholesome, or otherwise unfit for human food, it shall be destroyed for food purposes by the said establish- ment in the presence of an inspector, and the Secretary of Agriculture may remove inspectors from any establishment which fails to so destroy any such condemned carcass or part thereof. Application. Sec. 3. The foregoing provisions shall apply to all carcasses or parts of carcasses of cattle, sheep, swine and goats, or the meat or meat products thereof which may be brought into any slaughtering, meat-can- ning, salting, packing, rendering or similar establishment, and such exam- ination and inspection shall be had before the said carcasses or parts thereof shall be allowed to enter into any department wherein the same are to be treated and prepared for meat food products ; and the foregoing provisions shall also apply to all such products which, after having been issued from any slaughtering, meat-canning, salting, packing, rendering, Meat Inspection Act 257 or similar establishment, shall be returned to the same or to any similar establishment where such inspection is maintained. Inspection and Labeling of Food Products. Sec. 4. That for the purposes hereinbefore set forth the Secretary of Agriculture shall cause to be made by inspectors appointed for that purpose an examination and inspection of all meat food products pre- pared for interstate or foreign commerce in any slaughtering, meat- canning, salting, packing, rendering, or similar establishment, and for the purposes of any examination and inspection said inspectors shall have access at all times, by day or night, whether the establishment be opened or not, to every part of said establishment ; and said inspectors shall mark, stamp, tag, or label as "Inspected and Passed" all such products found to be sound, healthful and wholesome, and which contain no dyes, chemicals, preservatives, or ingredients which render such meat or meat food products unsound, unhealthful, unw^holesome, or unfit for human food : and said inspectors shall label, mark, stamp, or tag as "Inspected and Condemned" all such products found unsound, unhealthful and un- wholesome, or which contain dyes, chemicals, preservatives, or ingredi- ents which render such meat or meat food products unsound, unhealth- ful, unwholesome, or unfit for human food, and all such condemned meat food products shall be destroyed for food purposes, as hereinbefore provided, and the Secretary of Agriculture may remove inspectors from any establishment which fails to so destroy such condemned meat food products: Provided, That, subject to the rules and regulations of the Secretary of Agriculture, the provisions hereof in regard to presen^atives shall not apply to meat food products for export to anv foreign country and which are prepared or packed according to the specifications or direc- tions of the foreign purchaser, when no substance is used in the prepara- tion or packing thereof in conflict with the laws of the foreign country to which said article is to be exported; but if said article shall be in fact sold or offered for sale for domestic use or consumption, then this pro- viso shall not exempt said article from the operation of all the other pro- visions of this act. Label to Indicate Inspection. Sec. 5. That when any meat or meat food product prepared for interstate or foreign commerce which has been inspected as hereinbefore provided and marked "Inspected and Passed" shall be placed or packed in any can, pot, tin, canvas, or other receptacle or covering in any estab- lishment where inspection under the provisions of this act is maintained, the person, firm, or corporation preparing said product shall cause a label to be attached to said can, pot, tin, canvas, or other receptable or cover- ing, under the supervision of an inspector, which label shall state that the contents thereof have been "Inspected and Passed" under the provisions of this act ; and no inspection and examination of meat or meat food prod- (17) 258 Important Federal Laws ucts deposited or inclosed in cans, tins, pots, canvas, or other receptacle or covering in any establishment where inspection under the provisions of this act is maintained shall be deemed to be complete until such meat or meat food products have been sealed or inclosed in said can, tin, pot, canvas, or other receptacle or covering under the supervision of an in- spector, and no such meat or meat food products shall be sold or offered for sale by any person, firm, or corporation in interstate or foreign com- merce under any false or deceptive name ; but established trade name or names vv^hich are usual to such products and which are not false and deceptive and which shall be approved by the Secretary of Agriculture are permitted. Inspection of Establishments. Sec. 6. The Secretary of Agriculture shall cause to be made, by experts m sanitation or by other competent inspectors, such inspection of all slaughtering, meat-canning, salting, packing, rendering, or similar establishments in which cattle, sheep, swine and goats are slaughtered and the meat and meat food products thereof are prepared for interstate or foreign commerce as may be necessary to inform himself concerning the sanitary conditions of the same, and to prescribe the rules and regu- lations of sanitation under which such establishments shall be main- tained ; and where the sanitary conditions of any such establishment are such that the meat or meat food products are rendered unclean, unsound, unhealthful, unwholesome, or otherwise unfit for human food, he shall refuse to allow said meat or meat food products to he labeled, marked, stamped, or tagged as "Inspected and I'assed." Inspection in Nighttime. Sec. 7. That the Secretary of Agriculture shall cause an examina- tion and inspection of all cattle, sheep, swine and goats and the food pro- ducts thereof, slaughtered and prepared in the establishments herein- before described for the purposes of interstate or foreign commerce to be made during the nighttime as well as during the daytime when the slaugh- tering of said cattle, sheep, swine and goats, or the preparation of said food products is conducted during the nighttime. Unlawful to Transfer Meat Without Inspection. Sec. 8. That on and after October first, nineteen hundred and six, no person, firm or corporation shall transport or offer for transportation, and no carrier of interstate or foreign commerce shall transport or receive for transportation from one State or Territory or the District of Colum- bia to any other State or Territory or the District of Columbia, or to any place under the jurisdiction of the United States, or to any foreign country, any carcasses or parts thereof, meat, or meat food products thereof which have not been inspected, examined and marked as "In- spected and Passed," in accordance with the terms of this act and with the rules and regulations prescribed by the Secretary of Agriculture: Provided, That all meat and meat food products on hand on October first. Meat Inspection Act 259 nineteen hundred and six, at establishments where inspection has not been maintained, or which have been inspected under existing- law, shall be examined and labeled under such rules and reg-ulations as the Secre- tary of Agriculture shall prescribe, and then shall be allowed to be sold in interstate or foreign commerce. Violations. Sec. 9. That no person, firm, or corporation, or officer, agent, or employee thereof, shall forge, counterfeit, simulate, or falsely represent, or shall without proper authority use, fail to use, or detach, or shall knowingly or wrongfully alter, deface, or destroy, or fail to deface or destroy, any of the marks, stamps, tags, labels, or other identification devices provided for in this act, or in and as directed by the rules and regulations prescribed hereunder by the Secretary of Agriculture, on any carcasses, parts of carcasses, or the food product, or containers thereof, subject to the provisions of this act, or any certificate in relation thereto, authorized or required by this act or by the said rules and regulations of the Secretary of Agriculture. Inspection for Export. Sec. 10. That the Secretary of Agriculture shall cause to be made a careful inspection of all cattle, sheep, swine and goats intended and offered for export to foreign countries at such times and places, and in such manner as he may deem proper, to ascertain whether such cattlCj sheep, swine and goats are free from disease. Appointment of Inspectors. Sec. 11. And for this purpose he may appoint inspectors w^ho shall be authorized to give an official certificate clearly stating the condition in which such cattle, sheep, swine, and goats are found. Clearance Forbidden Without Certificate. Sec. 12. And no clearance shall be given to any vessel having on board cattle, sheep, swine or goats for export to a foreign country until the owner or shipper of such cattle, sheep, swine, or goats has a cer- tificate from the inspector herein authorized to be appointed, stating that the said cattle, sheep, swine, or goats are sound and healthy, or unless the Secretary of Agriculture shall have waived the requirement of such certificate for export to the particular country to which such cattle, sheep, swine or goats are to be exported. Inspection of Meat for Export. Sec. 13. I'hat the Secretary of Agriculture shall also cause to be made a careful inspection of the carcasses and parts thereof of all cattle, sheep, swine and goats, the meat of which, fresh, salted, canned, corned^ packed, cured, or otherwise prepared, is intended and offered for export to any foreign country, at such times and places and in such manner as he may deem proper. 260 Important Federal Laws Certificate of Condition. Sec. 14. And for this purpose he may appoint inspectors who shall be authorized to give an official certificate stating the condition in which said cattle, sheep, swine or goats, and the meat thereof, are found. Sec. 15. And no clearance shall be given to any vessel having on board any fresh, salted, canned, corned, or packed beef, mutton, pork, or goat meat, being the meat of animals killed after the passage of this act, or except as hereinbefore provided for export to and sale in a foreign country from any port in the United States, until the owner or shipper thereof shall obtain from an inspector appointed under the provisions of this act a certificate that the said cattle, sheep, swine and goats were sound and healthy at the time of inspection, and that their meat is sound and wholesome, unless the Secretary of Agriculture shall have waived the requirements of such certificate for the country to which said cattle, sheep, swine and goats or meats are to be exported. Copies of Certificates. Sec. 16. That the inspectors provided for herein shall be authorized to give official certificates of the sound and wholesome condition of the cattle, sheep, swine and goats, their carcasses and products as herein described, and one copy of ever>^ certificate granted under the provisions of this act shall be filed in the Department of Agriculture, another copy shall be delivered to the owner or shipper, and when the cattle, sheep, swine and goats or their carcasses and products are sent abroad, a third topy shall be delivered to the chief officer of the vessel on which the ship- ment shall be made. Compliance With Act. Sec. 17. That no person, fimi, or corporation engaged m the inter- state commerce of meat or meat food products shall transport or ofifer for transportation, sell or ofifer to sell any such meat or meat food prod- ucts in any State or Territory or in the District of Columbia or any place under the jurisdiction of the United States, other than in the State or Territory or in the District of Columbia or any place under the juris- diction of the United States in which the slaughtering, packing, canning, rendering, or other similar establishment owned, leased, operated by said firm, person, or corporation is located unless and until said person, firm, or corporation shall have complied with all of the provisions of this act. Penalties. . Sec. 18. That any person, firm, or corporation, or any officer or ao-ent of any such person, firm, or corporation, who shall violate any of the provisions of this act shall be deemed guilty of a misdemeanor, and shall be punished on conviction thereof by a fine of not exceeding ten thousand dollars or imprisonment for a period not more than two years, or bv both such fine and imprisonment, in the discretion of the court. Meat Inspection Act 261 Duties of Inspectors, Sec. 19. That the Secretary of Agriculture shall appoint from time to time inspectors to make examination and inspection of all cattle, sheep, swine and goats, the inspection of which is hereby provided for, and of all carcasses and parts thereof, and of all meats and meat food products thereof, and of the sanitary conditions of all establishments in which such meat and meat food products hereinbefore described are prepared ; and said inspectors shall refuse to stamp, mark, tag or label any carcass or any part thereof, or meat food product therefrom, prepared in any estab- lishment hereinbefore mentioned, until the same shall have actually been inspected and found to be sound, healthful, wholesome and fit for human food, and to contain no dyes, chemicals, preservatives, or ingredients which render such meat food product unsound, unhealthful, unwhole- some, or unfit for human food ; and to have been prepared under proper sanitary conditions, hereinbefore provided for ; and shall perform such other duties as are provided by this act and by the rules and regulations to be prescribed by said Secretary of Agriculture; and said Secretary of Agriculture shall, from time to time, make such rules and regulations as are necessary for the eflkient execution of the provisions of this act, and all inspections and examinations made under this act shall be such and made in such manner as described in the rules and regulations prescribed by said Secretary of Agriculture not inconsistent with the provisions of this act. Penalties. Sec. 20. That any person, firm or corporation, or any agent or em- ployee of any person, firm, corporation, who shall give, pay or offer, directly or indirectly, to any inspector, deputy inspector, chief inspector, or any other officer or employee of the United States authorized to per- form any of the duties prescribed by this act or by the rules and regula- tions of the Secretary of Agriculture any money or other thing of value, with intent to influence said inspector, deputy inspector, chief inspector, or other officer or employee of the United States in the discharge of any duty herein provided for, shall be deemed guilty of a felony and, upon conviction thereof, shall be punished by a fine not less than five thousand dollars nor more than ten thousand dollars and by imprison- ment not less than one year nor more than three years ; and any inspec- tor, deputy inspector, chief inspector, or other officer or employee of the United States authorized to perform any of the duties prescribed by this act who shall accept any money, gift, or other thing of value from any person, firm, or corporation, or officers, agents, or employees thereof, given with intent to influence his official action, or who shall receive or accept from any person, firm, or corporation engaged in inter- state or foreign commerce any gift, money, or other thing of value given with any purpose or intent whatsoever, shall be deemed guilty of a felony and shall, upon conviction thereof, be summarily discharged from office 262 Important Federal Laws and shall be punished by a fine not less than one thousand dollars nor more than ten thousand dollars and by imprisonment not less than one year nor more than three years. Not to Apply to Farmers or Retail Butchers. Sec. 21. That the provisions of this act requiring inspection to be made by the Secretary of Agriculture shall not apply to animals slaught- ered by any farmer on the farm and sold and transported as interstate or foreign commerce, nor to retail butchers and retail dealers in meat and meat food products, supplying their customers : Provided, That if any person shall sell or oiler for sale or transportation for interstate or foreign commerce any meat or meat food products which are diseased, unsound, unhealthful, unwholesome, or otherwise unfit for human food, knowing that such meat food products are intended for human consump- tion, he shall be guilty of a misdemeanor, and on conviction thereof shall be punished by a fine not exceeding one thousand dollars or by imprisonment for a period of not exceeding one year, or by both such fine and imprisonment: Provided also. That the Secretary of Agriculture is authorized to maintain the inspection in this act provided for at any slaughtering, meat-canning, salting, packing, rendering, or similar estab- lishment notwithstanding this exception, and that the persons operating the same may be retail butchers and retail dealers or farmers ; and where the Secretary of Agriculture shall establish such inspection then the pro- visions of this act shall apply notwithstanding this exception. THE IMPORTED MEAT ACT. From Act of October 3, 1913. Extract from an act of Congress entitled "An act to reduce tariff duties and to provide revenue for the Government, and for other purposes." That on and after the day following the passage of this act, except as otherwise specifically provided for in this act, the articles mentioned in the following paragraphs shall when imported into the United States or into any of its possessions (except the Philippine Islands and the Islands of Guam and Tutuila) be exempt from duty: 545. Meats : Fresh beef, veal, mutton, lamb, and pork ; bacon and hams ; meats of all kinds, prepared or preser\ed, not specially provided for in this section : Provided, however. That none of the foregoing meats shall be admitted into the United States unless the same is health- ful, wholesome, and fit for human food and contains no dye, chemical, preservative, or ingredient which renders the same unhealthful, unwhole- some, or unfit for human food, and unless the same also complies with the rules and regulations made by the Secretary of Agriculture, and that, after entry into the United States in compliance with said rules and regu- lations, said imported meats shall be deemed and treated as domestic Imported Meat — Cocaine and Narcotics 263 meats within the meaning of and shall be subject to the provisions of the act of June thirtieth, nineteen hundred and six (Thirty-fourth Stat- utes at Large, page six hundred and seventy-four), commonly called the meat inspection amendment, and the act of June thirtieth, nineteen hun- dred and six (Thirty-fourth Statutes at Large, page seven hundred and sixty-eight), commonly called the food and drugs act, and that the Secre- tary of Agriculture be and hereby is authorized to make rules and regula- tions to carry out the purposes of this paragraph, and that in such rules and regulations the Secretary of Agriculture may prescribe the terms and conditions for the destruction for food purposes of all such meats ottered for entry and refused admission into the United States unless the same be exported by the consignee within the time fixed therefor in such rules and regulations. SALE AND USE OF COCAINE AND NARCOTICS ACT. Act of December 17, 1914. An Act to provide for the registration of, with collectors of internal revenue, and to impose a special tax upon all persons who produce, import, manu- facture, compound, deal in, dispense, sell, distribute, or give away opium or coca leaves, their salts, derivatives, or preparations, and for other pur- poses. Registration to Sell Cocaine and Narcotics. Section 1. That on and after the 1st day of March, 1915, every per- son who produces, imports, manufactures, compounds, deals in, dis- penses, sells, distributes, or gives away opium or coca leaves or any com- pound, manufacture, salt derivative, or preparation thereof, shall register with the collector of internal revenue of the district his name or style, place of business, and place or places where such business is to be carried on : Provided, That the office, or if none, then the residence of any per- son shall be considered for the purpose of this act to be his place of busi- ness. At the time of such registry and on or before the 1st day of July annually thereafter every person who produces, imports, manufactures, compounds, deals in, dispenses, sells, distributes, or gives away any of the aforesaid drugs shall pay to the said collector a special tax at the rate of $1 per annum: Provided, That no employee of any person who pro- duces, imports, manufactures, compounds, deals in, dispenses, sells, dis- tributes, or gives away any of the aforesaid drugs, acting within the scope of his employment, shall be required to register or to pay the special tax provided by this section : Provided further. That the person who employs him shall have registered and paid the special tax as required by this section : Provided further. That officers of the United States Govern- ment who are lawfully engaged in making purchases of the above-named drugs for the various departments of the Army and Navy, the Public Health Service, and for Government hospitals and prisons, and officers of any State government, or of any county or municipality therein who 264 Important Federal Laws are lawfully engaged in making purchases of the above-named drugs for State, county, or municipal hospitals or prisons, and officials of any Territory or insular possession or the District of Columbia or of the United States who are lawfully engaged in making purchases of the above-named drugs for hospitals or prisons therein shall not be required to register and pay the special tax as herein required. It shall be unlawful for any person required to register under the terms of this act to produce, import, manufacture, compound, deal in, dispense, sell, distribute, or give away any of the aforesaid drugs with- out having registered and paid the special tax provided for in this section. That the word "person" as used in this act shall be construed to mean and include a partnership, association, company, or corporation, as well as a natural person; and all provisions of existing law relating to special taxes, so far as applicable, including the provisions of section thirty-two hundred and forty of the Revised Statutes of the United States, are hereby extended to the special tax herein imposed. That the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall make all needful rules and regula- tions for carrying the provisions of this act into effect. Written Order for Sale — Exceptions. Sec. 2. That it shall be unlawful for any person to sell, barter, ex- change, or give away any of the aforesaid drugs except in pursuance of a written order of the person to whom such article is sold, bartered, ex- changed, or given, on a form to be issued in blank for that purpose by the Commissioner of Internal Revenue. Every person who shall accept any such order, and in pursuance thereof shall sell, barter, exchange, or give away any of the aforesaid drugs, shall preserve such order for a period of two years in such a way as to be readily accessible to inspec- tion by any officer, agent, or employee of the Treasury Department duly authorized for that purpose, and the State, Territorial, district, munici- pal, and insular officials named in section five of this act. Every person who shall give an order as herein provided to any other person for any of the aforesaid drugs shall, at or before the time of giving such order, make or cause to be made a duplicate thereof on a form to be issued in blank for that purpose by the Commissioner of Internal Revenue, and in case of the acceptance of sucl; order, shall preserve such duplicate for said period of two years in such a way as to be readily accessible to in- spection by the officers, agents, employees, and officials hereinbefore men- tioned. Nothing contained in this section shall apply — (a) To the dispensing or distribution of any of the aforesaid drugs to a patient by a physician, dentist, or veterinary surgeon registered under this act in the course of his professional practice only : Provided, That such physician, dentist, or veterinary surgeon shall keep a record of all such drugs dispensed or distributed, showing the amount dispensed or distributed, the date, and the name and address of the patient to whom Imported Meat — Cocaine and Narcotics 265 such drugs are dispensed or distributed, except such as may be dispensed or distributed to a patient upon whom such physician, dentist, or veterin- ary surgeon shall personally attend ; and such record shall be kept for a period of two years from the date of dispensing or distributing such drugs, subject to inspection as provided in this act. (b) To the sale, dispensing, or distribution of any of the aforesaid drugs by a dealer to a consumer under and in pursuance of a written pre- scription issued by a physician, dentist, or veterinary surgeon registered under this act : Provided, however. That such prescription shall be dated as of the day on which signed and shall be signed by the physician, dentist, or veterinary surgeon who shall have issued the same : And pro- vided further. That such dealer shall preserve such prescription for a period of two years from the day on which such prescription is filed in such a way as to be readily accessible to inspection by the officers, agents, employees, and officials hereinbefore mentioned. (c) To the sale, exportation, shipment, or delivery of any of the aforesaid drugs by any person within the United States or any Territory or the District of Columbia or any of the insular possessions of the United States to any person in a foreign country regulating their entry in accordance with such regulations for importation thereof into such foreign country as are prescribed by said country, such regulations to be promulgated from time to time by the Secretary of State of the United States. (d) To the sale, barter, exchange, or giving away of any of the afore- said drugs to any officer of the United States Government or of any State, Territorial, District, county, or municipal or insular government lawfully engaged in making purchases thereof for the various depart- ments of the Army and Navy, the Public Health Service, and for Gov- ernment, State, Territorial, District, county, or municipal or insular hos- pitals or prisons. The Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall cause suitable forms to be prepared for the purposes above mentioned and shall cause the same to be distributed to collectors of internal revenue for sale by them to those persons who shall have registered and paid the special tax as required by section 1 of this act in their districts, respectively ; and no collector shall sell any of such forms to any persons other than a person who has registered and paid the special tax as required by section 1 of this act in his district. The price at which such forms shall be sold by said collectors shall be fixed by the Commissioner of Internal Revenue, with the approval of the Secretarv of the Treasury, but shall not exceed the sum of $1 per hun- dred. Every collector shall keep an account of the number of such forms sold bv him, the names of the purchasers, and the number of such forms sold to each of such purchasers. Whenever any collector shall sell any of such forms he shall cause the name of the purchaser thereof to be plainly written or stamped thereon before delivering the same ; and no person 266 Important Federal Laws other than such purchaser shall use any of said forms bearing- the name of such purchaser for the purpose of procuring any of the aforesaid drugs or furnish any of the forms bearing the name of such purchaser to any person with intent thereby to procure the shipment or delivery of any of the aforesaid drugs. It shall be unlawful for any person to obtain by means of said order forms any of the aforesaid drugs for any purpose other than the use, sale, or distribution thereof by him in the conduct of a lawful business in said drugs or in the legitimate practice of his pro- fession. The provisions of this act shall apply to the United States, the Dis- trict of Columbia, the Territory of Alaska, the Territory of Hawaii, the insular possessions of the United States, and the Canal Zone. In Porto Rico and the Philippine Islands the administration of this act, the collec- tion of the said special tax, and the issuance of the order forms specified in section 2 shall be performed by the appropriate internal-revenue offi- cers of those governments ; and all revenues collected hereunder in Porto Rico and the Philippine Islands shall accrue intact to the general gov- ernments thereof, respectively. The courts of first instance in the Phil- ippine Islands shall possess and exercise jurisdiction in all cases arising under this act in said islands. The President is authorized and directed to issue such Executive orders as will carry into effect in the Canal Zone the intent and purpose of this act by providing for the registration and the imposition of a special tax upon all persons in the Canal Zone who produce, import, compound, deal in, dispense, sell, distribute, or give away opium or coca leaves, their salts, derivatives, or preparations. Reports May Be Required. Sec. 3. That any person who shall be registered in any internal- revenue district under the provisions of section 1 of this act shall, when- ever required so to do by the collector of the district, render to the said collector a true and correct statement or return, verified by affidavit, set- ting forth the quantity of the aforesaid drugs received by him in said internal-revenue district during such period immediately preceding the demand of the collector, not exceeding three months, as the said collector may fix and determine; the names of the persons from whom the said drugs were received ; the quantity in each instance received from each of such persons ; and the date when received. Unlaw^ful for Other Than Licensed Dealers to Send Cocaine, Etc. Sec. 4. That it shall be unlawful for any person who shall not have registered and paid the special tax as required by section 1 of this act to send, ship, carry, or deliver any of the aforesaid drugs from any State or Territory or the District of Columbia, or any insular possession of the United States, to any person in any other State or Territory or the Dis- trict of Columbia or any insular possession of the United States : Pro- vided, That nothing contained in this section shall apply to common car- riers engaged in transporting the aforesaid drugs, or to any employee Cocaine and Narcotics 267 acting within the scope of his employment, of any person who shall have registered and paid the special tax as required by section 1 of this act, or to any person who shall deliver any such drug which has been pre- scribed or dispensed by a physician, dentist, or veterinarian, required to register under the terms of this act who has been employed to prescribe for the particular patient receiving such drug, or to any United States, State, county, municipal. District. Territorial, or insular officer or official acting within the scope of his official duties. Orders Open to Inspection. Sec. 5. That the duplicate-order forms and the prescriptions re- quired to be preserved under the provisions of section 2 of this act, and the statements or returns filed in the office of the collector of the district, under the provisions of section 3 of this act, shall be open to inspection by officers, agents, and employees of the Treasury Department duly author- ized for that purpose : and such officials of any State or Territory, or of any organized municipality therein, or of the District of Columbia, or any insular possession of the United States, as shall be charged with the enforcement of any law or municipal ordinance regulating the sale, pre- scribing, dispensing, dealing in, or distribution of the aforesaid drugs. Each collector of internal revenue is hereby authorized to furnish, upon written request, certified copies of any of the said statements or returns filed in his office to any of such officials of any State or Territory or organized municipality therein, or the District of Columbia, or any insular possession of the United States, as shall be entitled to inspect the said statements or returns filed in the office of the said collector, upon the pay- ment of a fee of $1 for each one hundred words or fraction thereof in the copy or copies so requested. Any person who shall disclose the infor- mation contained in the said statements or returns, or in the said dupli- cate-order forms, except as herein expressly provided, and except for the purpose of enforcing the provisions of this act, or for the purpose of enforcing any law of any State or Territory, or the District of Columbia, or any insular possession of the United States, or ordinance of any organ- ized municipality therein, regulating the sale, prescribing, dispensing, dealing in, or distribution of the aforesaid drugs, shall, on conviction, be fined or imprisoned as provided by section 9 of this act. Any collectors of internal revenue are hereby authorized to furnish upon written re- quest, to any person, a certified copy of the names of any or all persons who may be listed in their respective collection districts as special tax- payers under the provisions of this act, upon payment of a fee of $1 for each one hundred names or fraction thereof in the copy so requested. Not to Apply to Compounds Having Small Part of Cocaine. Sec. 6. That the provisions of this act shall not be construed to apply to the sale, distribution, giving away, dispensing, or possession of preparations and remedies which do not contain more than two grains of opium, or more than one-fourth of a grain of morphine, or more than 268 Important Federal Laws one-eighth of a grain of heroin, or more than one grain of codeine, or any salt or derivative of any of them in one fluid ounce or if a soUd or semisolid preparation, in one avoirdupois ounce ; or to liniments, oint- ments, or other preparations which are prepared for external use only, except liniments, ointments, and other preparations which contain cocaine or any of its salts or alpha or beta eucaine or any of their salts or any synthetic substitute for them: Provided, That such remedies and preparations are sold, distributed, given away, dispensed or possessed as medicines and not for the purpose of evading the intentions and provi- sions of this act. The provisions of this act shall not apply to decocan- ized coca leaves or preparations made therefrom, or to other preparations of coca leaves which do not contain cocaine. Other Acts Applicable. Sec. 7. That all laws relating to the assessment, collection, remis- sion, and refund of internal-revenue taxes, including section 3229 of the Revised Statutes of the United States, so far as applicable to and not in- consistent with the provisions of this act, are hereby extended and made applicable to the special taxes imposed by this act. Possession Unlawful. Sec. 8. That it shall be unlawful for any person not registered under the provisions of this act, and who has not paid the special tax pro- vided for by this act. to have in his possession or under his control any of the aforesaid drugs ; and such possession or control shall be presump- tive evidence of a violation of this section, and also a violation of the provisions of section 1 of this act: Provided, That this section shall not apply to any employee of a registered person, or to a nurse under the supervision of a physician, dentist, or veterinary surgeon registered under this act, having such possession or control by virtue of his employment or occupation, and not on his own account ; or to the possession of any of the aforesaid drugs which has or have been prescribed in good faith by a physician, dentist, or veterinary surgeon registered under this act ; or to any United States, State, county, municipal, District, Territorial, or insular officer or official who has possession of any said drugs by reason of his official duties ; or to a warehouseman holding possession for a person registered and who has paid the taxes under this act ; or to com- mon carriers engaged in transporting such drugs : Provided further. That it shall not be necessary to negative any of the aforesaid exemptions in any complaint, information, indictment, or other writ or proceeding laid or brought under this act ; and the burden of proof of any such exemp- tion shall be upon the defendant. Penalty. Sec. 9. That any person who violates or fails to comply with any of the requirements of this act shall, on conviction, be fined not more than $2,000 or be imprisoned not more than five years, or both, in the discre- tion of the court. Opium Acts 269 Assistants. Sec. 10. That the Commissioner of Internal Revenue, with the ap- proval of the Secretary of the Treasury, is authorized to appoint such agents, deputy collectors, inspectors, chemists, assistant chemists, clerks, and messengers in the field and in the Bureau of Internal Revenue in the District of Columbia as may be necessary to enforce the provisions of this act. Appropriation. Sec. 11. That the sum of $150,000, or so much thereof as may be necessary, be, and hereby is, appropriated, out of any moneys in the Treasury not otherwise appropriated, for the purpose of carrying into efi:'ect the provisions of this act. Not to Repeal Pure Food and Drug Act. Sec. 12. That nothing contained in this act shall be construed to impair, alter, amend, or repeal any of the provisions of the act of Con- gress approved June 30. 1906, entitled "An act for preventing the manu- facture, sale or transportation of adulterated or misbranded, or poison- ous, or deleterious foods, drugs, medicines, and liquors, and for regulat- ing traffic therein, and for other purposes," and any amendment thereof, or of the act approved February 9, 1909, entitled "xA.n act to prohibit the importation and use of opium for other than medicinal purposes," and any amendment thereof. OPIUM ACT. Act of January 17, 1914. "An Act to prohibit the importation and use of opium for other than medicinal purposes," approved February 9, 1909, is hereby amended so as to read as follows: Opium Not to be Imported. Sec. 1. That after the 1st day of April, 1909, it shall be unlaw- ful to import into the United States opium in any form or any preparation or derivative thereof : Provided, That opium and preparations and deriva- tives thereof, other than smoking opium or opium prepared for smoking, may be imported for medicinal purposes only, under regulations which the Secretary of the Treasury is hereby authorized to prescribe, and when so imported shall be subject to the duties which are now or may hereafter be imposed by law. Penalty. Sec. 2. That if any person shall fraudulently or knowingly import or bring into the United States, or assist in so doing, any opium or any preparation or derivative thereof contrary to law, or shall receive, con- ceal, buy, sell, or in any manner facilitate the transportation, conceal- ment, or sale of such opium or preparation or derivative thereof after importation, knowing the same to have been imported contrary to law, such opium or preparation or derivative thereof shall be forfeited and 270 Important Federal Laws shall be destroyed, and the offender shall be fined in any sum not exceed- ing $5,000 nor less than $50 or by imprisonment for any time not exceed- ing two years, or both. Whenever, on trial for a violation of this section, the defendant is shown to have, or to have had, possession of such opium or preparation or derivative thereof, such possession shall be deemed sufficient evidence to authorize conviction unless the defendant shall ex- plain the possession to the satisfaction of the jury. Opium Found Presumed to be Imported. Sec. 3. That on and after July 1, 1913, all smoking opium or opium prepared for smoking found within the United States shall be presumed to have been imported after the 1st day of April, 1909, and the burden of proof shall be on the claimant or the accused to rebut such presumption. Penalty for Carriers. Sec. 4. That any person subject to the jurisdiction of the United States who shall, either as principal or as accessory, receive or have in his possession, or conceal on board of or transport on any foreign or do- mestic vessel or other water craft or railroad car or other vehicle des- tined to or bound from the United States or any possession thereof, any smoking opium or opium prepared for smoking, or who, having knowl- edge of the presence in or on any such vessel, water craft, or vehicle of such article, shall not report the same to the principal officer thereof, shall be subject to the penalty provided in section 2 of this act. When- ever on trial for violation of this section the defendant is shown to have or to have had possession of such opium, such possession shall be deemed sufficient evidence to authorize conviction, unless the defendant shall ex- plain the possession to the satisfaction of the jury: Provided, however, That any master of a vessel or other water craft, or person in charge of a railroad car or other vehicle, shall not be liable under this section if he shall satisfy the jury that he had no knowledge and used due diligence to prevent the presence of such article in or on such vessel, water craft, or car, or other vessel, and any such article shall be forfeited and shall be destroyed. Opium Not to be Transported Through United States. Sec. 5. That no smoking opium or opium prepared for smoking shall be admitted into the United States, or into any territory under the control or jurisdiction thereof, for transportation to another country, nor shall such opium be transferred or transshipped from one vessel to an- other vessel within any waters of the United States for immediate expor- tation or any other purpose. Unlawful to Export. Sec. 6. That hereafter it shall be unlawful for any person subject to the jurisdiction of the United States to export, or cause to be exported from the United States, or from territory under its control or jurisdic- tion, or from countries in which the United States exercises extraterri- torial jurisdiction, any opium or cocaine, or any salt derivative, or prepa- Opium Acts 271 ration of opium or cocaine, to any other country : Provided, That opium or cocaine, and salts, derivatives, or preparations thereof, except smoking opium or opium prepared for smoking, the exportation of which is here- by absolutely prohibited, may be exported to countries regulating their entry under such regulations as are prescribed by such country for the importation thereof into such country, such regulations to be promul- gated from time to time by the Secretary of State of the United States. The Secretary of State shall request all foreign Governments to communicate through the diplomatic channels copies of laws and regula- tions promulgated in their respective countries which prohibit or regulate the importation of the aforesaid drugs, and when received advise the Secretary of the Treasury and the Secretary of Commerce thereof; whereupon the Secretary of State, the Secretary of the Treasury and the Secretary of Commerce shall make and publish all proper regulations for carrying the provisions of this section into efifect. Penalty. Sec. 7. That any person who exports or causes to be exported any of the aforesaid drugs in violation of the preceding section shall be fined in any sum not exceeding $5,000 nor less than $50, or by imprisonment for any time not exceeding two years, or both. And one-half of any fine recovered from any person or persons convicted of an oft'ense under any section of this act may be paid to the person or persons giving informa- tion leading to such recovery, and one-half of any bail forfeited and col- lected in any proceedings brought under this act may be paid to the per- son or persons giving the information which led to the institution of such proceedings, if so directed by the court exercising jurisdiction in the case: Provided, That no payment for giving information shall be made to any officer or employee of the United States. Sec. 8. That whenever opium or cocaine, or any preparations or derivatives thereof, shall be found upon any vessel arriving at any port of the United States which is not shown upon the vessel's manifest, as is provided by sections 2806 and 2807 of the Revised Statutes, such vessel shall be liable for the penalty and forfeiture prescribed in section 2809 of the Revised Statutes. MANUFACTURE OF OPIUM. Act of January 17, 1914. An Act regulating the manufacture of smoking opium within the United States, and for other purposes. Tax and Bond. Sec. 1. That an internal-revenue tax of $300 per pound shall be levied and collected upon all opium manufactured in the United States for smoking purposes ; and no person shall engage in such manufacture who is not a citizen of the United States and who has not given the bond required by the Commissioner of Internal Revenue. Every person who 272 Important Federal Laws prepares opium suitable for smoking purposes from crude gum opium, or from any preparation thereof, or from the residue of smoked or par- tially smoked opium, commonly known as yen shee, or from any mixture of the above, or any of them, shall be regarded as a manufacturer of smoking opium within the meaning of this act. Reports, Inventories, Etc., to be Filed. Sec. 2. That every manufacturer of such opium shall file with the collector of internal revenue of the district in which his manufactory is located such notices, inventories, and bonds, shall keep such books and render such returns of material and products, shall put up such signs and affix such number to his factory, and conduct his business under such surveillance of officers and agents as the Commissioner of Internal Rev- enue, with the approval of the Secretary of the Treasury, may by regula- tion require. But the bond required of such manufacturer shall be with sureties satisfactory to the collector of internal revenue and in a penal sum of not less than $100,000; and the sum of said bond may be in- creased from time to time and additional sureties required, at the discre- tion of the collector or under instructions of the Commissioner of In- ternal Revenue. Stamp. Sec. 3. That all opium prepared for smoking manufactured in the United States shall be duly stamped in such permanent manner as to denote the payment of the internal-revenue tax thereon. Engraving, Etc. Sec. 4. That the provisions of existing laws covering the engrav- ing, issue, sale, accountability, eftacement, cancellation, and the destruc- tion of stamps relating to tobacco and snufif, as far as applicable, are hereby made to apply to stamps provided for by the preceding section. Penalty. Sec. 5. That a penalty of not less than $10,000 or imprisonment for not less than five years, or both, in the discretion of the court, shall be imposed for each and every violation of the preceding sections of this act relating to opium by any person or persons ; and all opium prepared for smoking wherever found within the United States without the stamps required by this act shall be forfeited and destroyed. Repeal. Sec. 6. The provision of the act of October 1, 1890 (26 Stat., p. 1567), in so far as they relate to the manufacture of smoking opium, are hereby repealed. LABOR. MEDIATION AND ARBITRATION LAW. Act of July 15, 1913. An Act relating to mediation and arbitration of disputes of certain employees on railroads. Scope of Law — Definitions. Sec. 1. The provisions of this act shall apply to any common car- rier or carriers and their officers, agents and employees, except masters of vessels and seamen, as defined in section forty-six hundred and twelve. Revised Statutes of the United States, engaged in the transportation of passengers or property wholly by railroad, or partly by railroad and partly by water, for a continuous carriage or shipment from one 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, or from any place in the United States to an adjacent foreign country, or from any place in the United States through a foreign country to any other place in the United States. The term "railroad" as used in this act shall include all bridges and ferries used or operated in connection with any railroad, and also all the road in use by any corporation operating a railroad, whether owned or operated under a contract, agreement, or lease; and the term "trans- portation" shall include all instrumentalities of shipment or carriage. The term "employees" as used in this act shall include all persons actually engaged in any capacity in train operation or train service of any description, and notwithstanding that the cars upon or in which they are employed may be held and operated by the carrier under lease or other contract : Provided, however. That this act shall not be held to apply to employees of street railroads and shall apply only to employees engaged in railroad train service. In every such case the carrier shall be responsible for the acts and defaults of such employees in the same manner and to the same extent as if said cars were owned by it and said employees directly employed by it, and any provisions to the contrary of any such lease or other contract shall be binding only as between the parties thereto and shall not afifect the obligations of said carrier either to the public or to the private parties concerned. A common carrier subject to the provisions of this act is herein- after referred to as an "employer," and the employees of one or more of such carriers are hereinafter referred to as "employees." Applications to Board. Sec. 2. Whenever a controversy concerning wages, hours of labor, or conditions of employment shall arise between an employer or employ- (18) 274 Important Federal Laws ers and employees subject to this act interrupting or threatening to inter- rupt the business of said employer or employers to the serious detriment of the public interest, either party to such controversy may apply to the Board of Mediation and Conciliation created by this act and invoke its services for the purpose of bringing about an amicable adjustment of the con- troversy; and upon the request of either party the said board shall with all practicable expedition put itself in communication with the parties to such controversy and shall use its best efforts, by mediation and con- ciliation, to bring them to an agreement ; and if such efforts to bring about an amicable adjustment through mediation and conciliation shall be unsuccessful, the said board shall at once endeavor to induce the parties to submit their controversy to arbitration in accordance with the pro- visions of this act. In any case in which an interruption of traffic is imminent and fraught with serious detriment to the public interest, the Board of Media- tion and Conciliation may, if in its judgment such action seem desirable, proffer its services to the respective parties to the controversy. In any case in which a controversy arises over the meaning or the application of any agreement reached through mediation under the provi- sions of this act either party to the said agreement may apply to the Board of Mediation and Conciliation for an expression of opinion from such board as to the meaning or application of such agreement and the said board shall upon receipt of such request give its opinion as soon as may be practicable. Boards of Arbitration. Sec. 3. Whenever a controversy shall arise between an employer or employers and employees subject to this act, which can not be settled through mediation and conciliation in the manner provided in the pre- ceding section, such controversy may be submitted to the arbitration of a board of six, or, if the parties to the controversy prefer so to stipu- late, to a board of three persons, which board shall be chosen in the fol- lowing manner: In the case of a board of three, the employer or em- ployers and the employees, parties respectively to the agreement to arbi- trate, shall each name one arbitrator ; and the two arbitrators thus chosen shall select the third arbitrator; but in the event of their failure to name the third arbitrator within five days after their first meeting, such third arbitrator shall be named by the Board of Mediation and Conciliation. In the case of a board of six. the employer or employers and the em- ployees, parties respectively to the agreement to arbitrate, shall each name two arbitrators, and the four arbitrators thus chosen shall, by a majority vote, select the remaining two arbitrators ; but in the event of their failure to name the two arbitrators within fifteen days after their first meeting the said two arbitrators, or as many of them as have not been named, shall be named by the Board of Mediation and Conciliation. In the event that the employees engaged in any given controversy Mediation and Arbitration 275 are not members of a labor organization, such employees may select a committee which shall have the right to name the arbitrator, or the arbi- trators, who are to be named by the employees as provided above in this section. Agreements to Arbitrate. Sec. 4. The agreement to arbitrate — First. Shall be in writing; Second. Shall stipulate that the arbitration is had under the pro- visions of this act ; Third. Shall state whether the board of arbitration is to consist of three or six members ; Fourth. Shall be signed by duly accredited representatives of the employer or employers and of the employees ; Fifth. Shall state specifically the questions to be submitted to the said board for decision ; Sixth. Shall stipulate that a majority of said board shall be com- petent to make a valid and binding award ; Seventh. Shall fix a period from the date of the appointment of the arbitrator or arbitrators necessary to complete the board, as provided for in the agreement, within which the said board shall commence its hearings ; Eighth. Shall fix a period from the beginning of the hearings wMthin wdiich the said board shall make and file its award : Provided, That this period shall be thirty days unless a different period be agreed to; Ninth. Shall provide for the date from which the award shall be- come effective and shall fix the period during which the said award shall continue in force ; Tenth. Shall provide that the respective parties to the award will each faithfully execute the same ; Eleventh. Shall provide that the award and the papers and pro- ceedings, including the testimony relating thereto, certified under the hands of the arbitrators, and which shall have the force and effect of a bill of exceptions, shall be filed in the clerk's office of the district court of the United States for the district wherein the controversy arises or the arbitration is entered into, and shall be final and conclusive upon the parties to the agreement unless set aside for error of law apparent on the record ; Twelfth. May also provide that any difference arising as to the meaning or the application of the provisions of an award made by a board of arbitration shall be referred back to the same board or to a sub- committee of such board for a ruling, which ruling shall have the same force and effect as the original award ; and if any member of the original board is unable or unwilling to serve another arbitrator shall be named in the same manner as such original member was named. 276 Important Federal Laws Powers of Arbitrators. Sec. 5. For the purposes of this act the arbitrators herein provided for, or either of them, shall have power to administer oaths and afifirma- tions, sign subpoenas, require the attendance and testimony of witnesses, and the production of such books, papers, contracts, agreements and docu- ments material to a just determination of the matters under investigation as may be ordered by the court; and may invoke the aid of the United States courts to compel witnesses to attend and testify and to produce such books, papers, contracts, agreements and documents to the same extent and under the same conditions and penalties as is provided for in the act to regulate comm.erce, approved February fourth, eighteen hundred and eighty-seven, and the amendments thereto. Agreements to be Acknowledged. Sec. 6. Everv agreement of arbitration under this act shall be acknowledged by the parties thereto before a notary public or a clerk of the district or the circuit court of appeals of the United States, or before a member of the Board of Mediation and Conciliation, the members of which are hereby authorized to take such acknowledgments ; and when so acknowledged shall be delivered to a member of said board or trans- mitted to said board to be filed in its office. When such agreement of arbitration has been filed with the said board, or one of its members, and when the said board, or a member thereof, has been furnished the names of the arbitrators chosen by the respective parties to the controversy, the board, or a member thereof, shall cause a notice in writing to be served upon the said arbitrators, notifying them of their appointment, requesting them to meet promptly to name the remaining arbitrator or arbitrators necessary to complete the board, and advising them of the period within which, as provided in the agreement of arbitration, they are empowered to name such arbitrator or arbitrators. When the arbitrators selected by the respective parties have agreed upon the remaining arbitrator or arbitrators, they shall notify the Board of Mediation and Conciliation ; and in the event of their failure to agree upon any or upon all of the necessary arbitrators within the period fixed by this act they shall, at the expiration of such period, notify the Board of Mediation and Conciliation of the arbitrators selected, if any, or of their failure to make or to complete such selection. If the parties to an arbitration desire the reconvening of a board to pass upon any controversy arising over the meaning or application of an award, they shall jointly so notify the Board of Mediation and Con- ciliation, and shall state in such written notice the question or questions to be submitted to such reconvened board. The Board of Mediation and Conciliation shall thereupon promptly communicate with the members of the board of arbitration or a subcommittee of such board appointed for such purpose pursuant to the provisions of the agreement of arbitration, and arrange for the reconvening of said board or subcommittee, and shall Mediation and Arbitration 277 notify the respective parties to the controversy of the time and place at which the board will meet for hearings upon the matters in controversy to be submitted to it. Organization. Sec. 7. The board of arbitration shall organize and select its own chairman and make all necessary- rules for conducting its hearings ; but in its award or awards the said board shall conline itself to findings or recommendations as to the questions specincally submitted to it or mat- ters direct! V bearing thereon. All testimonv before said board shall be given under oath or afhrmation, and any member of the board of arbi- tration shall have the power to administer oaths or afHrmations. It may employ such assistants as may be necessan.- in carr\ing on its work. It shall, whenever practicable, be supplied with suitable quarters in any Federal building located at its place of meeting or at any place where the board may adjourn for its deUberations. The board of arbitration shall furnish a certihed copy of its award to the respective parties to the con- troversy, and shall transmit the original, together with the papers and proceedings and a transcript of the testimony taken at the hearings, certi- fied under the hands of the arbitrators, to the clerk of the district court of the United States for the district wherein the controversy arose or the arbitration is entered into, to be tiled in said clerk's office as provided in paragraph eleven of section four of this act. And said board shall also furnish a certified copy of its award, and the papers and proceedings, including the testimony relating thereto, to the Board of Mediation and ConciHation. to be filed in its office. The United States Commerce Court, the Interstate Commerce Commission and the Bureau of Labor Statistics are hereby authorized to turn over to the Board of Mediation and Con- ciliation upon its request any papers and docimients heretofore filed with them and bearing upon mediation or arbitration proceedings held under the provisions of the act approved Tune first, eighteen hundred and niner>-- eight. providing for mediation and arbitration. Award in Effect — Exceptions, Appeals. Sec. 8. The award, being filed in the clerk's office of a district court of the United States as hereinbefore provided, shall go into practical operation, and judgment shall be entered thereon accordinglv at the ex- piration of ten days from such filing, unless within such ten davs either party shall file exceptions thereto for matter of law apparent upon the record, in which case said award shall go into practical operation and judgment be entered accordingly when such exceptions shall have been finally disposed of either by said district court or on appeal therefrom. At the expiration of ten days from the decision of the district court upon exceptions taken to said award as aforesaid judgment shall be entered in accordance with said decision, unless during said ten days either party shall appeal therefrom to the circuit court of appeals. In such case onl}- such portion of the record shall be transmitted to the 278 Important Federal Laws appellate court as is necessary to the proper understanding and con- sideration of the questions of law presented by said exceptions and to be decided. The determination of said circuit court of appeals upon said ques- tions shall be final, and, being certified by the clerk thereof to said dis- trict court, judgment pursuant thereto shall thereupon be entered by said district court. If exceptions to an award are finally sustained, judgment shall be entered setting aside the award in whole or in part ; but in such case the parties may agree upon a judgment to be entered disposing of the sub- ject matter of the controversy, which judgment when entered shall have the same force and effect as judgment entered upon an award. Nothing in this act contained shall be construed to require an em- ployee to render personal service without his consent, and no injunction or other legal process shall be issued which shall compel the performance by any employee against his will of a contract for personal labor or service. Receiverships. Sec. 9. Whenever receivers appointed by a Federal court are in the possession and control of the business of employers covered by this act the employees of such employers shall have the right to be heard through their representatives in such court upon all questions affecting the terms and conditions of their employment ; and no reduction of wages shall be made by such receivers without the authority of the court therefor, after notice to such employees, said notice to be given not less than twenty days before the hearing upon the receivers' petition or application, and to be posted upon all customary bulletin boards along or upon the rail- way or in the customary places on the premises of other employers cov- ered by this act. Compensation. Sec. 10. Each member of the board of arbitration created under the provisions of this act shall receive such compensation as may be fixed by the Board of Mediation and Conciliation, together with his traveling and other necessary expenses. The sum of $25,000, or so much thereof as may be necessary, is hereby appropriated, to be immediately available and to continue available until the close of the fiscal year ending June thirtieth, nineteen hundred and fourteen, for the necessary and proper expenses incurred in connection with any arbitration or with the carrying on of the work of mediation and conciliation, including per diem, travel- ing and other necessary expenses of members or employees of boards of arbitration and rent in the District of Columbia, furniture, office fixtures and supplies, books, salaries, traveling expenses and other necessary ex- penses of members or employees of the Board of ]\Iediation and Con- ciliation, to be approved by the chairman of said board and audited by the proper accounting officers of the Treasury. Employers' Liability 279 Commissioner of Mediation and Conciliation. Sec. 11. There shall be a Commissioner of Mediation and Concilia- tion, who shall be appointed by the President, by and with the advice and consent of the Senate, and whose salary shall be $7,500 per annum, who shall hold his office for a term of seven years ; and until a successor qualifies, and who shall be removable by the President only for miscon- duct in office. The President shall also designate not more than two other officials of the Government who have been appointed by and with the advice and consent of the Senate, and the officials thus designated, together with the Commissioner of Mediation and Conciliation, shall constitute a board to be known as the United States Board of Mediation and Conciliation. There shall also be an Assistant Commissioner of Mediation and Conciliation, who shall be appointed by the President, by and with the advice and consent of the Senate, and whose salary shall be $5,000 per annum. In the absence of the Commissioner of Mediation and Con- ciliation, or when that office shall become vacant, the assistant commis- sioner shall exercise the functions and perform the duties of that office. Under the direction of the Commissioner of Mediation and Conciliation, the assistant commissioner shall assist in the work of mediation and con- ciliation and when acting alone in any case he shall have the right to take acknowledgments, receive agreements of arbitration, and cause the notices in writing to be served upon the arbitrators chosen by the re- spective parties to the controversy, as provided for in section five of this act. The act of June first, eighteen hundred and ninety-eight, relating to the mediation and arbitration of controversies between railway companies and certain classes of their employees is hereby repealed : Provided, That any agreement of arbitration which, at the time of the passage of this act, shall have been executed in accordance with the provisions of said act of June first, eighteen hundred and ninety-eight, shall be gov- erned by the provisions of said act of June first, eighteen hundred and ninety-eight, and the proceedings thereunder shall be conducted in ac- cordance with the provisions of said act. EMPLOYERS LIABILITY. Act of April 22, 1908. An act relating to the liability of common carriers by railroad to their em- ployees in certain cases. Liability of Carriers ; Interstate Commerce. Sec. 1. That every common carrier by railroad while engaging in commerce between any of the several States or Territories, or between any of the States and Territories, or between the District of Columbia and any of the States or Territories, or between the District of Columbia 280 Important Federal Laws or any of the States or Territories and any foreign nation or nations, shall be liable in damages to any person suffering injury while he is employed by such carrier in such commerce, or, in case of the death of such employee, to his or her personal representative, for the benefit of the surviving widow or husband and children of such employee ; and, if none, then of such employee's parents ; and. if none, then of the next of kin dependent upon such employee, for such injury or death resulting in whole or in part from the negligence of any of the officers, agents or employees of such carrier, or by reason of any defect or insufficiency, due to its negligence, in its cars, engines, appliances, machinery, track, roadbed, works, boats, wharves or other equipment. Liability in District of Columbia and Territories. Sec. 2. That every common carrier by railroad in the Territories, the District of Columbia, the Panama Canal Zone, or other possessions of the United States shall be liable in damages to any person suft'ering injury while he is employed by such carrier in any of said jurisdictions, or, in case of the death of such employee, to his or her personal repre- sentative, for the benefit of the surviving widow or husband and children of such employee ; and, if none, then of such employee's parents ; and, if none, then of the next of kin dependent upon such employee, for such injury or death resulting in whole or in part from the negligence of any of the officers, agents or employees of such carrier, or by reason of any defect or insufficiency, due to its negligence, in its cars, engines, ap- pliances, machinery, track, roadbed, works, boats, wharves or other equip- ment. Contributory Negligence not a Defense. Sec. 3. That in all actions hereafter brought against any such com- mon carrier by railroad under or by virtue of any of the provisions of this act to recover damages for personal injuries to an employee, or where such injuries have resulted in his death, the fact that the employee may have been guilty of contributory negligence shall not bar a recovery, but the damages shall be diminished by the jury in proportion to the amount of negligence attributable to such employee : Provided, That no such employee who may be injured or killed shall be held to have been guilty of contributory negligence in any case where the violation by such common carrier of any statute enacted for the safety of employees con- tributed to the injur}^ or death of such employee. Assumption of Risk not a Defense. Sec. 4. That in any action brought against any common carrier under or by virtue of any of the provisions of this act to recover dam- ages for injuries to, or the death of, any of its employees, sucli employee shall not be held to have assumed the risks of his employment in any case where the violation by such common carrier of any statute enacted for the safety of employees contributed to the injury or death of such employee. Employers' Liability 281 Contracts of Exemption Void. Sec. 5. That any contract, rule, regulation, or device whatsoever, the purpose or intent of which shall be to enable any common carrier to exempt itself from any liability created by this act, shall to that extent be void : Provided, That in any action brought against any such com- mon carrier under or by virtue of any of the provisions of this act, such common carrier may set off therein any sum it has contributed or paid to any insurance, relief benefit, or indemnity that may have been paid to the injured employee or the person entitled thereto on account of the injury or death for which said action was brought. Procedure. Sec. 6. That no action shall be maintained under this act unless commenced within two years from the day the cause of action accrued. Under this act an action may be brought in a circuit court of the United States, in the district of the residence of the defendant, or in which the cause of action arose, or in which the defendant shall be doing business at the time of commencing such action. The jurisdiction of the courts of the United States under this act shall be concurrent with that of the courts of the several States, and no case arising under this act and brought in any state court of competent jurisdiction shall be removed to any court of the United States. Definitions. Sec. 7. That the term "common carrier" as used in this act shall include the receiver or receivers or other persons or corporations charged with the duty of the management and operation of the business of a com- mon carrier. Rights Not Affected. Sec. 8. That nothing in this act shall be held to limit the duty or liability of common carriers or to impair the rights of their employees under any other act or acts of Congress, or to affect the prosecution of any pending proceeding or right of action under the act of Congress entitled "An act relating to liability of common carriers in the District of Columbia and Territories, and to common carriers engaged in com- merce between the States and between the States and foreign nations to their employees," approved June eleventh, nineteen hundred and six. Right of Action Survives. Sec. 9. That any right of action given by this act to a person suffering injury shall survive to his or her personal representative, for the benefit of the surviving widow or husband and children of such employee, and, if none, then of such employee's parents; and, if none, then of the next of kin dependent upon such employee, but in such cases there shall be only one recovery for the same injury. 282 Important Federal Laws SAFETY APPLIANCE ACTS. Act of March 2, 1893, as amended. An Act to promote the safety of employees and travelers upon railroads hy compelliHg common carriers engaged in interstate commerce to equip their cars with automatic couplers and continuous brakes and their loco- motives with driving-wheel brakes, and for other purposes. Driving-wheel and Train Brakes. Sec. 1. That from and after the first day of January, eighteen hun- dred and ninety-eight, it shall be unlawful for any common carrier en- gaged in interstate commerce by railroad to use on its line any locomotive engine in moving interstate traffic not equipped with a power driving- wheel brake and appliances for operating the trainbrake system, or to run any train in such traffic after said date that has not a sufficient number of cars in it so equipped with power or train brakes that the engineer on the locomotive drawing such train can control its speed without requir- ing brakemen to use the common hand brake for that purpose. Automatic Couplers. Sec. 2. That on and after the first day of January, eighteen hun- dred and ninety-eight, it shall be unlawful for any such common carrier to haul or permit to be hauled or used on its line any car used in moving interstate traffic not equipped with couplers coupling automatically by im- pact, and which can be uncoupled without the necessity of men going between the ends of the cars. When Carriers May Refuse Cars from Connecting Lines. Sec. 3. That when any person, firm, company, or corporation en- gaged in interstate commerce by railroad shall have equipped a sufficient number of its cars so as to comply with the provisions of section one of this Act, it may lawfully refuse to receive from connecting lines of road or shippers any cars not equipped sufficiently, in accordance with the first section of this Act, with such power or train brakes as will work and readily interchange with the brakes in use on its own cars, as required by this Act. Grab Irons and Handholds. Sec. 4. That from and after the first day of July, eighteen hundred and ninety-five, until otherwise ordered by the Interstate Commerce Com- mission, it shall be unlawful for any railroad company to use any car in interstate commerce that is not provided with secure grab irons or hand- holds in the ends and sides of each car for greater security to men in coupling and uncoupling cars. Standard Height of Drawbars for Freight Cars. Sec. 5. That within ninety days from the passage of this Act the American Railway Association is authorized hereby to designate to the Interstate Commerce Commission the standard height of drawbars for freight cars, measured perpendicular from the level of the tops of the Safety Appliance Acts 283 rails to the centers of the drawbars, for each of the several gauges of railroads in use in the United States, and shall fix a maximum variation from such standard height to be allowed between the drawbars of empty and loaded cars. Upon their determination being certified to the Inter- state Commerce Commission, said Commission shall at once give notice of the standard fixed upon to all common carriers, owners, or lessees engaged in interstate commerce in the United States by such means as the Commission may deem proper. But should said association fail to determine a standard as above provided, it shall be the duty of the Inter- state Commerce Commission to do so, before July first, eighteen hundred and ninety-four, and immediately to give notice thereof as aforesaid. And after July first, eighteen hundred and ninety-five, no cars, either loaded or unloaded, shall be used in interstate traffic which do not com- ply with the standard above provided for. Penalty. Sec. 6. That any such common carrier using any locomotive engine, running any train, or hauling or permitting to be hauled or used on its line any car in violation of any of the provisions of this Act, shall be liable to a penalty of one hundred dollars for each and every such violation, to be recovered in a suit or suits to be brought by the United States district attorney in the district court of the United States having jurisdiction in the locality where such violation shall have been committed; and it shall be the duty of such district attorney to bring such suits upon duly verified information being lodged with him of such vio- lation having occurred ; and it shall also be the duty of the Interstate Commerce Commission to lodge with the proper district attorneys in- formation of any such violations as may come to its knowledge : Pro- vided, That nothing in this Act contained shall apply to trains composed of four-wheel cars or to trains composed of eight-wheel standard logg- ing cars where the height of such car from top of rail to center of coup- ling does not exceed twenty-five inches, or to locomotives used in hauling such trains when such cars or locomotives are exclusively used for the transportation of logs. (As amended April 1, 1896.) Sec. 7. That the Interstate Commerce Commission may from time to time upon full hearing and for good cause extend the period within which any common carrier shall comply with the provisions of this Act. Sec. 8. That any employee of any such common carrier who may be injured by any locomotive, car, or train in use contrary to the provi- sions of this Act shall not be deemed thereby to have assumed the risk thereby occasioned, although continuing in the employment of such car- rier after the unlawful use of such locomotive, car, or train had been brought to his knowledge. Act of March 2, 1903. An Act to amend an Act entitled "An Act to promote the safety of employees and travelers upon railroads by compelling common carriers engaged in interstate commerce to equip their cars with automatic couplers and con- 284 Important Federal Laws tinuous brakes and their locomotives with driving-wheel brakes, and for other purposes," approved March second, eighteen hundred and ninety- three, and amended April first, eighteen hundred and ninety-six. Application. Sec. 1. That the provisions and requirements of the Act entitled "An Act to promote the safety of employees and travelers upon railroads by compelling common carriers engaged in interstate commerce to equip their cars with automatic couplers and continuous brakes, and their locomotives with driving-wheel brakes, and for other ptirposes," approved March second, eighteen hundred and ninety-three, and amended April first, eighteen hundred and ninety-six, shall be held to apply to common car- riers by railroads in the Territories and the District of Columbia and shall apply in all cases, whether or not the couplers brought together are of the same kind, make, or type ; and the provisions and requirements hereof and of said Acts relating to train brakes, automatic couplers, grab irons, and the height of drawbars shall be held to apply to all trains, locomotives, tenders, cars, and similar vehicles used on any railroad en- gaged in interstate commerce, and in the Territories and the District of Columbia, and to all other locomotives, tenders, cars, and similar vehicles used in connection therewith, excepting those trains, cars, and locomo- tives exempted by the provisions of section six of said Act of March second, eighteen hundred and ninety-three, as amended by the Act of April first, eighteen hundred and ninety-six, or which are used upon street railways. Power Brakes. Sec. 2. That whenever, as provided in said Act, any train is oper- ated with power or train brakes, not less than fifty per centum of the cars in such train shall have their brakes used and operated by the engineer of the locomotive drawing such train ; and all power-braked cars in such train which are associated together with said fifty per centum shall have their brakes so used and operated ; and, to more fully carry into efifect the objects of said Act, the Interstate Commerce Commission may, from time to time, after full hearing, increase the minimum percentage of cars in any train required to be operated with power or train brakes which must have their brakes used and operated as aforesaid ; and failure to comply with any such requirement of the said Interstate Commerce Commission shall be subject to the like penalty as failure to comply with any require- ment of this section. Effect of Act. Sec. 3. That the provisions of this Act shall not take effect until September first, nineteen hundred and three. Nothing in this Act shall be held or construed to relieve any common carrier, the Interstate Com- merce Commission, or any United States district attorney from any of the provisions, powers, duties, liabilities, or requirements of said Act of ]\Iarch second, eighteen hundred and ninety-three, as amended by the Safety Appliance Act 285 Act of April first, eighteen hundred and ninety-six; and all of the pro- visions, powers, duties, requirements, and liabilities of said Act of March second, eighteen hundred and ninety-three, as amended by the Act of April first, eighteen hundred and ninety-six, shall, except as specifically amended by this Act, apply to this Act. Act of March 4, 1911. An Act to supplement "An Act to promote the safety of employees and trav- elers upon railroads hy compelling common carriers engaged in interstate commerce to equip their cars with automatic couplers and continuous brakes and their locomotives with driving wheel brakes and for other purposes," and other safety appliance Acts, and for other purposes. To What Carriers Applicable. Sec. 1. 'lliat the provisions of this Act shall apply to every common carrier and every vehicle subject to the Act of March second, eighteen hundred and ninety-three, as amended April first, eighteen hundred and ninety-six, and March second, nineteen hundred and three, commonly known as the "Safety Appliance Acts." Sill Steps, Hand Brakes, Ladders, Running Boards, and Grab Irons. Sec. 1. That on and after July first, nineteen hundred and eleven, it shall be unlawful for any common carrier subject to the provisions of this Act to haul, or permit to be hauled or used on its line any car subject to the provisions of this Act not equipped with appliances provided for in this Act, to wit : x\ll cars must be equipped wnth secure sill steps and efficient hand brakes ; all cars requiring secure ladders and secure running boards shall be equipped with such ladders and running boards, and all cars having ladders shall also be equipped with secure hand holds or grab irons on their roofs at the tops of such ladders : Provided, That in the loading and hauling of long commodities, requiring more than one car, the hand brakes may be omitted on all save one of the cars while they are thus combined for such purpose. Powers of Commission. Sec. 3. That within six months from the passage of this Act the Interstate Commerce Commission, after hearing, shall designate the num- ber, dimensions, location, and manner of application of the appliances provided for by section two of this Act and section four of the Act of March second, eighteen hundred and ninety-three, and shall give notice of such designation to all common carriers subject to the provisions of this Act by such means as the Commission may deem proper, and thereafter said number, location, dimensions, and manner of application as desig- nated by said Commission shall remain as the standards of equipment to be used on all cars subject to the provisions of this Act, unless changed by an order of said Interstate Commerce Commission, to be made after full hearing and for good cause shown ; and failure to comply with any such requirement of the Interstate Commerce Commission shall be sub- ject to a like penalty as failure to comply with any requirement of this 286 Important Federal Laws Act : Provided, That the Interstate Commerce Commission may, upon full hearing and for good cause, extend the period within which any com- mon carrier shall comply with the provisions of this section with respect to the equipment of cars actually in service upon the date of the passage of this Act. Said Commission is hereby given authority, after hearing, to modify or change, and to prescribe the standard height of drawbars and to fix the time within which such modification or change shall be- come effective and obligatory, and prior to the time so fixed it shall be unlawful to use any car or vehicle in interstate or foreign traffic which does not comply with the standard now fixed or the standard so pre- scribed, and after the time so fixed it shall be unlawful to use any car or vehicle in interstate or foreign traffic which does not comply with the standard so prescribed by the Commission. Penalty. Sec. 4. That any common carrier subject to this Act using, haul- ing, or permitting to be used or hauled on its line any car subject to the requirements of this Act not equipped as provided in this Act shall be liable to a penalty of one hundred dollars for each and every such viola- tion, to be recovered as provided in section six of the Act of March sec- ond, eighteen hundred and ninety-three, as amended April first, eighteen hundred and ninety-six : Provided, That where any car shall have been properly equipped, as provided in this Act and the other Acts mentioned herein, and such equipment shall have become defective or insecure while such car can be repaired, without liability for the penalties imposed by car may be hauled from the place where such equipment was first dis- covered to be defective or insecure to the nearest available point where such car can be repaired, without liability for the penalties imposed by section four of this Act or section six of the Act of March second, eigh- teen hundred and ninety-three, as amended by the Act of April first, eighteen hundred and ninety-six, if such movement is necessary to make such repairs and such repairs can not be made except at such repair point ; and such movement or hauling of such car shall be at the sole risk of the carrier, and nothing in this section shall be construed to relieve such carrier from liability in any remedial action for the death or injury of any railroad employee caused to such employee by reason of or in con- nection with the movement or hauling of such car with equipment which is defective or insecure or which is not maintained in accordance with the requirements of this Act and the other Acts herein referred to; and noth- ing in this proviso shall be construed to permit the hauling of defective cars by means of chains instead of drawbars, in revenue trains or in asso- ciation with other cars that are commercially used, unless such defective cars contain live stock or "perishable" freight. Carriers Not Relieved from Penalty, Except for Causes Above Named. Sec. 5. That except that, within the limits specified in the preceding section of this Act, the movement of a car with defective or insecure equipment may be made without incurring the penalty provided by the Accident Reports Act 287 statutes, but shall in all other respects be unlawful, nothing in this Act shall be held or construed to relieve any common carrier, the Interstate Commerce Commission, or any United States attorney from any of the provisions, powers, duties, liabilities, or requirements of said Act of March second, eighteen hundred and ninety-three, as amended by the Acts of April first, eighteen hundred and ninety-six, and March second, nineteen hundred and three; and, except as aforesaid, all of the provi- sions, powers, duties, requirements, and liabilities of said Act of March second, eighteen hundred and ninety-three, as amended by the Acts of April first, eighteen hundred and ninety-six, and March second, nineteen hundred and three, shall apply to this Act. Enforcement. Sec. 6. That it shall be the duty of the Interstate Commerce Com- mission to enforce the provisions of this Act, and all powers heretofore granted to said Commission are hereby extended to it for the purpose of the enforcement of this Act. Commission May Extend Effective Date of Supplementary Act. That the jurisdiction of the Interstate Commerce Commission to ex- tend the period within which any common carrier shall comply with the provisions of section three of the Act entitled "An Act to supplement 'An Act to promote the safety of employees and travelers upon railroads by compelling common carriers engaged in interstate commerce to equip their cars with automatic couplers and continuous brakes and their loco- motives with driving-wheel brakes, and for other purposes,' and other safety-appliance acts, and for other purposes," approved April fourteenth, nineteen hundred and ten, shall apply to cars actually placed in service between the date of the passage of said Act and the first day of July, nineteen hundred and eleven, in the same manner and to the same extent that it applies to cars actually in service upon the date of the passage of said Act. ACCIDENT REPORTS ACT. Act of May 6, 1910. An Act requiring common carriers engaged in interstate and foreign commerce to make full reports of all accidents to the Interstate Commerce Commis- sion, and authorizing investigations thereof by said Commission. Monthly Reports of Railway Accidents. Sec. 1. That it shall be the duty of the general manager, superin- tendent, or other proper officer of every common carrier engaged in in- terstate or foreign commerce by railroad to make to the Interstate Com- merce Commission, at its office in Washington, District of Columbia, a monthly report, under oath, of all collisions, derailments, or other acci- dents resulting in injury to persons, equipment, or roadbed arising from the operation of such railroad under such rules and regulations as may be 288 Important Federal Laws prescribed by the said Commission, which report shall state the nature and causes thereof and the circumstances connected therewith : Provided, That hereafter all said carriers shall be relieved from the duty of report- ing accidents in their annual financial and operating reports made to the Commission. Penalty. Sec. 2. That any common carrier failing to make such report within thirty days after the end of any month shall be deemed guilty of a mis- meanor, and upon conviction thereof by a court of competent jurisdic- tion shall be punished by a fine of not more than one hundred dollars for each and every ofifense and for every day during which it shall fail to make such report after the time herein specified for making the same. Power of the Commission. Sec. 3. That the Interstate Commerce Commission shall have authority to investigate all collisions, derailments, or other accidents re- sulting in serious injury to person or to the property of a railroad occur- ring on the line of any common carrier engaged in interstate or foreign commerce by railroad. The Commission, or any impartial investigator thereunto authorized by said Commission, shall have authority to investi- gate such collisions, derailments, or other accidents aforesaid, and all the attending facts, conditions, and circumstances, and for that purpose may subpcena witnesses, administer oaths, take testimony, and require the pro- duction of books, papers, orders, memoranda, exhibits, and other evi- dence, and shall be provided by said carriers with all reasonable facil- ities : Provided, That when such accident is investigated by a commission of the State in which it occurred, the Interstate Commerce Commission shall, if convenient, make any investigation it may have previously deter- mined upon, at the same time as, and in connection with, the state com- mission investigation. Said Commission shall, when it deems it to the public interest, make reports of such investigations, stating the cause of accident, together with such recommendations as it deems proper. Such reports shall be made public in such manner as the Commission deems proper. Reports Not to be Used in Damage Suits. Sec. 4. That neither said report nor any report of said investigation nor any part thereof shall be admitted as evidence or used for any pur- pose in any suit or action for damages growing out of any matter men- tioned in said report or investigation. Form of Report. Sec. 5. That the Interstate Commerce Commission is authorized to prescribe for such common carriers a method and form for making the reports hereinbefore provided. Repeal of Prior Act. Sec. 6. That the Act entitled "An Act requiring common carriers Boiler Inspection. 289 engaged in interstate commerce to make full reports of all accidents to the Interstate Commerce Commission," approved March third, nineteen hundred and one, is hereby repealed. Definitions. Sec. 7. That the term "interstate commerce," as used in this Act, shall include transportation from any State or Territory or the District of Columbia to any other State or Territory or the District of Colum- bia, and the term "foreign commerce," as used in this Act, shall in- clude transportation from any State or Territory or the District of Columbia to any foreign country and from any foreign country to any State or Territory or the District of Columbia. BOILER INSPECTION ACT. Act of February 17, 1911. An Act to promote the safety of employees and travelers upon railroads by compelling common carriers engaged in interstate commerce to equip their locomotive with safe and suitable boilers and appurtenances thereto. Application. Sec. 1. That the provisions of this Act shall apply to any common carrier or carriers, their officers, agents, and employees, engaged in the transportation of passengers or property by railroad in the District of Columbia, or in any Territory of the United States or from one 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, or from any place in the United States to an adjacent foreign country, or from any place in the United States through a foreign country to any other place in the United States. The term "railroad" as used in this Act shall include all the roads in use by any common carrier operating a rail- road, whether owned or operated under a contract, agreement, or lease, and the term "employees" as used in this Act shall be held to mean persons actually engaged in or connected with the movement of any train. Safe Boilers Required. Sec. 2. That from and after the first day of July, nineteen hundred and eleven, it shall be unlawful for any common carriers, its officers or agents, subject to this Act to use any locomotive engine propelled by steam power in moving interstate or foreign traffic unless the boiler of said locomotive and appurtenances thereof are in proper condition and safe to operate in the service to which the same is put, that the same may be employed in the active service of such carrier in moving traffic without unnecessary peril to life or limb, and all boilers shall be inspected from time to time in accordance with the provisions of this Act, and be able to withstand such test or tests as may be prescribed in the rules and regulations hereinafter provided for. (19) 290 Important Federal Lav/s Administration. Sec. 3. That there shall be appointed by the President, by and with the advice and consent of the Senate, a chief inspector and two assistant chief inspectors of locomotive boilers, who shall have general superin- tendence of the inspectors hereinafter provided for, direct them in the duties hereby imposed upon them, and see that the requirements of this Act and the rules, regulations, and instructions made or given hereunder are observed by common carriers subject hereto. The said chief inspector and his two assistants shall be selected with reference to their practical knowledge of the construction and repairing of boilers and to their fit- ness and ability to systematize and carry into effect the provisions hereof relating to the inspection and maintenance of locomotive boilers. The chief inspector shall receive a salary of four thousand dollars per year and the assistant chief inspectors shall each receive a salary of three thousand dollars per year ; and each of the three shall be paid his travel- ing expenses incurred in the performance of his duties. The office of the chief inspector shall be in Washington, District of Columbia, and the Interstate Commerce Commission shall provide such stenographic and clerical help as the business of the officers of the chief inspector and his said assistants may require. Inspection Districts. Sec. 4. That immediately after his appointment and qualification the chief inspector shall divide the territory comprising the several States, the Territories of New Mexico and Arizona, and the District of Colum- bia into fifty locomotive boiler-inspection districts, so arranged that the service of the inspector appointed for each district shall be most effective, and so that the work required of each inspector shall be substantially the same. Thereupon there shall be appointed by the Interstate Commerce Commission fifty inspectors of locomotive boilers. Said inspectors shall be in the classified service and shall be appointed after competitive exam- ination according to the law and the rules of the Civil Service Commission governing the classified service. The chief inspector shall assign one in- spector so appointed to each of the districts hereinbefore named. Each inspector shall receive a salary of one thousand eight hundred dollars per year and his traveling expenses while engaged in the performance of his duty. He shall receive in addition thereto an annual allowance for office rent, stationery, and clerical assistance, to be fixed by the Interstate Com- merce Commission, but not to exceed in the case of any district inspector six hundred dollars per year. In order to obtain the most competent in- spectors possible, it shall be the duty of the chief inspector to prepare a list of questions to be propounded to applicants with respect to construc- tion, repair, operation, testing, and inspection of locomotive boilers, and their practical experience in such work, which list, being approved by the Interstate Commerce Commission, shall be used by the Civil Service Com- mission as a part of its examination. No person interested, either di- rectly or indirectly, in any patented article required to be used on any Boiler Inspection 291 locomotive under supervision or who is intemperate in his habits shall be eligible to hold the office of either chief inspector or assistant or district inspector. Inspection by Carriers. Sec. 5. That each carrier subject to this Act shall file its rules and instructions for the inspection of locomotive boilers with the chief in- spector within three months after the approval of this Act, and after hearing and approval by the Interstate Commerce Commisson, such rules and instructions, with such modifications as the Commission re- quires, shall become obligatory upon such carrier : Provided, however, That if any carrier subject to this Act shall fail to file its rules and instructions the chief inspector shall prepare rules and instructions not inconsistent herewith for the inspection of locomotive boilers, to be observed by such carrier ; which rules and instructions, being approved by the Interstate Commerce Commission, and a copy thereof being served upon the president, general manager, or general superintendent of such carrier, shall be obligatory, and a violation thereof punished as herein- after provided : Provided also, That such common carrier may from, time to time change the rules and regulations herein provided for, but such change shall not take efifect and the new rules and regulations be in force until the same shall have been filed with and approved by the Interstate Commerce Commission. The chief inspector shall also make all needful rules, regulations, and instructions not inconsistent herewith for the conduct of his office and for the government of the district inspectors : Provided, however. That all such rules and instructions shall be approved by the Interstate Commerce Commission before they take efifect. District Inspection. Sec. 6. That it shall be the duty of each inspector to become familiar, so far as practicable, with the condition of each locomotive boiler ordinarily housed or repaired in his district, and if any locomotive is ordinarily housed or repaired in two or more districts, then the chief inspector or an assistant shall make such division betw^een inspectors as will avoid the necessity for duplication of work. Each inspector shall make such personal inspection of the locomotive boilers under his care from time to time as may be necessary to fully carry out the provisions of this Act, and as may be consistent with his other duties, but he shall not be required to make such inspections at stated times or at regular intervals. His first duty shall be to see that the carriers make inspections in accordance with the rules and regulations established or approved by the Interstate Commerce Commission, and that carriers repair the defects which such inspections disclose before the boiler or boilers or appur- tenances pertaining thereto are again put in service. To this end each carrier subject to this Act shall file with the inspector in charge, under oath of the proper officer or employee, a duplicate of the report of each 292 Important Federal Laws inspection required by such rules and regulations, and shall also file with such inspector, under the oath of the proper officer or employee, a report showing the repair of the defects disclosed by the inspection. The rules and regulations hereinbefore provided for shall prescribe the time at which such reports shall be made. Whenever any district inspector shall, in the performance of his duty, find any locomotive boiler or apparatus pertaining thereto not conforming to the recjuirements of the law or the rules and regulations established and approved as hereinbefore stated, he shall notify the carrier in writing that the locomotive is not in service- able condition, and thereafter such boiler shall not be used until in serviceable condition : Provided, That a carrier, when notified by an inspector in writing that a locomotive boiler is not in serviceable condi- tion because of defects set out and described in said notice, may, within five days after receiving said notice, appeal to the chief inspector by telegraph or by letter to have said boiler re-examined, and upon receipt of the appeal from the inspector's decision the chief inspector shall assign one of the assistant chief inspectors or any district inspector other than the one from whom decision the appeal is taken to re-examine and inspect said boiler within fifteen days from date of notice. If upon such re-examination the boiler is found in serviceable condition, the chief inspector shall immediately notify the carrier in writing, whereupon such boiler may be put into service without further delay ; but if the re-examination of said boiler sustains the decision of the district in- spector, the chief inspector shall at once notify the carrier owning or operating such locomotive that the appeal from the decision of the inspector is dismissed, and upon the receipt of such notice the carrier may, within thirty days, appeal to the Interstate Commerce Commission, and upon such appeal, and after hearing, said Commission shall have power to revise, modify, or set aside such action of the chief inspector and declare that said locomotive is in serviceable condition and authorize the same to be operated : Provided further. That pending either appeal the requirements of the inspector shall be effective. Annual Report of Chief Inspector. Sec. 7. That the chief inspector shall make an annual report to the Interstate Commerce Commission of the work done during the year, and shall make such recommendations for the betterment of the service as he may desire. Accidents from Failure of Boilers, Sec. 8. That in the case of accident resulting from failure from any cause of a locomotive boiler or its appurtenances, resulting in serious injury or death to one or more persons, a statement forthwith must be made in writing of the fact of such accident, by the carrier owning or operating said locomotive, to the chief inspector ; whereupon the facts concerning such accident shall be investigated by the chief inspector or one of his assistants, or such inspector as the chief inspector Boiler Inspection 293 may designate for that purpose. And where the locomotive is disabled to the extent that it can not be run by its own steam, the part or parts affected by the said accident shall be preserved by said carrier intact, so far as possible, without hindrance or interference to traffic until after said inspection. The chief inspector or an assistant or the desig- nated inspector making the investigation shall examine or cause to be examined thoroughly the boiler or part aft'ected, making full and detailed report of the cause of the accident to the chief inspector. The Interstate Commerce Commission may at any time call upon the chief inspector for a report of any accident embraced in this sec- tion, and upon the receipt of said report, if it deems it to the public interest, make reports of such investigations, stating the cause of acci- dent, together with such recommendations as it deems proper. Such reports shall be made public in such manner as the Commission deems proper. Neither said report nor any report of said investigation nor any part thereof shall be admitted as evidence or used for any purpose in anv suit or action for damages growing out of any matter mentioned in said report or investigation. Penalty for Violations by Carriers, Sec. 9. That any common carrier violating this Act or any rule or regulation made under its provisions or any lawful order of any inspector shall be liable to a penalty of one hundred dollars for each and every such violation, to be recovered in a suit or suits to be brought by the United States attorney in the district court of the United States having jurisdiction in the locality where such violation shall have been committed ; and it shall be the duty of such attorneys, subject to the direction of the Attorney General, to bring such suits upon duly verified information being lodged with them, respectively, of such violations having occurred ; and it shall be the duty of the chief inspector of locomotive boilers to give information to the proper United States attorney of all violations of this Act coming to his knowledge. Limit of Appropriation. Sec. 10. That the total amounts directly appropriated to carry out the provisions of this Act shall not exceed for any one fiscal year the sum of three hundred thousand dollars. Act of March 4, 1915. Sec. 1. That section two of the Act entitled "An Act to promote the safety of employees and travelers upon railroads by compelling common carriers engaged in interstate commerce to equip their locomotives with safe and suitable boilers and appurtenances thereto," approved February seventeenth, nineteen hundred and eleven, shall apply to and include the entire locomotive and tender and all parts and appurtenances thereof. Sec. 2. That the chief inspector and the two assistant chief in- spectors, together with all the district inspectors, appointed under the Act of February seventeenth, nineteen hundred and eleven, shall inspect and 294 Important Federal Laws shall have the same powers and duties with respect to all the parts and appurtenances of the locomotive and tender that they now have with respect to the boiler of a locomotive and the appurtenances thereof, and the said act of February seventeenth, nineteen hundred and eleven, shall apply to and include the entire locomotive and tender and all their parts with the same force and effect as it now applies to locomotive boilers and their appurtenances. That upon the passage of this act all inspectors and applicants for the position of inspector shall be examined touching their qualifications and fitness with respect to the additional duties im- posed by this act. Sec. 3. That nothing in this act shall be held to alter, amend, change, repeal, or modify any other Act of Congress than the said Act of February seventeenth, nineteen hundred and eleven, to which reference is herein specifically made, or any order of the Interstate Commerce Commission promulgated under the safety appliance act of March second, eighteen hundred and ninety-three, and supplemental acts. ASH-PAN ACT. Act of May 30, 1908. An Act to promote the safety of employees on railroads. Ash-pan Equipment. Sec. 1. That on and after the first day of January, nineteen hun- dred and ten, it shall be unlawful for any common carrier engaged in interstate or foreign commerce by railroad to use any locomotive in moving interstate or foreign traffic, not equipped with an ash pan, which can be dumped or emptied and cleaned without the necessity of any employee going under such locomotive. Ash-pan Equipment in Territories. Sec. 2. That on and after the first day of January, nineteen hun- dred and ten, it shall be unlawful for any common carrier by railroad in any Territory of the United States or the District of Columbia to use any locomotive not equipped with an ash pan, which can be dumped or emptied and cleaned without the necessity of any employee going under such locomotive. Penalties. Sec. 3. That any such common carrier using any locomotive in violation of any of the provisions of this Act shall be liable to a penalty of two hundred dollars for each and every such violation, to be recov- ered in a suit or suits to be brought by the United States district attorney in the district court of the United States having jurisdiction in the localitv where such violation shall have been committed ; and it shall be the duty of such district attorney to bring such suits upon duly veri- fied information being lodged with him of such violation having occurred ; and it shall also be the dutv of the Interstate Commerce Com- Ash-Pan Act — Medals of Hoxor. 295 mission to lodge with the proper district attorneys information of any such violations as may come to its knowledge. Powers of Commission. Sec. 4. That it shall be the duty of the Interstate Commerce Com- mission to enforce the provisions of this Act, and all powers heretofore granted to said Commission are hereby extended to it for the purpose of the enforcement of this Act. Receivers Included. Sec. 5. That the term "common carrier" as used in this Act shall include the receiver or receivers or other persons or corporations charged with the dutv of the management and operation of the business of a common carrier. When Ash-pan Is Not Necessary. Sec. 6. That nothing in this xA.ct contained shall apply to any locomotive upon which, by reason of the use of oil, electricity, or other such agency, an ash pan is not necessary. When Act Effective. Sec. 8. That this Act shall take effect sixty days after its passage. MEDALS OF HONOR ACT. Act of February 23, 1905. An Act to promote the security of travel upon railroads engaged in interstate commerce, and to encourage the saving of life. Life-saving on Railroads — Medals of Honor For. Sec. 1. That the President of the United States be, and he is hereby, authorized to cause to be prepared bronze medals of honor, with "^suitable emblematic devices, which shall be bestowed upon any persons who shall hereafter, by extreme daring, endanger their own lives in saving, or endeavoring to save, lives from any wreck, disaster, or grave accident, or in preventing or endeavoring to prevent such wreck, disaster, or grave accident, upon any railroad within the United States engaged in interstate commerce: Provided, That no award of said medal shall be made to any person until sufficient evidence of his deserving shall have been furnished and placed on file, under such regulations as may be prescribed by the President of the United States. Rosettes and Ribbons. Sec. 2. That the President of the United States be, and he is hereby, authorized to issue to any person to whom a medal of honor may be awarded under the provisions of this Act a rosette or knot, to be worn in lieu of the medal, and a ribbon to be worn with the medal; said rosette or knot and ribbon to be each of a pattern to be pre- scribed by the President of the United States ; Provided. That whenever a ribbon' issued under the provisions of this Act shall have been lost. 296 Important Federal Laws destroyed, or rendered unfit for use without fault or neglect on the part of the person to whom it was issued, a new ribbon shall be issued to such person without charge therefor. Payment of Expenses. Sec. 3. That the appropriations for the enforcement and execution of the provisions of the Acts to promote the safety of employees and travelers upon railroads are hereby made available for carrying out the provisions of this Act. HOURS OF SERVICE ACT. Act of March 4, 1907. An Act to promote the safety of employees and travelers upon railroads by limiting the hours of service of employees thereon. Common Carrier and Employees Subject to Act. Sec. 1. That the provisions of this Act shall apply to any common carrier or carriers, their officers, agents, and employees, engaged in the transportation of passengers or property by railroad in the District of Columbia or any Territory' of the United States, or from one 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, or from any place in the United States to an adjacent foreign country, or from any place in the United States through a foreign country to any other place in the United States. The term "railroad" as used in this Act shall include all bridges and ferries used or operated in con- nection with any railroad, and also all the road in use by any common carrier operating a railroad, whether owned or operated under a con- tract, agreement, or lease; and the term "employees" as used in this Act shall be held to mean persons actually engaged in or connected with the movement of any train. Sixteen Hours the Maximum Continuous Service. Sec. 2. That it shall be unlawful for any common carrier, its officers or agents, subject to this Act to require or permit any employee subject to this Act to be or remain on duty for a longer period than six- teen consecutive hours, and whenever any such employee of such com- mon carrier shall have been continuously on duty for sixteen hours he shall be relieved and not required or permitted again to go on duty until he has had at least ten consecutive hours ofif duty ; and no such employee who has been on duty sixteen hours in the aggregate in any twenty-four-hour period shall be required or permitted to continue or again go on duty without having had at least eight consecutive hours ofif duty : Provided, That no operator, train dispatcher, or other employee who by the use of the telegraph or telephone dispatches, reports, transmits, receives, or delivers orders pertaining to or affecting train movements shall be required or permitted to be or remain on duty for a longer Hours of Service 297 period than nine hours in any twenty-four-hour period in all towers, offices, places, and stations continuously operated night and day, nor for a longer period than thirteen hours in all towers, offices, places, and stations operated only during the daytime, except in case of emergency, when the employees named in this proviso may be permitted to be and remain on duty for four additional hours in a twenty-four-hour period on not exceeding three days in any week : Provided further, The Inter- state Commerce Commission may after full hearing in a particular case and for good cause shown extend the period within which a common carrier shall comply with the provisions of this proviso as to such case. Sec. 2. That nothing in this Act shall affect, or be held to affect, any suit that may be instituted for recovery of penalty for violation of the Act hereby amended occurring prior to the approval of this Act, or any suit for such penalty or growing out of alleged violation of the Act hereby amended which may be pending in any court at the time of the approval of this Act. (As amended May 4, 1916.) Penalty for Violation. Sec. 3. That any such common carrier, or any officer or agent there- of, requiring or permitting any employee to go, be, or remain on duty in violation of the second section hereof shall be liable to a penalty of not less than $100 nor more than $500 for each and every violation, to be recovered in a suit or suits to be brought by the United States district attorney in the district court of the United States having jurisdiction in the locality where such violations shall have been committed ; and it shall be the duty of such district attorney to bring such suit upon satisfactory information being lodged w'ith him ; but no such suit shall be brought after the expiration of one year from the date of such violation ; and it shall also be the duty of the Interstate Commerce Commission to lodge with the proper district attorney information of any such violations as may come to its knowledge. In all prosecutions under this act the common carrier shall be deemed to have knowledge of all acts of all its officers and agents : Provided, That the provisions of this act shall not apply in any case of casualty or unavoidable accident or the act of God; nor where the delay was the result of a cause not known to the carrier or its officer or agent in charge of such employee at the time said employee left a terminal, and which could not have been foreseen : Provided further. That the provisions of this Act shall not apply to the crews of wrecking or relief trains. Sec. 4. It shall be the duty of the Interstate Commerce Com- mission to execute and enforce the provisions of this Act, and all powers granted to the Interstate Commerce Commission are hereby extended to it in the execution of this Act. Effective. Sec. 5. That this Act shall take effect and be in force one year after its passage. 298 Important Federal Laws COMPENSATION FOR INJURIES OF FEDERAL EMPLOYEES. Act of September 7. 1916. An Act to provide compensation for employees of the United States suffering injuries while in the performance of their duties, and for other purposes. Government Employees — Compensation for Injuries in Service. Sec. L That the United States shall pay compensation as herein- after specified for the disability or death of an employee resulting from a personal injury sustained while in the performance of his duty, but no compensation shall be paid if the injury or death is caused by the willful misconduct of the employee or by the employee's intention to bring about the injury or death of himself or of another, or if intoxication of the injured employee is the proximate cause of the injury or death. Days Excluded. Sec. 2. That during the first three days of disability the employee shall not be entitled to compensation except as provided in section nine. No compensation shall at any time be paid for such period. Total Disability. Sec. 3. That if the disability is total the United States shall pay to the disabled employee during such disability a monthly compen- sation equal to sixty-six and two-thirds per centum of his monthly pay, except as hereinafter provided. Partial Disability. Sec. 4. That if the disability is partial the United States shall pay to the disabled employee during such disability a monthly compensa- tion equal to sixty-six and two-thirds per centum of the difference between his monthly pay and his monthly wage-earning capacity after the beginning of such partial disability. The commission may, from time to time, require a partially disabled employee to make an affidavit as to the wages which he is then receiving. In such affidavit the employee shall include a statement of the value of hous- ing, board, lodging, and other advantages which are received from the employer as a part of his remuneration and which can be estimated in money. If the employee, when required, fails to make such affidavit, he shall not be entitled to any compensation vrhile such failure con- tinues, and the period of such failure shall be deducted from the period during which compensation is payable to him. No Pay if Refusing Work. Sec. 5. That if a partially disabled employee refuses to seek suit- able work or refuses or neglects to work after suitable work is oft'ered to, procured by, or secured for him, he shall not be entitled to any compensation. Allowance for Disability. Sec. 6. That the monthly compensation for total disability shall Employees' Compensation 299 not be more than $66.67 nor less than $33.33, unless the employee's monthly pay is less than $33.33, in which case his monthly compen- sation shall be the full amount of his monthly pay. The monthly compensation for partial disability shall not be more than $66.67. In the case of persons who at the time of the injury were minors or employed in a learner's capacity and who were not physically or mentally defective, the commission shall, on any review after the time when the monthly wage-earning- capacity of such persons wovild probably, but for the injury, have increased, award compensation based on such probaWe monthly wage-earning capacity. The commission may, on any review after the time w-hen the monthly wage-earning capacity of the disabled employee would probably, irrespective of the injury, have decreased on account of old age, award compensation based on such probable monthly wage-earning capacity. Other Pay Restricted. Sec. 7. That as long as the employee is in receipt of compensa- tion under this Act, or, if he has been paid a lump sum in commuta- tion of installment payments, until the exoiration of the period during which such installment payments would have continued, he shall not receive from the United States any salary, pay, or remuneration what- soever except in return for services actually performed, and except pen- sions for service in the Army or Navy of the United States. To Use Leave With Pay First. Sec. 8. That if at the time the disability begins the employee has annual or sick leave to his credit he may. subject to the approval of the head of the department, use such leave until it is exhausted, in which case his compensation shall begin on the fourth day of dis- ability after the annual or sick leave has ceased. Immediate Medical Assistance to Be Furnished. Sec. 9. That immediately after an injury sustained by an em- ployee while in the performance of his duty, whether or not disability has arisen, and for a reasonable time thereafter, the United States shall furnish to such employee reasonable medical, surgical, and hospital serv- ices and supplies unless he refuses to accept them. Such services and supplies shall be furnished by United States medical officers and hos- pitals, but where this is not practicable shall be furnished by private physicians and hospitals designated or approved by the commission and paid for from the employees' compensation fund. If necessary for the securing of proper medical, surgical, and hospital treatment, the employee, in the discretion of the commission, may be furnished transportation at the expense of the employees' compensation fund. Allovi'ances if Death Results — Regulations. Sec. 10. That if death results from the injury within six years the United States shall pay to the following persons for the following 300 Important Federal Laws periods a monthly compensation equal to the following percentages of the deceased employee's monthly pay, subject to the modification that no compensation shall be paid where the death takes place more than one year after the cessation of disability resulting from such injury, or, if there has been no disability preceding death, more than one year after the injury: (A) To the widow, if there is no child, thirty-five per centum. This compensation shall be paid until her death or marriage. (B) To the widower, if there is no child, thirty-five per centum if wholly dependent for support upon the deceased employee at the time of her death. This compensation shall be paid until his death or marriage. (C) To the widow or widower, if there is a child, the com- pensation payable under clause (A) or clause (B) and in addition there- to ten per centum for each child, not to exceed a total of sixty-six and two-thirds per centum for such widow or widower and children. If a child has a guardian other than the surviving widow or widower, the compensation payable on account of such child shall be paid to such guardian. The compensation payable on account of any child shall cease when he dies, marries, or reaches the age of eighteen, or, if over eighteen, and incapable of self-support, becomes capable of self- support. (D) To the children, if there is no widow or widower, twenty- five per centum for one child and ten per centum additional for each additional child, not to exceed a total of sixty-six and two-thirds per centum, divided among such children share and share alike. The compensation of each child shall be paid until he dies, marries, or reaches the age of eighteen, or, if over eighteen and incapable of self-support, becomes capable of self-support. The compensation of a child under legal age shall be paid to its guardian. (E) To the parents, if one is wholly dependent for support upon the deceased employee at the time of his death and the other is not dependent to any extent, twenty-five per centum; if both are wholly dependent, twenty per centum to each; if one is or both are partly dependent, a proportionate amount in the discretion of the commission. The above percentages shall be paid if there is no widow, widower, or child. If there is a widow, widower, or child, there shall be paid so much of the above percentages as, when added to the total per- centages payable to the widow, widower, and children, will not ex- ceed a total of sixty-six and two-thirds per centum. (F) To the brothers, sisters, grandparents, and grandchildren, if one is wholly dependent upon the deceased employee for support at the time of his death, twenty per centum to such dependent ; if more than one are wholly dependent, thirty per centum, divided among such dependents share and share alike; if there is no one of them Employees' Compensaton 301 wholly dependent, but one or more partly dependent, ten per centum divided among such dependents share and share alike. The above percentages shall be paid if there is no widow, widower, child, or dependent parent. If there is a widow, widower, child, or dependent parent, there shall be paid so much of the above per- centages as, when added to the total percentage payable to the widow, widower, children, and dependent parents, will not exceed a total of sixty-six and two-thirds per centum. (G) The compensation of each beneficiary under clauses (E) and (F) shall be paid for a period of eight years from the time of the death, unless before that time he, if a parent or grandparent, dies, marries, or ceases to be dependent, or, if a brother, sister, or grand- child, dies, marries, or reaches the age of eighteen, or, if over eighteen and incapable of self-support, becomes capable of self-support. The compensation of a brother, sister, or grandchild under legal age shall be paid to his or her guardian. (H) As used in this section, the term "child" includes step- children, adopted children, and posthumous children, but does not include married children. The terms "brother" and "sister" include stepbrothers and stepsisters, half brothers and half sisters, and brothers and sisters by adoption, but do not include married brothers or mar- ried sisters. All of the above terms and the term "grandchild" in- clude only persons who at the time of the death of the deceased em- ployee are under eighteen years of age or over that age and incapable of self-support. The term "parent" includes step-parents and parents by adoption. The term "widow" includes only the decedent's wife living with or dependent for support upon him at the time of his death. The tenn "widower" includes only the decedent's husband de- pendent for support upon her at the time of her death. The terms "adopted" and "adoption" as used in this clause include only legal adoption prior to the time of the injury. (I) Upon the cessation of compensation under this section to or on account of any person, the compensation of the remaining persons entitled to compensation for the unexpired part of the period during which their compensation is payable shall be that which such persons would have received if they had been the only persons entitled to compensation at the time of the decedent's death. (J) In case there are two or more classes of persons entitled to compensation under this section and the apportionment of such com- pensation, above provided, would result in injustice, the commission may, in its discretion, modify the apportionment to meet the require- ments of the case. (K) In computing compensation under this section, the monthly pay shall be considered not to be more than $100 nor less than $50. but the total monthly compensation shall not exceed the monthly pay computed as provided in section twelve. 302 Important Federal Laws (L) If any person entitled to compensation under this section, whose compensation by the terms of this section ceases upon his mar- riage, accepts any payments of compensation after his marriage he shall be punished by a fine of not more than $2,000 or by imprison- ment for not more than one year, or by both such fine and imprison- ment. Burial Expenses Allowed. Sec. 11. That if death results from the injury within six years the United States shall pay to the personal representative of the de- ceased employee burial expenses not to exceed $100, in the discre- tion of the commission. In the case of an employee whose home is within the United States, if his death occurs away from his home office or outside of the United States, and if so desired by his relatives, the body shall, in the discretion of the commission, be embalmed and transported in a hermetically sealed casket to the home of the em- plovee. Such burial expenses shall not be paid and such transporta- tion shall not be furnished where the death takes place more than one year after the cessation of disability resulting from such injury, or, if there has been no disability preceding death, more than one year after the injury. Computing Employee's Monthly Pay. Sec. 12. That in computing the monthly pay the usual practice of the service in which the employee was employed shall be followed. Subsistence and the value of quarters furnished an employee shall be included as part of the pay, but overtime pay shall not be taken into account. Wage-earning Capacity if Partially Disabled. Sec. 13. That in the determination of the employee's monthly wage-earning capacity after the beginning of partial disability, the value of housing, board, lodging, and other advantages which are received from his employer as a part of his remuneration and which can be estimated in money shall be taken into account. Lump-sum Commutations. Sec. 14. That in cases of death or of permanent total or perma- nent partial disability, if the monthly payment to the beneficiary is less than $5 a month, or if the beneficiary is or is about to become a non-resident of the United States, or if the commission determines that it is for the best interests of the beneficiary, the liability of the United States for compensation to such beneficiary may be discharged by the payment of a lump sum equal to the present value of all future payments of compensation computed at four per centum true dis- count' compounded annually. The probability of the beneficiary's death before the expiration of the period during which he is entitled to com- pensation shall be determined according to the American Experience Table of ^Mortality ; but in case of compensation to the widow or Employees' Compensation 303 widower of the deceased employee, such lump sum shall not exceed sixty months' compensation. The probability of the happening of any other contingency affecting the amount or duration of the compensation shall be disregarded. Written Notice of Injury Required. Sec. 15. That every employee injured in the performance of his duty, or some one on his behalf, shall, within forty-eight hours after the injury, give written notice thereof to the immediate superior of the employee. Such notice shall be given by delivering it personally or by depositing it properly stamped and addressed in the mail. Particulars. Sec. 16. That the notice shall state the name and address of the ■ employee, the year, month, day, and hour when and the particular locality where the injury occurred, and the cause and nature of the injury, and shall be signed by and contain the address of the person giving the notice. No Pay Without Notice. Sec. 17. That unless notice is given within the time specified or unless the immediate superior has actual knowledge of the injury, no compensation shall be allowed, but for any reasonable cause shown, the commission may allow compensation if the notice is filed within one year after the injury. Claim Must Be Filed. Sec. 18. That no compensation under this Act shall be allowed to any person, except as provided in section thirty-eight, unless he or some one on his behalf shall, within the time specified in section twenty, make a written claim therefor. Such claim shall be made by delivering it at the office of the commission or to any commissioner or to any person whom the commission may by regulation designate, or by depositing it in the mail properly stamped and addressed to the commission or to any person whom the commission may by regu- lation designate. Forms. Sec. 19. That every claim shall be made on forms to be furnished by the commission and shall contain all the information required by the commission. Each claim shall be sworn to by the person entitled to compensation or by the person acting on his behalf, and, except in case of death, shall be accompanied by a certificate of the employee's physician stating the nature of the injury and the nature and probable extent of the disability. For any reasonable cause shown the com- mission may w'aive the provisions of this section. Time For Making Claims. Sec. 20. That all original claims for compensation for disability shall be made within sixty days after the injury. All original claims 304 Important Federal Laws for compensation for death shall be made within one year after the death. For any reasonable cause shown the commission may allow original claims for compensation for disability to be made at any time within one year. Medical Examinations. Sec. 21. That after the injury the employee shall, as frequently and at such times and places as may be reasonably required, submit himself to examination by a medical officer of the United States or by a duly qualified physician designated or approved by the commis- sion. The employee may have a duly qualified physician designated and paid by him present to participate in such examination. For all examinations, after the first the employee shall, in the discretion of the commission, be paid his reasonable traveling and other expenses and loss of wages incurred in order to submit to such examination. If the employee refuses to submit himself for or in any way obstructs any examination, his right to claim compensation under this Act shall be suspended until such refusal or obstruction ceases. No compensation shall be payable while such refusal or obstruction continues, and the period of such refusal or obstruction shall be deducted from the period for which compensation is payable to him. Re-examination if Physicians Disagree. Sec. 22. That in case of any disagreement between the physician making an examination on the part of the United States and the em- ployee's physician the commission shall appoint a third physician, duly qualified, who shall make an examination. Examination Fees. Sec. 23. That fees for examination made on the part of the United States under sections twenty-one and twenty-two by physicians who are not already in the service of the United States shall be fixed by the commission. Such fees, and any sum payable to the employee under section twenty-one, shall be paid out of the appropriation for the work of the commission. Superior Officer to Report Injury. Sec. 24. That immediately after an injury to an employee result- ing in his death or in his probable disability, his immediate superior shall make a report to the commission containing such information as the commission may require, and shall thereafter make such supple- mentary reports as the commission may require. Assignments Void. Sec. 25. That any assignment of a claim for compensation under this Act shall be void and all compensation and claims therefor shall be exempt from all claims of creditors. Injuries Caused by Other Persons. Sec. 26. If an injury or death for which compensation is payable Employees' Compexsation 305 under this Act is caused under circumstances creating a legal liability upon some person other than the United States to pay damages there- for, the commission may require the beneficiary to assign to the United States any right of action he may have to enforce such liability of such other person or any right which he may have to share in any money or other property received in satisfaction of such liability of such other person, or the commission may require said beneficiary to prosecute said action in his own name. If the beneficiary shall refuse to make such assignment or to prose- cute said action in his own name when required by the commission, he shall not be entitled to any compensation under this Act. The cause of action when assigned to the United States may be prosecuted or compromised by the commission, and if the commission realizes upon such cause of action, it shall apply the money or other property so received in the following manner : After deducting the amount of any compensation already paid to the beneficiary and the expenses of such realization or collection, which sum shall be placed to the credit of the employees' compensation fund, the surplus, if any, shall be paid to the beneficiary and credited upon any future pay- ments of compensation payable to him on account of the same injury. Damages Received by Employee from Other Party. Sec. 27. That if an injury or death for which compensation is pay- able under this Act is caused under circumstances creating a legal liability in some person other than the United States to pay damages therefor, and a beneficiary entitled to compensation from the United States for such injury or death receives, as a result of a suit brought by him or on his behalf, or as a result of a settlement made by him or on his behalf, any money or other property in satisfaction of the liability of such other person, such beneficiary shall, after deducting the costs of suit and a reasonable attorney's fee, apply the money or other property so received in the following manner: (A) If his compensation has been paid in whole or in part, he shall refund to the United States the amount of compensation which has been paid by the United States and credit any surplus upon future payments of compensation payable to him on account of the same injury. Any amount so refunded to the United States shall be placed to the credit of the employees' compensation fund. (B) If no compensation has been paid to him by the United States, he shall credit the money or other property so received upon any compensation payable to him by the United States on account of the same injury. Employees' Compensation Commission. Sec. 28. That a commission is hereby created, to be known as the United States Employees' Compensation Commission, and to be com- posed of three commissioners appointed by the President, by and with (20) 306 Important Federal Laws the advice and consent of the Senate, one of whom shall be designated by the President as chairman. No commissioner shall hold any other office or position under the United States. No more than two of said commissioners shall be members of the same political party. One of said commissioners shall be appointed for a term^ of two years, one for a term of four years, and one for a term of six years, and at the expiration of each of said terms, the commissioner then appointed shall be appointed for a period of six years. Each commissioner shall receive a salary of $4,000 a year. The principal office of said commission shall be in Washington, District of Columbia, but the said commission is authorized to perform its work at any place deemed necessary by said commission, subject to the restrictions and limitations of this Act. Jurisdiction of All Other Offices Transferred. Sec. 28a. Upon the organization of said commission and notifi- cation to the heads of all executive departments that the commission is ready to take up the work devolved upon it^ by this Act, all com- missions and independent bureaus, by or in which payments for com- pensation are now provided, together with the adjustment and settle- ment of such claims, shall cease and determine, and such executive departments, commissions, and independent bureaus shall transfer all pending claims to said commission to be administered by it. The said commission may obtain, in all cases, in addition to the reports provided in section twenty-four, such information and such reports from employees of the departments as may be agreed upon by the commission and the heads of the respective departments. All clerks and employees now exclusively engaged in carrying on said work in the various executive departments, commissions, and independent bureaus, shall be transferred to, and become employees of, the commission at their present grades and salaries. General Authority Conferred. Sec. 29. That the commission, or any commissioner by authority of the commission, shall have power to issue subpoenas for and compel the attendance of witnesses within a radius of one hundred miles, to require the production of books, papers, documents, and other evidence to administer oaths, and to examine witnesses, upon any matter within the jurisdiction of the commission. Office Force Civil Service Appointees. Sec. 30. That the commission shall have such assistants, clerks, and other employees as may be from time to time provided by Con- gress. They shall be appointed from lists of eligibles to be supplied by the Civil Service Commission, and in accordance with the Civil- service law. Annual Estimates. Sec. 31. That the commission shall submit annually to the Secre- Employees' Compensation 307 tary of the Treasury estimates of the appropriations necessary for the work of the commission. Regulations to be Made. Sec. 32. That the commission is authorized to make necessary rules and regulations for the enforcement of this Act, and shall decide all questions arising under this Act. Report to Congress. Sec. 33. That the commission shall make to Congress at the begin- ning of each regular session a report of its work for the preceding fiscal year, including a detailed statement of appropriations and ex- penditures, a detailed statement showing receipts of and expenditures from the employees' compensation fund, and its recommendations for legislation. Amount Authorized for Salaries and Expenses. Sec. 34. That for the fiscal year ending June thirtieth, nineteen hundred and seventeen, there is hereby authorized to be appropriated, from any money in the Treasury not otherwise appropriated, the sum of $50,000 for the work of the commission, including salaries of the commissioners and of such assistants, clerks, and other employees as the commission may deem necessary, and for traveling expenses, ex- penses of medical examinations under sections twenty-one and twenty- two, reasonable traveling and other expenses and loss of wages pay- able to employees under section twenty-one, rent and equipment of offices, purchase of books, stationery, and other supplies, printing and binding to be done at the Government Printing Office, and other neces- sary expenses. Amount for Employees' Compensation Fund. Sec. 35. That there is hereby authorized to be appropriated, from any money in the Treasury not otherwise appropriated, the sum of $500,000, to be set aside as a separate fund in the Treasury, to be known as the employees' compensation fund. To this fund there shall be added such sums as Congress may from time to time appropriate for the purpose. Such fund, including all additions that may be made to it, is hereby authorized to be permanently appropriated for the pay- ment of the compensation provided by this Act, including the medical, surgical, and hospital services and supplies provided by section nine, and the transportation and burial expenses provided by sections nine and eleven. The commission shall submit annually to the Secretary of the Treasury estimates of the appropriations necessary for the maintenance of the fund. Determination of Claims. Sec. 36. The commission, upon consideration of the claim pre- sented by the beneficiary, and the report furnished by the immediate superior and the completion of such investigation as it may deem 308 Important Federal Laws necessary, shall determine and make a finding of facts thereon and make an award for or against payment of the compensation provided for in this Act. Compensation when awarded shall be paid from the employees' compensation fmid. Review of Awards. Sec. yj. That if the original claim for compensation has been made within the time specified in section twenty, the commission may, at any time, on its own motion or on application, review the award,_ and, in accordance with the facts found on such review, may end, diminish, or increase the compensation previously awarded, or, if compensation has been refused or discontinued, award compensation. Cancellation of Mistakes. Sec. 38. That if any compensation is paid under a mistake of law or of fact, the commission shall immediately cancel any award under which such compensation has been paid and shall recover, as far as practicable, any amount which has been so paid. Any amount so recovered shall be placed to the credit of the employees' compensation fund. Punishment for False Statements, Etc. Sec. 39. That whoever makes, in any affidavit required under section four or in any claim for compensation, any statement, know- ing it to be false, shall be guilty of perjury and shall be punished by a fine of not more than $2,000, or by imprisonment for not more than one year, or by both such fine and imprisonment. Definition of Terms Used. Sec. 40. That wherever used in this Act — The singular includes the plural and the masculine includes the feminine. The term "employee" includes all civil employees of the United States and of the Panama Railroad Company. The term "commission" shall be taken to refer to the United States Employees' Compensation Commission provided for in section twenty- eight. The term "physician" includes surgeons. The term "monthly pay" shall be taken to refer to the monthly pay at the time of the injury. Inconsistent Laws Repealed ; Injuries Under Panama Railroad Com- pany. . • , , • A Sec. 41. That all Acts or parts of Acts inconsistent with this Act are hereby repealed: Provided, however. That for injuries occurring prior to the passage of this Act compensation shall be paid under the law in force at the time of the passage of this Act: And provided further. That if an injury or death for which compensation is payable under this Act is caused under circumstances creating a legal liability Employees' Compensation 309 in the Panama Railroad Company to pay damages therefor under the laws of any State, Territory, or possession of the United States or of the District of Columbia or of any foreigri country, no compensation shall be payable until the person entitled to compensation releases to the Panama Railroad Company any right of action which he may have to enforce such liability of the Panama Railroad Company, or until he assigns to the United States any right which he may have to share in any money or other property received in satisfaction of such liability of the Panama Railroad Company. Employees, Panama Canal Railroad and Alaska Railroad. Sec. 42. That the President may, from time to time, transfer the administration of this Act so far as employees of the Panama Canal and of the Panama Railroad Company are concerned to the governor of the Panama Canal, and so far as employees of the Alaskan Engi- neering Commission are concerned to the chairman of that commis- sion, in which cases the words "commission" and "its" wherever they appear in this Act shall, so far as necessary to give effect to such transfer, be read "governor of the Panama Canal" or "chairman of the Alaskan Engineering Commission," as the case may be, and "his" ; and the expenses of medical examinations under sections twenty-one and twenty-two, and the reasonable traveling and other expenses and loss of wages payable to employees under section twenty-one, shall be paid out of appropriations for the Panama Canal or for the Alaskan Enginering Commission or out of funds of the Panama Railroad, as the case may be, instead of out of the appropriation for the work of the commission. In the case of compensation to employees of the Panama Canal or of the Panama Railroad Company for temporary disability, either total or partial, the President may authorize the governor of the Panama Canal to waive, at his discretion, the making of the claim required by section eighteen. In the case of alien employees of the Panama Canal or of the Panama Railroad Company, or of any class or classes of them, the President may remove or modify the minimum limit established by section six on the monthly compensation for disability and the minimum limit established by clause (K) of sec- tion ten on the monthly pay on which death compensation is to be computed. The President may authorize the governor of the Panama Canal and the chairman of the Alaskan Engineering Commission to pay the compensation provided by this Act, including the medical, surgical, and hospital services and supplies provided by section nine and the transportation and burial expenses provided by sections nine and eleven, out of the appropriations for the Panama Canal and for the Alaskan Engineering Commission, such appropriations to be reimbursed for such payments by the transfer of funds from the em- ployees' compensation fund. 310 Important Federal Laws CHILD LABOR ACT. Act of September 1, 1916. An act to prevent interstate commerce in the products of child labor, and for other purposes. Products of Child Labor Prohibited in Interstate Commerce. Sec. 1. That no producer, manufacturer, or dealer shall ship or deliver for shipment in interstate or foreign commerce any article or commodity the product of any mine or quarry, situated in the United States, in which within thirty days prior to the time of the removal of such product therefrom children under the age of sixteen years have been employed or permitted to work, or any article or commodity the product of any mill, cannery, workshop, factory, or manufacturing estab- lishment, situated in the United States, in which within thirty days prior to the removal of such product therefrom children under the age of four- teen years have been employed or permitted to work, or children between the ages of fourteen years and sixteen years have been employed or per- mitted to work more than eight hours in any day, or more than six days in any week, or after the hour of seven o'clock postmeridian, or before the hour of six o'clock antemeridian : Provided, That a prosecution and conviction of a defendant for the shipment or delivery for shipment of any article or commodity under the conditions herein prohibited shall be a bar to anv further prosecution against the same defendant for ship- ments or deliveries for shipment of any such article or commodity before the beginning of said prosecution. Board to Enforce. Sec. 2. That the Attorney-General, the Secretary of Commerce, and the Secretary of Labor shall constitute a board to make and publish from time to time uniform rules and regulations for carrying out the provi- sions of this Act. Power of Secretary of Labor. Sec. 3. That for the purpose of securing proper enforcement of this Act the Secretary of Labor, or any person duly authorized by him, shall have authority to enter and inspect at any time mines, quarries, mills, canneries, workshops, factories, manufacturing establishments, and other places in which goods are produced or held for interstate com- merce ; and the Secretary of Labor shall have authority to employ such assistance for the purposes of this Act as may from time to time be authorized by appropriation or other law. Duties of District Attorneys. Sec. 4. That it shall be the duty of each district attorney to whom the Secretary of Labor shall report any violation of this Act, or to whom any State factory or mining or quarry inspector, commissioner of labor. State medical inspector, or school-attendance officer, or any other person shall present satisfactory evidence of any such violation to cause appro- Child Labor 311 priate proceedings to be commenced and prosecuted in the proper courts of the United States without delay for the enforcement of the penalties in such cases herein provided : Provided, That nothing in this Act shall be construed to apply to bona fide boys' and girls' canning clubs recog- nized by the Agricultural Department of the several States and of the United States. Penalties. Sec. 5. That any person who violates any of the provisions of sec- tion one of this Act, or who refuses or obstructs entry or inspection aulhorized by section three of this Act, shall for each olTense prior to the first conviction of such person under the provisions of this Act, be punished by a fine of not more than $200, and shall for each offense subsequent to such conviction be punished by a fine of not more than $1,000, nor less than $100, or by imprisonment for not more than three months, or by both such fine and imprisonment, in the discretion of the court: Provided, That no dealer shall be prosecuted under the pro- visions of this Act for a shipment, delivery for shipment, or transporta- tion who establishes a guaranty issued by the person by whom the goods shipped or delivered for shipment or transportation were manufactured or produced, resident in the United States, to the effect that such goods were produced or manufactured in a mine or quarry in which within thirty days prior to their removal therefrom no children under the age of sixteen years were employed or permitted to work, or in a mill, cannery, workshop, factory or manufacturing establishment, in which within thirty days prior to the removal of such goods therefrom no children under the age of fourteen years were employed or permitted to work, nor children between the ages of fourteen years and sixteen years employed or per- mitted to work more than eight hours in any day or more than six days in any week or after the hour of seven o'clock postmeridian or before the hour of six o'clock antemeridian; and in such event, if the guaranty contains any false statement of a material fact, the guarantor shall be amenable to prosecution and to the fine or imprisonment provided by this section for violation of the provisions of this Act. Said guaranty, to afford the protection above provided, shall contain the name and address of the person giving the same : And provided further. That no producer, manufacturer or dealer shall be prosecuted under this Act for the ship- ment, delivery for shipment, or transportation of a product of any mine, quarry, mill, cannery, workshop, factory or manufacturing establishment, if the only employment therein, within thirty days prior to the removal of such product therefrom, of a child under the age of sixteen years has been that of a child as to whom the producer or manufacturer has in good faith procured, at the time of employing such child and has since in good faith relied upon and kept on file a certificate, issued in such form, under such conditions, and by such persons as may be prescribed by the board, showing the child to be of such an age that the shipment, delivery for 312 Important Federal Laws shipment, or transportation was not prohibited by this Act. Any person who knowingly makes a false statement or presents false evidence in or in relation to any such certificate or application therefor shall be amen- able to prosecution and to the fine or imprisonment provided by this sec- tion for violations of this Act. In any State designated by the board, an employment certificate or other similar paper as to the age of the child, issued under the laws of that State and not inconsistent with the pro- visions of this Act, shall have the same force and effect as a certificate herein provided for. Definitions. Sec. 6. That the word "person" as used in this Act shall be con- strued to include any individual or corporation or the members of any partnership or other unincorporated association. The term "ship or deliver for shipment in interstate or foreign commerce" as used in this Act means to transport or to ship or deliver for shipment from any State or Territory or the District of Columbia to or through any other State or Territory or the District of Columbia or to any foreign country ; and in the case of a dealer means only to transport or to ship or deliver for shipment from the State, Territory or district of manufacture or pro- duction. Sec. 7. That this Act shall take effect from and after one year from the date of its passage. CHILDREN'S BUREAU. Act of April 9, 1912. An Act to establish in the Department of Labor a bureau to be known as the Children's Bureau. Sec. I. That there shall be established in the Department of Labor a bureau to be known as the Children's Bureau.^ Sec. 2. That the said bureau shall be under the direction of a chief, to be appointed by the President, by and with the advice and consent of the Senate, and who shall receive an annual compensation of five thousand dollars. The said bureau shall investigate and report to said department upon all matters pertaining to the welfare of chil- dren and child life among all classes of our people, and shall especially investigate the question of infant mortality, the birth rate, orphanage, juvenile courts, desertion, dangerous occupations, accidents and dis- eases of children, employment, legislation affecting children in the sev- eral States and Territories. But no official, or agent, or representative of said bureau shall, over the objection of the head of the family, enter 1 Transferred from Department of Commerce and Labor to Department of Labor by act approved March 4, 1913. Children's Bureau — Eight-Hour Day 313 any house used exclusively as a family residence. The chief of said bureau may from time to time publish the results of these investiga- tions in such manner and to such extent as may be prescribed by the Secretary of Labor. Sec. 3. That there shall be in said bureau, until otherwise pro- vided for by law, an assistant chief, to be appointed by the Secretary of Labor, wlho shall receive an annual compensation of two thousand four hundred dollars ; one private secretary to the chief of the bureau, who shall receive an annual compensation of one thousand five hun- dred dollars ; one statistical expert, at two thousand dollars ; two clerks of class four; two clerks of class three; one clerk of class two; one clerk of class one; one clerk, at one thousand dollars; one copyist, at nine hundred dollars ; one special agent, at one thousand four hundred dollars ; one special agent, at one thousand two hundred dollars ; and one messenger, at eight hundred and forty dollars. Sec. 4. That the Secretary of Labor is hereby directed to furnish sufficient quarters for the work of this bureau at an annual rental not to exceed two thousand dollars. Sec. 5. That this act shall take effect and be in force from and after its passage. EIGHT-HOUR DAY ACT. Act of September 3 and September 5, 1916. An act to establish an eight-hour day for employees of carriers engaged in interstate and foreign commerce, and for other purposes. Eight-Hour Day Established. Sec. 1. That beginning January first, nineteen hundred and seven- teen, eight hours shall, in contracts for labor and service, be deemed a day's work and the measure or standard of a day's work for the purpose of reckoning the compensation for services of all employees who are now or may hereafter be employed by any common carrier by railroad, except railroads independently owned and operated not exceeding one hundred miles in length, electric street railroads and electric interurban railroads, which is subject to the provisions of the Act of February fourth, eighteen hundred and eighty-seven, entitled "An Act to regulate commerce," as amended, and who are now or may hereafter be actually engaged in any capacity in the operation of trains used for the transportation of persons or property on railroads, except railroads independently owned and oper- ated not exceeding one hundred miles in length, electric street railroads, and electric interurban railroads from any State or Territory of the United States or the District of Columbia to any other State or Terri- tory of the United States or the District of Columbia, or from one place 314 Important Federal Laws in a Territory to another place in the same Territory, or from any place in the United States to an adjacent foreign country, or from any place in the United States through a foreign country to any other place in the United States: Provided, That the above exceptions shall not apply to railroads though less than one hundred miles in length whose principal business is leasing or furnishing terminal or transfer facilities to other railroads, or are themselves engaged in transfers of freight between rail- roads or between railroads and industrial plants. Commission to Investigate. Sec. 2. That the President shall appoint a commission of three, which shall observe the operation and effects of the institution of the eight-hour standard workday as above defined and the facts and condi- tions affecting the relations between such common carriers and employees during a period of not less than six months nor more than nine months in the discretion of the commission and within thirty days thereafter such commission shall report its findings to the President and Congress ; that each member of the commission created under the provisions of this Act shall receive such compensation as may be fixed by the President. That the sum of $25,000, or so much thereof as may be necessary, be, and hereby is, appropriated, out of any money in the United States Treasury not otherwise appropriated, for the necessary and proper expenses in- curred in connection with the work of such commission, including sal- aries, per diem, traveling expenses of members and employees, and rent, furniture, office fixtures and supplies, books, salaries and other neces- sary expenses, the same to be approved by the chairman of said com- mission and audited by the proper accounting officers of the Treasury. Wages Not to be Reduced Pending Inquiry of Commission. Sec. 3. That pending the report of the commission herein provided for and for a period of thirty days thereafter the compensation of rail- way employees subject to this Act for a standard eight-hour workday shall not be reduced below the present standard day's wage, and for all necessary time in excess of eight hours such employees shall be paid at a rate not less than the pro rata rate for such standard eight-hour workday. Penalties. Sec. 4. That any person violating any provision of this Act shall be guilty of a misdemeanor and upon conviction shall be fined not less than $100 and not more than $1,000, or imprisoned not to exceed one year, or both. Eight-Hour Act 315 EIGHT HOURS ON PUBLIC WORKS ACT. Act of March 3. 1913. An Act relating to the limitation of the hours of daily service of laborers and mechanics employed upon a public work of the United States and of the District of Columbia, and of all persons employed in constructing', main- taining, or improving a river or harbor of the United States and of the District of Columbia.i That sections one, two, and three of an Act entitled "An Act relat- ing to the limitation of the hours of daily service of laborers and mechan- ics employed upon the public works of the United States and of the Dis- trict of Columbia" be amended to read as follows : Section 1. That the service and employment of all laborers and mechanics who are now, or may hereafter be, employed by the Govern- ment of the United States or the District of Columbia, or by any con- tractor or subcontractor, upon a public work of the United States or of the District of Columbia, and of all persons who are now, or may here- after be, employed by the Government of the United States or the Dis- trict of Columbia, or any contractor or subcontractor, to perform services similar to those of laborers and mechanics in connection with dredging or rock excavation in any river or harbor of the United States or of the District of Columbia, is hereby limited and restricted to eight hours in any one calendar day; and it shall be unlawful for any officer of the United States Government or of the District of Columbia, or any such contractor or subcontractor whose duty it shall be to employ, direct, or control the services of such laborers or mechanics or of such persons employed to perform services similar to those of laborers and mechanics in connection with dredging or rock excavation in any river or harbor of the United States or the District of Columbia, to require or permit any such laborer or mechanic or any such person employed to perform services similar to those of laborers and mechanics in connection with dredging or rock excavation in any river or harbor of the United States or of the District of Columbia, to work more than eight hours in any calendar day, except in case of extraordinary emergency: Provided, That nothing in this Act shall apply or be construed to apply to persons employed in connection with dredging or rock excavation in any river or harbor of the United States or of the District of Columbia while not directly operating dredging or rock excavating machinery or tools, nor to persons engaged in construction or repair of levees or revetments neces- sary for protection against floods or overflows on the navigable rivers of the United States. Sec. 2. That any officer or agent of the Government of the United States or of the District of Columbia, or any contractor or subcontractor whose duty it shall be to employ, direct, or control any laborer or mechanic employed upon a public work of the United States or of the District of Columbia, or any person employed to perform services sim- 1 This act entirely supersedes the act which it amends. 316 Important Federal Laws ilar to those of laborers and mechanics in connection with dredging or rock excavation in any river or harbor of the United States or of the District of Columbia, who shall intentionally violate any provision of this Act, shall be deemed guilty of a misdemeanor, and for each and every such offense shall, upon conviction, be punished by a fine not to exceed one thousand dollars, or by imprisonment for not more than six months, or by both such fine and imprisonment, in the discretion of the court having jurisdiction thereof. Sec. 3. That the provisions of this Act shall not be so construed as to in any manner apply to or affect contractors or subcontractors, or to limit the hours of daily service of laborers or mechanics engaged upon a public work of the United States or of the District of Columbia, or persons employed to perform services similar to those of laborers and mechanics in connection with dredging or rock excavation in any river or harbor of the United States or of the District of Columbia, for which contracts have been entered into prior to the passing of this Act or may be entered into under the provisions of appropriation Acts approved prior to the passage of this Act. Sec. 4. That this Act shall become effective and be in force on and after March first, nineteen hundred and thirteen. TAXATION AND REVENUE. FEDERAL TAX LAWS. Act of September 8, 1916. An act to increase the revenue, and for other purposes. TITLE I— INCOME TAX. Part I — On Individuals. Sec. 1. (a) That there shall be levied, assessed, collected and paid annually upon the entire net income received in the preceding calendar year from all sources by every individual, a citizen or resident of the United States, a tax of two per centum upon such income; and a like tax shall be levied, assessed, collected and paid annually upon the entire net income received in the preceding calendar year from all sources within the United States by every individual, a nonresident alien, includ- ing interest on bonds, notes, or other interest-bearing obligations of resi- dents, corporate or otherwise. (b) In addition to the income tax imposed by subdivision (a) of this section (herein referred to as the normal tax) there shall be levied, assessed, collected and paid upon the total net income of every indi- vidual, or, in the case of a non-resident alien, the total net income re- ceived from all sources within the United States, an additional income tax (herein referred to as the additional tax) of one per centum per annum upon the amount by which such total net income exceeds $20,000 and does not exceed $40,000, two per centum per annum upon the amount by which such total net income exceeds $40,000 and does not exceed $60,000, three per centum per annum upon the amount by which such total net income exceeds $60,000 and does not exceed $80,000, four per centum per annum upon the amount by which such total net income ex- ceeds $80,000 and does not exceed $100,000, five per centum per annum upon the amount by which such total net income exceeds $100,000 and does not exceed $150,000, six per centum per annum upon the amount by which such total net income exceeds $150,000 and does not exceed $200,000, seven per centum per annum upon the amount by which such total net income exceeds $200,000 and does not exceed $250,000, eight per centum per annum upon the amotmt by which such total net income exceeds $250,000 and does not exceed $300,000, nine per centum per annum upon the amount by which such total net income exceeds $300,000 and does not exceed $500,000, ten per centum per annum upon the amount by which such total net income exceeds $500,000, and does not exceed $1,000,000, eleven per centum per annum upon the amount by W'hich such total net income exceeds $1,000,000 and does not exceed 318 Important Federal Laws $1,500,CXX), twelve per centum per annum upon the amount by which such total net income exceeds $1,500,000 and does not exceed $2,000,000, and thirteen per centum per annum upon the amount by which such total net income exceeds $2,000,000. For the purpose of the additional tax there shall be included as income the income derived from dividends on the capital stock or from the net earnings of any corporation, joint-stock company or association, or insurance company, except that in the case of non-resident aliens such income derived from sources without the United States shall not be included. All the provisions of this title relating to the normal tax on indi- viduals, so far as they are applicable and are not inconsistent with this subdivision and section three, shall apply to the imposition, levy, assess- ment and collection of the additional tax imposed under this subdivision. (c) The foregoing normal and additional tax rates shall apply to the entire net income, except as hereinafter provided, received by every taxable person in the calendar year nineteen hundred and sixteen and in each calendar year thereafter. Income Defined. Sec. 2. (a) That, subject only to such exemptions and deductions as are hereinafter allowed, the net income of a taxable person shall in- clude gains, profits and income derived from salaries, wages, or compen- sation for personal service of whatever kind and in whatever form paid, or from professions, vocations, businesses, trade, commerce, or sales, or dealings in property, whether real or personal, growing out of the owner- ship or use of or interest in real or personal property, also from interest, rent, dividends, securities or the transaction of any business carried on for gain or profit, or gains or profits and income derived from any source whatever : Provided, That the term "dividend" as used in this title shall be held to mean any distribution made or ordered to be made by a cor- poration, joint-stock company, association, or insurance company, out of its earnings or profits accrued since March first, nineteen hundred and thirteen, and payable to its shareholders, whether in cash or in stock of the corporation, joint-stock company, association, or insurance company, which stock dividend shall be considered income, to the amount of its cash value. (b) Income received by estates of deceased persons during the period of administration or settlement of the estate, shall be subject to the normal and additional tax and taxed to their estates, and also such income of estates or any kind of property held in trust, including such income accumulated in trust for the benefit of unborn or unascertained persons, or persons with contingent interests, and income held for future distribution under the terms of the will or trust shall be likewise taxed, the tax in each instance, except when the income is returned for the pur- pose of the tax by the beneficiary, to be assessed to the executor, ad- Income Tax 319 ministrator or trustee, as the case may be : Provided, That where the income is to be distributed annually or regularly between existing heirs or legatees, or beneficiaries the rate of tax and method of computing the same shall be based in each case upon the amount of the individual share to be distributed. Such trustees, executors, administrators and other fiduciaries are hereby indemnified against the claims or demands of every beneficiary for all payments of taxes which they shall be required to make under the pro- visions of this title, and they shall have credit for the amount of such payments against the beneficiary or principal in any accounting which they make as such trustees or other fiduciaries. (c) For the purpose of ascertaining the gain derived from the sale or other disposition of property, real, personal or mixed, acquired before March first, nineteen hundred and thirteen, the fair market price or value of such property as of March first, nineteen hundred and thirteen, shall be the basis for determining the amount of such gain derived. Additional Tax Includes Undistributed Profits. Sec. 3. For the purpose of the additional tax, the taxable income of any individual shall include the share to which he would be entitled of the gains and profits, if divided or distributed, whether divided or distributed or not, of all corporations, joint-stock companies or associa- tions, or insurance companies, however created or organized, formed or fraudulently availed of for the purpose of preventing the imposition of such tax through the medium of permitting such gains and profits to accumulate instead of being divided or distributed ; and the fact that any such corporation, joint-stock company or association, or insurance com- pany, is a mere holding company, or that the gains and profits are per- mitted to accumulate beyond the reasonable needs of the business, shall be prima facie evidence of a fraudulent purpose to escape such tax ; but the fact that the gains and profits are in any case permitted to accumulate and become surplus shall not be construed as evidence of a purpose to escape the said tax in such case unless the Secretary of the Treasury shall certify that in his opinion such accumulation is unreasonable for the purposes of the business. When requested by the Commissioner of Internal Revenue, or any district collector of internal revenue, such cor- poration, joint-stock company or association, or insurance company shall forward to him a correct statement of such gains and profits and the names and addresses of the individuals or shareholders who would be entitled to the same if divided or distributed. Income Exempt From Law. Sec. 4. The following income shall be exempt from the provisions of this title: The proceeds of life insurance policies paid to individual beneficiaries upon the death of the insured ; the amount received by the insured, as a return of premium or premiums paid by him under life insurance, endow- .320 Important Federal Laws ment or annuity contracts, either during the term or at the maturity of Ihe term mentioned in the contract or upon the surrender of the contract; the vakie of property acquired by gift, bequest, devise or descent (but the income from such property shall be included as income) ; interest upon the obligations of a State or any political subdivision thereof or upon the obligations of the United States or its possessions or securities issued under the provisions of the Federal farm loan Act of July seventeenth, nineteen hundred and sixteen ; the compensation of the present President -of the United States during the term for which he has been elected, and the judges of the Supreme and inferior courts of the United States now in office, and the compensation of all officers and employees of a State, or any political subdivision thereof, except when such compensation is paid by the United States Government. Deductions Allowed. Sec. 5. That in computing net income in the case of a citizen or resident of the United States — (a) For the purpose of the tax there shall be allowed as deduc- tions — First. The necessary expenses actually paid in carrying on any business or trade, not including personal, living or family expenses ; Second. All interest paid within the year on his indebtedness ; Third. Taxes paid within the year imposed by the authority of the United States, or its Territories, or possessions, or any foreign country, or under the authority of any State, county, school district, or muni- cipality, or other taxing subdivision of any State, not including those assessed against local benefits; Fourth. Losses actually sustained during the year, incurred in his business or trade, or arising from fires, storms, shipwreck or other casualty, and from theft, when such losses are not compensated for by insurance or otherwise : Provided, That for the purpose of ascertaining the loss sustained from the sale or other disposition of property, real, personal or mixed, acquired before March first, nineteen hundred and thirteen, the fair market price or value of such property as of March first, nineteen hundred and thirteen, shall be the basis for determining the amount of such loss sustained; Fifth. In transactions entered into for profit but not connected with Ins business or trade, the losses actually sustained therein during the year to an amount not exceeding the profits arising therefrom ; Sixth. Debts due to the taxpayer actually ascertained to be worth- less and charged off within the year ; Seventh. A reasonable allowance for the exhaustion, wear and tear of property arising out of its use or employment in the business or trade; Eighth, (aj In the case of oil and gas wells a reasonable allow- ance for actual reduction in flow and production to be ascertained not by .the flush flow, but by the settled production or regular flow; (b) in the Income Tax 321 case of mines a reasonable allowance for depletion thereof not to exceed the market value in the mine of the product thereof, which has been mined and sold during the year for which the return and computation are made, such reasonable allowance to be made in the case of both (a) and (b) under rules and regulations to be prescribed by the Secretary of the Treasury: Provided, That when the allowances authorized in (a) and (b) shall equal the capital originally invested or in case of purchase made prior to March first, nineteen hundred and thirteen, the fair market value as of that date, no further allowance shall be made. No deduction shall be allowed for any amount paid out for new buildings, permanent improvements, or betterments, made to increase the value of any prop- erty or estate, and no deduction shall be made for any amount of expense of restoring property or making good the exhaustion thereof for which an allowance is or has been made. Credits Allowed. (b) For the purpose of the normal tax only, the income embraced in a personal return shall be credited with the amount received as divi- dends upon the stock or from the net earnings of any corporation, joint- stock company or association, trustee or insurance company, which is taxable upon its net income as hereinafter provided; (c) A like credit shall be allowed as to the amount of income, the normal tax upon which has been paid or withheld for payment at the source of the income under the provisions of this title. Nonresident Aliens. Sec. 6. That in computing net income in the case of a nonresident alien — (a) For the purpose of the tax there shall be allowed as deduc- tions — First. The necessary expenses actually paid in carrying on any business or trade conducted by him within the United States, not includ- ing personal, living or family expenses ; Second. The proportion of all interest paid within the year by such person on his indebtedness which the gross amount of his income for the year derived from sources within the United States bears to the gross amount of his income for the year derived from all sources within and without the United States, but this deduction shall be allowed only if such person includes in the return required by section eight all the in- formation necessary for its calculation ; Third. Taxes paid within the year imposed by the authority of the United States, or its Territories, or possessions, or under the authority of any State, county, school district, or municipality, or other taxing sub- division of any State, paid within the United States, not including those assessed against local benefits ; Fourth. Losses actually sustained during the year, incurred in busi- ness or trade conducted by him within the United States and losses of (21) 322 Important Federal Laws property within the United States arising from fires, storms, shipwreck, or other casuaky and from theft, when such losses are not compensated for by insurance or otherwise : Provided, That for the purpose of ascer- taining the amount of such loss or losses sustained in trade, or specu- lative transactions not in trade, from the same or any kind of property acquired before March first, nineteen hundred and thirteen, the fair mar- ket price or value of such property as of March first, nineteen hundred and thirteen, shall be the basis for determining the amount of such loss or losses sustained ; Fifth. In transactions entered into for profit but not connected with his business or trade, the losses actually sustained therein during the year to an amount not exceeding the profits arising therefrom in the United States ; Sixth. Debts arising in the course of business or trade conducted by him within the United States due to the taxpayer actually ascertained to be worthless and charged ofif within the year ; Seventh. A reasonable allowance for the exhaustion, wear and tear of property within the United States arising out of its use or employment in the business or trade; (a) in the case of oil and gas weUs a reasonable allowance for actual reduction in flow and production to be ascertained not by the flush flow, but by the settled production or regular flow ; (b) in the case of mines a reasonable allowance for depletion thereof not to exceed the market value in the mine of the product thereof which has been mined and sold during the year for which the return and computa- tion are made, such reasonable allowance to be made in the case of both (a) and (b) under rules and regulations to be prescribe^ by the Secre- tary of the Treasury : Provided, That when the allowance authorized in (a) and (b) shall equal the capital originally invested, or in case of pur- chase made prior to March first, nineteen hundred and thirteen, the fair market value as of that date, no further allowance shall be made. No deduction shall be allowed for any amount paid out for new buildings, permanent improvements, or betterments, made to increase the value of any propertv or estate, and no deduction shall be made for any amount of' expense of restoring property or making good the exhaustion thereof for which an allowance is or has been made. (b) There shall also be allowed the credits specified by subdivisions (b) and (c) of section five. Personal Exemptions. Sec. 7. (a) That for the purpose of the normal tax only, there shall be allowed as an exemption in the nature of a deduction from the amount of the net income of each of said persons, ascertained as provided herein, the sum of $3,000. plus $1,000 additional if the person making the return be a head of a family or a married man with a wife living with him, or plus the sum of $1,000 additional if the person making the return be a married woman with a husband living with her; but in no event shall Income Tax 323 this additional exemption of $1,000 be deducted by both a husband and wife: Provided, That only one deduction of $4,000 shall be made from the aggregate income of both husband and wife when living together: Provided further, That guardians or trustees shall be allowed to make this personal exemption as to income derived from the property of which such guardian or trustee has charge in favor of each ward or cestui que trust : Provided further, That in no event shall a ward or cestui que trust be allowed a greater personal exemption than $3,000, or, if married, $4,000, as provided in this paragraph, from the amount of net income received from all sources. There shall also be allowed an exemption from the amount of the net income of estates of deceased persons during the period of administration or settlement, and of trust or other estates the income of which is not distributed annually or regularly under the pro- visions of paragraph (b), section two, the sum of $3,000, including such deductions as are allowed under section five. (b) A nonresident alien individual may receive the benefit of the exemption provided for in this section only by filing or causing to be filed with the collector of internal revenue a true and accurate return of his total income, received from all sources, corporate or otherwise, in the United States, in the manner prescribed by this title ; and in case of his failure to file such return the collector shall collect the tax on such income and all property belonging to such nonresident alien individual shall be liable to distraint for the tax. Returns. Sec. 8. (a) The tax shall be computed upon the net income, as thus ascertained, of each person subject thereto, received in each pre- ceding calendar year ending December thirty-first. (b) On or before the first day of March, nineteen hundred and seventeen, and the first day of March in each year thereafter, a true and accurate return under oath shall be made by each person of lawful age, except as hereinafter provided, having a net income of $3,000 or over for the taxable year to the collector of internal revenue for the district in wdiich such person has his legal residence or principal place of busi- ness, or if there be no legal residence or place of business in the United States, then with the collector of internal revenue at Baltimore, Marv- land, in such form as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall prescribe, setting forth specifically the gross amount of income from all separate sources, and from the total thereof deducting the aggregate items of allowances herein authorized : Provided, That the Commissioner of Internal Revenue shall have authority to grant a reasonable extension of time, in meritorious cases, for filing returns of income by persons residing or traveling abroad who are required to make and file returns of income and who are unable to file said returns on or before March first of each year: Provided further, That the aforesaid return may be made by an agent when by rea- 324 Important Federal Laws son of illness, absence, or nonresidence the person liable for said return is unable to make and render the same, the agent assuming the responsi- bility of making the return and incurring penalties provided for erroneous, false or fraudulent return. (c) Guardians, trustees, executors, administrators, receivers, con- servators and all persons, corporations or associations acting in any fiduciary capacity, shall make and render a return of the income of the person, trust or estate for whom or which they act, and be subject to all the provisions of this title which apply to individuals. Such fiduciary shall make oath that he has sufficient knowledge of the affairs of such person, trust, or estate to enable him to make such return and that the same is, to the best of his knowledge and belief, true and correct, and be subject to all the provisions of this title which apply to individuals : Pro- vided, That a return made by one of two or more joint fiduciaries filed in the district where such fiduciary resides, under such regulations as the Secretary of the Treasury may prescribe, shall be a sufficient compliance with the requirements of this paragraph. (d) All persons, firms, companies, copartnerships, corporations, joint-stock companies, or associations, and insurance companies, except as hereinafter provided, in whatever capacity acting, having the control, receipt, disposal, or payment of fixed or determinable annual or period- ical gains, profits and income of another individual subject to tax, shall in behalf of such person deduct and withhold from the payment an amount equivalent to the normal tax upon the same and make and render a return, as aforesaid, but separate and distinct, of the portion of the income of each person from which the normal tax has been thus withheld and con- taining also the name and address of such person or stating that the name and address or the address, as the case may be, are unknown : Provided, That the provision requiring the normal tax of individuals to be deducted and withheld at the source of the income shall not be construed to require the withholding of such tax according to the two per centum normal tax rate herein prescribed until on and after January first, nineteen hun- dred and seventeen, and the law existing at the time of the passage of this Act shall govern the amount withheld or to be withheld at the source until January first, nineteen hundred and seventeen. That in either case mentioned in subdivisions (c) and (d) of this section no return of income not exceeding $3,000 shall be required, ex- cept as in this title provided. (e) Persons carrying on business in partnership shall be liable for income tax only in their individual capacity, and the share of the profits of the partnership to v/hich any taxable partner would be entitled if the same were divided, whether divided or otherwise, shall be returned for taxation and the tax paid under the provisions of this title : Provided, That from the net distributive interests on which the individual members shall be liable for tax, normal and additional, there shall be excluded their proportionate shares received from interest on the obligations of a Income Tax 325 State or any political or taxing subdivision thereof, and upon the obliga- tions of the United States and its possessions, and all taxes paid to the United States or to any possession thereof, or to any State, county, or taxing subdivision of a State and that for the purpose of computing the normal tax there shall be allowed a credit, as provided by section five, subdivision (b), for their proportionate share of the profits derived from dividends. And such partnership, when requested by the Commissioner of Internal Revenue, or any district collector, shall render a correct re- turn of the earnings, profits and income of the partnership, except income exempt under section four of this Act, setting forth the item of the gross income and the deductions and credits allowed by this title, and the names and addresses of the individuals who would be entitled to the net earn- ings, profits and income, if distributed. (f) In every return shall be included the income derived from divi- dends on the capital stock or from the net earnings of any corporation, joint-stock company or association, or insurance company, except that in the case of non-resident ahens such income derived from sources without the United States shall not be included. (g) An individual keeping accounts upon any basis other than that of actual receipts and disbursements, unless such other basis does not clearly reflect his income, may, subject to regulations made by the Com- missioner of Internal Revenue, with the approval of the Secretary of the Treasury, make his return upon the basis upon which his accounts are kept, in which case the tax shall be computed upon his income as so returned. Assessment and Administration. Sec. 9. (a) That all assessments shall be made by the Commis- sioner of Internal Revenue and all persons shall be notified of the amount for which they are respectively liable on or before the first day of June of each successive year, and said amounts shall be paid on or before the fifteenth day of June, except in cases of refusal or neglect to make such return and in cases of erroneous, false or fraudulent returns, in which cases the Commissioner of Internal Revenue shall, upon the discovery thereof, at any time within three years after said return is due, or has been made, make a return upon information obtained as provided for in this title or by existing law, or require the necessary corrections to be made, and the assessment made by the Commissioner of Internal Revenue thereon shall be paid by such person or persons immediately upon notifica- tion of the amount of such assessment; and to any sum or sums due and unpaid after the fifteenth day of June in any year, and for ten days after notice and demand thereof by the collector, there shall be added the sum of five per centum on the amount of tax unpaid, and interest at the rate of one per centum per month upon said tax from the time the same became due, except from the estates of insane, deceased, or insolvent persons. 326 Important Federal Laws (b) All persons, firms, copartnerships, companies, corporations, joint-stock companies, or associations, and insurance companies, in what- ever capacity acting, including lessees or mortgagors of real or personal property, trustees acting in any trust capacity, executors, administrators, receivers, conservators, employers, and all officers and employees of the United States having the control, receipt, custody, disposal or payment of interest, rent, salaries, wages, premiums, annuities, compensation, re- muneration, emoluments or other fixed or determinable annual or period- icals gains, profits and income of another person, exceeding $3,000 for any taxable year, other than income derived from dividends on capital stock, or from the net earnings of corporations and joint-stock companies or associations, or insurance companies, the income of which is taxable under this title, who are required to make and render a return in behalf of another, as provided herein, to the collector of his, her, or its district, are hereby authorized and required to deduct and withhold from such annual or periodical gains, profits and income such sum as will be suffi- cient to pay the nornial tax imposed thereon by this title and shall pay the amount withheld to the officer of the United States Government author- ized to receive the same ; and they are each hereby made personally lia- ble for such tax, and they are each hereby indemnified against every per- son, corporation, association or demand whatsoever for all payments which they shall make in pursuance and by virtue of this title. In all cases where the income tax of a person is withheld and deducted and paid or to be paid at the source, such person shall not receive the ben- efit of the personal exemption allowed in section seven of this title except by an application for refund of the tax unless he shall, not less than thirty days prior to the day on which the return of his income is due, file with the person who is required to withhold and pay tax for him a signed notice in writing claiming the benefit of such exemption and thereupon no tax shall be withheld upon the amount of such exemption: Provided, That if any person for the purpose of obtaining any allowance or reduc- tion by virtue of a claim for such exemption, either for himself or for any other person, knowingly makes any false statement or false or fraud- ulent representation, he shall be liable to a penalty of not exceeding $300. And where the income tax is paid or to be paid at the source, no person shall be allowed the benefit of any deduction provided for in sec- tions five or six of this title unless he shall, not less than thirty days prior to the day on which the return of his income is due, either (1) file with the person who is required to withhold and pay tax for him a true and correct return of his gains, profits and income from all other sources. and also the deductions asked for, and the showing thus made shall then become a part of the return to be made in his behalf by the person re- quired to withhold and pay the tax, or (2) likewise make application for deductions to the collector of the district in which return is made or to be made for him: Provided, That when any amount allowable as a deduction is known at the time of receipt of fixed annual or periodical Income Tax 327 income by an individual subject to tax, he may file with the person, firm or corporation making the payment a certificate, under penalty for false claim, and in such form as shall be prescribed by the Commissioner of Internal Revenue, stating the amount of such deduction and making a claim for an allowance of the same against the amount of tax otherwise required to be deducted and withheld at the source of the income, and such certificate shall likewise become a part of the return to be made in his behalf. If such person is absent from the United States, or is unable owing to serious illness to make the return and application above provided for, the return and application may be made by an agent, he making oath that he has sufficient knowledge of the affairs and property of his principal to enable him to make a full and complete return, and that the return and application made by him are full and complete. (c) The amount of the normal tax hereinbefore imposed shall be deducted and withheld from fixed or determinable annual or periodical gains, profits and income derived from interest upon bonds and mort- gages, or deeds of trust or other similar obligations of corporations, joint-stock companies, associations and insurance companies, whether payable annually or at shorter or longer periods, although such interest does not amount to $3,000, subject to the provisions of this title requir- ing the tax to be withheld at the source and deducted from annual income and returned and paid to the Government. (d) And likewise the amount of such tax shall be deducted and withheld from coupons, checks or bills of exchange for or in payment of interest upon bonds of foreign countries and upon foreign mortgages or like obligations (not payable in the United States), and also from coupons, checks, or bills of exchange for or in payment of any dividends upon the stock or interest upon the obligations of foreign corporations, associations and insurance companies engaged in business in foreign countries. , And the tax In such cases shall be withheld, deducted and returned for and in behalf of any person subject to the tax hereinbefore imposed, although such interest or dividends do not exceed $3,000, by (1) any banker or person who shall sell or otherwise realize coupons, checks or bills of exchange drawn or made in payment of any such interest or divi- dends (not payable in the United States), and (2) any person who shall obtain payment (not in the United States), in behalf of another of such dividends and interest by means of coupons, checks or bills of exchange, and also (3) any dealer in such coupons who shall purchase the same for any such dividends or interest (not payable in the United States), other- wise than from a banker or another dealer in such coupons. (e) Where the tax is withheld at the source, the benefit of the exemption and the deductions allowable under this title may be had by complying with the foregoing provisions of this section. (f) All persons, firms or corporations undertaking as a matter of 328 Important Federal Laws business or for profit the collection of foreign payments of such interest or dividends by means of coupons, checks or bills of exchange shall obtain a license from the Commissioner of Internal Revenue, and shall be sub- ject to such regulations enabling the Government to ascertain and verify the due withholding and payment of the income tax required to be with- held and paid as the Commissioner of Internal Revenue, with the ap- proval of the Secretary of the Treasury, shall prescribe ; and any person who shall knowingly undertake to collect such payments as aforesaid without having obtained a license therefor, or without complying with such regulations, shall be deemed guilty of a misdemeanor and for each oflense be fined in a sum not exceeding $5,000, or imprisoned for a term not exceeding one year, or both, in the discretion of the court. (g) The tax herein imposed upon gains, profits and income not fall- ing under the foregoing and not returned and paid by virtue of the fore- going shall be assessed by personal return under rules and regulations to be prescribed by the Commissioner of Internal Revenue and approved by the Secretary of the Treasury. The intent and purpose of this title is that all gains^ profits and income of a taxable class, as defined by this title, shall be charged and assessed with the corresponding tax, normal and additional, prescribed by this title and said tax shall be paid by the owner of such income, or the proper representative having the receipt, custody, control or disposal of the same. For the purpose of this title ownership or liability shall be determined as of the year for which a return is required to be rendered. The provisions of this title relating to the deduction and payment of the tax at the source of income shall only apply to the normal tax hereinbefore imposed upon individuals. Part II — The Corporation Tax. Act of September 8, 1916. Sec. 10. That there shall be levied, assessed, collected and paid annually upon the total net income received in the preceding calendar year from all sources by every corporation, joint-stock company or asso- ciation, or insurance company, organized in the United States, no matter how created or organized but not including partnerships, a tax of two per centum upon such income ; and a like tax shall be levied, assessed, col- lected and paid annually upon the total net income received in the pre- ceding calendar year from all sources within the United States by every corpol-ation, joint-stock company or association, or insurance company organized, authorized or existing under the laws of any foreign country, including interest on bonds, notes or other interest-bearing obligations of residents, corporate or otherwise and including the income derived from dividends on capital stock or from net earnings of resident corporations, joint-stock companies or associations, or insurance companies whose net income is taxable under this title : Provided, That the term "dividends" Corporation Income Tax 329 as used in this title shall be held to mean any distribution made or ordered to be made by a corporation, joint-stock company, association or insur- ance company, out of its earnings or profits accrued since March first, nineteen hundred and thirteen, and payable to its shareholders, whether in cash or in stock of the corporation, joint-stock company, association or insurance company, which stock dividend shall be considered income, to the amount of its cash value. The foregoing tax rate shall apply to the total net income received by every taxable corporation, joint-stock company or association, or in- surance company in the calendar year nineteen hundred and sixteen and in each year thereafter, except that if it has fixed its own fiscal year under the provisions of existing law, the foregoing rate shall apply _ to the proportion of the total net income returned for the fiscal year ending prior to December thirty-first, nineteen hundred and sixteen, which the period between January first, nineteen hundred and sixteen, and the end of such fiscal year bears to the whole of such fiscal year, and the rate fixed in Section II of the Act approved October third, nineteen hundred and thirteen, entitled "An Act to reduce tarifif duties and to provide revenue for the Government, and for other purposes," shall apply to the remaining portion of the total net income returned for such fiscal year. For the purpose of ascertaining the gain derived or loss sustained from the sale or other disposition by a corporation, joint-stock company or association, or insurance company, or property, real, personal, or mixed, acquired before March first, nineteen hundred and thirteen, the fair mar- ket price or value of such property as of March first, nineteen hundred and thirteen, shall be the basis for determining the amount of such gain derived or loss sustained. Conditional and Other Exemptions. Sec. 11. (a) That there shall not be taxed under this title any income received by any — First. Labor, agricultural, or horticultural organization ; Second. Mutual savings bank not having a capital stock represented by shares ; Third. Fraternal beneficiary society, order, or association, operat- ing under the lodge system or for the exclusive benefit of the members of a fraternity itself operating under the lodge system and providing for the payment of life, sick, accident or other benefits to the members of such society, order or association or their dependents ; Fourth. Domestic building and loan association and cooperative banks without capital stock organized and operated for mutual purposes and without profit ; PMfth. Cemetery company owned and operated exclusively for the benefit of its members ; Sixth. Corporation or association organized and operated exclu- sively for religious, charitable, scientific, or educational purposes, no part 330 Important Federal Laws of the net income of which inures to the benefit of any private stockholder or individual ; Seventh. Business league, chamber of commerce, or board of trade, not organized for profit and no part of the net income of which inures to the benefit of any private stockholder or individual ; Eighth. Civic league or organization not organized for profit but operated exclusively for the promotion of social welfare; Ninth. Club organized and operated exclusively for pleasure, rec- reation, and other nonprofitable purposes, no part of the net income of which inures to the benefit of any private stockholder or member ; Tenth. Farmers" or other mutual hail, cyclone, or fire insurance company, mutual ditch or irrigation company, mutual or cooperative telephone company, or like organization of a purely local character, the income of which consists solely of assessments, dues, and fees collected from members for the sole purpose of meeting its expenses ; Eleventh. Farmers', fruit growers,' or like association, organized and operated as a sales agent for the purpose of marketing the products of its members and turning back to them the proceeds of sales, less the necessary selling expenses, on the basis of the quantity of produce fur- nished by them; Twelfth. Corporation or association organized for the exclusive purpose of holding title to property, collecting income therefrom, and turning over the entire amount thereof, less expenses, to an organization which itself is exempt from the tax imposed by this title; or Thirteenth. Federal land banks and national farm-loan associations as provided in section twenty-six of the Act approved July seventeenth, nineteen hundred and sixteen, entitled "An Act to provide capital for agricultural development, to create standard forms of investment based upon farm mortgage, to equalize rates of interest upon farm loans, to furnish a market for United States bonds, to create Government deposi- taries and financial agents for the United States, and for other purposes." Fourteenth. Joint stock land banks as to income derived from bonds or debentures of other joint stock land banks or any Federal land bank belonging to such joint stock land bank. (b) There shall not be taxed under this title any income derived from any public utility or from the exercise of any essential govern- mental function accruing to any State, Territory, or the District of Columbia, or any political subdivision of a State or Territory, nor any income accruing to the government of the Philippine Islands or Porto Rico, or of any political subdivision of the Philippine Islands or Porto Rico : Provided, That whenever any State, Territory, or the District of Columbia, or any political subdivision of a State or Territory, has, prior to the passage of this title, entered in good faith into a contract with any person or corporation, the object and purpose of which is to acquire, construct, operate, or maintain a public utility, no tax shall be levied under the provisions of this title upon the income derived from the oper- Corporation Income Tax 331 ation of such public utility, so far as the payment thereof will hnpose a loss or burden upon such State, Territory, or the District of Columbia, or a political subdivision of a State or Territory ; but this provision is not intended to confer upon. such person or corporation any financial gain or exemption or to relieve such person or corporation from the payment of a tax as provided for in this title upon the part or portion of the said income to which such person or corporation shall be entitled under such contract. Deductions. Sec. 12. (a) In the case of a corporation, joint-stock company or association, or insurance company, organized in the United States, such net income shall be ascertained by deducting from the gross amount of its income received within the year from all sources — First. All the ordinary and necessary expenses paid within the year in the maintenance and operation of its business and properties, including rentals or other payments required to be made as a condition to the con- tinued use or possession of property to which the corporation has not taken or is not taking title, or in which it has no equity. Second. All losses actually sustained and charged off within the year and not compensated by insurance or otherwise, including a reason- able allowance for the exhaustion, wear and tear of property arising out of its use or employment in the business or trade; (a) in the case of oil and gas wells a reasonable allowance for actual reduction in flow and pro- duction to be ascertained not by the flush flow, but by the settled produc- tion or regular flow; (b) in the case of mines a reasonable allowance for depletion thereon not to exceed the market value in the mine of the prod- uct thereof which has been mined and sold during the year for which the return and computation are made, such reasonable allowance to be made in the case of both (a) and (b) under rules and regulations to be prescribed by the Secretary of the Treasury: Provided, That when the allowance authorized in (a) and (b) shall equal the capital originally invested, or in case of purchase made prior to March first, nineteen hundred and thirteen, the fair market value as of that date, no further allowance shall be made ; and (c) in the case of insurance companies, the net addition, if any, required by law to be made within the year to reserve funds and the sums other than dividends paid within the year on policy and annuity contracts : Provided, That no deduction shall be allowed for any amount paid out for new buildings, permanent improvements, or betterments made to increase the value of any property or estate, and no deduction shall be made for any amount of expense of restoring property or making good the exhaustion thereof for which an allowance is or has been made: Provided further, That mutual fire and mutual employers' liability and mutual workmen's compensation and mutual casualty insur- ance companies requiring their members to make premium deposits to provide for losses and expenses shall not return as income any portion of 332 Important Federal Laws the premium deposits returned to their policyholders, but shall return as taxable income all income received by them from all other sources plus such portions of the premium deposits as are retained by the companies for purposes other than the payment of losses and expenses and rein- surance reserves: Provided further, That mutual marine insurance com- panies shall include in their return of gross income gross premiums col- lected and received by them less amounts paid for reinsurance, but shall be entitled to include in deductions from gross income amounts repaid to policyholders on account of premiums previously paid by them and interest paid upon such amounts between the ascertainment thereof and the payment thereof, and life insurance companies shall not include as income in any year such portion of any actual premium received from any individual policyholder as shall have been paid back or credited to such individual policyholder, or treated as an abatement of premium of such individual policyholder, within such year; Third. The amount of interest paid within the year on its indebted- ness to an amount of such indebtedness not in excess of the sum of (a) the entire amount of the paid-up capital stock outstanding at the close of the year, or, if no capital stock, the entire amount of capital employed in the business at the close of the year, and (b) one-half of its interest- bearing indebtedness then outstanding: Provided, That for the purpose of this title preferred capital stock shall not be considered interest-bearing indebtedness, and interest or dividends paid upon this stock shall not be deductible from gross income: Provided further, That in cases wherein shares of capital stock are issued without par or nominal value, the amount of paid-up capital stock, within the meaning of this section, as represented by such shares, will be the amount of cash, or its equivalent, paid or transferred to the corporation as a consideration for such shares : Provided further, That in the case of indebtedness wholly secured by property collateral, tangible or intangible, the subject of sale or hypotheca- tion in the ordinary business of such corporation, joint-stock company or association as a dealer only in the property constituting such collateral, or in loaning the funds thereby procured, the total interest paid by such corporation, company, or association within the year on any such indebt- edness may be deducted as a part of its expenses of doing business, but interest on such indebtedness shall only be deductible on an amount of such indebtedness not in excess of the actual value of such property collateral : Provided further. That in the case of bonds or other indebt- edness, which have been issued with a guaranty that the interest payable thereon shall be free from taxation, no deduction for the payment of the tax herein imposed, or any other tax paid pursuant to such guaranty, shall be allowed ; and in the case of a bank, banking association, loan or trust company, interest paid within the year on deposits or on moneys received for investment and secured by interest-bearing certificates of indebtedness issued by such bank, banking association, loan or trust company ; Corporation Income Tax 333 Fourth. Taxes paid within the year imposed by the authority of the United States, or its Territories, or possessions, or foreign country, or under the authority of any State, county, school district, or municipaUty, or other taxing subdivision of any State, not including those assessed against local benefits. (b) In the case of a corporation, joint-stock company or association, or insurance company, organized, authorized, or existing under the laws of any foreign country, such net income shall be ascertained by deduct- ing from the gross amount of its income received within the year from all sources within the United States — First. All the ordinary and necessary expenses actually paid within the year out of earnings in the maintenance and operation of its business and property within the United States, including rentals or other pay- ments required to be made as a condition to the continued use or posses- sion of property to which the corporation has not taken or is not taking title, or in which it has no equity. Second. All losses actually sustained within the year in business or trade conducted by it within the United States and not compensated by insurance or otherwise, including a reasonable allowance for the exhaus- tion, wear and tear of property arising out of its use or employment in the business or trade; (a) and in the case of oil and gas wells a reasonable allowance for actual reduction in flow and production to be ascertained not by the flush flow, but by the settled production or regular flow ; (b) in the case of mines a reasonable allowance for depletion there- of not to exceed the market value in the mine of the product thereof which has been mined and sold during the year for which the return and computation are made, such reasonable allowance to be made in the case of both (a) and (b) under rules and regulations to be prescribed by the Secretary of the Treasury : Provided, That when the allowance authorized in (a) and (b) shall equal the capital originally invested, or in case of purchase made prior to March first, nineteen hundred and thir- teen, the fair market value as of that date, no further allowance shall be made; and (c) in the case of insurance companies, the net addition, if any, required by law to be made within the year to reserve funds and the sums other than dividends paid within the year on policy and annuity contracts : Provided, That no deduction shall be allowed for any amount paid out for new buildings, permanent improvements, or betterments, made to increase the value of any property or estate, and no deduction shall be made for any amount of expense of restoring property or mak- insr eood the exhaustion thereof for which an allowance is or has been made : Provided, further. That mutual fire and mutual employers' liability and mutual workmen's compensation and mutual casualty insurance com- panies requiring their members to make premium deposits to provide for losses and expenses shall not return as income any portion of the prem- ium deposits returned to their policyholders, but shall return as taxable income all income received by them from all other sources plus such por- 334 Important Federal Laws tions of the premium deposits as are retained by the companies for pur- poses other than the payment of losses and expenses and reinsurance reserves : Provided further, That mutual marine insurance companies shall include in their return of gross income gross premiums collected and received by them less amounts paid for reinsurance, but shall be en- titled to include in deductions from gross income amounts repaid to policyholders on account of premiums previously paid by them, and in- terest paid upon such amounts between the ascertainment thereof and the payment thereof, and life insurance companies shall not include as income in any year such portion of any actual premium received from any individual policyholder as shall have been paid back or credited to such individual policyholder, or treated as an abatement of premium of such individual policyholder, within such year; Third. The amount of interest paid within the year on its indebted- ness to an amount of such indebtedness not in excess of the proportion of the sum of (a) the entire amount of the paid-up capital stock out- standing at the close of the year, or, if no capital stock, the entire amount of the capital employed in the business at the close of the year, and (b) one-half of its interest-bearing indebtedness then outstanding, which the gross amount of its income for the year from business transacted and capital invested within the United States bears to the gross amount of its income derived from all sources within and without the United States : Provided, That in the case of bonds or other indebtedness which have been issued with a guaranty that the interest payable thereon shall be free from taxation, no deduction for the payment of the tax herein imposed or any other tax paid pursuant to such guaranty shall be allowed ; and in case of a bank, banking association, loan or trust company, or branch thereof, interest paid within the year on deposits by or on moneys re- ceived for investment from either citizens or residents of the United States and secured by interest-bearing certificates of indebtedness issued by such bank, banking association, loan or trust company, or branch thereof ; Fourth. Taxes paid within the year imposed by the authority of the United States, or its Territories, or possessions, or under the author- ity of any State, county, school district, or municipality, or other taxing subdivision of any State, paid within the United States, not including those assessed against local benefits ; (c) In the case of assessment insurance companies, whether domestic or foreign, the actual deposit of sums with State or Territorial officers, pursuant to law, as additions to guarantee or reserve funds shall be treated as being payments required by law to reserve funds. Returns. Sec. 13. (a) The tax shall be computed upon the net income, as thus ascertained, received within each preceding calendar year ending December thirty-first : Provided, That any corporation, joint-stock com- pany or association, or insurance company, subject to this tax, may desig- Corporation Income Tax 335 nate the last day of any month in the year as the day of the closing of its fiscal year and shall be entitled to have the tax payable by it computed upon the basis of the net income ascertained as herein provided for the year ending on the day so designated in the year preceding the date of assessment instead of upon the basis of the net income for the calendar year preceding the date of assessment ; and it shall give notice of the day it has thus designated as the closing of its fiscal year to the collector of the district in which its principal business office is located at any time not less than thirty days prior to the first day of March of the year in which its return would be filed if made upon the basis of the calendar year; (b) Every corporation, joint-stock company or association, or in- surance company, subject to the tax herein imposed, shall, on or before the first day of March, nineteen hundred and seventeen, and the first day of March in each year thereafter, or if it has designated a fiscal year for the computation of its tax, then within sixty days after the close of such fiscal year ending prior to December thirty-first, nineteen hundred and sixteen, and the close of each such fiscal year thereafter, render a true and accurate return of its annual net income in the manner and form to be prescribed by the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, and containing such facts, data, and information as are appropriate and in the opinion of the com- missioner necessary to determine the correctness of the net income re- turned and to carry out the provisions of this title. The return shall be sworn to by the president, vice president, or other principal officer, and by the treasurer or assistant treasurer. The return shall be made to the collector of the district in which is located the principal office of the corporation, company, or association, where are kept its books of account and other data from which the return is prepared, or in the case of a foreign corporation, company, or association, to the collector of the district in which is located its principal place of business in the United States, or if it have no principal place of business, office, or agency in the United States, then to the collector of internal revenue at Baltimore, Maryland. All such returns shall as received be transmitted forthwith by the collector to the Commissioner of Internal Revenue; (c) In cases wherein receivers, trustees in bankruptcy, or assignees are operating the property or business of corporations, joint-stock com- panies or associations, or insurance companies, subject to tax imposed by this title, such receivers, trustees or assignees shall make returns of net income as and for such corporations, joint-stock companies or asso- ciations and insurance companies in the same manner and form as such organizations are hereinbefore required to make returns, and any income tax due on the basis of such returns made by receivers, trustees or as- signees shall be assessed and collected in the same manner as if assessed directly against the organizations of whose business or properties they have custody and control : (d) A corporation, joint-stock company or association, or insur- 336 Important Federal Laws ance company, keeping accounts upon any basis other than that of actual receipts and disbursements, unless such other basis does not clearly reflect its income, may, subject to regulations made by the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, makes its return upon the basis upon which its accounts are kept, in which case the tax shall be computed upon its income as so returned ; (e) All the provisions of this title relating to the tax authorized and required to be deducted and withheld and paid to the officer of the United States Government authorized to receive the same from the in- come of nonresident alien individuals from sources within the United States shall be made applicable to incomes derived from interest upon bonds and mortgages or deeds of trust or similar obligations of domestic or other resident corporations, joint-stock companies or associations, and insurance companies by nonresident alien firms, copartnerships, com- panies, corporations, joint-stock companies or associations and insurance companies not engaged in business or trade within the United States and not having any office or place of business therein ; (f) Likewise, all the provisions of this title relating to the tax authorized and required to be deducted and withheld and paid to the officer of the United States Government authorized to receive the same from the income of nonresident alien individuals from sources within the United States shall be made applicable to income derived from divi- dends upon the capital stock or from the net earnings of domestic or other resident corporations, joint-stock companies or associations and in- surance companies by nonresident alien companies, corporations, joint- stock companies or associations and insurance companies not engaged in business or trade within the United States and not having any office or place of business therein. Assessment and Administration. Sec. 14. (a) All assessments shall be made and the several cor- porations, joint-stock companies or associations and insurance companies shall be notified of the amount for which they are respectively liable on or before the first day of June of each successive year, and said assess- ment shall be paid on or before the fifteenth day of June: Provided, That every corporation, joint-stock company or association and insurance company, computing taxes upon the income of the fiscal year which it may designate in the manner hereinbefore provided, shall pay the taxes due under its assessment within one hundred and five days after the date upon which it is required to file its list or return of income for assess- ment; except in cases of refusal or neglect to make such return, and in cases of erroneous, false or fraudulent returns, in which cases the Com- missioner of Internal Revenue shall, upon the discovery thereof, at any time within three years after said return is due, make a return upon information obtained as provided for in this title or by existing law ; and the assessment made by the Commissioner of Internal Revenue thereon Corporation Income Tax 337 shall be paid by such corporation, joint-stock company or association, or insurance company immediately upon notiticatio'n of the amount of such assessment; and to any sum or sums due and unpaid after the fifteenth day of June, in any year, or after one hundred and five days from the date on which the return of income is required to be made by the tax- payer and after ten days' notice and demand thereof by the collector, there shall be added the sum of five per centum on the amount of tax unpaid and interest at the rate of one per centum per month upon said tax from the time the same becomes due : Provided, That upon the examination of any return of income made pursuant to this title, the Act of August fifth, nineteen hundred and nine, entitled, "An Act to provide revenue, equalize duties and encourage the industries of the United States, and for other purposes," and the Act of October third, nineteen hundred and thirteen, entitled, "An Act to reduce tariff duties and to provide revenue for the Government and for other purposes," if it shall appear that amounts of tax have been paid in excess of those properly due, the taxpayer shall be permitted to present a claim for refund thereof notwithstanding the provisions of section thirty-two hundred and twenty- eight of the Revised Statutes ; (b) When the assessment shall be made, as provided in this title, the returns, together with any corrections thereof which may have been made by the commissioner, shall be filed in the oftice of the Commissioner of Internal Revenue and shall constitute public records and be open to inspection as such: Provided, That any and all such returns shall be open to inspection only upon the order of the President, under rules and regulations to be prescribed by the Secretary of the Treasury and ap- proved by the President : Provided further, That the proper officers of any State imposing a general income tax may, upon the request of the governor thereof, have access to said returns or to an abstract thereof, showing the name and income of each such corporation, joint-stock com- pany or association, or insurance company, at such times and in such manner as the Secretary of the Treasury may prescribe; (c) If any of the corporations, joint-stock companies or associa- tions, or insurance companies aforesaid shall refuse or neglect to make a return at the time or times hereinbefore specified in each year, or shall render a false or fraudulent return, such corporation, joint-stock com- pany or association or insurance company shall be liable to a penalty of not exceeding $10,000: Provided, That the Commissioner of Internal Revenue shall have authority, in the case of either corporations or indi- viduals, to grant a reasonable extension of time in meritorious cases, as he may deem proper. (d) That section thirty-two hundred and twenty-five of the Re- vised Statutes of the United States be, and the same is hereby amended so as to read as follows : "Sec. 3225. When a second assessment is mnde in c'^'^.'^ of any list, statement or return, which in the opinion of the collector or deputy col- (22) 338 Important Federal Laws lector was false or fraudulent, or contained any understatement or under- valuation, no tax collected under such assessment shall be recovered by any suit unless it is proved that the said list, statement or return was not false nor fraudulent and did not contain any understatement or undervaluation ; but this section shall not apply to statements or returns made or to be made in good faith under the laws of the United States regarding annual depreciation of oil or gas wells and mines." Part III. — General Administrative Provisions of Tax Act. Act of September 8, 1916. Sec. 15. That the word "State" or ''United States" when used in this title shall be construed to include any Territory, the District of Columbia, Porto Rico and the Philippine Islands, when such construc- tion is necessary to carry out its provisions. Information Not to be Divulged. Sec. 16. That sections thirty-one hundred and sixty-seven, thirty- one hundred and seventy-two, thirty-one hundred and seventy-three and thirty-one hundred and seventy-six of the Revised Statutes of the United States as amended are hereby amended so as to read as follows : "Sec. 3167. It shall be unlawful for any collector, deputy collector, agent, clerk or other officer or employee of the United States to divulge or to make known in any manner whatever not provided by law to any person the operations, style of work, or apparatus of any manufacturer or producer visited by him in the discharge of his official duties, or the amount or source of income, profits, losses, expenditures or any particular thereof, set forth or disclosed in any income return, or to permit any income return or copy thereof or any book containing any abstract or particulars thereof to be seen or examined by any person except as pro- vided by law ; and it shall be unlawful for any person to print or pub- lish in any manner whatever not provided by law any income return or any part thereof or source of income, profits, losses or expenditures appearing in any income return; and any offense against the foregoing provision shall be a misdemeanor and be punished by a fine not exceed- ino- $1,000 or by imprisonment not exceeding one year, or both, at the discretion of the court ; and if the offender be an officer or employee of the United States he shall be dismissed from office or discharged from employment. Investigation by Collector. "Sec. 3172. Every collector shall, from time to time, cause his deputies to proceed through every part of his district and inquire after and concerning all persons therein who are liable to pay any internal- revenue tax, and all persons owning or having the care and management of any objects liable to pay any tax and to make a list of such persons and enumerate said objects. Administrative Provisions of Tax Act 339 Return of List. "Sec. 3173. It shall be the duty of any person, partnership, firm, association or corporation, made liable to any duty, special tax or other tax imposed by law, when not otherwise provided for (1) in case of a special tax on or before the thirty-first day of July in each year; (2) in case of income tax on or before the first day of March in each year, or on or before the last day of the sixty-day period next following the clos- ing date of the fiscal year for which it makes a return of its income, and (3) in other cases before the day on which the taxes accrue, to make a list or return, verified by oath, to the collector or a deputy collector of the district where located, of the articles or objects, including the amount of annual income charged with a duty or tax, the quantity of goods, wares and merchandise, made or sold and charged with a tax, the several rates and aggregate amount, according to the forms and regulations to be prescribed by the Commissioner of Internal Revenue, with the ap- proval of the Secretary of the Treasury, for which such person, part- nership, firm, association or corporation is liable : Provided, That if any person liable to pay any duty or tax, or owning, possessing or having the care or management of property, goods, wares and merchandise, article or objects liable to pay any duty, tax or license, shall fail to make and exhibit a list or return required by law, but shall consent to disclose the particulars of any and all the property, goods, wares and merchandise, articles and objects liable to pay any duty or tax, or any business or occu- pation liable to pay any tax as aforesaid, then, and in that case, it shall be the duty of the collector or deputy collector to make such list or return, which, being distinctly read, consented to and signed and verified by oath by the person so owning, possessing or having the care and man- agement as aforesaid, may be received as the list of such person : Pro- vided further, That in case no annual list or return has been rendered by such person to the collector or deputy collector as required by law, and the person shall be absent from his or her residence or place of business at the time the collector or a deputy collector shall call for the annual list or return, it shall be the duty of such collector or deputy collector to leave at such place of residence or business, with some one of suitable age and discretion, if such be present, otherwise to deposit in the nearest post office, a note or memorandum addressed to such person, requiring him or her to render to such collector or deputy collector the list or re- turn required by law within ten days from the date of such note or memorandum, verified by oath. And if any person, on being notified or required as aforesaid, shall refuse or neglect to render such list or return within the time required as aforesaid, or whenever any person who is required to deliver a monthly or other return of objects subject to tax fails to do so at the time required, or delivers any return which in the opinion of the collector, is erroneous, false or fraudulent, or con- tains any undervaluation or understatement, or refuses to allow any regularly authorized Government ofScer to examine the books of such 340 Important Federal Laws person, firm or corporation, it shall be lawful for the collector to sum- mon such person, or any other person having possession, custody or care of books of account containing entries relating to the business of such person or any other person he may deem proper, to appear before him and produce such books at a time and place named in the summons, and to give testimony or answer interrogatories, under oath, respecting any objects or income liable to tax or the returns thereof. The collector may summon any person residing or found within the State or Terri- tory in which his district lies ; and when the person intended to be sum- moned does not reside and can not be found within such State or Terri- tory, he may enter any collection district where such person may be found and there make the examination herein authorized. And to this end he may there exercise all the authority which he might lawfully exer- cise in the district for which he was commissioned: Provided, That 'person,' as used in this section, shall be construed to include any cor- poration, joint-stock company or association, or insurance company when such construction is necessary to carry out its provisions. Penalties. "Sec. 3176. If any person, corporation, company or association fails to make and file a return or list at the time prescribed by law, or makes, willfully or otherwise, a false or fraudulent return or list, the col- lector or deputy collector shall make the return or list from his own knowledge and from such information as he can obtain through testimony or otherwise. Any return or list so made and subscribed by a collector or deputy collector shall be prima facie good and sufficient for all legal purposes. "If the failure to file a return or list is due to sickness or absence the collector may allow such further time, not exceeding thirty days, for making and filing the return or list as he deems proper. "The Commissioner of Internal Revenue shall assess all taxes, other than stamp taxes, as to which returns or lists are so made by a collector or deputv collector. In case of any failure to make and file a return or list within the time prescribed by law or by the collector, the Commis- sioner of Internal Revenue shall add to the tax fifty per centum of its amount except that, when a return is voluntarily and without notice from the collector filed after such time and it is shown that the failure to file it was due to a reasonable cause and not to willful neglect, no such addition shall be made to the tax. In case a false or fraudulent return or list is willfully made, the Commissioner of Internal Revenue shall add to the tax one hundred per centum of its amount. "The amount so added to any tax shall be collected at the same time and in the same manner and as part of the tax unless the tax has been paid before the discovery of the neglect, falsity or fraud, in which case the amount so added shall be collected in the same manner as the tax." Administrative Provisions of Tax Act 341 Receipts. Sec. 17. That it shall be the duty of every collector of internal revenue, to whom any payment of any taxes is made under the provisions of this title, to give to the person making such payment a full written or printed receipt, expressing the amount paid and the particular account for which such payment was made ; and whenever such payment is made such collector shall, if required, give a separate receipt for each tax paid by any debtor, on account of payments made to or to be made by him to separate creditors in such form that such debtor can conveniently produce the same separately to his several creditors in satisfaction of their respective demands to the amounts specified in such receipts; and such receipts shall be sufficient evidence in favor of such debtor to justify him in withholding the amount therein expressed from his next payment to his creditor ; but such creditor may, upon giving to his debtor a full written receipt, acknowledging the payment to him of whatever sum may be actually paid, and accepting the amount of tax paid as aforesaid (specifying the same) as a further satisfaction of the debt to that amount, require the surrender to him of such collector's receipt. Penalty. Sec. 18. That if any individual liable to make the return or pay the tax aforesaid shall refuse or neglect to make such return at the time or times hereinbefore specified in each year, he shall be liable to a penalty of not less than $20 nor more than $1,000. Any individual or any officer of any corporation, joint-stock company or association, or insurance com- pany required by law to make, render, sign or verify any return who makes any false or fraudulent return or statement with intent to defeat or evade the assessment required by this title to be made shall be guilty of a misdemeanor and shall be fined not exceeding $2,000 or be im- prisoned not exceeding one year, or both, in the discretion of the court, with the costs of prosecution : Provided, That where any tax heretofore due and payable has been duly paid by the taxpayer, it shall not be re- collected from any person or corporation required to retain it at its source, nor shall any penalty be imposed or collected in such cases from the taxpaver, or such person or corporation whose duty it was to retain it, for failure to return or pay the same, unless such failure was fraudu- lent and for the purpose of evading payment. Returns to be Verified. Sec. 19. The collector or deputy collector shall require every return to be verified by the oath of the party rendering it. If the collector or deputy collector have reason to believe that the amount of any income returned is understated, he shall give due notice to the person making the return to show cause why the amount of the return should not be increased and upon proof of the amount understated may increase the same accordingly. Such person may furnish sworn testimony to prove any relevant facts, and, if dissatisfied with the decision of the collector, 342 Important Federal Laws may appeal to the Commissioner of Internal Revenue for his decision under such rules of procedure as may be prescribed by regulation. Jurisdiction of District Court. Sec. 20. That jurisdiction is hereby conferred upon the district courts of the United States for the district within which any person sum- moned under this title to appear to testify or to produce books shall reside, to compel such attendance, production of books and testimony by appropriate process. Publication of Statistics. Sec. 21. That the preparation and publication of statistics reason- ably available with respect to the operation of the income tax law and containing classifications of taxpayers and of income, the amounts allowed as deductions and exemptions and any other facts deemed pertinent and valuable shall be made annually by the Commissioner of Internal Revenue with the approval of the Secretary of the Treasury. Old Laws in Force. Sec. 22. That all administrative, special and general provisions of law, including the laws in relation to the assessment, remission, collection and refund of internal-revenue taxes not heretofore specifically repealed and not inconsistent with the provisions of this title, are hereby extended and made applicable to all the provisions of this title and to the tax herein imposed. Applies to Philippines and Porto Rico. Sec. 23. That the provisions of this title shall extend to Porto Rico and the Philippine Islands: Provided, That the administration of the law and the collection of the taxes imposed in Porto Rico and the Phil- ippine Islands shall be by the appropriate internal-revenue officers of those governments and all revenues collected in Porto Rico and the Phil- ippine Islands thereunder shall accrue intact to the general Governments thereof, respectively: Provided further. That the jurisdiction in this title conferred upon the district courts of the United States shall, so far as the Philippine Islands are concerned, be vested in the courts of the first instance of said islands: And provided further. That nothing in this title shall be held to exclude from the computation of the net income the compensation paid any ofiicial by the governments of the District of Columbia, Porto Rico and the Philippine Islands, or the political sub- divisions thereof. Repeal. Sec. 24. That Section II of the Act approved October third, nme- teen hundred and thirteen, entitled "An Act to reduce tariff duties and to provide revenue for the CTOvernment and for other purposes," is hereby repealed, except as herein otherwise provided and except that it shall remain in force for the assessment and collection of all taxes which have Inheritance Tax 343 accrued thereunder and for the imposition and collection of all penalties or forfeitures which have accrued or may accrue in relation to any of such taxes and except that the unexpended balance of any appropriation heretofore made and now available for the administration of such sec- tion or any provision thereof shall be available for the administration of this title or the corresponding provision thereof. Sec. 25. That income on which has been assessed the tax imposed by Section II of the Act entitled "An Act to reduce tariff duties and to provide revenue for the Government, and for other purposes," approved October third, nineteen hundred and thirteen, shall not be considered as income within the meaning of this title : Provided, That this section shall not conflict with that portion of section ten, of this title, under which a taxpayer has fixed its own fiscal year. TITLE II— THE INHERITANCE TAX. Act of September 8, 1916. Definitions. Sec. 200. That when used in this title — The term "person" includes partnerships, corporations and associa- tions ; The term "United States" means only the States, the Territories of Alaska and Hawaii, and the District of Columbia ; The term "executor" means the executor or administrator of the decedent, or, if there is no executor or administrator, any person who takes possession of any property of the decedent; and The term "collector" means the collector of internal revenue of the district in which was the domicile of the decedent at the time of his death, or, if there was no such domicile in the United States, then the collector of the district in which is situated the part of the gross estate of the decedent in the United States, or, if such part of the gross estate is situated in more than one district, then the collector of internal revenue at Baltimore, Maryland. Rate of Tax. Sec. 201. That a tax (hereinafter in this title referred to as the tax), equal to the following percentages of the value of the net estate, to be determined as provided in section two hundred and three, is hereby imposed upon the transfer of the net estate of every decedent dying after the passage of this Act, whether a resident or nonresident of the United States : One and one-half per centum of the amount of such net estate not in excess of $50,000 ; Three per centum of the amount by which such net estate exceeds $50,000 and does not exceed $150,000; Four and one-half per centum of the amount by which such net estate exceeds $150,000 and does not exceed $250,000; '344 • Important Federal Laws Six per centum of the amount by which such net estate exceeds $250,000 and does not exceed $450,000; Seven and one-half per centum of the amount by which such net estate exceeds $450,000 and does not exceed $1,000,000; Nine per centum of the amount by which such net estate exceeds $1,000,000 and does not exceed $2,000,000; Ten and one-half per centum of the amount by which such net estate exceeds $2,000,000 and does not exceed $3,000,000 : Twelve per centum of the amount bv which such net estate exceeds $3,000,000 and does not exceed $4,000,000; Thirteen and one-half per centum of the amount by which such net estate exceeds $4,000,000 and does not exceed $5,000,000; and Fifteen per centum of the amount bv which such net estate exceeds $5,000,000. (As amended March 3, 1917.) Method of Fixing Gross Value. Sec. 202. That the value of the gross estate of the decedent shall be determined by including the value at the time of his death of all prop- erty, real or personal, tangible or intangible, wherever situated : (a) To the extent of the interest therein of the decedent at the time of his death which after his death is subject to the payment of the charges against his estate and the expenses of its administration and is subject to distribution as part of his estate. (b) To the extent of any interest therein of which the decedent has at any time made a transfer, or with respect to which he has created a trust, in contemplation of or intended to take eftect in possession or enjoyment at or after his death, except in case of a bona fide sale fof a fair consideration in money or money's worth. Any transfer of a material part of his property in the nature of a final disposition or dis- tribution thereof, made by the decedent within two years prior to his death without such a consideration, shall, unless shown to the contrary, be deemed to have been made in contemplation of death within the mean- ing of this title ; and (c) To the extent of the interest therein held jointly or as tenants in the entirety by the decedent and any other person, or deposited in banks or other institutions in their joint names and payable to either or the survivor, except such part thereof as may be shown to have origin- ally belonged to such other person and never to have belonged to the decedent. For the purpose of this title stock in a domestic corporation owned and held by a nonresident decedent shall be deemed property within the United States and any property of which the decedent has made a trans- fer or with respect to which he has created a trust, within the meaning of subdivision (b) of this section, shall be deemed to be situated in the United States, if so situated either at the time of the transfer or the creation of the trust, or at the time of the decedent's death. Inheritance Tax 345 Method of Fixing Net Value. Sec. 203. That for the purpose of the tax the vahie of the net estate shall be determined — (a) In the case of a resident, by deducting from the value of the gross estate — (1) Such amounts for funeral expenses, administration expenses, claims against the estate, unpaid mortgages, losses incurred during the settlement of the estate arising from fires, storms, shipwreck or other casualty, and from theft, when such losses are not compensated for by insurance or otherwise, support during the settlement of the estate of those dependent upon the decedent, and such other charges against the estate, as are allowed by the laws of the jurisdiction, whether within or without the United States, under which the estate is being adminis- tered ; and (2) An exemption of $50,000; (b) In the case of a nonresident, by deducting from the value of that part of his gross estate which at the time of his death is situated in the United States, that proportion of the deductions specified in para- graph (1) of subdivision (a) of this section which the value of such part bears to the value of his entire gross estate, wherever situated. But no deductions shall be allowed in the case of a nonresident unless the execu- tor includes in the return required to be filed under section two hun- dred and five the value at the time of his death of that part of the gross estate of the nonresident not situated in the United States. Time of Payment. Sec. 204. That the tax shall be due one year after the decedent's death. If the tax is paid before it is due a discount at the rate of five per centum per annum, calculated from the time payment is made to the date when the tax is due, shall be deducted. If the tax is not paid within ninety days after it is due interest at the rate of ten per centum per annum from the time of the decedent's death shall be added as part of the tax, unless because of claims against the estate, necessary litigation, or other unavoidable delay the collector finds that the tax can not be determined, in which case the interest shall be at the rate of six per centum per annum from the time of the decedent's death until the cause of such delay is removed and thereafter at the rate of ten per centum per annum. Litigation to defeat the payment of the tax shall not be deemed necessary litigation. Duties of Executors. Sec. 205. That the executor, within thirty days after qualifying as such, or after coming into possession of any property of the decedent, whichever event first occurs, shall give written notice thereof to the col- lector. The executor shall also at such times and in such manner as may be required by the regulations made under this title, file with the collector a return under oath in duplicate, setting forth (a) the value of the gross 346 Important Federal Laws estate of the decedent at the time of his death, or, in case of a nonresi- dent, of that part of his gross estate situated in the United States ; (b) the deductions allowed under section two hundred and three; (c) the value of the net estate of the decedent as defined in section two hundred and three ; and (d) the tax paid or payable thereon ; or such part of such information as may at the time be ascertainable and such supplemental data as may be necessary to establish the correct tax. Return shall be made in all cases of estates subject to the tax or where the gross estate at the death of the decedent exceeds $60,000, and in the case of the estate of every nonresident any part of whose gross estate is situated in the United States. If the executor is unable to make a complete return as to any part of the gross estate of the decedent, he shall include in his return a description of such part and the name of every person holding a legal or beneficial interest therein, and upon notice from the collector such person shall in like manner make a return as to such part of the gross estate. The Commissioner of Internal Revenue shall make all assessments of the tax under the authority of existing administrative special and general provisions of law relating to the assessment and collection of taxes. Duties of Collectors in Certain Cases. Sec. 206. That if no administration is granted upon the estate of a decedent, or if no return is filed as provided in section two hundred and five, or if a return contains a false or incorrect statement of a material fact, the collector or deputy collector shall make a return and the Com- missioner of Internal Revenue shall assess the tax thereon. Payment of Tax. Sec. 207. That the executor shall pay the tax to the collector or deputy collector. If for any reason the amount of the tax can not be determined, the payment of a sum of money sufificient, in the opinion of the collector, to discharge the tax shall be deemed payment in full of the tax, except as in this section otherwise provided. If the amount po paid exceeds the amount of the tax as finally determined, the Commissioner of Internal Revenue shall refund such excess to the executor. If the amount of the tax as finally determined exceeds the amount so paid the commissioner shall notify the executor of the amount of such excess. From the time of such notification to the time of the final payment of such excess part of the tax, interest shall be added thereto at the rate of ten per centum per annum, and the amount of such excess shall be a lien upon the entire gross estate, except such part thereof as may have been sold to a bona fide purchaser for a fair consideration in money or money's worth. The collector shall grant to the person paying the tax duplicate re- ceipts, either of which shall be sufficient evidence of such payment, and shall entitle the executor to be credited and allowed the amount thereof by any court having jurisdiction to audit or settle his accounts. Inheritance Tax 347 Collector to Enforce Payment. Sec. 208. That if the tax herein imposed is not paid within sixty days after it is due, the collector shall, unless there is reasonable cause for further delay, commence appropriate proceedings in any court of the United States, in the name of the United States, to subject the prop- erty of the decedent to be sold under the judgment or decree of the court. From the proceeds of such sale the amount of the tax, together with the costs and expenses of every description to be allowed by the court, shall be first paid, and the balance shall be deposited according to the order of the court, to be paid under its direction to the person entitled thereto. If the tax or any part thereof is paid by, or collected out of that part of the estate passing to or in the possession of, any person other than the executor in his capacity as such, such person shall be entitled to reimbursement out of any part of the estate still undistributed or by a just and equitable contribution by the persons whose interest in the estate of the decedent would have been reduced if the tax had been paid before the distribution of the estate or whose interest is subject to equal or prior liability for the payment of taxes, debts or other charges against the estate, it being the purpose and intent of this title that so far as is prac- ticable and unless otherwise directed by the will of the decedent the tax shall be paid out of the estate before its distribution. Lien Upon Gross Estate. Sec. 209. That unless the tax is sooner paid in full, it shall be a lien for ten years upon the gross estate of the decedent, except that such part of the gross estate as is used for the payment of charges against the estate and expenses of its administration, allowed by any court having jurisdiction thereof, shall be divested of such lien. If the decedent makes a transfer of, or creates a trust with respect to, any property in contemplation of or intended to take effect in posses- sion or enjoyment at or after his death (except in the case of a bona fide sale for a fair consideration in money or money's worth) and if the tax in respect thereto is not paid when due, the transferee or trustee shall be personally liable for such tax, and such property, to the extent of the decedent's interest therein at the time of such transfer, shall be subject to a like lien equal to the amount of such tax. Any part of such prop- erty sold by such transferee or trustee to a bona fide purchaser for a fair consideration in money or money's worth shall be divested of the lien and a like lien shall then attach to all the property of such transferee or trustee, except any part sold to a bona fide purchaser for a fair con- sideration in money or money's worth. Penalties. Sec. 210. That whoever knowingly makes any false statement in any notice or return required to be filed by this title shall be liable to a penalty of not exceeding $5,000, or imprisonment not exceeding one year, or both, in the discretion of the court. 348 Important Federal Laws Whoever fails to comply with any duty imposed upon him by sec- tion two hundred and five, or, having in his possession or control any record, file or paper, containing or supposed to contain any information concerning the estate of the decedent, fails to exhibit the same upon re- quest to the Commissioner of Internal Revenue or any collector or law officer of the United States, or his duly authorized deputy or agent, who desires to examine the same in the performance of his duties under this title, shall be liable to a penalty of not exceeding $500, to be recovered, with costs of suit, in a civil action in the name of the United States. Application of Other Laws. Sec. 21L That all administrative, special and general provisions of law, including the laws in relation to the assessment and collection of taxes, not heretofore specifically repealed are hereby made to apply to this title so far as applicable and not inconsistent with its provisions. Rules and Regulations. Sec. 212. That the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall make such regulations and prescribe and require the use of such books^ and forms, as he may deem necessary to carry out the provisions of this title. TITLE III— MUNITION MANUFACTURER'S TAX. Act of September 8, 1916. Definitions. Sec. 300. That when used in this title— The term "person" includes partnerships, corporations and asso- ciations ; The term "taxable year" means the twelve months endmg Decem- ber thirty-first. The first taxable year shall be the twelve months end- ing December thirty-first, nineteen hundred and sixteen ; and The term "United States" means only the States, the Territories of Alaska, and Hawaii and the District of Columbia. Special Tax. Sec. 301. (1) That every person manufacturing (a) gunpowder and other explosives, excepting blasting powder and dynamite used for industrial purposes; (b) cartridges, loaded and unloaded caps or prim- ers, exclusive of those used for industrial purposes; (c) projectiles, shells or torpedoes of any kind, including shrapnel, loaded or unloaded, or fuses, or complete rounds of ammunition; (d) fire-arms of any kind and appendages, including small arms, cannon, machine guns, rifles and bayonets; (e) electric motor boats, submarine or submersible vessels or boats; or (f) any part of any of the articles mentioned in (b), (c), (d) or (e) ; shall pay for each taxable year, in addition to the income tax imposed by Title I, an excise tax of twelve and one-half per centum Munition Manufacturers' Tax 349 upon the entire net profits actually received or accrued for said year from the sale or disposition of such articles manufactured within the United States: Provided, however, That no person shall pay such tax upon net profits received during the year nineteen hundred and sixteen derived from the sale and delivery of the articles enumerated in this section under contracts executed 'and fully performed by such person prior to January first, nineteen hundred and sixteen. (2) This section shall cease to be of effect at the end of one year after the termination of the present European war, which shall be evi- denced by the proclamation of the President of the United States declar- ing such war to have ended. Method of Computing Net Profits. Sec. 302. That in computing net profits under the provisions of this title, for the purpose of the tax there shall be allowed as deduc- tions from the gross amount received or accrued for the taxable year from the sale or disposition of such articles manufactured within the United States, the following items: (a) The cost of raw materials entering into the manufacture ; (b) Running expenses, including rentals, cost of repairs and main- tenance, heat, power, insurance, management, salaries and wages : (c) Interest paid within the taxable year on debts or loans con- tracted to meet the needs of the business, and the proceeds of which have been actually used to meet such needs ; (d) Taxes of all kinds paid during the taxable year with resp^t to the business or property relating to the manufacture ; (e) Losses actually sustained within the taxable year in connection with the business of manufacturing such articles, including losses from fire, flood, storm or other casualty, and not compensated for by insurance or otherwise ; and (f) A reasonable allowance according to the conditions peculiar to each concern, far amortization of the values of buildings and machinery, account being taken of the exceptional depreciation of special plants. Sales Belowr Market Value. Sec. 303. If any person manufactures any article specified in sec- tion three hundred and one and, during any taxable year or part thereof, whether under any agreement, arrangement or understanding, or other- wise, sells or disposes of any such article at less than the fair market price obtainable therefor, either (a) in such manner as_ directly or in- directly to benefit such person or any person directly or indirectly inter- ested in the business of such person or (b) with intent to cause such benefit, the gross amount received or accrued for such year or part thereof from the sale or disposition of such article shall be taken to be the amount which w^ould have been received or accrued from the sale or disposition of such article if sold at the fair market price. 350 Important Federal Laws Return to Collector. Sec. 304. On or before the first day of March, nineteen hundred and seventeen, and the first day of March in each year thereafter, a true and accurate return under oath shall be made by each person manufac- turing articles specified in section three hundred and one to the collector of internal revenue for the district in which such person has his principal office or place of business in such form as the Commissioner of Internal Revenue with the approval of the Secretary of the Treasury shall pre- scribe, setting forth specifically the gross amount of income received or accrued from the sale or disposition of the articles specified in section three hundred and one and from the total thereof deducting the aggre- gate items of allowance authorized in section three hundred and tAvo, and such other particulars as to the gross receipts and items of allowance as the Commissioner of Internal Revenue, with the approval of the Sec- retary of the Treasury, may require. Returns Transmitted to Collector of Internal Revenue. Sec. 305. All such returns shall be transmitted forthwith by the collector to the Commissioner of Internal Revenue, who shall, as soon as practicable, assess the tax found due and notify the person making such return of the amount of tax for which such person is liable and such person shall pay the tax to the collector on or before thirty days from the date of such notice. Investigation. Sec. 306. If the Secretary of the Treasury or the Commissioner of Internal Revenue shall have reason to be dissatisfied with the return as made, or if no return is made, the commissioner is authorized to make an investigation and to determine the amount of net profits and may assess the proper tax accordingly. He shall notify the person making, or who should have made, such return and shall proceed to collect the tax in the same manner as provided in this title, unless the person so notified shall file a written request for a hearing with the commissioner within thirty days after the date of such notice ; and on such hearing the burden of establishing to the satisfaction of the commissioner that the gross amount received or accrued or the amount of net profits, as determined by the commissioner, is incorrect, shall devolve upon such person. Assessment in Certain Cases. Sec. 307. The tax may be assessed on any person for the time being owning or carrying on the business, or on any person acting as agent for that person in carrying on the business, or where a business has ceased, on the person who owned or carried on the business, or acted as agent in carrying on the business immediately before the time at which the business ceased. Pow^er of Commissioner of Internal Revenue. Sec. 308. For the purpose of carrying out the provisions of this Miscellaneous Taxes 351 title the Commissioner of Internal Revenue is authorized, personally or by his agent, to examine the books, accounts and records of any person subject to this tax. Information Not to be Divulged. Sec. 309. No person employed by the United States shall com- municate, or allow to be communicated to any person not legally entitled thereto, any information obtained under the provisions of this title, or allow any such person to inspect or have access to any return furnished under the provisions of this title. Penalties. Sec. 310. Whoever violates any of the provisions of this title or the regulations made thereunder, or who knowingly makes false state- ments in any return, or refuses to give such information as may be called for, is guilty of a misdemeanor and upon conviction shall, in addition to paying any tax to which he is liable, be fined not more than $10,000, or imprisoned not exceeding one year, or both, in the discretion of the court. Old Laws in Force. Sec. 311. All administrative, special and general provisions of law, relating to the assessment and collection of taxes not specifically repealed, are hereby made to apply to this title so far as applicable and not inconsistent with its provisions. Rules and Regulations. Sec. 312. The Commissioner of Internal Revenue, with the ap- proval of the Secretary of the Treasury, shall make all necessarv regu- lations for carrying' out the provisions of this title and may require any person subject to such provisions to furnish him with further informa- tion whenever in his judgment the same is necessary to collect the tax provided for herein. TITLE IV— MISCELLANEOUS TAXES. Act of September 8, 1916. Fermented Liquor. Sec. 400. That there shall be levied, collected and paid a tax of $1.50 on all beer, lager beer, ale, porter and other similar fermented liquor, brewed or manufactured and sold, or stored in warehouse, or removed for consumption or sale, within the United States, by whatever name such liquors may be called, for every barrel containing not more than thirty-one gallons ; and at a like rate for any other quantity or for the fractional parts of a barrel authorized and defined by law. And section thirty-three hundred and thirty-nine of the Revised Statutes is hereby amended accordingly. Natural Wine Definition. Sec. 401. That natural wine within the meaning of this Act shall 352 Important Federal Laws be deemed to be the product made from the normal alcohohc fernien- tation of the juice of sound, ripe grapes, without addition or abstraction, except such as may occur in the usual cellar treatment of clarifying and aging: Provided, however. That the product made from the juice of sound, ripe grapes by complete fermentation of the must under proper cellar treatment and corrected by the addition (under the supervision of a ganger or storekeeper-ganger in the capacity of ganger) of a solu- tion of water and pure cane, beet or dextrose sugar (containing, respec- tively, not less than ninetv-five per centum of actual sugar, calculated on a dry basis) to the must' or to the wine, to correct natural deficiencies, when such addition shall not increase the volume of the resultant product more than thirty-five per centum, and the resultant product does not contain less than five parts per thousand of acid before fermentation and not more than thirteen per centum of alcohol after complete fer- mentation, shall be deemed to be wine within the meaning of this Act, and may be labeled, transported and sold as "wine," qualified by the name of the locality where produced and may be further qualified by the name of its own particular type or variety: And provided further, That wine as defined in this section may be sweetened with cane sugar or beet sugar or pure condensed grape must and fortified under the pro- visions of this Act, and wines so sweetened or fortified shall be consid- ered sweet wine within the meaning of this Act. Tax Upon Wines. Sec. 402. (a) That upon all still wines, including vermuth, and upon all artificial or imitation wines or compound sold as wine hereafter produced in or imported into the United States, and upon all like wines which on the date this section takes effect shall be in the possession or under the control of the producer, holder, dealer or compounder there shall be levied, collected and paid taxes at rates as follows: On wines containing not more than fourteen per centum of abso- lute alcohol 4 cents per wine gallon, the per centum of alcohol taxable under this section to be reckoned by volume and not by weight. On wines containing more than fourteen per centum and not exceed- ing twenty-one per centum of absolute alcohol, 10 cents per wine gallon. On wines containing more than twenty-one per centum and not exceeding twenty-four per centum of absolute alcohol, 25 cents per wine gallon. All such wines containing more than twenty-four per centum of absolute alcohol by volume shall be classed as distilled spirits and shall pay tax accordingly: Provided, That on all unsold still wines in the actual possession of the producer at the time this title takes effect, upon which the tax imposed by the Act approved October twenty-second, nine- teen hundred and fourteen, entitled "An Act to increase the internal rev- enue and for other purposes," and the joint resolution approved De- cember seventeenth, nineteen hundred and fifteen, entitled "Joint resolu- Miscellaneous Taxes 353 tion extending the provisions of the Act entitled 'An Act to increase the internal revenue and for other purposes,' approved October twenty- second, nineteen hundred and fourteen, to December thirty-first, nineteen hundred and sixteen," has been assessed, the tax so assessed shall be abated, or, if paid, refunded under such regulations as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury may prescribe. (b) That the taxes imposed by this section shall be paid by stamp on removal of the wines from the customhouse, winery or other bonded place of storage for consumption or sale, and every person hereafter producing, or having in his possession or under his control when this section takes effect, any wines subject to the tax imposed in this section shall file such notice, describing the premises on which such wines are produced or stored ; shall execute a bond in such form ; shall make such inventories under oath ; and shall, prior to sale or removal for consump- tion, affix to each cask or vessel containing such wine such marks, labels or stamps as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may from time to time prescribe ; and the premises described in such notice shall, for the purpose of this sec- tion, be regarded as bonded premises. But the provisions of this sub- division of this section, except as to payment of tax and the affixing of the required stamps or labels, shall not apply to wines held by retail dealers as defined in section thirty-two hundred and forty-four of the Revised Statutes of the United States, nor, subject to regulations pre- scribed by the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall the tax imposed by this section apply to wines produced for the family use of the producer thereof and not sold or otherwise removed from the place of manufacture and not exceed- ing in any case two hundred gallons per year. The Commissioner of Internal Revenue is hereby authorized to have prepared and issue such stamps denoting payment of the tax imposed by this section as he may deem requisite and necessary ; and until such stamps are provided the taxes imposed by this section shall be assessed and collected as other taxes are assessed and collected, and all provisions of law relating to assessment and collection of taxes, so far as applicable, are hereby ex- tended to the taxes imposed by this section. (c) That under such regulations and official supervision and upon the giving of such notices, entries, bonds and other security as the Com- missioner of Internal Revenue, with the approval of the Secretary of the Treasury, may prescribe, any producer of wines defined under the provisions of this section or section four hundred and one of this Act, may withdraw from any fruit distillery or special bonded warehouse grape brandy, or wine spirits for the fortification of such wines on the premises where actually made : Provided; That there shall be levied and assessed against the producer of such wines a tax of 10 cents per proof gallon of grape brandv or wine spirits so used by him in the fortification (23) 354 Important Federal Laws of such wines during the preceding month, which assessment shall be paid by him within six months from the date of notice thereof: Pro- vided further, That nothing herein contained shall be construed as ex- empting any wines, cordials, liqueurs or similar compounds from the payment of any tax provided for in this section. That sections forty-two, forty-three and forty-five of the Act of October first, eighteen hundred and ninety, as amended by section sixty- eight of the Act of August twenty-seventh, eighteen hundred and ninety- four, are further amended to read as follows : Preparation of Sweet Wines. "Sec. 42. That any producer of pure sweet wines may use in the preparation of such sweet wines, under such regulations and after the filing of such notices and bonds, together with the keeping of such records and the rendition of such reports as to materials and products as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may prescribe, wine spirits produced by any duly author- ized distiller and the Commissioner of Internal Revenue, in determining the liability of any distiller of wine spirits to assessment under section thirtv-three hundred and nine of the Revised Statutes, is authorized to allow such distiller credit in his computations for the wine spirits with- drawn to be used in fortifying sweet wines under this Act. Regulation of Manufacturer. "Sec. 43. That the wine spirits mentioned in section forty-two herein mentioned is the product resulting from the distillation of fer- mented grape juice, to which water may have been added prior to, dur- ing, or after fermentation, for the sole purpose of facilitating the fer- mentation and economical distillation thereof, and shall be held to in- clude the product from grapes or their residues commonly known as grape brandy, and shall include commercial grape brandy which may have been colored with burnt sugar or caramel : and the pure sweet wine which may be fortified with wine spirits under the provisions of this Act is fermented or partially fermented grape juice only, with the usual cellar treatment and shall contain no other substance whatever introduced be- fore, at the time of, or after fermentation, except as herein expressly provided : Provided, That the addition of pure boiled or condensed grape must or pure crystallized cane or beet sugar, or pure dextrose sugar containing, respectively, not less than ninety-five per centum of actual sugar, calculated on a dry basis, or water, or any or all of them, to the pure grape juice before fermentation, or to the fermented product of such grape juice, or to both, prior to the fortification herein provided for, either for the purpose of perfecting sweet wines according to com- mercial standards or for mechanical purposes, shall not be excluded by the definition of pure sweet wine aforesaid : Provided, however. That the cane or beet sugar, or pure dextrose sugar added for sweetening purposes shall not be in excess of eleven per centum of the weight of Miscellaneous Taxes 355 the wine to be fortified : And provided further, That the addition of water herein authorized shall be under such regulations as the Commis- sioner of Internal Revenue, with the approval of the Secretary of the Treasury, may from time to time prescribe: Provided, however, That records kept in accordance with such regulations as to the percentage of saccharine, acid, alcoholic and added water content of the wine offered for fortification shall be open to inspection by any official of the Depart- ment of Agriculture thereto duly authorized by the Secretary of Agri- culture ; but in no case shall such wines to which water has been added be eligible for fortification under the provisions of this Act, where the same, after fermentation and before fortification, have an alcoholic strength of less than five per centum of their volume. Withdrawal from Bonded Warehouses. "Sec. 45. That under such regulations and official supervision, and upon the execution of such entries and the giving of such bonds, bills of lading and other security as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall prescribe, any pro- ducer of pure sweet Avines as defined by this Act may withdraw wine spirits from any special bonded warehouse in original packages or from any registered distillery in any quantity not less than eighty wine gallons, and may use so much of the same as may be required by him under such regulations, and after the filing of such notices and bonds and the keep- ing of such records and the rendition of such reports as to materials and products and the disposition of the same as the Commissioner of In- ternal Revenue, with the approval of the Secretary of the Treasury, shall prescribe, in fortifying the pure sweet wines made bv him, and for no other purpose, in accordance with the foregoing limitations and pro- visions ; and the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, is authorized whenever he shall deem it to be necessary for the prevention of violations of this law to pre- scribe that wine spirits withdrawn under this section shall not be used to fortify wines except at a certain distance prescribed by him from any distillery, rectifying house, winer}% or other establishment used for pro- ducing or storing distilled spirits, or for making or storing wines other than wines which are so fortified, and that in the building in which such fortification of wines is practiced no wines or spirits other than those permitted by this regulation shall be stored in any room or part of the building in which fortification of wines is practiced. The use of wine spirits for the fortification of sweet wines under this Act shall be under the immediate supervision of an officer of internal revenue, who shall make returns describing the kinds and quantities of wine so fortified, and shall affix such stamps and seals to the packages containing such wines as may be prescribed by the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury ; and the Commis- sioner of Internal Revenue, with the approval of the Secretary of the 356 Important Federal Laws Treasury, shall provide by regulations the time within which wines so fortilied with the wine spirits so withdrawn may be subject to inspection, and for fmal accounting for the use of such wine spirits and for re ware- housing or for payment of the tax on any portion of such wine spirits which remain not used in fortifying pure sweet wines." (d) That under such regulations and upon the execution of such notices, entries, bonds and other security as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may pre- scribe, domestic wines subject to the tax imposed by this section may be removed from the winery where produced, free of tax, for storage on other bonded premises or from said premises to other bonded premises: Provided, That not more than one such additional removal shall be al- lowed, or for exportation from the United States or for use as distilling material at any regularly registered distillery : Provided, however, That the distiller using any such wine as material shall, subject to the pro- visions of section thirty-three hundred and nine of the Revised Statutes of the United States, as amended, be held to pay the tax on the product of such wines as will include both the alcoholic strength therein pro- duced by fermentation and that obtained from the brandy or wine spirits added to such wines at the time of fortification. Sparkling Wines — Tax. (e) That upon all domestic and imported sparkling wines, liqueurs, cordials and similar compounds remaining in the hands of dealers when this section takes effect, or thereafter removed from the place of manu- acture or storage for sale or consumption, there shall be levied and paid, by stamp, taxes as follows : On each bottle or other container of champagne or sparkling wine, 3 cents on each one-half pint or fraction thereof. On each bottle or other container of artificially carbonated wine, ly^ cents on each one-half pint or fraction thereof. On each bottle or other container of liqueurs, cordials or similar compounds, by whatever name sold or offered for sale, containing sweet wine, fortified with grape brandy under the provisions of paragraph (c) of this section, 1^^ cents on each one-half pint or fraction thereof. The taxes imposed by this section shall not apply to wines, liqueurs, or cordials on which the tax imposed by the Act approved October twenty-second, nineteen hundred and fourteen, entitled "An Act to in- crease the internal revenue and for other purposes," and the joint resolu- tion approved December seventeenth, nineteen hundred and fifteen, en- titled "Joint resolution extending the provisions of the Act entitled 'An Act to increase the internal revenue, and for other purposes,' approved October twenty-second, nineteen hundred and fourteen, to December thirty-first, nineteen hundred and sixteen," has been paid by stamp. The Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, is hereby authorized to have prepared suit- Miscellaneous Taxes 357 able revenue stamps denoting the payment of the taxes imposed by this section; and all provisions of law relating to internal-revenue stamps, so far as applicable, are hereby extended to the taxes imposed by this section: Provided, That the collection of the tax herein prescribed on imported still wines, including vermuth and sparkling wines, including champagne and on imported liqueurs, cordials and similar compounds, may be made within the discretion of the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, by assess- ment instead of by stamps. Penalties. (f) That any person who shall evade or attempt to evade the tax imposed by this section, or any requirement of this section or regulation issued pursuant thereof, or who shall, otherwise than provided in this section, recover or attempt to recover any spirits from domestic or im- ported wine, or who shall rectify, mix or compound with distilled spirits any domestic wines, other than in the manufacture of liqueurs, cordials or similar compounds taxable under the provisions of this section, shall, on conviction, be punished for each such offense by a fine of not exceed- ing $5,000, or imprisonment for not more than five years, or both, and all wines, spirits, liqueurs, cordials, or similar compounds as to which such violation occurs shall be forfeited to the United States. But the provision of this subdivision of this section and the provision of section thirty-two hundred and forty-four of the Revised Statutes of the United States, as amended, relating to rectification or other internal-revenue laws of the United States, shall not be held to apply to or prohibit the mixing or blending of wines subject to tax under the provisions of this section with each other or with other wines for the sole purpose of perfecting such wines according to commercial standards : Provided, That nothing herein contained shall be construed as prohibiting the use of tax-paid grain or other ethyl alcohol in the fortification of sweet wines as defined in section fifty-three of this Act. Spirit Meters. (g) That the Commissioner of Internal Revenue, by regulations to be approved by the Secretary of the Treasury, may require the use at each fruit distillery of such spirit meters, and such locks and seals to be ai^xed to fermenters, tanks, or other vessels and to such pipe con- nections as may in his judgment be necessary or expedient ; and the said commissioner is hereby authorized to assign to any such distillery and to each winery where wines are to be fortified such number of gangers or storekeeper-gaugers in the capacity of gangers as may be necessary for the proper supervision of the manufacture of brandy or the making or fortifying of wines subject to tax imposed by this sec- tion ; and the compensation of such officers shall not exceed $5 per diem while so assigned, together with their actual and necessary traveling expenses, and also a reasonable allowance for their board bills, to be 358 Important Federal Laws fixed by the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, but not to exceed $2.50 per diem for said board bills. (h) That the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, is hereby authorized to make such allowances for unavoidable loss of wines while on storage or during cellar treatment as in his judgment may be just and proper, and to pre- pare all necessary regulations for carrying into effect the provisions of this section. Measurements. (i) That the second paragraph of section thirty-two hundred and sixty-four, Revised Statutes of the United States of America, as amended by section five of the Act of March first, eighteen hundred and seventy-nine, and as further amended by the Act of Congress approved June twenty-second, nineteen hundred and ten, be amended so as to read as follows : "In all surveys forty-five gallons of mash or beer brewed or fer- mented from grain shall represent not less than one bushel of grain, and seven gallons of mash or beer brewed or fermented from molasses shall represent not less than one gallon of molasses, except in distil- leries operated on the sour-mash principle, in which distilleries sixty gallons of beer brewed or fermented from grain shall represent not less than one bushel of grain, and except that in distilleries where the filtration-aeration process is used, with the approval of the Commis- sioner of Internal Revenue; that is, where the mash after it leaves the mash tub is passed through a filtering machine before it is run into the fermenting tub, and only the filtered liquor passes into the fermenting tub, there shall hereafter be no limitation upon the number of gallons of water which may be used in the process of mashing or filtration for fermentation; but the Commissioner of Internal Revenue, with the ap- proval of the Secretary of the Treasury, in order to protect the revenue, shall be authorized to' prescribe by regulation, to be made by him, such character of survey as he may find suitable for distilleries using such filtration-aeration process. The provisions hereof relating to filtration- aeration process shall apply only to sweet-mash distilleries." Distilled Spirits for Export. Sec. 403. That under such regulations as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may prescribe, alcohol or other distilled spirits of a proof strength of not less than one hundred and eighty degrees intended for export free of tax may be drawn from receiving cisterns at any distillery, or from storage tanks in any distillery warehouse, for transfer to tanks or tank cars lor export from the United States, and all provisions of existing law relating to the exportation of distilled spirits not inconsistent here- Miscellaneous Taxes 359 with shall apply to spirits removed for export under the provisions of this Act. Distillers of Brandy from Fruit May be Exempted. Sec. 404. That section thirty-two hundred and fifty-five of the Revised Statutes as amended by Act of June third, eighteen hundred and ninety-six, and as further amended by Act of March second, nine- teen hundred and eleven, be further amended so as to read as follows : "Sec. 3255. The Commissioner of Internal Revenue, with the ap- proval of the Secretary of the Treasury, may exempt distillers of brandy made exclusively from apples, peaches, grapes, pears, pine-apples, or- anges, apricots, berries, plums, pawpaws, persimmons, prunes, figs, or cherries from any provision of this title relating to the manufacture of spirits, except as to the tax thereon, when in his judgment it may seem expedient to do so : Provided, That where, in manufacture of wine, artificial sweetening has been used the wine or the fruit pomace re- siduum may be used in the distillation of brandy, as such use shall not prevent the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, from exempting such distiller from any provision of this title relating to the manufacture of spirits, except as to the tax thereon, when in his judgment it may seem expedient to do so : And provided further, That the distillers mentioned in this section may add to not less than five hundred gallons (or ten barrels) of grape cheese not more than five hundred gallons of a sugar solution made from cane, beet, starch, or corn sugar, ninety-five per centum pure, such solution to have a saccharine strength of not to exceed ten per centum, and may ferment the resultant mixture on a winery or distillery premises, and such fermented product shall be regarded as distilling material." Gin for Export. Sec. 405. That distilled spirits known commercially as gin of not less than eighty per centum proof may at any time within eight years after entry in bond at any distillery be bottled in bond at such distillery for export without the payment of tax, under such rules and regulations as the Commissioner of Internal Revenue, with the approval of the Sec- retary of the Treasury, may prescribe. Penalties. Sec. 406. That section thirty-three hundred and fifty-four of the Revised Statutes of the United States as amended by the Act approved June eighteenth, eighteen hundred and ninety, be, and is hereby, amended to read as follows : "Sec. 3354. Every person who withdraws any fermented liquor from any hogshead, barrel, keg or other vessel, upon which the proper stamp has not been affixed for the purpose of bottling the same, or who carries on or attempts to carry on the business of bottling fermented liquor in any brewery or other place in which fermented liquor is made. 360 Important Federal Laws or upon any premises having communication with such brewery, or any warehouse, shall be liable to a fine of $500, and the property used in such bottling or business shall be liable to forfeiture: Provided, how- ever, That this section shall not be construed to prevent the withdrawal and transfer of unfermented, partially fermented, or fermented liquors from any of the vats in any brewery by way of a pipe line or other conduit to another building or place for the sole purpose of bottling the same, such pipe line or conduit to be constructed and operated in such manner and with such cisterns, vats, tanks, valves, cocks, faucets, and gauges, or other utensils or apparatus, either on the premises of the brewery or the bottling house, and with such changes of or additions thereto, and such locks, seals, or other fastenings, and under such rules and regulations as shall be from time to time prescribed by the Commis- sioner of Internal Revenue, subject to the approval of the Secretary of the Treasury, and all locks and seals prescribed shall be provided by the Commissioner of Internal Revenue at the expense of the United States : Provided further. That the tax imposed in section thirty-three hundred and thirty-nine of the Revised Statutes of the United States shall be paid on all fermented liquor removed from a brewery to a bottling house bv means of a pipe or conduit, at the time of such removal, by the can- cellation and defacement, by the collector of the district or his deputy, in the presence of the brewer, of the number of stamps denoting the tax on the fermented liquor thus removed. The stamps thus canceled and defaced shall be disposed of and accounted for in the manner directed bv the Commissioner of Internal Revenue, with the approval of the Sec- retary of the Treasury. And any violation of the rules and regulations hereafter prescribed by the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, in pursuance of these pro- visions, shall be subject to the penalties above provided by this section. Every owner, agent, or superintendent of any brewery or bottling house who removes, or connives at the removal of, any fermented liquor through a pipe line or conduit, without payment of the tax thereon, or who attempts in any manner to defraud the revenue as above, shall for- feit all the liquors made by and for him, and all the vessels, utensils, and apparatus used in making the same." Special Taxes. Sec. 407. That on and after January first, nineteen hundred and seventeen, special taxes shall be, and hereby are, imposed annually, as follows, that is to say : Every corporation, joint-stock company or association, now or hereafter organized in the United States for profit and having a capital stock represented by shares, and every insurance company, now or hereafter organized under the laws of the United States, or any State or Territory of the United States, shall pay annually a special excise tax with respect to the carrying on or doing business by such corporation, AIlSCELLANEOUS TaXES 361 joint-Stock company or association, or insurance company, equivalent to 50 cents for each $1,000 of the fair- value of its capital stock and in estimating the value of capital stock the surplus and undivided profits shall be included: Provided, That in the case of insurance companies such deposits and reserve funds as they are required by law or contract to maintain or hold for the protection of or payment to or apportion- ment among policyholders shall not be included. The amount of such annual tax shall in all cases be computed on the basis of the fair average value of the capital stock for the preceding year: Provided, That for the purpose of this tax an exemption of $99,000 shall be allowed from the capital stock as defined in this paragraph of each corporation, joint- stock company or association, or insurance company : Provided further, That a corporation, joint-stock company or association, or insurance company, actually paying the tax imposed by section three hundred and one of Title III of this Act shall be entitled to a credit as against the tax imposed by this paragraph equal to the amount of the tax so actually paid : And provided further. That this tax shall not be imposed upon any corporation, joint-stock company or association, or insurance company not engaged in business during the preceding taxable year,^ or which is exempt under the provisions of section eleven. Title I, of this Act. Every corporation, joint-stock company or association, or insur- ance company, now or hereafter organized for profit under the laws of any foreign country and engaged in business in the United States shall pay annually a special excise tax with respect to the carrying on or doing business in the United States by such corporation, joint-stock company or association, or insurance company, equivalent to 50 cents for each $1,000 of the capital actually invested in the transaction of its business in the United States: Provided, That in the case of insurance companies such deposits or reserve funds as they are required by law or contract to maintain or hold in the United States for the protection of or payment to or apportionment among policyholders, shall not be in- cluded. The amount of such annual tax shall in all cases be computed on the basis of the average amount of capital so invested during the preceding year: Provided, That for the purpose of this tax an exemption from the amount of capital so invested shall be allowed equal to such proportion of $99,000 as the amount so invested bears to the total amount invested in the transaction of business in the United States or elsewhere : Provided, further, That this exemption shall be allowed only if such corporation, joint-stock company or association, or msurance companv makes return to the Commissioner of Internal Revenue, under regulations prescribed by him, with the approval of the Secretary of the Treasury, of the amount of capital invested in the transaction of busi- ness outside the United States: And provided further, That a corpora- tion, joint-stock company or association, or insurance company actually paying the tax imposed by section three hundred and one of Title III of thfs act, shall be entitled to a credit as against the tax imposed by 362 Important Federal Laws this paragraph equal to the amount of the tax so actually paid : And provided further, That this tax shall not be imposed upon any corpora- tion, joint-stock company or association, or insurance company not en- gaged in business during the preceding taxable year, or which is exempt under the provisions of section eleven. Title I, of this x\ct. Second. Brokers shall pay $30. Every person, firm, or company, whose business it is to negotiate purchases or sales of stocks, bonds, exchange, bullion, coined money, bank notes, promissory notes, or other securities, for others, shall be regarded as a broker. Third. Pawnbrokers shall pay $50. Every person, firm, or com- pany whose business or occupation it is to take or receive, by way of pledge, pawn, or exchange, any goods, wares, or merchandise, or any kind of personal property whatever, as security for the repayment of money loaned thereon, shall be deemed a pawnbroker. Fourth. Ship brokers shall pay S20. Every person, firm, or com- pany whose business it is as a broker to negotiate freights and other business for the owners of vessels, or for the shippers or consignors or consignees of freight carried by vessels, shall be regarded as a ship broker under this section. Fifth. Customhouse brokers shall pay $10. Every person, firm, or company whose occupation it is, as the agent of others, to arrange entries and other customhouse papers, or transact business at any port of entry relating to the importation or exportation of goods, wares, or merchandise, shall be regarded as a customhouse broker. Sixth. Proprietors of theaters, museums, and concert halls, where a charge for admission is made, having a seating capacity of not more than two hundred and fifty, shall pay $25 ; having a seating capacity of more than two hundred and fifty and not exceeding five hundred, shall pay $50 ; having a seating capacity exceeding five hundred and not exceeding eight hundred, shall pay $75 ; having a seating capac- ity of more than eight hundred, shall pay $100. Every edifice used for the purpose of dramatic or operatic or other representations, plays, or performances, for admission to which entrance money is received, not including halls or armories rented or used occasionally for concerts or theatrical representations, shall be regarded as a theater : Provided, That in cities, towns, or villages of five thousand inhabitants or less the amount of such payment shall be one-half of that above stated : Provided further, That whenever any such edifice is under lease at the passage of this Act, the tax shall be paid by the lessee, unless otherwise stipulated between the parties to said lease. Seventh. The proprietor or proprietors of circuses shall pay $100. Every building, space, tent, or area where feats of horsemanship or acrobatic sports or theatrical performances not otherwise provided for in this section are exhibited shall be regarded as a circus : Provided, That no special tax paid in one State, Territory, or the District of Columbia shall exempt exhibitions from the tax in another State, Miscellaneous Taxes 363 Territory, or the District of Columbia, and but one special tax shall be imposed for exhibitions within any one State, Territory, or District. Eighth. Proprietors or agents of all other public exhibitions or shows for money not enumerated in this section shall pay $10; Pro- vided, That a special tax paid in one State, Territory, or the District of Columbia shall not exempt exhibitions from the tax in another State, Territory, or the District of Columbia, and but one special tax shall be required for exhibitions within any one State, Territory of the Dis- trict of Columbia: Provided further. That this paragraph shall not apply to Chautauquas, lecture lyceums, agricultural or industrial fairs, or exhibitions held under the auspices of religious or charitable asso- ciations: Provided further, That an aggregation of entertainments, known as a street fair, shall not pay a larger tax than $100 in any State, Territory, or in the District of Columbia. Ninth. Proprietors of bowling alleys and billiard rooms shall pay $5 for each alley or table. Every building or place where bowls are thrown or where games of billiards or pool are played, except in private homes, shall be regarded as a bowling alley or a billiard room, respec- tively. Tobacco Taxes. Sec. 408. That on and after January first, nineteen hundred and seventeen, special taxes on tobacco, cigar, and cigarette manufacturers shall be, and hereby are, imposed annually as follows, the amount of such annual taxes to be computed in all cases on the basis of the annual sales for the preceding fiscal year: Manufacturers of tobacco whose annual sales do not exceed fifty thousand pounds shall each pay $3 ; Manufacturers of tobacco whose annual sales exceed fifty thousand and do not exceed one hundred thousand pounds shall each pay $6; Manufacturers of tobacco whose annual sales exceed one hundred thousand and do not exceed two hundred thousand pounds shall each pay $12; Manufacturers of tobacco whose annual sales exceed two hundred thousand pounds shall each pay at the rate of 8 cents per thousand pounds, or fraction thereof ; Manufacturers of cigars whose annual sales do not exceed fifty thousand cigars shall each pay $2 ; Manufacturers of cigars whose annual sales exceed fifty thousand and do not exceed one hundred thousand cigars shall each pay $3 ; Manufacturers of cigars whose annual sales exceed one hundred thousand and do not exceed two hundred thousand cigars shall each pay $6; Manufacturers of cigars whose annual sales exceed two hundred thousand and do not exceed four hundred thousand cigars shall each pay $12 ; 364 Important Federal Laws Manufacturers of cigars whose annual sales exceed four hundred thousand cigars shall each pay at the rate of 5 cents per thousand cigars, or fraction thereof ; Manufacturers of cigarettes, including small cigars weighing not more than three pounds per thousand, shall each pay at the rate of 3 cents for every ten thousand cigarettes, or fraction thereof. In arriving at the amount of special tax to be paid under this sec- tion, and in the levy and collection of such tax, each person, firm, or corporation engaged in the manufacture of more than one of the classes of articles speciiied in this section shall be considered and deemed a manufacturer of each class separately. Every person who carries on any business or occupation for which special taxes are imposed by this title, without having paid the special tax therein provided, shall, besides being liable to the payment of such special tax, be deemed guilty of a misdemeanor, and upon conviction thereof shall pay a fine of not more than $500, or be imprisoned not more than six months, or both, in the discretion of the court. Old Laws in Force. Sec. 409. That all administrative or special provisions of law, including the law relating to the assessment of taxes, so far as appli- cable, are hereby extended to and made a part of this title, and every person, firm, company, corporation, or association liable to any tax imposed by this title, shall keep such records and render, under oath, such statements and returns, and shall comply with such regulations as the Commissioner of Internal Revenue, with the approval of the Secre- tary of the Treasury, may from time to time prescribe. Repeal. Sec. 410. That the Act approved October twenty-second, nineteen hundred and fourteen, entitled "An Act to increase the internal revenue, and for other purposes," and the joint resolution approved December seventeenth, nineteen hundred and fifteen, entitled "Joint resolution extending the provisions of the Act entitled 'An Act to increase the internal revenue, and for other purposes,' approved October twenty- second, nineteen hundred and fourteen, to December thirty-first, nine- teen hundred and sixteen," are hereby repealed, except sections three and four of such Act as so extended which sections shall remain in force till January first, nineteen hundred and seventeen, and except that the provisions of the said Act shall remain in force for the assessment and collection of all special taxes imposed by sections three and four thereof, or by such sections as extended by said joint resolution, for any year or part' thereof ending prior to January first, nineteen hundred and seven- teen, and of all other taxes imposed by such Act, or by such Act as so extended, accrued prior to the taking effect of this title, and for the imposition and collection of all penalties or forfeitures which have accrued or may accrue in relation to any of such taxes. Tariff Act, Dutiable List 365 Sec. 411. That the Commissioner of Internal Revenue, subject to regulation prescribed by the Secretary of the Treasury, may make allowance for or redeem stamps, issued, under authority of the Act ap- proved October twenty-second, nineteen hundred and fourteen, entitled "An Act to increase the internal revenue, and for other purposes," and the joint resolution approved December seventeenth, nineteen hundred and fifteen, entitled "Joint resolution extending the provisions of the Act entitled 'An Act to increase the internal revenue, and for other pur- poses,' approved October twenty-second, nineteen hundred and fourteen, to December thirty-first, nineteen hundred and sixteen," to denote the payment of internal revenue tax, and which have not been used, if pre- sented within two years after the purchase of such stamps. Sec. 412. That the provisions of this title shall take efl:"ect on the day following the passage of this Act, except where otherwise in this title provided. Sec. 413. That all internal revenue agents and inspectors be o-ranted leave of absence with pay, which shall not be cumulative, not to exceed thirty days in any calendar year, under such regulations as the Commissioner of Internal Revenue, with the approval of the Secre- tary of the Treasury, may prescribe. THE TARIFF ACT. Act of October 3, 1913. An Act to reduce tariff duties and to provide revenue for the government, and for other purposes. That on and after the day following the passage of this Act, except as otherwise specially provided for in this Act, there shall be levied, col- lected, and paid upon all articles when imported from any foreign country into the United States or into any of its possessions (except the Philip- pine Islands and the islands of Guam and Tutuila) the rates of duty which are by the schedules and paragraphs of the dutiable list of this section prescribed, namely : DUTIABLE LIST. Schedule A — Chemicals, Oils and Paints. 1. Acids: Boracic acid, f cent per pound; citric acid, 5 cents per pound; formic acid, U cents per pound; gallic acid, 6 cents per pound; lactic acid. U cents per pound ; oxalic acid, U cents per pound ; pyrogallic acid, 12 cent's per pound ; salicylic acid, 2^ cents per pound ; tannic acid and tannin, 5 cents per pound ; tartaric acid, 3^ cents per pound ; all other acids and acid anhydrides not specially provided for in this section, 15 per centum ad valorem. 2. Acetic anhydrid, 2^ cents per pound. 3. Acetone, 1 cent per pound. 4. Dried Qgg albumen, 3 cents per pound. 5. Alkalies, alkaloids, and all chemical and medicinal compounds, 366 Important Federal Laws preparations, mixtures and salts, and combinations thereof not specially provided for in this section, 15 per centum ad valorem. 6. Alumina, hydrate of, or refined bauxite ; alum, alum cake, patent alum, sulphate of alumina, and aluminous cake, and all other manufac- tured compounds of alumina, not specially provided for in this section, 15 per centum ad valorem. 7. Ammonia, carbonate of, and muriate of, 5 of 1 cent per pound; phosphate of, 1 cent per pound; liquid anhydrous, 2| cents per pound; ammoniacal gas liquor, 10 per centum ad valorem. 8. Argols or crude tartar or wine lees crude or partly refined, con- taining not more than 90 per centum of potassium bitartrate, 5 per centum ad valorem ; containing more than 90 per centum of potassium bitartrate, cream of tartar, and Rochelle salts or tartrate of soda and potassa, 2| cents per pound ; calcium tartrate crude, 5 per centum ad valorem. 9. Balsams : Copaiba, fir or Canada, Peru, tolu, and all other balsams, which are natural and uncompounded and not suitable for the manufacture of perfumery and cosmetics, if in a crude state, not advanced in value or condition by any process or treatment whatever beyond that essential to the proper packing of the balsams and the prevention of decay or deterioration pending manufacture, all the foregoing not specially provided for in this section, 10 per centum ad valorem; if advanced in value or condition by any process or treatment whatever beyond that essential to the proper packing of the balsams and the prevention of decay or deterioration pending manufacture, all the foregoing not specially pro- vided for in this section, 15 per centum ad valorem: Provided, That no article containing alcohol shall be classified for duty under this paragraph. 10. Barium, chloride of, ^ cent per pound; dioxide of, 1^ cents per pound; carbonate of, precipitated, 15 per centum ad valorem. 11. Blacking of all kinds, polishing powders, and all creams and preparations for cleaning or polishing, not specially provided for in this section, 15 per centum ad valorem: Provided, That no preparations con- taining alcohol shall be classified for duty under this paragraph. 12. Bleaching powder, or chloride of lime, one-tenth cent per pound. 13. Caftein, $1 per pound; compounds of cafifein, 25 per centum ad valorem; impure tea, tea waste, tea siftings or sweepings, for manufac- turing purposes in bond, pursuant to the provisions of the Act of May sixteenth, nineteen hundred and eight, 1 cent per pound. 14. Calomel, corrosive sublimate, and other mercurial preparations, 15 per centum ad valorem. 15. Chalk, precipitated, suitable for medicinal or toilet purposes; chalk put up in the form of cubes, blocks, sticks, or disks, or otherwise, including tailors', billiard, red, and other manufactures of chalk not specially provided for in this section, 25 per centum ad valorem. 16. Chemical and medicinal compounds and preparations, including mixtures and salts, distilled oils, essential oils, expressed oils, rendered oils, greases, ethers, flavoring and other extracts and fruit essences, and Tariff Act, Dutiable List 367 all the foregoing and their combinations when containing alcohol, and all articles consisting of vegetable or mineral objects immersed or placed in, or saturated with, alcohol, except perfumery and spirit varnishes, and all alcoholic compounds not specially provided for in this section, if con- taining 20 per centum of alcohol or less, 10 cents per pound and 20 per centum ad valorem ; containing more than 20 per centum and not more than 50 per centum of alcohol, 20 cents per pound and 20 per centum ad valorem ; containing more than 50 per centum of alcohol, 40 cents per pound and 20 per centum ad valorem. 17. Chemical and medicinal compounds, combinations and all similar articles dutiable under this section, except soap, whether specially pro- vided for or not, put up in individual packages of two and one-half pounds or less gross weight (except samples without commercial value) shall be dutiable at a rate not less than 20 per centum ad valorem : Pro- vided, That chemicals, drugs, medicinal and similar substances, whether dutiable or free, imported in capsules, pills, tablets, lozenges, troches, ampoules, cubes, or similar forms, shall be dutiable at not less than 25 per centum ad valorem. 18. Chloral hydrate, salol, phenolphthalein, urea, terpin hydrate, acetanilid, acetphenetidin, antipyrine, glycerophosphoric acid and salts and compounds thereof, acetylsalicylic acid, aspirin, guiacol carbonate, and thymol, 25 per centum ad valorem. ^ 19. Chloroform, 2 cents per pound ; carbon tetrachloride, 1 cent per pound. 20. Coal-tar dyes or colors, not specially provided for in this section, 30 per centum ad valorem. 21. All other products or preparations of coal tar, not colors or dyes, not specially provided for in this section, 15 per centum ad valorem. 22. Coal-tar distillates, not specially provided for in this section; benzol, naphtol, resorcin, toluol, xylol ; all the foregoing not medicinal and not colors or dyes, 5 per centum ad valorem. 23. Coal-tar products known as anilin oil and salts, toluidine, xylidin, cumidin, binitrotoluol, binitrobenzol, benzidin, tolidin, dianisidin, naphtylamin, diphenylamin, benzaldehyde, benzyl chloride, nitro-benzol and nitrotoluol, naphyltaminsulfoacids and their sodium or potassium salts, naphtolsulfoacids and their sodium or potassium salts, amidonaph- tolsulfoacids and their sodium or potassium salts, amidosalicylic acid, binitrochlorbenzol, diamidostilbendisulfoacid, metanilic acid, paranitrani- lin, dimethylanilin ; all the foregoing not medicinal and not colors or dyes, 10 per centum ad valorem. 24. Cobalt, oxide of, 10 cents per pound. 25. Collodion and all other liquid solutions of pyroxylin, or of other cellulose esters, or of cellulose, 15 per centum ad valorem; compounds of pyroxylin or of other cellulose esters, whether known as celluloid or by any other name, if in blocks, sheets, rods, tubes, or other forms not polished, wholly or partly, and not made into finished or party finished 368 Important Federal Laws articles, 25 per centum ad valorem; if polished, wholly or partly, or if finished or partly finished articles, of which collodion or any compound of pyroxylin or other cellulose esters, by whatever name known, is the component material of chief value, 40 per centum ad valorem. 26. Coloring for brandy, wine, beer, or other liquors, 40 per centum ad valorem. 27. Drugs, such as barks, beans, berries, buds, bulbs, bulbous roots, excrescences, fruits, flowers, dried fibers, dried insects, grains, gums, herbs, leaves, lichens, mosses, roots, stems, vegetables, seeds (aromatic, not garden seeds), seeds of morbid growth, and weeds; any of the fore- going which are natural and uncompounded drugs and not edible, and not specially provided for in this section, but which are advanced in value or condition by shredding, grinding, chipping, crushing, or any other process or treatment whatever beyond that essential to the proper packing of the drugs and the prevention of decay or deterioration pending manufacture, 10 per centum ad valorem : Provided, That no article containing alcohol shall be classified for duty under this paragraph. 28. Ergot, 10 cents per pound. 29. Ethers : Sulphuric, 4 cents per pound ; amyl nitrite, 20 per centum ad valorem ; amyl acetate and ethyl acetate or acetic ether, 5 cents per pound ; ethyl chloride, 20 per centvim ad valorem ; ethers and esters of all kinds not specially provided for in this section, 20 per centum ad valorem : Provided, That no article containing more than 10 per centum of alcohol shall be classified for duty under this paragraph. 30. Extracts and decoctions of nutgalls, Persian berries, sumac, logwood, and other dyewoods, and all extracts of vegetable origin suitable for dyeing, coloring, or staining, not specially provided for in this section ; all the foregoing not containing alcohol and not medicinal, f of 1 cent per pound. 31. Extract of chlorophyll, 15 per centum ad valorem; saffron and safflower, and extract of, and saft'ron cake, 10 per centum ad valorem: Provided, That no article containing alcohol shall be classified for duty under this paragraph. 32. Formaldehyde solution containing not more than 40 per centum of formaldehyde, or formaline, 1 cent per pound. 23. Fusel oil, or amylic alcohol, | cent per pound. 34. Gelatin, glue, and glue size, valued not above 10 cents per pound, 1 cent per pound ; valued above 10 cents per pound and not above 25 cents per pound. 15 per centum ad valorem; valued above 25 cents per pound, 25 per centum ad valorem ; manufactures of gelatin or manufac- tures of which gelatin is the component material of chief value, 25 per centum ad valorem; isinglass and prepared fish sounds, 25 per centum ad valorem ; agar-agar, 20 per centum ad valorem. 35. Glycerin, crude, not purified, 1 cent per pound; refined, 2 cents per pound. 36. Gums : Amber, and amberoid unmanufactured, or crude gum. Tariff Act, Dutiable List 369 not specially provided for in this section, $1 per pound ; arable, or Senegal, ^ cent per pound ; camphor, crude, natural, 1 cent per pound ; camphor, refined and synthetic, 5 cents per pound; chicle, crude, 15 cents per pound ; refined or advanced in value by drying, straining, or any other process or treatment whatever beyond that essential to the proper pack- ing, 20 cents per pound ; dextrine, made from potato starch or potato tlour, Ij cents per pound ; dextrine, not otherwise provided for, burnt starch or British gum, dextrine substitutes, and soluble or chemically treated starch, I of 1 cent per pound. 'hy . Ink and ink powders, 15 per centum ad valorem. 38. Iodoform, and potassium iodide, 15 cents per pound. 39. Leaves and roots : Buchu leaves, 10 cents per pound ; coca leaves, 10 cents per pound ; gentian, \ cent per pound ; licorice root, \ cent per pound ; sarsaparilla root, 1 cent per pound. 40. Licorice, extracts of, in pastes, rolls, or other forms, 1 cent per pound. 41. Lime, citrate of, 1 cent per pound. 42. Magnesia : Calcined, 3^ cents per pound ; carbonate of, pre- cipitated, 1^ cents per pound; sulphate of, or Epsom salts, one-tenth cent per pound. 43. Menthol, 50 cents per pound. 44. Oils, rendered : Sod, seal, herring, and other fish oil, not spe- cially provided for in this section, 3 cents per gallon; whale oil, 5 cents per gallon ; sperm oil, 8 cents per gallon ; wool grease, including that known commercially as degras or brown wool grease, crude and not refined or improved in value or condition, \ cent per pound; refined or improved in value or condition, and not specially provided for in this section, \ cent per pound ; lanolin, 1 cent per pound ; all other animal oils, rendered oils and greases, and all combinations of the same not specially provided for in this section, 15 per centum ad valorem. 45. Oils, expressed : Alizarin assistant, sulphoricinoleic acid, and ricinoleic acid, and soaps containing castor oil, any of the foregoing in whatever form, and all other alizarin assistants and all soluble greases used in the processes of softening, dyeing, or finishing, not specially pro- vided for in this section, 25 per centum ad valorem; castor oil, 12 cents per gallon ; flaxseed and linseed oil, raw, boiled, or oxidized, 10 cents per gallon of 7\ pounds; poppy-seed oil, raw, boiled, or oxidized, rapeseed oil, and peanut oil, 6 cents per gallon; hempseed oil, 3 cents per gallon; almond oil, sweet, 5 cents per pound ; sesame or sesamum seed or bean oil, 1 cent per pound ; olive oil, not specially provided for in this section, .20 cents per gallon ; olive oil in bottles, jars, kegs, tins, or other packages having a capacity of less than five standard gallons each, 30 cents per gallon ; all other expressed oils and all combinations of the same, not spe- cially provided for in this section, 15 per centum ad valorem. 46. Oils, distilled and essential : Orange and lemon, 10 per centum .ad valorem ; peppermint, 25 cents per pound ; mace oil, 6 cents per pound ; (24) 370 * Important Federal Laws almond, bitter ; amber ; ambergris ; anise or anise seed ; bergamot ; cam- omile ; caraway ; cassia ; cinnamon ; cedrat ; citronella and lemon-grass ; civet; fennel; jasmine or jasimine; juniper; lavender, and aspic or spike lavender ; limes ; neroli or orange flower ; origanum, red or wbite ; rose- mary or anthoss ; attar of roses ; thyme ; and valerian ; all the foregoing oils, and all fruit ethers, oils, and essences, and essential and distilled oils and all combinations of the same, not specially provided for in this section, 20 per centum ad valorem : Provided, That no article containing alcohol shall be classified for duty under this paragraph. 47. Opium, crude or unmanufactured, and not adulterated, contain- ing 9 per centum and over of morphia, $3 per pound ; opium of the same composition, dried to contain 15 per centum or less of moisture, pow- dered, or otherwise advanced beyond the condition of crude or unmanu- factured, $4 per pound ; morphia or morphine, sulphate of, and all alka- loids of opium, and salts and esters thereof, $3 per ounce ; cocaine, ecgon- ine, and all salts and derivatives of the same, $2 per ounce ; aqueous ex- tract of opium, for medicinal uses, and tincture of, as laudanum, and other liquid preparations of opium, not specially provided for in this section, 60 per centum ad valorem ; opium containing less than 9 per centum of morphia, $6 per pound ; but preparations of opium deposited in bonded warehouses shall not be removed therefrom without payment of duties, and such duties shall not be refunded: Provided, That nothing herein contained shall be so construed as to repeal or in any manner impair or afJect the provisions of an Act entitled "An Act to prohibit the importa- tion and use of opium for other than medicinal purposes," approved Feb- ruary ninth, nineteen hundred and nine. 48. Perfumery, including cologne and other toilet waters, articles of perfumery, whether in sachets or otherwise, and all preparations used as applications to the hair, mouth, teeth, or skin, such as cosmetics, den- tifrices, including tooth soaps, pastes, including theatrical grease paints, and pastes, pomades, powders, and other toilet preparations, all the fore- going, if containing alcohol, 40 cents per pound and 60 per centum ad valorem ; if not containing alcohol, 60 per centum ad valorem ; floral or flower waters containing no alcohol, not specially provided for in this section, 20 per centum ad valorem, 49. Ambergris, enfleurage greases and floral essences by whatever method obtained ; flavoring extracts, musk, grained or in pods, civet, and all natural or synthetic odoriferous or aromatic substances, preparations, and mixtures used in the manufacture of, but not marketable as, per- fumes or cosmetics ; all the foregoing not containing alcohol and not spe- cially provided for in this section, 20 per centum ad valorem. 50. Plasters, healing or curative, of all kinds, and court-plaster, 15 per centum ad valorem. 51. Baryta, sulphate of, or barytes, including barytes earth, un- manufactured, 15 per centum ad valorem; manufactured, 20 per centum Tariff Act, Dutiable List 371 ad valorem ; blanc-fixe, or artificial sulphate of barytes, and satin white, or artificial sulphate of lime, 20 per centum ad valorem. 52. Blues, such as Berlin, Prussian, Chinese, and all others, contain- ing ferrocyanide of iron, in pulp, dry or ground in or mixed virith oil or water, 20 per centum ad valorem ; ultramarine blue, whether dry, in pulp, or ground in or mixed with oil or water, and wash blue containing ultra- marine, 15 per centum ad valorem. 53. Black pigments, made from bone, ivory, or vegetable sub- stance, by whatever name known ; gas black and lampblack, dry or ground in or mixed with oil or water, 15 per centum ad valorem. 54. Chrome yellow, chrome green, and all other chromium colors in the manufacture of which lead and bichromate of potash or soda are used, in pulp, dry, or ground in or mixed with oil or water, 20 per centum ad valorem. 55. Ocher and ochery earths, sienna and sienna earths, and umber and umber earths, 5 per centum ad valorem ; Spanish brown, Venetian red, Indian red, and colcothar or oxide of iron, not specially provided for in this section, 10 per centum ad valorem. 56. Lead pigments : Litharge, orange mineral, red lead, white lead, and all pigments containing lead, dry or in pulp, and ground or mixed with oil or water, not specially provided for in this section, 25 per centum ad valorem. 57. Lead, acetate of, white, and nitrate of, 1^ cents per pound; acetate of, brown, gray, or yellow, 1 cent per pound ; all other lead com- pounds not specially provided for in this section, 20 per centum ad va- lorem. 58. Varnishes, including so-called gold size or japan, 10 per centum ad valorem : Provided, That spirit varnishes containing less than 10 per centum of methyl alcohol of the total alcohol contained therein, shall be dutiable at $1.32 per gallon and 15 per centum ad valorem. 59. Vermilion reds, containing quicksilver, dry or ground in oil or water, 15 per centum ad valorem; when not containing quicksilver but made of lead or containing lead, 25 per centum ad valorem. 60. Whiting and Paris white, dry, and chalk, ground or bolted, 1-10 cent per pound ; whiting and Paris white, ground in oil, or putty, 15 per centum ad valorem. 61. Zinc, oxide of, and pigments containing zinc but not containing more than 5 per centum of lead, ground dry, 10 per centum ad valorem ; when ground in or mixed with oil or water, lithopone and white sulphide of zinc, 15 per centum ad valorem. 62. Zinc, chloride of and sulphate of, | cent per pound. 63. Enamel paints, and all paints, colors, pigments, stains, crayons, including charcoal crayons or fusains, smalts, and frostings, and all cera- mic and glass fluxes, glazes, enamels, and colors, whether crude, dry, mixed, or ground with water or oil or with solutions other than oil, not specially provided for in this section, 15 per centum ad valorem; all 372 Important Federal Laws paints, colors, and pigments commonly known as artists' paints or colors, whether in tubes, pans, cakes, or other forms, 20 per centum ad valorem ; all color lakes, whether dry or in pulp, not specially provided for in this section, 20 per centum ad valorem. 64. Potash: Bicarbonate of, refined, and chlorate of, | cent per pound; chromate and bichromate of, 1 cent per pound; nitrate of, or salt- peter, refined, $7 per ton ; permanganate of, 1 cent per pound ; prussiate of, red, 2 cents per pound; yellow, 1^4 cents per pound. 65. Salts and all other compounds and mixtures of which bismuth, gold, platinum, rhodium, silver, or tin constitute the element of chief value, 10 per centum ad valorem. 66. Soaps : Perfumed toilet soaps, 30 per centum ad valorem ; me- dicinal soaps, 20 per centum ad valorem; castile soap, and unperfumed toilet soap, 10 per centum ad valorem ; all other soaps and soap powder not specially provided for in this section, 5 per centum ad valorem. 67. Soda: Benzoate of, 5 cents per pound; chlorate of, and nitrite of, i cent per pound ; bicarbonate of, or supercarbonate of, or saleratus, and other alkalies containing 50 per centum or more of bicarbonate of soda ; hydrate of, or caustic ; phosphate of ; hyposulphite of ; sulphid of, and sulphite of, % cent per pound; chromate and bichromate of, and yellow prussiate of, ^ cent per pound ; borate of, or borax refined ; crystal carbonate of, monohydrate, and sesquicarbonate of; sal soda, and soda crystals, ys cent per pound ; and sulphate of soda crystallized, or Glauber salts, $1 per ton. _ 68. Sponges: Trimmed or untrimmed but not advanced m value by chemical processes, 10 per centum ad valorem ; bleached sponges and sponges advanced in value by processes involving chemical operations, manufactures of sponges, or of which sponge is the component material of chief value, not specially provided for in this section, 15 per centum ad valorem. 69. Talcum, ground talc, steatite, and French chalk, cut, powdered, washed, or pulverized, 15 per centum ad valorem. 70. Vanillin, 10 cents per ounce ; vanilla beans, 30 cents per pound ; tonka beans, 25 cents per pound. Schedule B — Earths, Earthenware, and Glassware. 71. Fire brick, magnesite brick, chrome brick, and brick not spe- cially provided for in this section, not glazed, enameled, painted, vitrified, ornamented, or decorated in any manner, 10 per centum ad valorem; if glazed, enameled, painted, vitrified, ornamented, or decorated in any man- ner, and bath brick, 15 per centum ad valorem. 72. Tiles, plain unglazed, one color, exceeding two square inches in size, U cents per square foot; glazed, ornamented, hand-painted, en- ameled, vitrified, semivitrified, decorated, encaustic, ceramic mosaic, flmt, spar, embossed, gold decorated, grooved and corrugated, and all other Tariff Act, Dutiable List 373 earthenware tiles and tiling, except pill tiles and so-called quarries or quarry tiles, but including tiles wholly or in part of cement, 5 cents per square foot ; so-called quarries or quarry tiles, 20 per centum ad valorem ; mantels, friezes, and articles of every description or parts thereof, com- posed wholly or in chief value of earthenware tiles or tiling, except pill tiles, 30 per centum ad valorem. 7Z. Lime, 5 per centum ad valorem. 74. Plaster rock or gypsum, crude, ground or calcined, pearl hard- ening for paper makers' use ; white, non-staining Portland cement, Keene's cement, or other cement of which gypsum is the component material of chief value, and all other cements not specially provided for in this sec- tion, 10 per centum ad valorem. 75. Pumice stone, unmanufactured, 5 per centum ad valorem; wholly or partially manufactured, J4 cent per pound ; manufactures of pumice stone, or of which pumice stone is the component material of chief value, not specially provided for in this section, 25 per centum ad valorem. 76. Clays or earths, unwrought or unmanufactured, not specially provided for in this section, 50 cents per ton ; wrought or manufactured, not specially provided for in this section, $1 per ton ; china clay or kaolin, $L25 per ton ; fuller's earth, unwrought and unmanufactured, 75 cents per ton; wrought or manufactured, $L50 per ton; flourspar, $1.50 per ton : Provided, That the weight of the casks or other containers shall be included in the dutiable weight. 77. Mica, unmanufactured, valued at not above 15 cents per pound, 4 cents per pound; valued above 15 cents per pound. 25 per centum ad valorem ; cut mica, mica splittings, built-up mica, and all manufactures of mica, or of which mica is the component material of chief value, 30 per centum ad valorem ; ground mica, 15 per centum ad valorem. 78. Common yellow, brown, or gray earthenware made of natural unwashed and unmixed clay ; plain or embossed, common salt-glazed stoneware ; stoneware and earthenware crucibles ; all the foregoing, not ornamented, incised, or decorated in any manner, 15 per centum ad valorem; if ornamented, incised, or decorated in any manner and manu- factures wholly or in chief value of such ware, not specially provided for in this section, 20 per centum ad valorem ; Rockingham earthenware, 30 per centum ad valorem. 79. Earthenware and crockery ware composed of a nonvitrified ab- sorbent body, including white granite and semiporcelain earthenware, and cream-colored ware, and stoneware, including clock cases with or with- out movements, pill tiles, plaques, ornaments, toys, charms, vases, statues, statuettes, mugs, cups, steins, lamps, and all other articles composed wholly or in chief value of such ware ; if plain white, plain yellow, plain brown, plain red. or plain black, not painted, colored, tinted, stained, enameled, gilded, printed, ornamented or decorated in any manner, and manufac- tures in chief value of such ware not specially provided for in this section, 374 Important Federal Laws 35 per centum ad valorem ; if painted, colored, tinted, stained, enameled, gilded, printed, or ornamented or decorated in any manner, and manufac- tures in chief value of such ware not specially provided for in this section, 40 per centum ad valorem. 80. China and porcelain wares composed of a vitrified nonabsorbent body which when broken shows a vitrified or vitreous, or semivitrified or semivitreous fracture, and all bisque and parian wares, including clockcases with or without movements, plaques, ornaments, toys, charms, vases, statues, statuettes, mugs, cups, steins, lamps, and all other articles composed wholly or in chief value of such ware, if plain white, or plain brown, not painted, colored, tinted, stained, enameled, gilded, printed, or ornamented or decorated in any manner ; and manufactures in chief value of such ware not specially provided for in this section, 50 per centum ad valorem ; if painted, colored, tinted, stained, enameled, gilded, printed, or ornamented or decorated in any manner and manufactures in chief value of such ware not specially provided for in this section, 55 per centum ad valorem. 81. Earthy or mineral substances wholly or partially manufactured and articles and wares composed wholly or in chief value of earthy or mineral substances, not specially provided for in this section, whether susceptible of decoration or not, if not decorated in any manner, 20 per centum ad valorem; if decorated, 25 per centum ad valorem; unman- ufactured carbon, not specially provided for in this section, 15 per centum ad valorem ; electrodes for electric furnaces, electrolytic and battery pur- poses, brushes, plates, and disks, all the foregoing composed wholly or in chief value of carbon, 25 per centum ad valorem ; manufactures of carbon not specially provided for in this section, 20 per centum ad valorem. 82. Gas retorts, 10 per centum ad valorem ; lava tips for burners, 15 per centum ad valorem; carbons for electric lighting, wholly or partly finished, made entirely from petroleum coke, 15 cents per hundred feet; if composed chiefly of lampblack or retort carbon, 40 cents per hundred feet; carbons for flaming arc lamps, not specially provided for in this sec- tion, and filter tubes, 30 per centum ad valorem ; porous carbon pots for electric batteries, 15 per centum ad valorem. 83. Plain green or colored, molded or pressed, and flint, lime, or lead glass bottles, vials, jars, and covered and uncovered demijohns, and carboys, any of the foregoing, filled or unfilled, not otherwise specially provided for in this section, and whether their contents be dutiable or free (except such as contain merchandise subject to an ad valorem rate of duty, or to a rate of duty based in whole or in part upon the value thereof which shall be dutiable at the rate applicable to their contents), 30 per centum ad valorem: Provided, That the terms bottles, vials, jars, demi- johns, and carboys, as used herein, shall be restricted to such articles when suitable for use as and of the character ordinarily employed as con- tainers for the holding or transportation of merchandise, and not as appli- ances or implements in chemical or other operations. Tariff Act, Dutiable List 375 84. Glass bottles, decanters, and all articles of every description composed wholly or in chief value of glass, ornamented or decorated in any manner, or cut, engraved, painted, decorated, ornamented, colored, stained, silvered, gilded, etched, sand blasted, frosted, or printed in any manner, or ground (except such grinding as is necessary for fitting stop- pers or for purposes other than ornamentation), and all articles of every description, including bottles and bottle glassware, composed wholly or in chief value of glass blown either in a mold or otherwise; all of the foregoing, not specially provided for in this section, filled or unfilled, and whether their contents be dutiable or free, 45 per centum ad valorem; Provided, That for the purposes of this Act, bottles with cut-glass stop- pers shall, with the stoppers, be deemeid entireties. 85. Unpolished, cylinder, crown, and common window glass, not ex- ceeding one hundred and fifty square inches, % of 1 cent per pound; above that, and not exceeding three hundred and eighty-four square inches, 1 cent per pound ; above that, and not exceeding seven hundred and twenty square inches, lyi cents per pound; above that, and not ex- ceeding one thousand two hundred square inches, 1| cents per pound; above that, and not exceeding two thousand four hundred square inches, 1% cents per pound; above that, 2 cents per pound: Provided, That unpolished, cylinder, crown, and common window glass, imported in boxes, shall contain fifty square feet, as nearly as sizes will permit, and the duty shall be computed thereon according to the actual weight of glass. 86. Cylinder and crown glass, polished, not exceeding three hundred and eighty-four square inches, 3 cents per square foot ; above that, and not exceeding seven hundred and twenty square inches, 4 cents per square foot ; above that, and not exceeding one thousand four hundred and forty square inches, 7 cents per square foot ; above that, 10 cents per square foot. 87. Fluted, rolled, ribbed, or rough plate glass, or the same con- taining a wire netting within itself, not including crown, cylinder, or common window glass, not exceeding three hundred and eighty-four square inches, ^ cent per square foot ; all above that, 1 cent per square foot ; and all fluted, rolled, ribbed, or rough plate glass, weighing over one hundred pounds per one hundred square feet, shall pay an additional duty on the excess at the same rates herein imposed : Provided, That all of the above plate glass, when ground, smoothed, or otherwise obscured, shall be subject to the same rate of duty as cast polished plate glass un- silvered. 88. Cast polished plate glass, finished or unfinished and unsilvered, or the same containing a wire netting within itself, not exceeding three hundred and eighty-four square inches, 6 cents per square foot ; above that, and not exceeding seven hundred and twenty square inches, 8 cents per square foot ; all above that, 12 cents per square foot. 89. Cast polished plate glass, silvered, cylinder and crown glass, sil- 376 Important Federal Laws vered, and looking-glass plates exceeding in size one hundred and forty- four square inches, shall be subject to a duty of 1 cent per square foot in addition to the rates otherwise chargeable on such glass unsilvered : Pro- vided, That no looking-glass plates or glass silvered, when framed, shall pay a less rate of duty than that imposed upon similar glass of like de- scription not framed, but shall pay in addition thereto upon such frames the rate of duty applicable thereto when imported separate. 90. Cast polished plate glass, silvered or unsilvered, and cylinder, crown, or common window glass, silvered or unsilvered, polished or un- polished, when bent, ground, obscured, frosted, sanded, enameled, bev- eled, etched, embossed, engraved, flashed, stained, colored, painted, orna- mented or decorated, shall be subject to a duty of 4 per centum ad valorem in addition to the rates otherwise chargeable thereon. 91. Spectacles, eyeglasses, and goggles,- and frames for the same, or parts thereof, finished or unfinished, 35 per centum ad valorem. 92. Lenses of glass or pebble, molded or pressed, or ground and polished to a spherical, cylindrical, or prismatic form, and ground and polished piano or coquill glasses, wholly or partly manufactured, strips of glass, not more than three inches wide, ground or polished on one or both sides to a cylindrical or prismatic form, including those used in the construction of gauges, and glass slides for magic lanterns, 25 per centum ad valorem. 93. Opera and field glasses, optical instruments and frames and mountings for the same ; all the foregoing not specially provided for in this section, 35 per centum ad valorem. 94. Surveying instruments, telescopes, microscopes, photographic and projection lenses, and frames and mountings for the same, 25 per centum ad valorem. 95. Stained or painted glass windows, or parts thereof, and all mir- ror's, not exceeding in size one hundred and forty-four sc[uare inches, with or without frames or cases ; incandescent electric-light bulbs and lamps, with or without filaments; and all glass or manufactures of glass or paste or of which glass or paste is the component material of chief value, not specially provided for in this section, 30 per centum ad valorem. 96. Fusible and glass enamel, not specially provided for in this sec- tion, 20 per centum ad valorem ; opal or cylinder glass tiles or tiling, 30 per centum ad valorem. 97. Marble, breccia, and onyx, in block, rough or squared only, 50 cents per cubic foot ; marble, breccia, and onyx, sawed or dressed, over two inches in thickness, 75 cents per cubic foot ; slabs or paving tiles of marble or onyx, containing not less than four superficial inches, if not more than one inch in thickness, 6 cents per superficial foot ; if more than one inch and not more than one and one-half inches in thickness, 8 cents per superficial foot; if more than one and one-half inches and not more than two inches in thickness, 10 cents per superficial foot; if rubbed Tariff Act, Dutiable List ZIJ in whole or in part, 2 cents per superficial foot in addition ; mosaic cubes of marble or onyx, not exceeding two cubic inches in size, if loose, 20 per centum ad valorem; if attached to paper or other material, 35 per centum ad valorem. 98. Marble, breccia, onyx, alabaster, and jet, wholly or partly man- ufactured into monuments, benches, vases, and other articles, or of which these substances or either of them is the component material of chief value, and all articles composed wholly or in chief value of agate, rock crystal, or other semiprecious stones, except such as are cut into shapes and forms fitting them expressly for use in the construction of jewelry, not specially provided for in this section, 45 per centum ad valorem. 99. Freestone, granite, sandstone, limestone, lava, and all other stone suitable for use as monumental or building stone, except marble, breccia, and onyx, not specially provided for in this section, hewn, dressed, or polished, or otherwise manufactured, 25 per centum ad valorem ; unman- ufactured, or not dressed, hewn, or polished, 3 cents per cubic foot. 100. Grindstones, finished or unfinished, $1.50 per ton. 101. Slates, slate chimney pieces, mantels, slabs for tables, roofing slates, and all other manufactures of slate, not specially provided for in this section, 10 per centum ad valorem. Schedule C — Metals and Manufactures of. 102. Chrome or chromium metal, ferrochrome or ferrochromium, ferromolybdenum, ferrophosphorus, ferrotitanium, ferrotungsten, ferro- vanadium. molybdenum, titanium, tantalum, tungsten or wolfram metal, and ferrosilicon, and other alloys used in the manufacture of steel, not specially provided for in this section, 15 per centum ad valorem. 103. Muck bars, bar iron, square iron, rolled or hammered, round iron, in coils or rods, bars or shapes of rolled or hammered iron not specially provided for in this section, 5 per centum ad valorem. 104. Beams, girders, joists, angles, channels, car-truck channels, TT, columns and posts or parts or sections of columns and posts, deck and bulb beams, sashes, frames, and building forms, together with all other structural shapes of iron or steel, whether plain, punched, or fitted for use, or whether assembled or manufactured, 10 per centum ad va- lorem. 105. Boiler or other plate iron or steel, and strips of iron or steel, not specially provided for in this section ; sheets of iron or steel, common or black, of whatever dimensions, whether plain, corrugated or crimped, including crucible plate steel and saw plates, cut or sheared to shape or otherwise, or unsheared, and skelp iron or steel, whether sheared or rolled in grooves, or otherwise, 12 per centum ad valorem. 106. Iron or steel anchors or parts thereof ; forgings of iron or steel, or of combined iron and steel, but not machined, tooled, or otherwise advanced in condition by any process or operation subsequent to the forging process, not specially provided for in this section, 12 per centum 378 Important Federal Laws ad valorem ; antifriction balls, ball bearings, and roller bearings, of iron or steel or other metal, finished or untinished, and parts thereof, 35 per centum ad valorem. 107. Hoop, band, or scroll iron or steel not otherv^rise provided for in this section, and barrel hoops of iron or steel, wholly or partly manu- factured, 10 per centum ad valorem. 108. Railway fishplates or splice bars made of iron or steel, 10 per centum ad valorem. 109. All iron or steel sheets, plates, or strips, and all hoop, band, or scroll iron or steel, when galvanized or coated with zinc, spelter, or other metals, or any alloy of those metals; sheets or plates composed of iron, steel, copper, nickel, or other metal with layers of other metal or metals imposed thereon by forging, hammering, rolling, or welding; sheets of iron or steel, polished, planished, or glanced, by whatever name designated, including such as have been pickled or cleaned by acid, or by any other material or process, or which are cold rolled, smoothed only, not polished, and such as are cold hammered, blued, brightened, tem- pered, or polished by any process to such perfected surface finish or pol- ish better than the grade of cold rolled, smoothed only; and sheets or plates of iron or steel, or taggers iron or steel, coated with tin or lead, or with a mixture of which these metals, or either of them is a component part, by the dipping or any other process, and commercially known as tin plates, terne plates, and taggers tin, and tin plates coated with metal, and metal sheets decorated in colors or coated with nickel or other metals by dipping, printing, stenciling, or other process, 15 per centum ad va- lorem. 110. Steel bars, and tapered or beveled bars ; mill shafting; pressed, sheared, or stamped shapes, not advanced in value or condition by any process or operation subsequent to the process of stamping; hammer molds or swaged. steel ; gun-barrel molds not in bars; all descriptions and shapes of dry sand, loam, or iron molded steel castings, sheets, and plates ; all the foregoing, if made by the Bessemer, Siemens-Martin, open-hearth, or similar processes, not containing alloys, such as nickel, cobalt, vanad- ium, chromium, tungsten or wolfram, molybdenum, titanium, iridium, uranium, tantalum, boron, and similar alloys, 8 per centum ad valorem ; steel ingots, cogged ingots, blooms and slabs, die blocks or blanks ; billets and bars and tapered or beveled bars ; pressed, sheared, or stamped shapes not advanced in value or condition by any process or operation subse- quent to the process of stamping; hammer molds or swaged steel; gun- barrel molds not in bars ; alloys used as substitutes for steel in the man- ufacture of tools ; all descriptions and shapes of dry sand, loam, or iron molded castings, sheets and plates ; rolled wire rods in coils or bars not smaller than twenty one-hundredths of one inch in diameter, and steel not specially provided for in this section, all the foregoing when made by the crucible, electric, or cementation process, either with or without alloys, and finished by rolling, hammering, or otherwise, and all steels by Tariff Act, Dutiable List 379 whatever process made, containing alloys such as nickel, cobalt, vanadium, chromium, tungsten, wolfram, molybdenum, titanium, iridium, uranium, tantalum, boron, and similar alloys, 15 per centum ad valorem. HI. Steel wool or steel shavings, 20 per centum ad valorem. 1 12. Grit, shot, and sand made of iron or steel, that can be used as abrasives, 30 per centum ad valorem. 113. Rivet, screw, fence, nail, and other iron or steel wire rods, whether round, oval, or square, or in any other shape, and_ flat rods up to six inches in width ready to be drawn or rolled into wire or strips, all the foregoing in coils or otherwise, including wire rods and iron or steel bars, cold rolled, cold drawn, cold hammered, or polished in any way in addition to the ordinary process of hot rolling or hammering, not specially provided for in this section, 10 per centum ad valorem : Pro- vided, That all round iron or steel rods smaller than twenty one-hun- dredths of one inch in diameter shall be class"ed and dutiable as wire. 114. Round iron or steel wire; wire composed of iron, steel, or other metal, except gold or silver, covered with cotton, silk, or other mate- rial; corset clasps, corset steels, dress steels, and all flat wires and steel in strips not thicker than number fifteen wire gauge and not exceeding five inches in width, whether in long or short lengths, in coils or other- wise, and whether rolled or drawn through dies or rolls, or otherwise produced ; telegraph, telephone, and other wires and cables composed of metal and rubber, or of metal, rubber, and other materials ; iron and steel wire coated by dipping, galvanizing, or similar process with zinc, tin, or other metal ; all other wire not specially provided for in this section and articles manufactured wholly or in chief value of any wire or wires provided for in this section; all the foregoing 15 per centum ad valorem; wire heddles and healds, 25 per centum ad valorem; wire rope, 30 per centum ad valorem. 115. No article not specially provided for in this section, which is wholly or partly manufactured from tin plate, terne plate, or the sheet, plate, hoop, band, or scroll iron or steel herein provided for, or of which such tin plate, terne plate, sheet, plate, hoop, band, or scroll iron or steel shall be the material of chief value, shall pay a lower rate of duty than that imposed on the tin plate, terne plate, or sheet, plate, hoop, band, or scroll iron or steel from which it is made, or of which it shall be the component thereof of chief value. 116. No allowance or reduction of duties for partial loss or damage in consequence of rust or of discoloration shall be made upon any de- scription of iron or steel, or upon any article wholly or partly manufac- tured of iron or steel, or upon any manufacture of iron or steel. 117. All metal produced from iron or its ores, which is cast and malleable, of whatever description or form, without regard to the per- centage of carbon contained therein, whether produced by cementation, or converted, cast, or made from iron or its ores, by the crucible, Besse- mer, Clapp-Grif^th, pneumatic, Thomas-Gilchrist, basic Siemens-Martin, 380 Important Federal Laws or open-hearth process, or by the equivalent of either, or by a combination of two or more of the processes, or their equivalents, or by any fusion or other process which produces from iron or its ores a metal either granular or fibrous in structure, which is cast and malleable, excepting what is known as malleable-iron castings, shall be classed and denominated as steel. 118. Anvils of iron or steel, or of iron and steel combined, by what- ever process made, or in whatever stage of manufacture, 15 per centum ad valorem. 119. Automobiles, valued at $2,CXX) or more, and automobile bodies, 45 per centum ad valorem ; automobiles valued at less than $2,000, 30 per centum ad valorem ; automobile chassis, and finished parts of automo- biles, not including tires, 30 per centum ad valorem. 120. Bicycles, motor cycles, and finished parts thereof, not including tires, 25 per centum ad valor-em. 121. Axles, or parts thereof, axle bars, axle blanks, or forgings for axles, whether of iron or steel, without reference to the stage or state of manufacture, not otherwise provided for in this section, 10 per centum ad valorem : Provided, That when iron or steel axles are imported fitted in wheels, or parts of wheels, of iron or steel, they shall be dutiable at the same rate as the wheels in which they are fitted. 122. Blacksmiths' hammers, tongs, and sledges, track tools, wedges, and crowbars, whether of iron or steel, 10 per centum ad valorem. 123. Nuts or nut blanks, and washers, 5 per centum ad valorem; bolts of iron or steel, with or without threads or nuts, or bolt blanks, finished hinges or hinge blanks, 10 per centum ad valorem ; spiral nut locks and lock washers, whether of iron or steel, 30 per centum ad valorem. 124. Card clothing not actually and permanently fitted to and at- tached to carding machines or to parts thereof at the time of importa- tion, when manufactured with round iron or untempered round steel wire, 10 per centum ad valorem ; when manufactured with tempered round steel wire, or with plated wire or other than round iron or steel wire, or with felt face, or wool face, or rubber face cloth containing wool, 35 per centum ad valorem. 125. Cast iron pipe of every description, cast-iron andirons, plates, stove plates, sadirons, tailor's irons, hatter's irons, and castings and ves- sels wholly of cast iron, including all castings of iron or cast-iron plates which have been chiseled, drilled, machined, or otherwise advanced in condition by processes or operations subsequent to the casting process but not made up into articles or finished machine parts ; castings of malle- able iron not specially provided for in this section ; cast hollow ware, coated, glazed, or tinned, 10 per centum ad valorem. 126. Chain or chains of all kinds, made of iron or steel, not specially provided for in this section, 20 per centum ad valorem ; sprocket and machine chains, 25 per centum ad valorem. Tariff Act, Dutiable List 381 127. Lap-welded, butt-welded, seamed, or jointed iron or steel tubes, pipes, flues, or stays; cylindrical or tubular tanks or vessels, for holding gas, liquids, or other material, whether full or empty ; flexible metal tubing or hose, not specially provided for in this section, whether covered with wire or other material, or otherwise, including any appliances or attach- ments affixed thereto; welded cylindrical furnaces, tubes or flues made from plate metal, and corrugated, ribbed, or otherwise reen forced against collapsing pressure, and all other iron or steel tubes, finished, not specially provided for in this section, 20 per centum ad valorem. 128. Penknives, pocketknives, clasp knives, pruning knives, budding knives, erasers, manicure knives, and all knives by whatever name known, including such as are denominatively mentioned in this section, which have folding or other than fixed blades or attachments, and razors, all the foregoing, whether assembled but not fully finished or finished; valued at not more than $1 per dozen, 35 per centum ad valorem ; valued at more than $1 per dozen, 55 per centum ad valorem: Provided, Thai blades, handles, or other parts of any of the foregoing knives, razors, or erasers shall be dutiable at not less than the rate herein imposed upon the knives, razors, and erasers, of which they are parts. Scissors and shears, and blades for the same, finished or unfinished, 30 per centum ad valorem : Provided further. That all articles specified in this paragraph shall, when imported, have the name of the maker or purchaser and beneath the same the name of the country of origin die-sunk conspicu- ously and indelibly on the blade, shank, or tang of at least one or, if practicable, each and every blade thereof. 129. Sword blades, and swords and side arms, irrespective of quality or use, in part of metal, 30 per centum ad valorem. 130. Table, butchers', carving, cooks', hunting, kitchen, bread, but- ter, vegetable, fruit, cheese, carpenters' bench, curriers', drawing, farriers', fleshing, hay, tanners', plumbers', painters', palette, artists', and shoe knives, forks and steels, finished or unfinished, without handles, 25 per centum ad valorem ; with handles, 30 per centum ad valorem : Provided, That all the articles specified in this paragraph, when imported, shall have the name of the maker or purchaser, and beneath the same the name of the country of origin indelibly stamped or branded thereon in a place that shall not be covered thereafter. 131. Files, file blanks, rasps, and floats, of all cuts and kinds, 25 per centum ad valorem. 132. Muskets, air-rifles, muzzle-loading shotguns and rifles, and parts thereof, 15 per centum ad valorem. 133. Breech-loading shotguns and rifles, combination shotguns and rifles, and parts thereof and fittings therefor, including barrels further advanced than rough bored only; pistols, whether automatic, magazine, or revolving, or parts thereof and fittings therefor, 35 per centum ad valorem. 134. Table, kitchen, and hospital utensils or other similar hollow 382 Important Federal Laws ware composed of iron or steel, enameled or glazed with vitreous glasses ; table, kitchen, and hospital utensils or other similar hollow ware composed wholly or in chief value of aluminum; all the foregoing not especially provided for in this section, 25 per centum ad valorem. 135. Needles for knitting or sewing machines, latch needles, crochet needles, and tape needles, knitting and all other needles not specially pro- vided for in this section, bodkins of metal, and needle cases or needle books furnished with assortments of needles or combinations of needles and other articles, 20 per centum ad valorem; but no articles other than the needles which are specifically named in this section shall be dutiable as needles unless having an eye and fitted and used for carrying a thread. 136. Fishhooks, fishing rods and reels, artificial flies, artificial baits, snelled hooks, and all other fishing tackle or parts thereof, not specially provided for in this section, except fishing lines, fishing nets and seines, 30 per centum ad valorem : Provided, That any prohibition of the im- portation of feathers in this section shall not be construed as applying to artificial flies used for fishing. 137. Steel plates engraved, stereotype plates, electrotype plates, halftone plates, photogravure plates, photo-engraved plates, and plates of other materials, engraved for printing, plates of iron or steel engraved or fashioned for use in the production of designs, patterns, or impressions on glass in the process of manufacturing plate or other glass, 15 per centum ad valorem ; lithographic plates of stone or other material engraved, drawn, or prepared, and wet transfer paper or paper prepared wholly with glycerin, or glycerin combined with other materials, containing the im- prints taken from lithographic plates, 25 per centum ad valorem. 138. Rivets, studs, and steel points, lathed, machined, or bright- ened, and rivets or studs for nonskidding automobile tires, and rivets of iron or steel, not specially provided for in this section, 20 per centum ad valorem. 139. Crosscut saws, mill saws, pit and drag saws, circular saws, steel band saws, finished or further advanced than tempered and polished, hand, back, and all other saws, not specially provided for in this section, 12 per centum ad valorem. 140. Screws, commonly called wood screws, made of iron or steel, 25 per centum ad valorem. 141. Umbrella and parasol ribs and stretchers, composed in chief value of iron, steel, or other metal, in frames or otherwise, and tubes for umbrellas, wholly or partially finished, 35 per centum ad valorem. 142. Wheels for railway purposes, or parts thereof, made of iron or steel, and steel-tired wheels for railway purposes, whether wholly or partly finished, and iron or steel locomotive, car, or other railway tires or parts thereof, wholly or partly manufactured, 20 per centum ad valorem: Provided, That when wheels for railway purposes, or parts thereof, of iron or steel, are imported with iron or steel axles fitted in them, the Tariff Act, Dutiable List 383 wheels and axles together shall be dutiable at the same rate as is provided for the wheels when imported separately. 143. Aluminum, aluminum scrap, and alloys of any kind in which aluminum is the component material of chief value, in crude form, 2 cents per pound; aluminum in plates, sheets, bars, strips, and rods, 3| cents per pound; barium, calcium, magnesium, sodium, and potassium, and alloys of which said metals are the component material of chief value, 25 per centum ad valorem. 144. Antimony, as regulus or metal, and matte containing antimony but not containing more than 10 per centum of lead, 10 per centum ad valorem; antimony oxide, salts, and compounds of, 25 per centum ad valorem. 145. Argentine, albata, or German silver, unmanufactured, 15 per centum ad valorem. 146. Bronze powder, brocades, flitters, and metallics; bronze, or Dutch-metal or aluminum, in leaf, 25 per centum ad valorem. 147. Copper, in rolled plates, called braziers' copper, sheets, rods, strips, pipes, and copper bottoms, sheathing or yellow metal of which cop- per is the component material of chief value, and not composed wholly or in part of iron ungalvanized, 5 per centum ad valorem. 148. Gold leaf, 35 per centum ad valorem. 149. Silver leaf, 30 per centum ad valorem. 150. Tinsel wire, lame or lahn, made wholly or in chief value of gold, silver, or other metal, 6 per centum ad valorem ; bullions and metal threads, made wholly or in chief value of tinsel wire, lame or lahn, 25 per centum ad valorem ; fabrics, ribbons, beltings, toys, or other articles, made wholly or in chief value of tinsel wire, lame or lahn, or of tinsel wire, lame, or lahn, and india rubber, bullions, or metal threads, nor spe- cially provided for in this section, 40 per centum ad valorem. 151. Belt buckles, trousers buckles, waistcoat buckles, snap fasteners and clasps by whatever name known, any of the foregoing made wholly or. in chief value of iron or steel; hooks and eyes, metallic; steel trousers buttons, and metal buttons ; all the foregoing and parts thereof, not other- wise specially provided for in this section, 15 per centum ad valorem. 152. Lead-bearing ores of all kinds containing more than 3 per centum of lead, ^ cent per pound on the lead contained therein: Pro- vided, That on all importations of lead-bearing ores the duties shall be estimated at the port of entry, and a bond given in double the amount of such estimated duties for the transportation of the ores by common carriers bonded for the transportation of appraised or unappraised merchandise to properly equipped sampling or smelting establishments, whether designated as bonded warehouses or otherwise. On the arrival of the ores at such establishments they shall be sampled according to com- mercial methods under the supervision of Government officers, who shall be stationed at such establishments, and who shall submit the samples thus obtained to a Government assayer, designated by the Secretary of the 384 Important Federal Laws Treasury, who shall make a proper assay of the sample and report the result to the proper customs officers, and the import entries shall be liqui- dated thereon, except in case of ores that shall be removed to a bonded warehouse to be refined for exportation as provided by law. And the Secretary of the Treasury is authorized to make all necessary regulations to enforce the provisions of this paragraph. 153. Lead dross, lead bullion or base bullion, lead in pigs and bars, lead in any form not specially provided for in this section, old refuse lead run into blocks and bars, and old scrap lead fit only to be remanu- factured ; lead in sheets, pipe, shot, glaziers' lead, and lead wire ; all the foregoing, 25 per centum ad valorem, on the lead contained therein. 154. Metallic mineral substances in a crude state, and metals un- wrought, whether capable of being wrought or not, not specially provided for in this section, 10 per centum ad valorem ; monazite sand and thorite ; thorium, oxide of and salts of ; gas, kerosene, or alcohol mantles treated with chemicals or metallic oxides, 25 per centum ad valorem ; and gas- mantle scrap consisting in chief value of metallic oxides, 10 per centum ad valorem. 155. Nickel, nickel oxide, alloy of any kind in which nickel is a component material of chief value, in pigs, ingots, bars, rods, or plates, 10 per centum ad valorem ; sheets or strips, 20 per centum ad valorem. 156. Pens, metallic, not specially provided for in this section, 8 cents per gross ; with nib and barrel in one piece, 12 cents per gross. 157. Penholder tips, penholders and parts thereof, gold pens, foun- tain pens, and stylographic pens ; combination penholders, comprising jien- holder, pencil, rubber eraser, automatic stamp, or other attachm.ent, 25 per centum ad valorem : Provided, That pens and penholders shall be assessed for duty separately. 158. Pins with solid heads, without ornamentation, including hair, safety, hat, bonnet, and shawl pins ; any of the foregoing composed wholly of brass, copper, iron, steel, or other base metal, not plated with gold or silver, and not commonly known as jewelry, 20 ])er centum ad valorem. 159. Quicksilver, 10 per centum ad valorem. The flasks, bottles, or other vessels in which quicksilver is imported shall be subject to the same rate of duty as they would be subjected to if imported empty. 160. Type metal, and types, 15 per centum ad valorem. 161. Watch movements, whether imported in cases or not, watch- cases and parts of watches, chronoHieters, box or ship, and parts thereof, lever clock movements having jewels in the escapement, and clocks con- taining such movements, all other clocks and parts thereof, not otherwise provided for in this section, whether separately packed or otherwise, not composed wholly or in chief value of china, porcelain, parian, bisque, or earthenware, 30 per centum ad valorem ; all jewels for use in the manu- facture of watches, clocks, or meters, 10 per centum ad valorem ; time detectors, 15 per centum ad valorem; enameled dials and dial plates for watches or other instruments, 30 per centum ad valorem : Provided, That Tariff Act, Dutiable List 385 all watch and clock dials, whether attached to movements or not, shall have indelibly painted or printed thereon the name of the country of origin, and that all watch movements, and plates, lever clock movements with jewels in the escapement, whether imported assembled or knocked down for reassembling, and cases of foreign manufacture, shall have the name of the manufacturer and country of manufacture cut, engraved, or die-sunk conspicuously and indelibly on the plate of the movement and the inside of the case, respectively, and the movements and plates shall also have marked thereon by one of the methods indicated the number of jewels and adjustments, said numbers to be expressed either in words or in Arabic numerals; and if the movement is not adjusted, the word "unadjusted" shall be marked thereon by one of the methods indicated ; and none of the aforesaid articles shall be delivered to the importer unless marked in exact conformity to this direction. 162. Zinc-bearing ores of all kinds, including calamine, 10 per centum ad valorem upon the zinc contained therein : Provided, That on all importations of zinc-bearing ores the duties shall be estimated at the port of entry, and a bond given in double the amount of such estimated duties for the transportation of the ores by common carriers bonded for the transportation of appraised or unappraised merchandise to properly equipped sampling or smelting establishments, whether designated as bonded warehouses or otherwise. On the arrival of the ores at such establishments they shall be sampled according to commercial methods under the supervision of Government officers, who shall be stationed at such establishments, and who shall submit the samples thus obtained to a Government assayer, designated by the Secretary of the Treasury, who shall make a proper assay of the sample and report the result to the proper custom officers, and the import entries shall be liquidated thereon, except in case of ores that shall be removed to a bonded warehouse to be refined for exportation as provided by law. And the Secretary of the Treasury is authorized to make all necessary regulations to enforce the provisions of this paragraph. 163. Zinc in blocks, pigs, or sheets, and zinc dust ; and old and worn- out zinc fit only to be remanufactured, 15 per centum ad valorem. 164. Bottle caps of metal, collapsible tubes, and sprinkler tops, if not decorated, colored, waxed, lacquered, enameled, lithographed, elec- troplated, or embossed in color, 30 per centum ad valorem ; if decorated, colored, waxed, lacquered, enameled, lithographed, electroplated, or em- bossed in color, 40 per centum ad valorem. 165. All steam engines, steam locomotives, printing presses, and machine tools, 15 per centum ad valorem; embroidering machines, and lace-making machines, including machines for making lace curtains, nets, or nettings, 25 per centum ad valorem ; machine tools as used in this para- graph shall be held to mean any machine operated by other than hand power which employs a tool for working on metal. (25) 386 Important Federal Laws 166. Nippers and pliers of all kinds wholly or partly manufactured, 30 per centum ad valorem. 167. Articles or wares not specially provided for in this section ; if composed wholly or in part of platinum, gold, or silver, and articles or wares plated with gold or silver, and whether partly or wholly manu- factured, 50 per centum ad valorem ; if composed wholly or in chief value of iron, steel, lead, copper, brass, nickel, pewter, zinc, aluminum, or other metal, but not plated with gold or silver, and whether partly or wholly manufactured, 20 per centum ad valorem. Schedule D — Wood and Manufactures of. 168. Briar root or briar wood, ivy or laurel root, and similar wood unmanufactured, or not further advanced than cut into blocks suitable for the articles into which they are intended to be converted, 10 per centum ad valorem. 169. Cedar commercially known as Spanish cedar, lignum-vitae, lancewood, ebony, box, granadilla, mahogany, rosewood, and satinwood ; all the foregoing when sawed into boards, planks, deals, or other forms, and not specially provided for in this section, and all cabinet woods not further manufactured than sawed, 10 per centum ad valorem ; veneers of wood, 15 per centum ad valorem. 170. Paving posts, railroad ties, and telephone, trolley, electric- light, and telegraph poles of cedar or other woods, 10 per centum ad valorem. 171. Casks, barrels.'and hogsheads (empty), sugar-box shocks, and packing boxes (empty), and packing-box shooks, of wood, not specially provided for in this section, 15 per centum ad valorem. 172. Boxes, barrels, or other articles containing oranges, lemons, limes, grapefruit, shaddocks, or pomelos, 15 per centum ad valorem: Provided, That the thin wood, so called, comprising the sides, tops and bottoms of fruit boxes of the growth and manufacture of the United States, exported as fruit box shooks, may be reimported in completed form, filled with fruit, without the payment of duty ; but proof of the identity of such shooks shall be made under regulations to be prescribed by the Secretary of the Treasury. 173. Chair cane or reeds wrought or manufactured from rattans or reeds, 10 per centum ad valorem; osier or willow, including chip of and split willow, prepared for basket makers' use, 10 per centum ad valorem ; manufactures of osier or willow and willow furniture, 25 per centum ad valorem. 174. Toothpicks of wood or other vegetable substance, 25 per cen- tum ad valorem ; butchers' and packers' skewers of wood, 10 cents per thousand. Tariff Act_, Dutiable List 387 175. Blinds, curtains, shades, or screens any of the foregoing in chief vakie of bamboo, wood, straw, or compositions of wood, not spe- cially provided for in this section, 20 per centum ad valorem; if stained, dyed, painted, printed, polished, grained, or creosoted, and baskets in chief value of Hke material, 25 per centum ad valorem. 176. House or cabinet furniture wholly or in chief value of wood, wholly or partly finished, and manufactures of wood or bark, or of which wood or bark is the component material of chief value, not specially pro- vided for in this section, 15 per centum ad valorem. Schedule E — Sugar^ Molasses, and Manufactures of. 177. Sugars, tank bottoms, sirups of cane juice, melada, concen- trated melada, concrete and concentrated molasses, testing by the polari- scope not above seventy-five degrees, seventy-one one-hundredths of 1 cent per pound, and for every additional degree shown by the polariscopic test, twenty-six one-thousandths of 1 cent per pound additional, and frac- tions of a degree in proportion ; molasses testing not above fortv degrees, 15 per centum ad valorem; testing above forty degrees and not above fifty-six degrees, 2\ cents per gallon ; testing above fifty-six degrees, 4^ cents per gallon; sugar drainings and sugar sweepings shall be subject to duty as molasses or sugar, as the case may be, according to polariscopic test : Provided, That the duties imposed in this paragraph shall be effective on and after the first day of March, nineteen hundred and fourteen, until which date the rates of duty provided by paragraph two hundred and sixteen of the tariff Act approved August fifth, nineteen hundred and nine, shall remain in force: Provided, however. That so much of para- graph two hundred and sixteen of an Act to provide revenue, equalize duties, and encourage the industries of the United States, and for other purposes, approved August fifth, nineteen hundred and nine, as relates to the color test denominated as Number Sixteen Dutch standard in color, shall be and is hereby repealed. (As amended April 27, 1916.) 178. Maple sugar and maple sirup, 3 cents per pound : glucose or grape sugar, 1 y^ cents per pound ; sugar cane in its natural state, or unmanufactured, 15 per centum ad valorem. (As amended April 27, 1916.) 179. Saccharin, 65 cents per pound. 180. Sugar candy and all confectionery not specially provided for in this section, valued at 15 cents per pound or less, 2 cents per pound; valued at more than 15 cents per pound, 25 per centum ad valorem. The weight and the value of the immediate coverings, other than the outer packing case or other covering, shall be included in the dutiable weight and the value of the merchandise. 388 Important Federal Laws Schedule F — Tobacco and Manufactures of. 181. Wrapper tobacco, and filler tobacco when mixed or packed with more than 15 per centum of wrapper tobacco, and all leaf tobacco the product of two or more countries or dependencies when mixed or packed together, if unstemmed, $1.85 per pound; if stemmed, $2.50 per pound; filler tobacco not specially provided for in this section, if unstemmed, 35 cents per pound ; if stemmed, 50 cents per pound. 182. The term wrapper tobacco as used in this section means that quality of leaf tobacco which has the requisite color, texture, and burn, and is of sufficient size for cigar wrappers, and the term filler tobacco means all other leaf tobacco. Collectors of customs shall not permit entry to be made, except under regulations to be prescribed by the Secretary of the Treasury, of any leaf tobacco, unless the invoices of the same shall specify in detail the character of such tobacco, whether wrapper or filler, its origin and quality. In the examination for classification of any imported leaf tobacco, at least one bale, box, or package in every ten, and at least one in every invoice, shall be examined by the appraiser or person authorized by law to make such examination, and at least ten hands shall be examined in each examined bale, box, or package. 183. All other tobacco, manufactured or unmanufactured, not spe- cially provided for in this section, 55 cents per pound ; scrap tobacco, 35 cents per pound. 184. Snufi^ and snufif flour, manufactured of tobacco, ground dry, or damp, and pickled, scented, or otherwise, of all descriptions, 55 cents per pound. 185. Cigars, cigarettes, cheroots of all kinds, $4.50 per pound and 25 per centum ad valorem, and paper cigars and cigarettes, including wrappers, shall be subject to the same duties as are herein imposed upon cigars. Schedule G — Agricultural Products and Provisions. 186. Horses and mules, 10 per centum ad valorem. 187. All live animals not specially provided for in this section, 10 per centum ad valorem. 188. Barley, 15 cents per bushel of forty-eight pounds. 189. Barley malt, 25 cents per bushel of thirty-four pounds. 190. Barley, pearled, patent, or hulled, 1 cent per pound. 191. Macaroni, vermicelli, and all similar preparations, 1 cent per pound. 192. Oats, 6 cents per bushel of thirty-two pounds ; oatmeal and rolled oats, 30 cents per one hundred pounds ; oat hulls, 8 cents per one hundred pounds. 193. Rice, cleaned, 1 cent per pound ; uncleaned rice, or rice free of the outer hull and still having the inner cuticle on, ^'g of 1 cent per Tariff Act, Dutiable List 389 pound ; rice flour, and rice meal, and rice broken which will pass through a number twelve sieve of a kind prescribed by the Secretary of the Treas- ury, y^ cent per pound ; paddy, or rice having the outer hull on, ^ of 1 cent per pound. 194. Biscuits, bread, wafers, cakes, and other baked articles, and puddings, by whatever name known, containing chocolate, nuts, fruit, or confectionery of any kind, and without regard to the component mate- rial of chief value, 25 per centum ad valorem. 195. Butter and butter substitutes, 2| cents per pound. 196. Cheese and substitutes therefor, 20 per centum ad valorem. 197. Beans, and lentils, not specially provided for, 25 cents per bushel of sixty pounds. 198. Beets of all kinds, 5 per centum ad valorem. 199. Beans, peas, prepared or preserved, or contained in tins, jars, bottles, or similar packages, including the weight of immediate cover- ings, 1 cent per pound; mushrooms and truffles, including the weight of immediate coverings, 2\ cents per pound 200. Vegetables, if cut, sliced or otherwise reduced in size, or if parched or roasted, or if pickled, or packed in salt, brine, oil, or prepared in any way ; any of the foregoing not specially provided for in this section, and bean stick or bean cake, miso, and similar products, 25 per centum ad valorem. 201. Pickles, including pickled nuts, sauces of all kinds, not spe- cially provided for in this section, and fish paste or sauce, 25 per centum ad valorem. 202. Cider, 2 cents per gallon. 203. Eggs frozen or otherwise prepared or preserved in tins or other packages, not specially provided for in this section, including the weight of the immediate coverings or containers, 2 cents per pound; frozen or liquid &gg albumen, 1 cent per pound. 204. Eggs, dried, 10 cents per pound ; eggs, yolk of, 10 per centum ad valorem. 205. Hay, $2 per ton. 206. Honey, 10 cents per gallon. 207. Hops, 16 cents per pound ; hop extract and lupulin, 50 per centum ad valorem. 208. Garlic, 1 cent per pound ; onions, 20 cents per bushel of 57 pounds. 209. Peas, green or dried, in bulk or in barrels, sacks, or similar packages, 10 cents per bushel of sixty pounds ; split peas, 20 cents per bushel of sixty pounds ; peas in cartons, papers, or other similar packages, including the weight of the immediate covering, Yt, cent per pound. 210. Orchids, palms, azalea indica, and cut flowers, preserved or fresh, 25 per centum ad valorem ; lily of the valley pips, tulips, narcissus, begonia, and gloxinia bulbs, $1 per thousand ; hyacinth bulbs, astilbe, dielytra, and lily of the valley clumps, $2.50 per thousand ; lily bulbs and 390 Important Federal Laws calla bulbs or corms, $5 per thousand ; herbaceous peony, Iris Kaempferri or Germanica, canna, dahHa, and amaryllis bulbs, $10 per thousand ; all other bulbs, roots, root stocks, corms, and tubers, which are cultivated for their flowers or foliage, 50 cents per thousand : Provided, That all mature mother flowering bulbs imported exclusively for propagating pur- poses shall be admitted free of duty. 211. Stocks, cuttings, or seedlings of Myrobolan plum, Mahaleb or Mazzard cherry, Manetti multiflora and briar rose, Rosa Rugosa, three years old or less, $1 per thousand plants ; stocks, cuttings, or seedlings of pear, apple, quince, and the Saint Julien plum, three years old or less, $1 per thousand plants; rose plants, budded, grafted, or grown on their own roots, 4 cents each ; stocks, cuttings, and seedlings, of all fruit and ornamental trees, deciduous and evergreen shrubs and vines, and all trees, shrubs, plants, and vines commonly known as nursery or greenhouse stock, not specially provided for in this section, 15 per centum ad valorem. 212. Seeds: Castor beans or seeds, 15 cents per bushel of fifty pounds ; flaxseed or linseed and other oil seeds not specially provided for in this section, 20 cents per bushel of fifty-six pounds; poppy seed, 15 cents per bushel of forty-seven pounds ; mushroom spawn, and spinach seed, 1 cent per pound ; canary seed, -i cent per pound ; caraway seed, 1 cent per pound; anise seed, 2 cents per pound; beet (except sugar beet), carrot, corn salad, parsley, parsnip, radish, turnip, and rutabaga seed, 3 cents per pound; cabbage, collard, kale, and kohl-rabi seed, 6 cents per pound; egg plant and pepper seed, 10 cents per pound; seeds of all kinds not specially provided for in this section, 5 cents per pound : Provided, That no allowance shall be made for dirt or other impurities in seeds provided for in this paragraph. 213. Straw, 50 cents per ton. I, 214. Teazels, 15 per centum ad valorem. 215. Vegetables in their natural state, not specially provided for in this section, 15 per centum ad valorem. 216. Fish, except shellfish, by whatever name known, packed in oil or in oil and other substances, in bottles, jars, kegs, tin boxes, or cans, 25 per centum al valorem ; all other fish, except shellfish, in tin packages, not specially provided for in this section, 15 per centum ad valorem; caviar and other preserved roe of fish, 30 per centum ad valorem ; fish, skinned or boned, ^ of 1 cent per pound. 217. Apples, peaches, quinces, cherries, plums, and pears, green or ripe, 10 cents per bushel of fifty pounds ; berries, edible in their natural condition, ^ cent per quart ; cranberries, 10 per centum ad valorem ; all edible fruits, including berries, when dried, desiccated, evaporated, or pre- pared in any manner, not specially provided for in this section, 1 cent per pound ; comfits, sweetmeats, and fruits of all kinds preserved or packed in sugar, or having sugar added thereto or preserved or packed in mo- lasses, spirits, or their own juices, if containing no alcohol, or containing not over 10 per centum of alcohol, 20 per centum ad valorem ; if con- Tariff Act, Dutiable List 391 taining over 10 per centum of alcohol and not specially provided for in this section, 20 per centum ad valorem, and in addition $2.50 per proof gallon on the alcohol contained therein in excess of 10 per centum; jellies of all kinds, 20 per centum ad valorem ; pineapples preserved in their own juice, 20 per centum ad valorem. 218. Figs, 2 cents per pound ; plums, prunes, and prunelles, 1 cent per pound; raisins and other dried grapes, 2 cents per pound; dates, 1 cent per pound; currants. Zante or other, 1^ cents per pound; olives, 15 cents per gallon. 219. Grapes in barrels or other packages, 25 cents per cubic foot of the capacity of the barrels or packages. 220. Lemons, limes, oranges, grapefruit, shaddocks, and pomelos in packages of a capacity of one and one-fourth cubic feet or less, 18 cents per package ; in packages of capacity exceeding one and one-fourth cubic feet and not exceeding two and one-half cubic feet, 35 cents per package ; in packages exceeding two and one-half and not exceeding five cubic feet, 70 cents per package ; in packages exceeding five cubic feet or in bulk, i of 1 cent per pound. 221. Orange peel or lemon peel, preserved, candied, or dried, 1 cent per pound ; coconut meat or copra desiccated, shredded, cut or similarly prepared, and citron or citron peel, preserved, candied, or dried, 2 cents per pound. 222. Pineapples, in barrels or other packages, 6 cents per cubic foot of the capacity of the barrels or packages; in bulk, $5 per thousand. 223. Almonds, not shelled, 3 cents per pound; almonds, shelled, 4 cents per pound ; apricot and peach kernels, 3 cents per pound. 224. Filberts and walnuts of all kinds, not shelled, 2 cents per pound ; shelled, 4 cents per pound. 225. Peanuts or ground beans, unshelled, ^ of 1 cent per pound; shelled. ^ of 1 cent per pound. 226. Nuts of all kinds, shelled or unshelled, not specially provided for in this section. 1 cent per pound; but no allowance shall be made for dirt or other impurities in nuts of any kind, shelled or unshelled. 227. Venison, and other game, li cents per pound; game birds, dressed, 30 per centum ad valorem. 228. Extract of meat, not specially provided for in this section, 10 cents per pound; fluid extract of meat, 5 cents per pound, but the dutiable weight of the extract of meat and of the fluid extract of meat shall not include the weight of the packages in which the same is imported. 229. Poultry, live, 1 cent per pound ; dead, or prepared in any manner, including the weight of the immediate coverings or containers, 2 cents per pound. 230. Chicory root, raw, dried, or undried. but unground, 1 cent per pound ; chicory root, burnt or roasted, ground or granulated, or in rolls, or otherwise prepared, and not specially provided for in this section, 2 cents per pound. 392 Important Federal Laws 231. Unsweetened chocolate and cocoa, prepared or manufactured, not specially provided for in this section, 8 per centum ad valorem. Sweetened chocolate and cocoa, prepared or manufactured, not specially provided for in this section, valued at 20 cents per pound or less, 2 cents per pound ; valued at more than 20 cents per pound, 25 per centum ad valorem. The weight and the value of the immediate coverings, other than the outer packing case or other covering, shall be included in the dutiable weight and the value of the merchandise. 232. Cocoa butter or cocoa butterine, refined deodorized coconut oil, and all substitute for cocoa butter, 3^ cents per pound. 233. Dandelion root, and acorns prepared, and articles used as coffee, or as substitute for coffee not specially provided for in this section, 2 cents per pound. 234. Starch, made from potatoes, 1 cent per pound ; all other starch, including all preparations, from whatever substance produced, fit for use as starch, ^ cent per pound. _ 235. Spices, unground : Cassia buds, cassia, and cassia vera ; cinna- mon and cinnamon chips ; ginger root, unground and not preserved or candied ; nutmegs ; pepper, black or white ; capsicum or red pepper, or cayenne pepper ; and clove stems, 1 cent per pound ; cloves, 2 cents per pound ; pimento, f of 1 cent per pound ; sage, ^ cent per pound ; mace, 8 cents per pound ; Bombay or wild mace, 18 cents per pound ; ground spices, in each case, the specific duty per pound enumerated in the fore- going part of this paragraph for unground spices, and in addition thereto a duty of 20 per centum ad valorem; mustard, ground or prepared, in bottles or otherwise, 6 cents per pound ; all other spices not specially pro- vided for in this section, including all herbs or herb leaves in glass or other small packages for cuHnary use, 20 per centum ad valorem. 236. Vinegar, 4 cents per proof gallon. The standard proof for vinegar shall be taken to be that strength which requires thirty-five grains of bicarbonate of potash to neutralize one ounce troy of vinegar. Schedule H — Spirits, Wines, and Other Beverages. 237. Brandy and other spirits manufactured or distilled from grain or other materials, and not specially provided for in this section, $2.60 per proof gallon. 238. Each and every gauge or wine gallon of measurement shall be counted as at least one proof gallon ; and the standard for determining the proof of brandy and other spirits or licjuors of any kind imported shall be the same as that which is defined in the laws relating to internal revenue: Provided. That it shall be lawful for the Secretary of the Treas- ury, in his discretion, to authorize the ascertainment of the proof of wines, cordials, or other liquors, by distillation or otherwise, in cases where it is impracticable to ascertain such proof by the means prescribed by existing law or regulations : And provided further. That any brandy or other Tariff Act, Dutiable List 393 spirituous or distilled liquors imported in any sized cask, bottle, jug, or other packages, of or from any country, dependency, or province under whose laws similar sized casks, bottles, jugs, or other packages of distilled spirits, wine, or other beverage put up or filled in the United States are denied entrance into such country, dependency, or province, shall be for- feited to the United States ; and any brandy or other spirituous or distilled liquor imported in a cask of less capacity than ten gallons from any country shall be forfeited to the United States. 239. On all compounds or preparations of which distilled spirits are a component part of chief value there shall be levied a duty not less than that imposed upon distilled spirits. 240. Cordials, liquers, arrack, absinthe, kirschwasser, ratafia, and other spirituous beverages or bitters of all kinds, containing spirits, and not specially provided for in this section, $2.60 per proof gallon. 241. No lower rate or amount of duty shall be levied, collected, and paid on brandy, spirits, and other spirituous beverages than that fixed by law for the description of first proof ; but it shall be increased in propor- tion for any greater strength than the strength of first proof, and all imitations of brandy or spirits or wines imported by any names whatever shall be subject to the highest rate of duty provided for the genuine articles respectively intended to be represented, and in no case less than $1.75 per gallon. 242. Bay rum or bay water, whether distilled or compounded, of first proof, and in proportion for any greater strength than first proof, $1.75 per gallon. 243. Champagne and all other sparkling wines, in bottles containing each not more than one quart and more than one pint, $9.60 per dozen ; containing not more than one pint each and more than one-half pint, $4.80 per dozen ; containing one-half pint each or less, $2.40 per dozen ; in bot- tles or other vessels containing more than one quart each, in addition to $9.60 per dozen bottles, on the quantity in excess of one quart, at the rate of $3 per gallon ; but no separate or additional duty shall be levied on the bottles. 244. Still wines, including ginger wine or ginger cordial, vermuth, and rice wine or sake, and similar beverages not specially provided for in this section, in casks or packages other than bottles or jugs, if contain- ing 14 per centum or less of absolute alcohol, 45 cents per gallon ; if con- taining more than 14 per centum of absolute alcohol, 60 cents per gallon. In bottles or jugs, per case of one dozen bottles or jugs, containing each not more than one quart and more than one pint, or twenty-four bottles or jugs containing each not more than one pint, $1.85 per case; and any excess beyond these quantities found in such bottles or jugs shall be sub- ject to a duty of 6 cents per pint or fractional part thereof, but no sep- arate or additional duty shall be assessed on the bottles or jugs : Pro- vided, That any wines, ginger cordial, or vermuth imported containing more than 24 per centum of alcohol shall be classed as spirits and pay 394 Important Federal Laws duty accordingly: And provided further, That there shall be no con- structive or other allowance for breakage, leakage, or damage on wines, hquors, cordials, or distilled spirits, except that when it shall appear to the collector of customs from the ganger's return, verified by an affidavit by the importer to be filed within five days after the delivery of the mer- chandise, that a cask or package has been broken or otherwise injured in transit from a foreign port and as a result thereof a part of its contents amounting to 10 per centum or more of the total value of the contents of the said cask or package in its condition as exported, has been lost, allow- ance therefor may be made in the liquidation of the duties. Wines, cor- dials, brandy, and other spirituous liquors, including bitters of all kinds, and bay rum or bay water, imported in bottles or jugs, shall be packed in packages containing not less than one dozen bottles or jugs in each pack- age, or duty shall be paid as if such package contained at least one dozen bottles or jugs, and in addition thereto, duty shall be collected on the bottles or jugs at the rates which would be chargeable thereon if imported empty. The percentage of alcohol in wines and fruit juices shall be determined in such manner as the Secretary of the Treasury shall by regulation prescribe. 245. Ale, porter, stout, and beer, in bottles or jugs, 45 cents per gallon, but no separate or additional duty shall be assessed on the bottles or jugs ; otherwise than in bottles or jugs, 23 cents per gallon. 246. Malt extract, fluid, in casks, 23 cents per gallon ; in bottles or jugs, 45 cents per gallon; solid or condensed, 45 per centum ad valorem. 247. Cherry juice and prune juice, or prune wine, and other fruit juices, and fruit sirup, not specially provided for in this section, contain- mg no alcohol or not more than 18 per centum of alcohol, 70 cents per gallon ; if containing more than 18 per centum of alcohol, 70 cents per gallon and in addition thereto $2.07 per proof gallon on the alcohol con- tained therein. 24$. Ginger ale, ginger beer, lemonade, soda water, and other sim- ilar beverages containing no alcohol, in plain green or colored, molded or pressed, glass bottles, containing each not more than one-half pint, 12 cents per dozen ; containing each more than one-half pint and not more than three-fourths of a pint, 18 cents per dozen ; containing more than three-fourths of a pint each and not more than one and one-half pints, 28 cents per dozen ; but no separate or additional duty shall be assessed on the bottles ; if imported otherwise than in plain green or colored, molded or pressed, glass bottles, or in such bottles containing more than one and one-half pints each, 50 cents per gallon, and in addi- tion thereto duty shall be collected on the bottles, or other coverings, at the rates which would be chargeable thereon if imported empty. Bever- ages not specially provided for containing not more than 2 per centum of alcohol shall be assessed for duty under this paragraph. 249. All mineral waters and all imitations of natural mineral waters, and all artificial mineral waters not specially provided for in this section, Tariff Act, Dutiable List 395 in bottles or jug's containing not more than one-half pint, 10 cents per dozen bottles; if containing more than one-half pint and not more than one pint, 15 cents per dozen bottles ; if containing more than one pint and not more than one quart, 20 cents per dozen bottles ; if imported in bottles or in jugs containing more than one Cjuart, 18 cents per gallon; if imported otherwise than in bottles or jugs, 8 cents per gallon ; and in addition thereto, on all of the foregoing, duty shall be collected upon the bottles or other containers at one-third of the rates that would be charged thereon if imported empty or separately. Schedule I — Cotton Manufactures. 250. Cotton thread and carded yarn, warps, or warp yarn, whether on beams or in bundles, skeins, or cops, or in any other form, not combed, bleached, dyed, mercerized, or colored, except spool thread of cotton, crochet, darning and embroidery cottons, hereinafter provided for, shall be subject to the following rates of duty: Numbers up to and including number nine, 5 per centum ad valo- rem ; exceeding number nine and not exceeding number nineteen, 7^ per centum ad valorem ; exceeding number nineteen and not exceeding num- ber thirty-nine, 10 per centum ad valorem; exceeding number thirty-nine and not exceeding number forty-nine, 15 per centum ad valorem; exceed- ing number forty-nine and not exceeding number fifty-nine, 17^ per centum ad valorem ; exceeding number fifty-nine and not exceeding num- ber seventy-nine, 20 per centum ad valorem ; exceeding number seventy- nine and not exceeding number ninety-nine, 22^ per centum ad valorem ; exceeding number ninety-nine, 25 per centum ad valorem. When combed, bleached, dyed, mercerized, or colored, they shall be subject to the follow- ing rates of duty: Numbers up to and including number nine, 7\ per centum ad valorem ; exceeding number nine and not exceeding number nineteen, 10 per centum ad valorem ; exceeding number nineteen and not exceeding number thirty-nine, 12^ per centum ad valorem; exceeding number thirty-nine and not exceeding number forty-nine, 17^ per centum ad valorem : exceeding number forty-nine and not exceeding number fifty-nine, 20 per centum ad valorem; exceeding number fifty-nine and not^ exceeding number seventy-nine, 22^ per centum ad valorem ; exceed- ing number seventy-nine and not exceeding number ninety-nine, 25 per centum ad valorem; exceeding number ninety-nine, 27-^ per centum ad valorem. Cotton waste and flocks, manufactured or otherwise advanced in value, cotton card laps, roping, sliver, or roving, 5 per centum ad valorem. 251. Spool thread of cotton, crochet, darning, and embroidery cot- tons, on spools, reels, or balls, or in skeins, cones, or tubes, or in any other form, 15 per centum ad valorem. 252. Cotton cloth, not bleached, dyed, colored, stained, painted, printed, woven figured, or mercerized, containing yarns the average num- ber of which does not exceed number nine, 7h per centum ad valorem ; 396 Important Federal Laws exceeding number nine and not exceeding number nineteen, 10 per centum ad valorem ; exceeding number nineteen and not exceeding num- ber thirty-nine, 12| per centum ad valorem ; exceeding number thirty-nine and not exceeding number forty-nine, 17^ per centum ad valorem; exceed- ing number forty-nine and not exceeding number fifty-nine, 20 per centum ad valorem ; exceeding number fifty-nine and not exceeding num- ber seventy-nine, 22^ per centum ad valorem ; exceeding number seventy- nine and not exceeding number ninety-nine, 25 per centum ad valorem; exceeding number ninety-nine, 27^ per centum ad valorem. Cotton cloth when bleached, dyed, colored, stained, painted, printed, woven figured, or mercerized, containing yarn the average number of which does not exceed number nine, 10 per centum ad valorem ; exceeding number nine and not exceeding number nineteen, 12^ per centum ad valorem ; exceed- ing number nineteen and not exceeding number thirty-nine, 15 per centum ad valorem; exceeding number thirty-nine and not exceeding number forty-nine, 20 per centum ad valorem ; exceeding number forty-nine and not exceeding number fifty -nine, 22| per centum ad valorem; exceeding number fifty-nine and not exceeding number seventy-nine, 25 per centum ad valorem; exceeding number seventy-nine and not exceeding number ninety-nine, 27^ per centum ad valorem; exceeding number ninety-nine, 30 per centum' ad valorem; plain gauze or leno woven cotton nets or nettings shall be classified for duty as cotton cloth. 253. The term cotton cloth, or cloth, wherever used in the para- graphs of this schedule, unless otherwise specially provided for, shall be held to include all woven fabrics of cotton, in the piece, whether figured, fancy, or plain, and shall not include any article, finished or unfinished, made from cotton cloth. In the ascertainment of the condition of the cloth or yarn upon which the duties imposed upon cotton cloth are made to depend, the entire fabric and all parts thereof shall be included. The average number of the yarn in cotton cloth herein provided for shall be obtained bv taking the length of the thread or yarn to be equal to the distance covered by it in the cloth in the condition as imported, except that all clipped threads shall be measured as if continuous; in counting the threads all plv yarns shall be separated into singles and the count taken of the total' singles ; the weight shall be taken after any excessive sizing is removed by boiling or other suitable process. 254. Cloth composed of cotton or other vegetable fiber and silk, whether known as silk-striped sleeve linings, silk stripes, or otherwise, of which cotton or other vegetable fiber is the component material of chief value, and tracing cloth, 30 per centum ad valorem; cotton cloth filled or coated, all oilcloths (except silk oilcloths and oilcloths for floors), and cotton window hollands, 25 per centum ad valorem; waterproof cloth composed of cotton or other vegetable fiber, or of which cotton or other vegetable fiber is the component material of chief value or of cotton or other vegetable fiber and india rubber, 25 per centum ad valorem. 255 Handkerchiefs or mufflers composed of cotton, not specially Tariff Act, Dutiable List 397 provided for in this section, whether finished or unfinished, not hemmed, 25 per centum ad valorem; hemmed, or hemstitched, 30 per centum ad valorem. 256. Clothing, ready-made, and articles of wearing apparel of every description, composed of cotton or other vegetable fiber, or of which cotton or other vegetable fiber is the component material of chief value, or of cotton or other vegetable fiber and India rubber, made up or manu- factured, wholly or in part, by the tailor, seamstress, or manufacturer, and not otherwise specially provided for in this section, 30 per centum ad valorem; shirt collars and cuffs of cotton, not specially provided for in this section, 30 per centum ad valorem. 257. Plushes, velvets, plush or velvet ribbons, velveteens, corduroys, and all pile fabrics, cut or uncut, whether or not the pile covers the entire surface ; any of the foregoing composed wholly or in chief value of cotton or other vegetable fiber, except flax, hemp, or ramie; and manufactures or articles in any form, including such as are commonly known as bias dress facings or skirt bindings, made or cut from plushes, velvets, vel- veteens, corduroys, or other pile fabrics composed of cotton or other vegetable fiber, except flax, hemp, or ramie, 40 per centum ad valorem. 258. Curtains, table covers, and all articles manufactured of cotton chenille, or of which cotton chenille is the component material of chief value, tapestries, and other Jacquard figured upholstery goods, composed wholly or in chief value of cotton or other vegetable fiber; any of the foregoing, in the piece or otherwise, 35 per centum ad valorem ; all other Jacquered figured manufactures of cotton or of which cotton is the com- ponent material of chief value, 30 per centum ad valorem. 259." Stockings, hose and half hose, made on knitting machines or frames, composed of cotton or other vegetable fiber, and not otherwise specially provided for in this section, 20 per centum ad valorem. 260. Stockings, hose and half hose, selvedged, fashioned, narrowed, or shaped wholly or in part by knitting machines or frames, or knit by hand, including such as are commercially known as seamless stockings, hose and half hose, and clocked stockings, hose and half hose, all of the above composed of cotton or other vegetable fiber, finished or unfinished ; if valued at not more than 70 cents per dozen pairs, 30 per centum ad valorem; if valued at more than 70 cents, and not more than $1.20 per dozen pairs, 40 per centum ad valorem; if valued at more than $1.20 per dozen pairs, 50 per centum ad valorem. Gloves by whatever process made, composed wholly or in chief value of cotton, 35 per centum ad valorem. 261. Shirts and drawers, pants, vests, union suits, combination suits, tights, sweaters, corset covers, and all underwear and wearing apparel of every description, not specially provided for in this section, made wholly or in part on knitting machines or frames, or knit by hand, finished or unfinished, not including such as are trimmed with lace, imi- tation lace or crochet or as are embroidered and not including stockings. 398 Important Federal Laws hose and half hose, composed of cotton or other vegetable fiber, 30 per centum ad valorem. 262. Bandings, belts, beltings, bindings, bone casings, cords, tassels, cords and tassels, garters, tire fabric or fabric suitable for use in pneu- matic tires,' suspenders and braces, and fabrics with fast edges not exceed- ing twelve inches in width, all of the foregoing made of cotton or other vegetable fiber, or of which cotton or other vegetable fiber is the com- ponent material of chief value, or of cotton or other vegetable fiber and india rubber, and not embroidered by hand or machinery ; spindle band- ing, woven, braided, or twisted lamp, stove, or candle wicking made of cotton or other vegetable fiber ; loom harness, healds, or collets made of cotton or other vegetable fiber, or of which cotton or other vegetable fiber is the component material of chief value; boot, shoe, and corset lacings made of cotton or other vegetable fiber; and labels for garments or other articles, composed of cotton or other vegetable fiber, 25 per centum ad valorem; belting for machinery made of cotton or other vegetable fiber and india rubber, or of which cotton or other vegetable fiber is the component material of chief value, 15 per centum ad valorem. 263. Cotton table damask, and manufactures of cotton table damask, or of which cotton table damask is the component material of chief value, not specially provided for in this section, 25 per centum ad valorem. 264. Towels, bath mats, quilts, blankets, polishing cloths, mop cloths, wash rags or cloths, sheets, pillowcases, and batting, any of the foregoing made of cotton, or of which cotton is the component material of chief value, not embroidered nor in part of lace and not otherwise provided for, 25 per centum ad valorem. 265. Lace window curtains, pillow shams, and bed sets, finished or unfinished, made on the Nottingham lace-curtain machine, and composed of cotton or other vegetable fiber, when counting not more than six points or spaces between the warp threads to the inch, 35 per centum ad valorem ; when counting more than six and not more than eight points or spaces to the inch, 40 per centum ad valorem; when counting nine or more points or spaces to the inch, 45 per centum ad valorem. 266. All articles made from cotton cloth, whether finished or un- finished, and all manufactures of cotton or of which cotton is the com- ponent material of chief value, not specially provided for in this section, 30 per centum ad valorem. Schedule J — Flax, Hemp and Jute, and Manufactures Of. 267. Single yarns made of jute, not finer than five lea or number, 15 per centum ad valorem ; if finer than five lea or number and yarns made of jute not otherwise specially provided for in this section, 20 per centum ad valorem. 268. Cables and cordage, composed of istle, Tampico fiber, manila, sisal grass or sunn, or a mixture of these or any of them, ^ cent per Tariff Act, Dutiable List 399 pound; cables and cordage made of hemp, tarred or untarred, 1 cent per pound. 269. Threads, twines, or cords, made from yarn not finer than five lea or number, composed of flax, hemp, or ramie, or of which these substances or any of them is the component material of chief value, 20 per centum ad valorem ; if made from yarn finer than five lea or number, 25 per centum ad valorem. 270. Single varus, made of flax, hemp, or ramie, or a mixture of any of them, not' finer than eight lea or number, 12 per centum ad valorem; finer than eight lea or number and not finer than eighty lea or number, 20 per centum ad valorem ; finer than eighty lea or number, 10 per centum ad valorem; ramie sliver or roving, 15 per centum ad valorem. 271. Gill nettings, nets, webs, and seines made of flax, hemp, or ramie, or a mixture of any of them, or of which any of them is the component material of chief value, 25 per centum ad valorem. 272. Floor mattings, plain, fancy, or figured, including mats and rugs, manufactured from straw, round or split, or other vegetable sub- stances, not otherwise provided for in this section, and having a warp of cotton, hemp, or other vegetable substances, including what are com- monly known as China, Japan, and India straw matting, 2\ cents per square yard. -^ _ 273. Carpets, carpeting, mats and rugs made of flax, hemp, jute,, or other vegetable fibe (except cotton), 30 per centum ad valorem. 274. Hydraulic or flume hose, made in whole or in part of cotton, flax, hemp, ramie, or jute, 7 cents per pound. 275. Tapes composed wholly or in part of flax, woven with or with- out metal threads, on reels, spools, or otherwise, and designed expressly for use in the manufacture of measuring tapes, 20 per centum ad valorem. 276. Linoleum, plain, stamped, painted, or printed, including cor- ticine and cork carpet, figured or plain, also linoleum known as granite and oak plank, 30 per centum ad valorem ; inlaid linoleum, 35 per centum ad valorem ; oilcloth for floors, plain, stamped, painted, or printed, 20 per centum ad valorem; mats or rugs made of oilcloth, linoleum, corticine, or cork carpet shall be subject to the same rate of duty as herein pro- vided for oilcloth, linoleum, corticine, or cork carpet. 277. Shirt collars and cuffs, composed in whole or in part of linen, 30 per centum ad valorem. 278. Bands, bandings, belts, beltings, bindings, cords, ribbons, tapes, webs and webbings, all the foregoing composed wholly of flax, hemp, or ramie, or of flax, hemp, or ramie and india rubber, and not otherwise specially provided for in this section, 30 per centum ad valorem ; wearing apparel composed wholly of flax, hemp, or ramie, or of flax, hemp, or ramie and india rubber, 40 per centum ad valorem. 279. Plain woven fabrics of single jute yarns, by whatever name 400 Important Federal Laws known, bleached, dyed, colored, stained, painted, printed, or rendered noninflammable by any process, 10 per centum ad valorem. 280. All pile fabrics, whether or not the pile covers the entire sur- face, composed of flax, hemp, or ramie, or of which flax, hemp, or ramie is the component material of chief value, and all articles and manufac- tures made from such fabrics, not specially provided for in this section, 40 per centum ad valorem. 281. Bags or sacks made from plain woven fabrics, or single jute yarns, not dyed, colored, stained, painted, printed, or bleached, 10 per centum ad valorem. 282. Handkerchiefs composed of flax, hemp, or ramie, or of which these substances, or any of them, is the component material of chief value, whether in the piece or otherwise, and whether finished or un- finished, not hemmed or hemmed only, 35 per centum ad valorem; if hemstitched, or imitation hemstitched, or revered, or with drawn threads, but not embroidered, initialed, or in part of lace, 40 per centum ad valorem. 283. Plain woven fabrics, not including articles, finished or un- finished, of flax, hemp, or ramie, or of which these substances or any of them is the component material of chief value, including such as is known as shirting cloth, 30 per centum ad valorem. 284. All woven articles, finished or unfinished, and all manufac- tures of flax, hemp, ramie, or other vegetable fiber, or of which these substances, or any of them, is the component material of chief value, not specially provided for in this section, 35 per centum ad valorem. 285. Istle or tampico, when dressed, dyed, or combed, 20 per centum ad valorem. Schedule K — Wool and Manufactures Of. 286. Combed wool or tops and roving or roping made wholly or in part of wool or camel's hair, and on other wool and hair which have been advanced in any manner or by any process of manufacture beyond the washed or scoured condition, not specially provided for in this sec- tion, 8 per centum ad valorem. 287. Yarns made wholly or in chief value of wool, 18 per centum ad valorem. 288. Cloths, knit fabrics, felts not woven, and all manufactures of every description made, by any process, wholly or in chief value of wool, not specially provided for in this section, 35 per centum ad valorem ; cloths if made in chief value of cattle hair or horse hair, not specially provided for in this section, 25 per centum ad valorem ; plushes, velvets, and all other pile fabrics, cut or uncut, woven or knit, whether or not the pile covers the entire surface, made wholly or in chief value of wool, and articles made wholly or in chief value of such plushes, velvets, or pile fabrics, 40 per centum ad valorem ; stockings, hose and half hose, made on knitting machines or frames, composed wholly or in chief value Tariff Act, Dutiable List 401 of wool, not specially provided for in this section, 20 per centum ad valorem; stockings, hose and half hose, selvedged, fashioned, narrowed, or shaped wholly or in part by knitting machines or frames, or knit by hand, including such as are commercially known as seamless stockings, hose and half hose, and clocked stockings, hose and half hose, gloves and mittens, all of the above, composed wholly or in chief value of wool, if valued at not more than $1.20 per dozen pairs, 30 per centum ad valorem; if valued at more than $1.20 per dozen pairs, 40 per centum ad valorem; press cloth composed of camel's hair, not specially provided for in this section, 10 per centum ad valorem. 289. Blankets and flannels, composed wholly or in chief value of wool, 25 per centum ad valorem ; flannels composed wholly or in chief value of wool, valued at above 50 cents per pound, 30 per centum ad valorem. 290. Women's and children's dress goods, coat linings, Italian cloths, bunting, and goods of similar description and character, composed wholly or in chief value of wool, and not specially provided for in this section, 35 per centum ad valorem. 291. Clothing, ready-made, and articles of wearing apparel of every description, including shawls whether knitted or woven, and knitted articles of every description made up or manufactured wholly or in part, and not specially provided for in this section, composed wholly or in chief value of wool, 35 per centum ad valorem. 292. Webbings, suspenders, braces, bandings, belts, beltings, bind- ings, cords, cords and tassels, and ribbons ; any of the foregoing made of wool or of which wool or wool and india rubber are the component materials of chief value, and not specially provided for in this section, 35 per centum ad valorem. 293. Aubusson, Axminster, moquette, and chenille carpets, figured or plain, and all carpets or carpeting of like character or description, 35 per centum ad valorem. 294. Saxony, Wilton, and Tournay velvet carpets, figured or plain, and all carpets or carpeting of like character or description, 30 per centum ad valorem. 295. Brussels carpets, figured or plain, and all carpets or carpeting of like character or description, 25 per centum ad valorem. 296. Velvet and tapestry velvet carpets, figured or plain, printed on the warp or otherwise, and all carpets or carpeting of like character or description. 30 per centum ad valorem. 297. Tapestry Brussels carpets, figured or plain, and all carpets or carpeting of like character or description, printed on the warp or other- wise, 20 per centum ad valorem. 298. Treble ingrain, three-ply, and all-chain Venetian carpets, 20 per centum ad valorem. 299. Wool Dutch and two-ply ingrain carpets, 20 per centum ad valorem. (26) 402 Important Federal Laws 300. Carpets of every description, woven whole for rooms, and Oriental, Berlin, Aubusson, Axminster, and similar rugs, 50 per centum ad valorem. 301. Druggets and bockings, printed, colored, or otherwise, 20 per centum ad valorem. 302. Carpets and carpeting of wool or cotton, or composed in part of either of them, not specially provided for in this section, and on mats, matting, and rugs of cotton, 20 per centum ad valorem. 303. Mats, rugs, for floors, screens, covers, hassocks, bed sides, art squares, and other portions of carpets or carpeting, composed wholly or in part of wool, and not specially provided for in this section, shall be subjected to the rate of duty herein imposed on carpets or carpeting of like character or description. 304. Whenever in this section the word "wool" is used in connection with a manufactured article of v/hich it is a component material, it shall be held to include wool or hair of the sheep, camel, or other like animals, whether manufactured by the woolen, worsted, felt, or any other process. 305. Hair of the Angora goat, alpaca, and other like animals, and all hair on the skin of such animals. 15 per centum ad valorem. 306. Tops made from the hair of the Angora goat, alpaca, and other like animals, 20 per centum ad valorem. 307. Yarns made of the hair of the Angora goat, alpaca, and other like animals, 25 per centum ad valorem. 308. Cloth and all manufactures of every description made by any process, wholly or in chief value of the hair of the Angora goat, alpaca, and other like animals, not specially provided for in this section, 40 per centum ad valorem. 309. Plushes, velvets, and all other pile fabrics, cut or uncut, woven or knit, whether or not the pile covers the entire surface, made wholly or partly of the hair of the Angora goat, alpaca, or other like animals, and articles made wholly or in chief value of such plushes, velvets, or pile fabrics, 45 per centum ad valorem. 310. The provisions of this schedule (K) shall be effective on and after the first day of January, nineteen hundred and fourteen, until which date the rates of duty now provided by Schedule K of the existing law shall remain in full force and effect Schedule L — Silks and Sjlk Goods. 311. Silk partially manufactured from cocoons or from waste silk and not further advanced or manufactured than carded or combed silk, and silk noils exceeding two inches in length, 20 cents per pound. 312. Spun silk or schappe silk yarn, 35 per centum ad valorem. 313. Thrown silk not more advanced than singles, tram, or organ- zine, sewing silk, twist, floss, and silk threads or yarns of every descrip- tion made from raw silk, 15 per centum ad valorem. Tariff Act^ Dutiable List 403 314. Velvets, plushes, chenilles, velvet or plush ribbons, or other pile fabrics, composed of silk or of which silk is the component material of chief value, 50 per centum ad valorem. 315. Handkerchiefs or mufflers composed wholly or in chief value of silk, finished or unfinished; if cut, not hemmed or hemmed only, 40 per centum ad valorem; if hemstitched or imitation hemstitched, or revered, or having drawn threads, but not embroidered in any manner with an initial letter, monogram, or otherwise, 50 per centum ad valorem. 316. Ribbons, bandings, including hatbands, belts, beltings, bind- ings, all of the foregoing not exceeding twelve inches in width and if with fast edges, bone casings, braces, cords, cords and tassels, garters, suspenders, tubings, and webs and webbings ; all the foregoing made of silk or of which silk or silk and india rubber arc the component materials of chief value, if not embroidered in any manner, and not specially pro- vided for in this section, 45 per centum ad valorem. 317. Clothing, ready-made, and articles of wearing apparel of every description, including knit goods, made up or manufactured in whole or in part by the tailor, seamstress, or manufacturer; all the foregoing com- posed of silk or of which silk or silk and india rubber are the component materials of chief value, not specially provided for in this section, 50 per centum ad valorem. 318. Woven fabrics, in the piece or otherwise, of which silk is the component material of chief value, and all manufactures of silk, or of which silk or silk and india rubber are the component materials of chief value, not specially provided for in this section, 45 per centum ad valorem. 319. Yarns, threads, filaments of artificial or imitation silk, or of artificial or imitation horsehair, by whatever name known, and by what- ever process made, 35 per^ centum ad valorem ; beltings, cords, tassels, ribbons, or other articles or fabrics composed wholly or in chief value of yarns, threads, filaments, or fibers of artificial or imitation silk or of artificial or imitation horsehair; or of yarns, threads, filaments or fibers of artificial or imitation silk, or of artificial or imitation horsehair and india rubber, by whatever name known, and by whatever process made, 60 per centum ad valorem. Schedule M — Papers and Books. 320. Sheathing paper, pulpboard in rolls, not laminated, roofing felt, common paper-box board, not coated, lined, embossed, printed or deco- rated in any manner, nor cut into shapes for boxes or other articles, 5 per centum ad valorem. 321. Filter masse or filter stock, composed wholly or in part of wood pulp, wood flour, cotton or other vegetable fiber, 20 per centum- ad valorem. 322. Printing paper (other than paper commercially known as handmade or machine handmade paper, japan paper, and imitation japan 404 Important Federal Laws paper by whatever name known), unsized, sized, or glued, suitable for the printing of books and newspapers, but not for covers or bindings, not specially provided for in this section, valued above 5 cents per pound, twelve per centum ad valorem: Provided, however. That if any country, dependency, province, or other subdivision of government shall impose any export duty, export license fee, or other charge of any kind what- soever (whether in the form of additional charge or license fee or other- wise) upon printing paper, wood pulp, or wood for use in the manufac- ture of wood pulp, there shall be imposed upon printing paper, valued above 5 cents per pound, when imported either directly or indirectly from such country, dependency, province, or other subdivision of gov- ernment, an additional duty equal to the amount of the highest export duty or other export charge imposed by such country, dependency, prov- ince, or other subdivision of government, upon either printing paper or upon an amount of wood pulp, or wood for use in the manufacture of wood pulp necessary to manufacture such printing paper. (As amended September 8, 1916.) 323. Papers commonly known as copying paper, stereotype paper, bibulous paper, tissue paper, pottery paper, letter-copying books, wholly or partly manufactured, crepe paper and filtering paper, and articles man- ufactured from any of the foregoing papers or of which such paper is the component material of chief value, 30 per centum ad valorem. 324. Papers wholly or partly covered with metal leaf or with gela- tin or flock, papers with white coated surface or surfaces, calendar plate finished, hand dipped marbleized paper, parchment paper, and litho- graphic transfer paper not printed, 25 per centum ad valorem; papers with coated surface or surfaces suitable for covering boxes, not specially provided for, whether or not embossed or printed except by lithographic process, 40 per centum ad valorem ; all other paper with coated surface or surfaces not specially provided for in this section ; uncoated papers, gummed, or with the surface or surfaces wholly or partly decorated or covered with a design, fancy effect, pattern, or character, whether pro- 'duced in the pulp or otherwise except by lithographic process, cloth- lined or reinforced papers, and grease-proof and imitation parchment papers which have been supercalendered and rendered transparent or partially so, by whatever name known, all other grease-proof and imitation parchment papers, not specially provided for in this section, by whatever name known, bags, envelopes, and all other articles composed wholly or in chief value of any of the foregoing papers, not specially provided for in this section, and all boxes of paper or papier mache or wood covered with any of the foregoing papers or covered or lined with cotton or other vegetable fiber, 35 per centum ad valorem; albuminized or sensitized paper or paper otherwise surface-coated for photographic purposes, 25 per centum ad valorem ; plain basic papers for albuminizing, sensitizing, baryta coating, or for photographic or solar printing processes, 15 per centum ad valorem. Tariff Act, Dutiable List 405 325. Pictures, calendars, cards, booklets, labels, flaps, cigar bands, placards, and other articles composed wholly or in chief value of paper lithographically printed in whole or in part from stone, gelatin, metal, or other material (except boxes, views of American scenery or objects, and music, and illustrations when forming a part of a periodical or news- paper or of bound or unbound books, accompanying the same, not spe- cially provided for in this section) shall pay duty at the following rates: Labels and flaps printed in less than eight colors (bronze printing to be counted as two colors), but not printed in whole or in part of metal leaf, 15 cents per pound; cigar bands of the same number of colors and print- ings, 20 cents per pound ; labels and flaps printed in eight or more colors (bronze printing to be counted as two colors), but not printed in whole or in part of metal leaf, 20 cents per pound ; cigar bands of the same number of colors and printings, 25 cents per pound; labels and flaps printed in whole or in part of metal leaf, 35 cents per pound ; cigar bands printed in whole or in part of metal leaf, 40 cents per pound; booklets, 7 cents per pound ; all other articles not exceeding eight one-thousandths of an inch in thickness, 15 cents per pound; exceeding eight one-thou- sandths of an inch and not exceeding twenty one-thousandths of an inch in thickness and less than thirty-five square inches cutting size in dimen- sion, 5 cents per pound ; exceeding eight and not exceeding twenty one- thousandths of an inch in thickness and thirty-five square inches and over cutting size in dimension, 7 cents per pound ; exceeding twenty ©ne- thousandths of an inch in thickness, 5 cents per pound, providing that in the case of articles hereinbefore specified the thickness which shall determine the rate of duty to be imposed shall be that of the thinnest litho- graphed material found in the article, but for the purpose of this para- graph the thickness of lithographs mounted or pasted upon paper, card- board, or other material shall be the combined thickness of the lithograph and the foundation upon which it is mounted or pasted ; books of paper or other material for children's use, lithographically printed in whole or in part, not exceeding in weight twenty- four ounces each, 4 cents per pound ; fashion magazines or periodicals printed in whole or in part by lithographic process or decorated by hand, 6 cents per pound ; booklets, wholly or in chief value of paper, decorated in whole or in part by hand or by spraying, whether or not lithographed, 10 cents per pound ; decal- comanias in ceramic colors, weighing not over one hundred pounds per thousand sheets, on a basis of twenty by thirty inches in dimensions, 60 cents per pound ; all other decalcomanias, except toy decalcomanias, 15 cents per pound. 326. Writing, letter, note, drawing, handmade paper and paper com- mercially known as handmade paper and machine handmade paper, japan paper and imitation japan paper by whatever name known, and ledger, bond, record, tablet, typewriter, and onionskin and imitation onionskin papers calendered or uncalendered, whether or not any such paper is 406 Important Federal Laws ruled, bordered, embossed, printed, lined, or decorated in any manner, 25 per centum ad valorem. Z27 . Paper envelopes, folded or flat, not specially provided for in this section, 15 per centum ad valorem. 328. Jacquard designs on ruled paper, or cut on Jacquard cards, and parts of such designs, cardboard and bristol board, press boards or press paper, paper hangings with paper back or composed wholly or in chief value of paper, and wrapping paper not specially provided for in this section, 25 per centum ad valorem. 329. Books of all kinds, bound or unbound, including blank books, slate books and pamphlets, engravings, photographs, etchings, maps, charts, music in books or sheets, and printed matter, all the foregoing, and not specially provided for in this section, 15 per centum ad valorem. Views of any landscape, scene, building, place or locality in the United States, on cardboard or paper, not thinner than eight one-thousandths of of one inch, by whatever process printed or produced, including those wholly or in part produced by either lithographic or photogelatin process (except show cards), bound or unbound, or in any other form, 20 cents per pound ; thinner than eight one-thousandths of one inch, $2 per thou- sand. 330. Photograph, autograph, scrap, post-card, and postage-stamp albums, wholly or partly manufactured, 25 per centum ad valorem. 331. Playing cards. 60 per centum ad valorem. 332. Papers or cardboard, cut, die cut, or stamped into designs or shapes, such as initials, monograms, lace, borders, or other forms, and all post cards, not including American views, plain, decorated, embossed, or printed, except by lithographic process, and all papers and manufac- tures of paper or of which paper is the component material of chief value, not specially provided for in this section, 25 per centum ad valorem. Schedule N — Sundries. ZZZ. Beads and spangles of all kinds, including imitation pearl beads, not threaded or strung, or strung loosely on thread for facility in transportation only, 35 per centum ad valorem ; curtains, and other articles not embroidered nor appliqued and not specially provided for in this section, composed wholly or in chief value of beads or spangles made of glass or paste, gelatin, metal, or other material, 50 per centum ad valorem. 334. Ramie hat braids, 40 per centum ad valorem ; manufactures of ramie hat braids, 50 per centum ad valorem. 335. Braids, plaits, laces, and willow sheets or squares, composed wholly or in chief value of straw, chip, grass, palm leaf, willow, osier, rattan, real horsehair, cuba bark, or manila hemp, suitable for making or ornamenting hats, bonnets, or hoods, not bleached, dyed, colored, or stained, 15 per centum ad valorem; if bleached, dyed, colored, or stained. 20 per centum ad valorem; hats, bonnets, and hoods composed wholly Tariff Act, Dutiable List 407 or in chief value of straw, chip, grass, pahii leaf, willow, osier, rattan, Cuba bark, or manila hemp, whether wholly or partly manufactured, but not blocked or trimmed, 25 per centum ad valorem ; if blocked or trimmed, and in chief value of such materials, 40 per centum ad valorem. But the terms "grass" and "straw" shall be understood to mean these substances in their natural form and structure, and not the separated fiber thereof. 336. Brooms, made of broom corn, straw, wooden fibre, or twigs, 15 per centum ad valorem; brushes and feather dusters of all kinds, and hair pencils in quills or otherwise, 35 per centum ad valorem. 537. Bristles, sorted, bunched, or prepared, 7 cents per pound. 33S. Button forms of lastings, mohair or silk cloth, or other manu- factures of cloth, woven or made in patterns of such size, shape, or form as to be fit for buttons exclusively, and not exceeding eight inches in any one dimension, 10 per centum ad valorem. 339. Buttons of vegetable ivory in sizes thirty-six lines and larger, 35 per centum ad valorem ; below thirty-six lines, 45 per centum ad valorem; buttons of shell and pearl in sizes twenty-six lines and larger, 25 per centum ad valorem; below twenty-six lines, 45 per centum ad valorem; agate buttons and shoe buttons, 15 per centum ad valorem; parts of buttons and button molds or blanks, finished or unfinished, and all collar and cufif buttons and studs composed wholly of bone, mother- of pearl, ivory, or agate, all the foregoing and buttons not specially provided for in this section, 40 per centum ad valorem. 340. Cork bark, cut into squares, cubes, or quarters, 4 cents per pound ; manufactured cork stoppers, over three- fourths of an inch in diameter, measured at the larger end, and manufactured cork disks, wafers, or washers, over three-sixteenths of an inch in thickness, 12 cents per pound; manufactured cork stoppers, three-fourths of an inch or less in diameter, measured at the larger end, and manufactured cork disks, wafers, or washers, three-sixteenths of an inch or less in thickness, 15 cents per pound; cork, artificial, or cork substitutes manufactured from cork waste, or granulated corks, and not otherwise provided for in this section, 3 cents per pound; cork insulation, wholly or in chief value of granulated cork, in slabs, boards, planks, or molded forms, ^ cent per pound; cork paper, 35 per centum ad valorem; manufactures wholly or in chief value of cork or of cork bark, or of artificial cork or bark substitutes, granulated or ground cork, not specially provided for in this section, 30 per centum ad valorem. 341. Dice, dominoes, draughts, chessmen, chess balls, and billiard, pool, bagatelle balls, and poker chips, of ivory, bone, or other materials, 50 per centum ad valorem. 342. Dolls, and parts of dolls, doll heads, toy marbles of whatever materials composed, and all other toys, and parts of toys, not composed of china, porcelain, parian, bisque, earthen or stone ware, and not specially provided for in this section, 35 per centum ad valorem. 343. Emery grains and emery, manufactured, ground, pulverized. 408 Important Federal Laws or refined, 1 cent per pound ; emery wheels, emery files, emery paper, and manufactures of which emery or corundum is the component material of chief value, 20 per centum ad valorem. 344. Firecrackers of all kinds, 6 cents per pound ; bombs, rockets, Roman candles, and fireworks of all descriptions, not specially provided for in this section, 10 cents per pound ; the weight on all the foregoing to include all coverings, wrappings, and packing material. 345. Matches, friction or lucifer, of all descriptions, per gross of one hundred and forty-four boxes, containing not more than one hundred matches per box, 3 cents per gross ; when imported otherwise than in boxes containing not more than one hundred matches each, f of 1 cent per one thousand matches ; wax matches, fusees, wind matches, and all matches in books or folders or having a stained, dyed, or colored stick or stem, and tapers consisting of a wick coated with an inflammable sub- stance, and night lights, 25 per centum ad valorem: Provided, That in accordance with section ten of ''An Act to provide for a tax upon white phosphorus matches, and for other purposes," approved April ninth, nine- teen hundred and twelve, white phosphorus matches manufactured wholly or in part in any foreign country shall not be entitled to enter at any of the ports of the United States, and the importation thereof is hereby prohibited : Provided further. That nothing in this Act contained shall be held to repeal or modify said xA-Ct to provide for a tax upon white phosphorus matches, and for other purposes, approved April ninth, nine- teen hundred and twelve. 346. Percussion caps, cartridges, and cartridge shells empty, 15 per centum ad valorem ; blasting caps, $1 per thousand ; mining, blasting, or safety fuses of all kinds, 15 per centum ad valorem. 347. Feathers and downs, on the skin or otherwise, crude or not dressed, colored, or otherwise advanced or manufactured in any manner, not specially provided for in this section, 20 per centum ad valorem; when dressed, colored, or otherwise advanced or manufactured in any manner, and not suitable for use as millinery ornaments, including quilts of down and manufactures of down, 40 per centum ad valorem ; artificial or ornamental feathers suitable for use as millinery ornaments, artificial and ornamental fruits, grains, leaves, flowers, and stems or parts thereof, of whatever material composed, not specially provided for in this section, 60 per centum ad valorem ; boas, boutonnieres, wreaths, and all articles not specially provided for in this section, composed wholly or in chief value of any of the feathers, flowers, leaves, or other material herein mentioned. 60 per centum ad valorem : Provided, That the importation of aigrettes, egret plumes or so-called osprey plumes, and the feathers, quills, heads, wings, tails, skins, or parts of skins, of wild birds, either raw or manufactured, and not for scientific or educational purposes, is hereby prohibited; but this provision shall not apply to the feathers or plumes of ostriches, or to the feathers or plumes of domestic fowls of any kind. Tariff Act, Dutiable List 409 348. Furs dressed on the skin, not advanced further than dyeing, 30 per centum ad valorem; plates and mats of dog and goat skins, 10 per centum ad valorem ; manufactures of furs, further advanced than dress- ing and dyeing, when prepared for use as material, joined or sewed together, including plates, linings, and crosses, except plates and mats of dog and goat skins, and articles manufactured from fur not specially provided for in this section, 40 per centum ad valorem ; articles of wear- ing apparel of every description partly or wholly manufactured, composed of or of which hides or skins of cattle of the bovine species, or of the dog or goat are the component material of chief value, 15 per centum ad valorem; articles of wearing apparel of every description partly or wholly manufactured, composed of or of which fur is the component material of chief value, not specially provided for in this section, 50 per centum ad valorem ; furs not on the skin, prepared for hatters' use, including fur skins carroted, 15 per centum ad valorem. 349. Fans of all kinds, except common palm-leaf fans, 50 per centum ad valorem. 350. Gun wads of all descriptions, 10 per centum ad valorem. 351. Human hair, raw% 10 per centum ad valorem; if cleaned or commercially known as drawn, but not manufactured, 20 per centum ad valorem ; manufactures of human hair, including nets and nettings, or of which human hair is the component material of chief value, not specially provided for in this section, 35 per centum ad valorem. 352. Hair, curled, suitable for beds or mattresses, 10 per centum ad valorem. 353. Haircloth, known as "crinoline" cloth, 6 cents per square yard ; haircloth, known as "hair seating," and hair press cloth, 15 cents per square yard. 354. Hats, bonnets, or hoods, for men's, women's, boys', or chil- dren's wear, trimmed or untrimmed, including bodies, hoods, plateaux, forms or shapes, for hats or bonnets, composed wholly or in chief value of fur of the rabbit, beaver, or other animals, 45 per centum ad valorem. 355. Indurated fiber ware and manufactures of pulp, not specially provided for in this section, 25 per centum ad valorem. 356. Jewelry, commonly or commercially so known, valued above 20 cents per dozen pieces, 60 per centum ad valorem ; rope, curb, cable, and fancy patterns of chain not exceeding one-half inch in diameter, width, or thickness, valued above 30 cents per yard ; and articles valued above 20 cents per dozen pieces designed to be worn on apparel or carried on or about or attached to the person, such as and including buckles, card cases, chains, cigar cases, cigar cutters, cigar holders, cigarette cases, cigarette holders, coin holders, collar, cufi:', and dress buttons, combs, match boxes, mesh bags and purses, millinery, military, and hair orna- ments, pins, powder cases, stamp cases, vanity cases, and like articles ; all the foregoing and parts thereof, finished or party finished composed of metal, whether or not enameled, w^ashed, covered, or plated, including 410 Important Federal Laws rolled goldplate, and whether or not set with precious or semiprecious stones, pearls, cameos, coral, or amber, or with imitation precious stones or imitation pearls, 60 per centum ad valorem. Stampings, galleries, mesh and other materials of metal, whether or not set with glass or paste, finished or partly finished, separate or in strips or sheets, suitable for use in the manufacture of any of the foregoing articles in this paragraph, 50 per centum ad valorem. . 357. Diamonds and other precious stones, rough or uncut, and not advanced in condition or value from their natural state by cleaving, split- ting, cutting, or other process, whether in their natural form or broken, and bort ; any of the foregoing not set, and diamond dust, 10 per centum ad valorem ; pearls and parts thereof, drilled or undrilled, but not set or strung ; diamonds, coral, rubies, cameos, and other precious stones and semiprecious stones, cut but not set. and suitable for use in the manu- facture of jewelry, 20 per centum ad valorem ; imitation precious stones, including pearls and parts thereof, for use in the manufacture of jewelry, doublets, artificial, or so-called synthetic or reconstructed pearls and parts thereof, rubies, or other precious stones, 20 per centum ad valorem. 358. Laces, lace window curtains not specially provided for in this section, coach, carriage, and automobile laces, and all lace articles of whatever yarns, threads, or filaments composed ; handkerchiefs, napkins, w^earing apparel, and all other articles or fabrics made wholly or in part of lace or of imitation lace of any kind; embroideries, wearing apparel, handkerchiefs, and all articles or fabrics embroidered in any manner by hand or machinery, whether with a plain or fancy initial, monogram, or otherwise, or tamboured, appliqued, or scalloped by hand or machinery, any of the foregoing by whatever name known ; edgings, insertings, gal- loons, nets, nettings, veils, veilings, neck rufflings, ruchings, tuckings, flouncings, flutings, quillings, ornaments ; braids, loom woven and orna- mented in the process of weaving, or made by hand, or on any braid machine, knitting machine, or lace machine, and not specially provided for ; trimmings not specially provided for ; woven fabrics or articles from which threads have been omitted, drawn, punched, or cut, and with threads introduced after weaving, forming figures or designs, not includ- ing straight hemstitching; and articles made in whole or in part of any of the foregoing fabrics or articles ; all of the foregoing of whatever yarns, threads, or filaments composed, 60 per centum ad valorem. 359. Chamois skins, 15 per centum ad valorem; pianoforte, piano- forte action, enameled upholstery leather, and glove leathers, 10 per centum ad valorem. 360. Bags, baskets, belts, satchels, card cases, pocketbooks, jewel boxes, portfolios, and other boxes and cases, made wholly of or in chief value of leather or parchment, not jewelry, and manufactures of leather or parchment, or of which leather or parchment is the component material of chief value, not specially provided for in this section, 30 per centum ad valorem; any of the foregoing permanently fitted and furnished with Tariff Act, Dutiable List 411 traveling, bottle, drinking, dining, luncheon and similar sets, 35 per centum ad valorem. 361. Gloves, not specially provided for in this section, made wholly or in chief value of leather, whether wholly or partly manufactured, shall pay duty at the following rates, the lengths stated in each case being the extreme length when stretched to their full extent, namely : 362. Men's, women's, or children's "glace" finish, Schmaschen (of sheep origin), not over fourteen inches in length, $1 per dozen pairs; over fourteen inches in length, 25 cents additional per dozen pairs for each inch in excess of fourteen inches. 363. All other women's or children's gloves wholly or in chief value of leather, not over fourteen inches in length, $2 per dozen pairs; over fourteen inches in length, 25 cents additional per dozen pairs for each inch in excess of fourteen inches ; all men's leather gloves not specially provided for in this section, $2.50 per dozen pairs. 364. In addition to the foregoing rates there shall be paid the fol- lowing cumulative duties : On all leather gloves when lined with cotton or other vegetable fiber, 25 cents per dozen pairs ; when lined with a knitted glove or when lined with silk, leather, or wool, 50 cents per dozen pairs ; when lined with fur, $2 per dozen pairs ; on all pique and prixseam gloves, 25 cents per dozen pairs. 365. Glove tranks, with or without the usual accompanying pieces, shall pay 75 per centum of the duty provided for the gloves in the fabrica- tion of which they are suitable. 366. Manufactures of catgut, or whip gut, or worm gut, including strings for musical instruments ; any of the foregoing or of which these substances or any of them is the component material of chief value, not specially provided for in this section, 20 per centum ad valorem. 367. Manufactures of amber, asbestos, bladders, or wax, or of which these substances or any of them is the component material of chief value, not specially provided for in this section, 10 per centum ad valorem; yarn and woven fabrics composed wholly or in chief value of asbestos, 20 per centum ad valorem. 368. Manufactures of bone, chip, grass, horn, india rubber or gutta- percha, palm leaf, quills, straw, weeds, or whalebone, or of which any of them is the component material of chief value not otherwise specially provided for in this section, shall be subject to the following rates: Man- ufactures of india rubber or gutta-percha, commonly known as druggists' sundries, 15 per centum ad valorem; manufactures of india rubber or gutta-percha, not specially provided for in this section, 10 per centum ad valorem; palm leaf, 15 per centum ad valorem; bone, chip, horn, quills, and whalebone, 20 per centum ad valorem ; grass, straw, and weeds, 25 per centum ad valorem ; combs composed wholly of horn or of horn and metal, 25 per centum ad valorem. The terms "grass" and "straw" shall be understood to mean these substances in their natural state, and not the separated fibers therof. 412 Important Federal Laws 369. Ivory tusks in their natural state, or cut vertically across the grain, only with the bark left intact, 20 per centum ad valorem ; manufac- tures of ivory or vegetable ivory, or of which either of these substances is the component material of chief value, not specially provided for in this section, 35 per centum ad valorem; manufactures of mother-of-pearl and shell, plaster of Paris, papier-mache, and vulcanized india rubber known as "hard rubber," or of which these substances or any of them is the component material of chief value, not specially provided for in this sec- tion, 25 per centum ad valorem; shells engraved, cut, ornamented, or otherwise manufactured, 25 per centum ad valorem. 370. Masks, of wdiatever material composed, 25 per centum ad valorem. 371. Matting made of cocoa fiber or rattan, 5 cents per square yard; mats made of cocoa fiber or rattan, 3 cents per square foot. 372. Moss and sea grass, eelgrass, and seaweeds, if manufactured or dyed, 10 per centum ad valorem. Z7^. Musical instruments or parts thereof, pianoforte actions and parts thereof, cases for musical instruments, pitch pipes, tuning forks, tuning hammers, and metronomes ; strings for musical instruments, com- posed wholly or in part of steel or other metal, all the foregoing, 35 per centum ad valorem. 374. Phonographs, gramophones, graphophones, and similar articles, or parts thereof, 25 per centum ad valorem. 375. Violin rosin, in boxes or cases or otherwise, 10 per centum ad valorem. 376. Works of art, including paintings in oil or water-colors, pas- tels, pen and ink drawings, or copies, replicas or reproductions of any of the same, statuary, sculptures, or copies, replicas or reproductions thereof, and etchings and engravings, not specially provided for in this section, 15 per centum ad valorem. Z77. Peat moss, 50 cents per ton. 378. Pencils of paper or wood, or other material not metal, filled with lead or other material, pencils of lead, 36 cents per gross, but in no case shall any of the foregoing pay less than 25 per centum ad valorem ; slate pencils, 25 per centum ad valorem. 379. Pencil leads not in wood or other material, 10 per centum ad valorem. 380. Photographic cameras, and parts thereof, not specially pro- vided for in this section, photographic dry plates, not specially provided for in this section, 15 per centum ad valorem; photographic-film nega- tives, imported in any form, for use in any way in connection \\\\h mov- ing-picture exhibits, or for making or reproducing pictures for such exhibits, exposed but not developed, 2 cents per linear or running foot ; if exposed and developed, 3 cents per linear or running foot ; photo- graphic-film positives, imported in any form, for use in any way in con- nection with moving-picture exhibits, including herein all moving, motion, Tariff Act, Dutiable List 413 motophotography or cinematography film pictures, prints, positives or duplicates of every kind and nature, and of whatever substance made, 1 cent per linear or running foot : Provided, however, That all photo- graphic-films imported under this section shall be subject to such censor- ship as may be imposed by the Secretary of the Treasury. 381. Pipes and smokers' articles: Common tobacco pipes and pipe bowls made wholly of clay, 25 per centum ad valorem; other pipes and pipe bowls of whatever material composed, and all smokers' articles whatsoever, not specially provided for in this section, including cigarette books, cigarette-book covers, pouches for smoking or chewing tobacco, and cigarette paper in all forms, except cork paper, 50 per centum ad valorem; meerschaum, crude or unmanufactured, 20 per centum ad valorem. 382. Plush, black, known commercially as hatters' plush, composed of silk, or of silk and cotton, such as is used for making men's hats, 10 per centum ad valorem. 383. Umbrellas, parasols, and sunshades covered with material other than paper or lace, not embroidered or appliqued, 35 per centum ad valorem. Sticks for umbrellas, parasols, or sunshades, and walking canes, finished or unfinished, 30 per centum ad valorem. 384. Waste, not specially provided for in this section, 10 per centum ad valorem. 385. That there shall be levied, collected, and paid on the importa- tion of all raw or unmanufactured articles not enumerated or provided for in this section, a duty of 10 per centum ad valorem, and on all articles manufactured, in whole or in part, not provided for in this section, a duty of 15 per centum ad valorem. 386. That each and every imported article, not enumerated in this section, which is similar, either in material, quality, texture, or the use to which it may be applied, to any article enumerated in this section as chargeable with duty, shall pay the same rate of duty which is levied on the enumerated article which it most resembles in any of the particu- lars before mentioned; and if any nonenumerated article equally resem- bles two or more enumerated articles on which different rates of duty are chargeable, there shall be levied on such nonenumerated article the same rate of duty as is chargeable on the article which it resembles pay- ing the highest rate of duty ; and on articles not enumerated, manufac- tured of two or more materials, the duty shall be assessed at the highest rate at which the same would be chargeable if composed wholly of the component material thereof of chief value; and the words "component material of chief value," wherever used in this section, shall be held to mean that component material which shall exceed in value any other single component material of the article ; and the value of each component mate- rial shall be determined by the ascertained value of such material in its condition as found in the article. If two or more rates of duty shall be applicable to any imported article, it shall pay duty at the highest of such rates. 414 Important Federal Laws FREE LIST. That on and after the day following the passage of this Act, except as otherwise specially provided for in this Act, the articles mentioned in the following paragraphs shall, when imported into the United States or into any of its possessions (except the Philippine Islands and the islands of Guam and Tutuila), be exempt from duty: 387. Acids : Acetic or pyroligneous, arsenic or arsenious, carbolic, chromic, fluoric, hydrofluoric, hydrochloric or muriatic, nitric, phos- phoric, phthalic, prussic, silicic, sulphuric or oil of vitriol, and valerianic. 388. Aconite. 389. Acorns, raw, dried or undried, but unground. 390. Agates, unmanufactured. 391. Agricultural implements: Plows, tooth and disk harrows, headers, harvesters, reapers, agricultural drills and planters, mowers, horserakes, cultivators, threshing machines, cotton gins, machinery for use in the manufacture of sugar, wagons and carts, and all other agricul- tural implements of any kind and description, whether specificallv men- tioned herein or not, whether in whole or in parts, including repair parts. 392. Albumen, not specially provided for in this section. 393. Alcohol, methyl or wood. 394. Alizarin, natural or synthetic, and dyes obtained from alizarin, anthracene, and carbazol. 395. Ammonia, sulphate of, perchlorate of, and nitrate of. 396. Antimony ore and stibnite containing antimony, but only as to the antimony content. 397. Any animal imported by a citizen of the United States, spe- cially for breeding purposes, shall be admitted free, whether intended to be used by the importer himself or for sale for such purposes: Pro- vided, That no such animal shall be admitted free unless pure bred of a recognized breed, and duly registered in a book of record recognized by the Secretary of Agriculture for that breed : And provided further. That the certificate of such record and pedigree of such animal shall be pro- duced and submitted to the Department of Agriculture, duly authen-Licatcd by the proper custodian of such book of record, together with an affidavit of the owner, agent, or importer that the animal imported is the identical animal described in said certificate of record and pedigree. The Secre- tary of Agriculture may prescribe such regulations as may be required for determining the purity of breeding and the identity of such animal: And provided further. That the collectors of customs shall require a certificate from the Department of Agriculture stating that such animal is pure bred of a recognized breed and duly registered in a book of record recognized by the Secretary of Agriculture for that breed. The Secretary of the Treasury may prescribe such additional regu- lations as may be recjuired for the .strict enforcement of this provision. Florses, mules, and asses straying across the boundary line into any foreign country, or driven across such boundary line by the ov/ner for Tariff Act, Free List 415 temporary pasturage purposes only, together with their offspring, shall be dutiable unless brought back to the United States within six months, in which case they shall be free of duty, under regulations to be pre- scribed by the Secretary of the Treasury: And provided further. That the provisions of this Act shall apply to all such animals as have been imported and are in quarantine or otherwise in the custody of customs or other officers of the United States at the date of the taking effect of this Act. 398. Animals brought into the United States temporarily for a period not exceeding six months, for the purpose of breeding, exhibition or competition for prizes offered by any agricultural, polo, or racing association ; but a bond shall be given in accordance with regulations prescribed by the Secretary of the Treasury; also teams of animals, including their harness and tackle, and the wagons or other vehicles actually owned by persons emigrating from foreign countries to the United States with their families, and in actual use for the purpose of such regulations as the Secretary of the Treasury may prescribe; and wild animals intended for exhibition in zoological collections for scientific and educational purposes, and not for sale or profit. 399. Annatto, roucou, rocoa, or Orleans, and all extracts of. 400. Antitoxins, vaccine virus, and all other serums derived from animals and used for therapeutic purposes. 401. Apatite. 402. Arrowroot in its natural state and not manufactured. 403. Arsenic and sulphide of arsenic, or orpiment. 404. Articles the growth, produce, or manufacture of the United States, when returned after having been exported, without having been advanced in value or improved in condition by any process of manufac- ture or other means ; steel boxes, casks, barrels, carboys, bags, and other containers or coverings of American manufacture exported filled with American products, or exported empty and returned filled with foreign products, including shooks and staves when returned as barrels or boxes; also quicksilver llasks or bottles, iron or steel drums of either domestic or foreign manufacture, used for the shipment of acids, or other chem- icals, which shall have been actually exported from the United States ; but proof of the identitv of such articles shall be made, under general regulations to be prescribed by the Secretary of the Treasury, but the exemption of bags from duty shall apply only to such domestic bags as may be imported by the exporter thereof, and if any such articles are subject to internal revenue tax at the time of exportation, such tax shall be proveose of in- fluencing elections at which Representatives in Congress are elected. Political Committee Defined. Sec. 1. That the term "poHtical committee" under the provisions of this Act shall include the national committees of all political parties and the national congressional campaign committees of all political parties and all committees, associations, or organizations which shall in two or more States influence the result or attempt to influence the result of an election at which Representatives in Congress are to be elected. Chairman knd Treasurer — Duty of Treasurer. Sec. 2. That every political committee as defined in this Act shall have a chairman and a treasurer. It shall be the duty of the treasurer to keep a detailed and exact account of all money or its equivalent received by or promised to such committee or any member thereof, or by or to any person acting under its authority or in its behalf, and the name of every person, firm, association, or committee from whom received, and of all expenditures, disbursements, and promises of payment or disbursement made by the committee or any member thereof, or by any person acting under its atithority or in its behalf, and to whom paid, distributed, or disbursed. No officer or member of such committee, or other person acting under its authority or in its behalf shall receive any money or its equivalent, or expend or promise to exoend any money on behalf of such committee, until after a chairman and treasurer of such committee shall have been chosen. Disbursements in Excess of $10.00 — Requirements. Sec. 3. That every payment or disbursement made by a political committee exceeding ten dollars in amount be evidenced by a receipted bill stating the particulars of expense, and every such record, voucher, receipt, or account shall be preserved for fifteen months after the election to which it relates. Accounts of Contributions. Sec. 4. That whoever, acting under the authority or in behalf of such political committee, whether as a member thereof or otherwise, receives any contribution, payment, loan, gift, advance, deposit, or prom- ise of money or its equivalent shall, on demand, and in any event within five days after the receipt of such contribution, payment, loan, gift, Campaign Contributions 523 advance, deposit, or promise, render to the treasurer of such political committee a detailed account of the same, together with the name and address from whom received, and said treasurer shall forthwith enter the same in a ledger or record to be kept by him for that purpose. Publicity of Campaign Contributions. "Sec. 5. That the treasurer of every such political committee shall, not more than fifteen days and not less than ten days next before an election at which Representatives in Congress are to be elected in two or more States, file in the office of the Clerk of the House of Represen- tatives at Washington, District of Columbia, with said Clerk, an item- ized detailed statement ; and on each sixth day thereafter until such elec- tion said treasurer shall file with said Clerk a supplemental itemized detailed statement. Each of said statements shall conform to the require- ments of the following section of this act, except that the supplemental statement herein required need not contain any item of which publicity is given in a previous statement. Each of said statements shall be full and complete, and shall be signed and sworn to by said treasurer. "It shall also be the duty of said treasurer to file a similar statement with said Clerk within thirty days after such election, such final statement also to be signed and sworn to by said treasurer and to conform to the requirements of the following section of this Act. The statements so filed with the Clerk of the House shall be preserved by him for fifteen months and shall be a part of the public records of his office and shall be open to public inspection. (As amended August 19, 1911.) What Public Statements Must Show. "Sec. 6. That the statements required by the preceding section of this Act shall state : "First. The name and address of each person, firm, association, or committee who or which has contributed, promised, loaned, or advanced to such political committee, or any officer, member, or agent thereof either in one or more items, money or its equivalent of the aggregate amount or value of one hundred dollars or more, and the amount or sum con- tributed, promised, loaned, or advanced by each. "Second. The aggregate sum contributed, promised, loaned, or advanced to such {political committee, or to any officer, member, or agent thereof, in amounts of less than one hundred dollars. "Third. The total sum of all contributions, promises, loans, and advances received by such political committee or any officer, member, or agent thereof. "Fourth. The name and address of each person, firm, association, 'or committee to whom such political committee, or any officer, member or agent thereof, has distributed, contributed, loaned, advanced, or promised any sum of money or its equivalent of the amount or value of ten dollars or more, stating the amount or sum distributed, disbursed, contributed, loaned, advanced, or promised to each, and the purpose thereof. 524 Important Federal Laws "Fifth. The aggregate sum distributed, disbursed, contributed, loaned, advanced, or promised by such poHtical committee, or any officer, member, or agent thereof, where the amount or value of such distribu- tion, disbursement, loan, advance, or promise to any one person, firm, association, or committee in one or more items is less than ten dollars. "Sixth. The total sum disbursed, distributed, contributed, loaned, advanced, or promised by such political committee, or any officer, mem- ber, or agent thereof." (As amended August 19, 1911.) Persons Expending Over $50.00 to Influence the Election of a Con- gressman Must File Statements. Sec. 7. That every person, firm, association, or committee, except political committees as hereinbefore defined, that shall expend or promise any sum of money or other thing of value amounting to fifty dollars or more for the purpose of influencing or controlling, in two or more States, the result of an election at which Representatives to the Congress of the United States are elected, unless he or it shall contribute the same to a political committee as hereinbefore defined, shall file the statements of the same under oath, as required by section six of this Act, in the office of the Clerk of the House of Representatives, at Washington, District of Columbia, which statements shall be held by said Clerk in all respects as required by section five of this Act. "Candidate" Defined — Duties of Candidates for Congress. "Sec. 8. The word 'candidate' as used in this section shall include all persons whose names are presented for nomination for Representative or Senator in the Congress of the United States at any primary election or nominating convention, or for indorsement or election at any general or special election held in connection with the nomination or election of a person to fill such office, whether or not such persons are actually nom- inated, indorsed, or elected. "Every person who shall be a candidate for nomination at any pri- mary election or nominating convention, or for election at any general or special election, as Representative in the Congress of the United States, shall, not less than ten nor more than fifteen days before the day for holding such primary election or nominating convention, and not less than ten nor more than fifteen days before the day of the general or special election at which candidates for Representatives are to be elected, file with the Clerk of the House of Representatives at Washington, District of Columbia, a full, correct, and itemized statement of all moneys and things of value received by him or by anyone for him with his knowledge and consent, from any source, in aid or support of his candidacy, together with the names of all those who have furnished the same in whole or in part ; and such statement shall contain a true and itemized account of all moneys and things of value given, contributed, expended, used, or prom- ised by such candidate, or by his agent, representative, or other person for and in his behalf with his knowledge and consent, together with the Campaign Contributions 525 names of all those to whom any and all such gifts, contributions, pay- ments, or promises were made, for the purpose of procuring his nomina- tion or election. "Every person who shall be a candidate for nomination at any pri- mary election or nominating convention, or for indorsement at any gen- eral or special election, or election by the legislature of any State, as Sen- ator in the Congress of the United States, shall, not less than ten nor more than fifteen days before the day for holding such primary election or nominating convention, and not less than ten nor more than fifteen days before the day of the general or special election at which he is seek- ing indorsement, and not less than five nor more than ten days before the day upon which the first vote is to be taken in the two houses of the legislature before which he is a candidate for election as Senator, file with the Secretary of the Senate at Washington, District of Columbia, a full, correct, and itemized statement of all moneys and things of value received by him or by anyone for him with his knowledge and consent, from any source, in aid or support of his candidacy, together with the names of all those who have furnished the same in whole or in part ; and such statement shall contain a true and itemized account of all moneys and things of value given, contributed, expended, used, or promised by such candidate, or by his agent, representative, or other person for and in his behalf with his knowledge and consent, together with the names of all those to whom any and all such gifts, contributions, payments, or promises were made for the purpose of procuring his nomination or election. "Every such candidate for nomination at any primary election or nominating convention, or for indorsement or election at any general or special election, or for election by the legislature of any State, shall, within fifteen days after such primary election or nominating convention, and within thirty days after any such general or special election, and within thirty days after the day upon which the legislature shall have elected a Senator, file with the Clerk of the House of Representatives or with the Secretary of the Senate, as the case may be, a full, correct, and itemized statement of all moneys and things of value received by him or by anyone for him with his knowledge and consent, from any source, in aid or support of his candidacy, together with the names of all those who have furnished the same in whole or in part; and such statement shall contain a true and itemized account of all moneys and things of value given, contributed, expended, used or promised by such candidate, or by his agent, representative, or other person for and in his behalf with his knowledge and consent, up to, on, and after the day of such pri- mary election, nominating convention, general or special election, or elec- tion by the legislature, together with the names of all those to whom any and all such gifts, contributions, payments, or promises were made for the purpose of procuring his nomination, indorsement, or election. "Every such candidate shall include therein a statement of every 526 Important Federal Laws promise or pledge made by him, or by any one for him with his knowl- edge and consent or to whom he has given authority to make any such promise or pledge, before the completion of any such primary election or nominating convention or general or special election or election by the legislature, relative to the appointment or recommendation for appoint- ment of any person to any position of trust, honor, or profit, either in the county. State, or Nation, or in any political sub-division thereof, or in any private or corporate employment, for the purpose of procuring the support of such person or of any person in his candidacy, and if any such promise or pledge shall have been made the names or name, the address or addresses, and the occupation or occupations of the person or persons to whom such promise or pledge shall have been made, shall be stated, together with a description of the position relating to which such promise or pledge has been made. In the event that no such promise or pledge has been made by such candidate, that fact shall be distinctly stated. "No candidate for Representative in Congress or for Senator of the United States shall promise any office or position to any person, or to use his influence or to give his support to any person for any office or position for the purpose of procuring the support of such person, or of any person, in his candidacy ; nor shall any candidate for Senator of the United States give, contribute, expend, use, or promise any money or thing of value to assist in procuring the nomination or election of any particular candidate for the legislature of the State in which he resides, but such candidate may, within the limitations and restrictions and sub- ject to the requirements of this act, contribute to political committees having charge of the disbursement of campaign funds. "No candidate for Representative in Congress or for Senator of the United States shall give, contribute, expend, use, or promise, or cause to be given, contributed, expended, used, or promised, in procuring his nomination and election, any sum, in the aggregate, in excess of the amount which he may lawfully give, contribute, expend, or promise under the laws of the State in which he resides : Provided, That no can- didate for Representative in Congress shall give, contribute, expend, use or promise any sum, in the aggregate, exceeding five thousand dollars in any campaign for his nomination and election ; and no candidate for Senator of the United States shall give, contrioute, expend, use, or prom- ise any sum, in the aggregate, exceeding ten thousand dollars in any cam- paign for his nomination and election : Provided further. That money expended by any such candidate to meet and discharge any assessment, fee, or charge made or levied upon candidates by the laws of the State in which he resides, or for his necessary personal expenses, in- curred for himself alone, for travel and subsistence, stationery and post- age, writing or printing (other than in newspapers), and distributing letters, circulars, and posters, and for telegraph and telephone service, shall not be regarded as an expenditure within the meaning of this sec- Campaign Contributions 527 tion, and shall not be considered any part of the sum herein fixed as the limit of expense and need not be shown in the statements herein required to be filed. "The statements herein required to be made and filed before the gen- eral election, or the election by the legislature at which such candidate seeks election, need not contain items of which publicity is given in a previous statement, but the statement required to be made and filed after said general election or election by the legislature shall, in addition to an itemized statement of all expenses not theretofore given publicity, contain a summary of all preceding statements. "Any person, not then a candidate for Senator of the United States, who shall have given, contributed, expended, used, or promised any money or thing of value to aid or assist in the nomination or election of any particular member of the legislature of the State in which he resides, shall, if he thereafter becomes a candidate for such office, or if he shall thereafter be elected to such office without becoming a candidate therefor, comply with all of the provisions of this section relating to candidates for such office, so far as the same may be applicable ; and the statement herein required to be made, verified, and filed after such election shall contain a full, true and itemized account of each and every gift, contri- bution, expenditure, and promise whenever made, in any wise relating to the nomination or election of members of the legislature of said State, or in any wise connected with or pertaining to his nomination and elec- tion of which publicity is not given in a previous statement. "Every statement herein required shall be verified by the oath or affirmation of the candidate, taken before an officer authorized to admin- ister oaths ; and the depositing of any such statement in a regular post office, directed to the Clerk of the House of Representatives, or to the Secretary of the Senate, as the case may be, duly stamped and registered, within the time required herein, shall be deemed a sufficient filing of any such statement under any of the provisions of this Act." "This Act shall not be construed to annul or vitiate the laws of any State, not directly in conflict herewith, relating to the nomination or election of candidates for the offices herein named, or to exempt any such candidate from complying with such State laws." (As amended August 19, 1911, and August 23, 1912.) Candidates for Congress May Pay All Necessary Personal Expenses Out of Own Private Funds. "Sec. 9. That any person may in connection with such election incur and pay from his own private funds for the purpose of influencing or controlling in two or more States, the results of an election at which Representatives to the Congress of the United States are elected, all nec- essary personal expenses for his traveling, for stationery, and postage, and for telegraph and telephone service without being subject to the pro- visions of this Act." (As amended August 19, 1911.) 528 Important Federal Laws Candidates May Pay Proper Legal Expenses. Sec. 10. That nothing contained in this act shall Hmit or affect the right of any person to spend money for proper legal expenses in main- taining or contesting the results of any election. Penalties for Violation of Act. Sec. 11. That every person wilfully violating any of the foregoing provisions of this Act shall, upon conviction, be fined not more than one thousand dollars or imprisoned not more than one year, or both. CAMPAIGN CONTRIBUTIONS BY CORPORATIONS. Act of January 26, 1907. An Act to prohibit corporations from making money contributions in connection with political elections. Federal Law — Prohibiting Contributions by Corporations, That it shall be unlawful for any national bank, or any corporation organized by authority of any laws of Congress to make a money contri- bution in connection with any election to any political office. It shall also be unlawful for any corporation whatever to make a money contri- bution in connection with any election at which Presidential and Vice- Presidential electors or a Representative in Congress is to be voted for or any election by any State legislature of a United States Senator. Every corporation which shall make any contribution in violation of the foregoing provisions shall be subject to a tine not exceeding five thou- sand dollars, and every officer or director of any corporation who shall consent to any contribution by the corporation in violation of the fore- going provisions shall upon conviction be punished by a fine of not ex- ceeding one thousand dollars and not less than two hundred and fifty dollars, or by imprisonment for a term of not more than one year, or both such fine and imprisonment in the discretion of the court. Note. — For laws against abuses of the electric franchise, see sections 19 to 26 of the Criminal Code, pp. 700-701. NATIONAL DEFENSE. THE NATIONAL DEFENSE ACT. Act of June 3, 1916. An Act for making further and more effectual provision for the national defense, and for other purposes. Forces Constituting the Army. Sec. 1. That the Army of the United States shall consist of the Reo^ular Army, the Volunteer Army, the Officers' Reserve Corps, the Enlisted Reserve Corps, the National Guard while in the service of the United States, and such other land forces as are now or may hereafter be authorized by law. Composition of the Regular Army. Sec. 2. The Regular Army of the United States, including the existing organizations, shall consist of sixty-four regiments of Infan- try, twenty-five regiments of Cavalry, twenty-one regiments of Field Artillery, a Coast Artillery Corps, the brigade, division, army corps, and army headquarters, with their detachments and troops, a General Stafif Corps, an Adjutant General's Department, an Inspector General's Department, a Judge Advocate General's Department, a Quartermaster Corps, a Medical Department, a Corps of Engineers, an Ordnance De- partment, a Signal Corps, the officers of the Bureau of Insular Affairs, the Militia Bureau, the detached officers, the detached noncommissioned officers, the chaplains, the Regular Army Reserve, all organized as hereinafter provided, and the following as now authorized by law: The officers and enlisted men on the retired list ; the additional officers ; the professors, the Corps of Cadets, the general Army service detach- ment, and detachment of Cavalry, Field Artillery, and Engineers, and the band of the United States Military Academy ; the post noncommis- sioned staff officers ; the recruiting parties, the recruit depot detach- ments, and unassigned recruits ; the service school detachments ; the disciplinary guards ; the disciplinary organizations ; the Indian Scouts ; and such other officers and enlisted men as are now or may be here- after provided for: Provided. That hereafter the enlisted personnel of all organizations of the Regular Army shall at all times be maintained at a strength not below the minimum strength fixed bv law: Provided further, That the total enlisted force of the line of the Regular Army, excluding the Philippine Scouts and the enlisted men of the Quarter- master Corps, of the ]\Iedical Department, and of the Signal Corps, and the unassigned recruits, shall not at any one time, except in the event of actual or threatened war or similar emergency in which the (34) 530 Important Federal Laws public safety demands it, exceed one hundred and seventy-five thou- sand men: Provided further. That the unassigned recruits at depots or elsewhere shall at no time, except in time of war, exceed by more than seven per centum the total authorized enlisted strength. Composition of Brigades, Divisions, and So Forth. Sec. 3. The mobile troops of the Regular Army of the United States shall be organized, as far as practicable, into brigades and divi- sions. The President is authorized, in time of actual or threatened hos- tilities, or when in his opinion the interests of the public service de- mand it, to organize the brigades and divisions into such army corps or armies, as may be necessary. The typical Infantry brigade shall con- sist of a headquarters and three regiments of Infantry. The typical Cavalry brigade shall consist of a headquarters and three regiments of Cavalry. The typical Field Artillery brigade shall consist of a head- quarters and three regiments of Field Artillery. The typical Infantry division shall consist of a headquarters, three Infantry brigades, one regiment of Cavalry, one Field Artillery brigade, one regiment of Engi- neers, one field signal battalion, one aero squadron, one ammunition train, one supply train, one engineer train, and one sanitary train. The typical Cavalry division shall consist of a headquarters, three Cavalry brigades, one regiment of Field Artillery (horse), one battalion of mounted Engineers, one field signal battalion (mounted), _ one aero squadron, one ammunition train, one supply train, one engineer train, and one sanitary train. The typical army corps shall consist of a headquarters, two or more Infantry divisions, one or more Cavalry brigades or a Cavalry division, one Field Artillery brigade, one tele- graph battalion, and one field signal battalion, and such ammunition, supply, engineer, and sanitary trains as the President may deem neces- sary. ' A brigade, a division, an army corps, and an army headquarters shall consist of such officers, enlisted men, and civilians as the President may prescribe. Each supply train, ammunition train, sanitary train, and engineer train shall consist of such officers and enlisted men and shall be organized as the President may prescribe, the line officers necessary there- with to be detailed under the provisions of sections twenty-six and twenty- seven. Act of Congress approved February second, nineteen hundred and one. Nothing herein contained, however, shall prevent the President from increasing or decreasing the number of organizations prescribed for the typical brigades, divisions, and army corps, or from prescribing new and dififerent organizations and personnel as the efficiency of the service may require. General Officers of the Line. ^ Sec. 4. Officers commissioned to and holding in the Army the office of a general officer shall hereafter be known as general officers of the line ; officers commissioned to and holding in the Army an office other than that of a general officer, but to which the rank of a general officer National Defense Act 531 is attached, shall be known as general officers of the staff. The number of general officers of the line now authorized by law is hereby increased by four major generals and nineteen brigadier generals: Provided, That hereafter in time of peace major generals of the line shall be appointed from officers of the grade of brigadier general of the line, and brigadier generals of the line shall be appointed from officers of the grade of colonel of the line of the Regular Army. The General Staff Corps. Sec. 5. The General Staff' Corps shall consist of one Chief of Staff, detailed in time of peace from major general of the line; two Assistants to the Chief of Staff', who shall be general officers of the line, one of whom, not above the grade of brigadier general, shall be president of the Army War College ; ten colonels ; ten lieutenant colonels ; fifteen majors ; and seventeen captains, to be detailed from corresponding grades in the Army, as in this section hereinafter pro- vided. All officers detailed in the General Staff Corps shall be detailed therein for periods of four years, unless sooner relieved. While serving in the General Staff Corps officers may be temporarily assigned to duty with any branch of the Army. Upon being relieved from duty in the General Staff' Corps officers shall return to the branch of the Army in which they hold permanent commissions, and no officer shall be eligible to a further detail in the General Staff Corps until he shall have served two years with the branch of the Army in which commissioned, except in time of actual or threatened hostilities. Section twenty-seven of the Act of Congress approved February second, nineteen hundred and one, shall apply to each position vacated by officers below the grade of general officer detailed in the General Staff Corps. Not more than one-half of all of the officers detailed in said corps shall at any time be stationed, or assigned to or employed upon any duty, in or near the District of Columbia. All officers detailed in said corps shall be exclusively employed in the study of military problems, the prep- aration of plans for the national defense and the utilization of the military forces in time of war, in investigating and reporting upon the efficiency and state of preparedness of such forces for service in peace or war, or on appropriate general staff duties in connection with troops, including the National Guard, or as military attaches in foreign countries, or on other duties, not of an administrative nature, on which they can be law- fully and properly employed : Provided, That no officer shall be detailed as a member of the General Staff Corps, other than the Chief of Staff and the general officers herein provided for as assistants to the Chief of Staff, except upon the recommendation of a board of five officers not below the rank of colonel, who shall be selected by the President or the Secre- tary of War, and neither the Chief of Staff nor more than two other members of the General Staff Corps, nor any officer not a member of said corps, who shall have been stationed or employed on any duty in or near the District of Columbia within one year prior to the date of con- 532 Important Federal Laws veiling of any such board, shall be detailed as a member thereof. No recommendation made by any such board shall, for more than one year after the making of such recommendation or at any time after the con- vening of another such board, unless again recommended by the new board, be valid as a basis for the detail of any officer as a member of the General Staff Corps ; and no alteration whatever shall be made in any report or recommendation of any such board, either with or without the consent of members thereof, after the board shall have submitted such report or recommendation and shall have adjourned sine die : Pro- vided further. That the War College shall remain fully subject to the supervising, co-ordinating, and informing powers conferred by law upon members of the General Staff' Corps, and officers for duty as instructors or students in or as attaches of said college may be selected and detailed freely from among members of said corps, but any officer so selected and detailed other than one director shall thereupon cease to be a member of said corps and shall not be eligible for redetail therein so long as he shall remain on said duty ; and no officer on the active list of the Army shall, for more than thirtv days in any calendar year, be attached to or assigned to duty in the War College in any capacity other than that of president, director, instructor, or student, or, unless a member of the General Staff Corps, be attached to or employed in the office of the Chief of Staff: Provided further. That the organizations heretofore existing in or in connection with the office of the Chief of Staff' under the desig- nations of the mobile army division and the Coast Artillery division be, and they are hereby, abolished and shall not be re-established. The busi- ness heretofore transacted in said divisions, except such as comes clearly within the general powers specified in and conferred upon members of the General Staff' Corps by the organic Act of Congress approved Feb- ruary fourteenth, nineteen hundred and three, is hereby transferred as follows, to wit, to the office of the Chief of Coast Artillery, all business apportioned to that office by law or Army regulations at the time of the creation of the Coast Artillery division of the office of the Chief of Staff; to the office of the Adjutant General or other bureau or bureaus concerned, all other business ; and, subject to the exercise of the super- vising, co-ordinating, and informing powers conferred upon members of the General Staff Corps by the Act of Congress last hereinbefore cited, the business transferred by this proviso to certain bureaus or offices shall hereafter be transacted exclusively by or under the direction of the respective heads thereof ; and the Chief of Coast Artillery shall be an additional member of the General Staff" Corps and shall also be advisor to and informant of the Chief of Staff' in respect to the business under his charge : Provided further. That hereafter members of the General Staff Corps shall be confined strictly to the discharge of the duties of the general nature of those specified for them in this section and in the organic Act of Congress last hereinbefore cited, and they shall not be permitted to assume or engage in work of an administrative nature that National Defense Act 533 pertains to established bureaus or offices of the War Department, or that, being assumed or engaged in by members of the General Staff Corps, would involve impairment of the responsibility or initiative of such bureaus or offices, or would cause injurious or unnecessary duplica- tion of or delay in the work thereof: Provided further, That all pay and allowances shall be forfeited by any superior for any period during which, by his order or his permission, or by reason of his neglect, any subordinate shall violate any of the foregoing provisions of this section : Provided further. That if any officer detailed in the General StafT Corps, or as an officer of any staff corps or department of the Army, shall be promoted to the next higher grade while so serving he may be permitted to serve out the period of his detail, and the number of officers in the organization in which he shall be serving and in the grade to which he shall have been promoted shall be increased by one for such time as he shall be an additional number in said organization and grade ; but the whole number of officers detailed to said organization shall at no time exceed the aggregate of the numbers allowed to the several grades thereof by law other than this proviso. The Adjutant General's Department. Sec. 6. The Adjutant General's Department shall consist of the Adjutant General with the rank of brigadier general ; seven adjutants- generals with the rank of colonel ; thirteen adjutants-general with the rank of lieutenant colonel ; and thirty adjutants-general with the rank of major. The Inspector General's Department. Sec. 7. The Inspector General's Department shall consist of one Inspector General with the rank of brigadier general; four inspectors- general with the rank of colonel ; eight inspectors-general with the rank of lieutenant colonel ; and sixteen inspectors-general with the rank of major. The Judge Advocate General's Department. Sec. 8. The Judge Advocate General's Department shall consist of one Judge Advocate General with the rank of brigadier general; four judge advocates with the rank of colonel ; seven judge advocates with the rank of lieutenant colonel ; and twenty judge advocates with the rank of major: Provided, That acting judge advocates may be detailed under the provisions of existing law for separate brigades and for separate general court-martial jurisdictions, and when not immediately required for ser- vice with a geographical department, tactical division, separate brigade, or other separate general court-martial jurisdiction, acting judge advo- cates may be assigned to such other legal duty as the exigencies of the service may require : Provided further. That, of the vacancies created in the Judge Advocate General's Department by this Act, one such va- cancy, not below the grade of major, shall be filled by the appointment of a person from civil life, not less than forty-five nor more than fifty years of age, who shall have been for ten years a judge of the Supreme 534 Important Federal Laws Court of the Philippine Islands, shall have served for two years as a captain in the Regular or Volunteer Army, and shall be proficient in the Spanish language and laws: Provided further, That so much of the Act of Congress approved August twenty- fourth, nineteen hundred and twelve, as relates to the detachment or detail of officers for duty in the Judge Advocate General's Department shall hereafter be held to apply only to the acting judge advocates authorized by law; and hereafter no officer shall be or remain detached from any command or assigned to any duty or station with intent to enable or aid him to pursue the study of law : And provided further, That no officer of the Judge Advocate Gen- eral's Department below the rank of colonel shall be promoted therein until he shall have successfully passed a written examination before a board consisting of not less than two officers of the Judge Advocate General's Department, to be designated by the Secretary of War, such examination to be prescribed by the Secretary of War and to be held at such time anterior to the accruing of the right to promotion as may be for the best interests of the service: Provided, That should any officer in the grade of major or the Judge Advocate General's Department fail in his physical examination and be found incapacitated for service by reason of physical disability contracted in the line of duty, he shall be retired with the rank to which his seniority entitled him to be promoted ; but if he should be found disqualified for promotion for any other rea- son, a second examination shall not be allowed, but the Secretary of War shall appoint a board of review to consist of two officers of the Judge Advocate General's Department superior in rank to the officer examined, none of whom shall have served as a member of the board which exam- ined him. If the unfavorable finding of the examining board is con- curred in by the board of review, the officer reported disqualified for promotion shall be honorably discharged from the service with one year's pay. If the action of the examining board is disapproved by the board of review, the officer shall be considered qualified and shall be promoted : Provided ' further, That any lieutenant colonel of the Judge Advocate General's Department who, at his first examination for promotion to the grade of colonel, has been found disqualified for such promotion for any reason other than physical disability incurred in the line of duty shall be suspended from promotion and his right thereto shall pass successively to such officers next below him in rank as are or may become eligible to promotion under existing law during the period of his suspension ; and any such officer suspended from promotion shall be re-examined as soon as practicable after the expiration of one year from the date of the completion of the examination that resulted in his suspension ; and if on such re-examination he is found qualified for promotion, he shall again become eligible thereto; but if he is found disqualified by reason of physical disability incurred in line of duty in either examination, he shall be retired, with the rank to which his seniority entitled him to be pro- moted; and if he is not found disqualified by reason of such physical National Defense Act 535 disability, but is found disqualified for promotion for any other reason in the second examination, he shall be retired without promotion. The Quartermaster Corps. Sec. 9. The Quartermaster Corps shall consist of one Quartermaster General with the rank of major general; two assistants to the Quartermaster General with the rank of brigadier general ; twenty- one colonels; twenty-four lieutenant colonels; sixty-eight majors; one hundred and eighty captains ; and the pay clerks now in active service, who shall hereafter have the rank, pay, and allowances of a second lieutenant, and the President is hereby authorized to appoint and commission them, by and with the advice and consent of the Senate, second lieutenants in the Quartermaster Corps, United States Army. The total enlisted strength of the Quartermaster Corps and the number in each grade shall be limited and fixed from time to time by the President in accordance with the needs of the Army, and shall consist of quarter- master sergeants, senior grade ; quartermaster sergeants ; sergeants, first class ; sergeants ; corporals ; cooks ; privates, first class ; and privates. The number in the various grades shall not exceed the following per- centages of the total authorized enlisted strength of the Quartermaster Corps, namely : Quartermaster sergeants, senior grade, five-tenths of one per centum ; quartermaster sergeants, six per centum ; sergeants, first class, two and five-tenths per centum ; sergeants, twenty-five per centum ; corporals, ten per centum ; privates, first class, forty-five per centum ; privates, nine per centum ; cooks, two per centum : Provided, That the master electricians now authorized by law for the Quartermaster Corps shall hereafter be known as quartermaster sergeants, senior grade, and shall be included in the number of quartermaster sergeants, senior grade, herein authorized : And provided further, That all work pertaining to construction and repair that has heretofore been done by or under the direction of officers of the Quartermaster Corps shall, except as other- wise now provided by laws or regulations, hereafter be done by or under the direction of officers of said corps. The Medical Department. Sec. 10. The Medical Department shall consist of one Surgeon General, with the rank of major general during the active service of the present incumbent of that office, and thereafter with the rank of brigadier general, who shall be chief of said department, a Medical Corps, a ^Itd- ical Reserve Corps within the limit of time fixed by this Act, a Dental Corps, a Veterinary Corps, an enlisted force, the Nurse Corps and con- tract surgeons as now^ authorized by law, the commissioned officers of which shall be citizens of the United States. The Medical Corps shall consist of commissioned officers below the grade of brigadier general, proportionally distributed among the several grades as in the Medical Corps now established by law. The total num- ber of such officers shall approximately be equal to, but not exceed. 536 Important Federal Laws except as hereinafter provided, seven for every one thousand of the total enhsted strength of the Regular Army authorized from time to time by law: Provided, That if by reason of a reduction by law in the authorized enlisted strength of the Army aforesaid the total number of officers in the Medical Corps commissioned previously to such reduction shall for the time being exceed the equivalent of seven to one thousand of such reduced enlisted strength no original appointment to commissioned rank in said corps shall be made until the total number of commissioned offi- cers thereof shall have been reduced below the equivalent of seven to the thousand of the said reduced enlisted strength, nor thereafter so as to make the total number of commissioned officers thereof in excess of the equivalent of seven to the thousand of said reduced enlisted strength ; and no promotion shall be made above the grade of captain in said corps until the number of officers in the grade above that of captain to which the promotion is due shall have been reduced below the proportional number authorized for such grade on the basis of the reduced enlisted strength, nor thereafter so as to make the number of officers in such grade in excess of the proportional number authorized on the basis of said reduced enlisted strength : Provided further. That when in time of war the Regular Army shall have been increased by virtue of the provi- sions of this or any other Act, the medical officers appointed to meet such increase shall be honorably discharged from the service of the United States when the reduction of the enlisted strength of the Army shall take place: Provided further. That persons hereafter commissioned in the Medical Corps shall be citizens of the United States between the ages of twenty-two and thirty years and shall be promoted to the grade of captain upon the completion of five years' service in the Medical Corps and upon passing the examinations prescribed by the President for promotion to the grade of captain in the Medical Corps : Provided further, That relative rank among captains in the Medical Corps, who have or shall have attained that rank by operation of law after a period of service fixed thereby, shall be determined by counting all the service rendered by them as officers in said corps and as assistant surgeons in the Regular Army, subject, however, to loss of files by reason of sen- tence of court-martial or by reason of failure to pass examination for promotion : Provided further, That hereafter the President shall be au- thorized to detail not to exceed five officers of the Medical Department of the Army for duty with the military relief division of the American National Red Cross. The enlisted force of the Medical Department shall consist of the following personnel, who shall not be included in the effective strength of the Army nor counted as a part of the enlisted force provided by law : Master hospital sergeants, hospital sergeants, sergeants (first-class), ser- geants, corporals, cooks, horseshoers, saddlers, farriers, mechanics, pri- vates (first-class), and privates: Provided, That master hospital ser- geants shall be appointed by the Secretary of War, but no person shall National Defense Act 537 be appointed master hospital sergeant until he shall have passed a satis- factory examination under such regulations as the Secretary of War may prescribe before a board of one or more medical officers as to his qualifications for the position, including knowledge of pharmacy, and demonstrated his fitness therefor by service of not less than twelve months as hospital sergeant or sergeant, first class, Medical Department, or as sergeant, first class, in the Hospital Corps now established by law ; and no person shall be designated for such examination except by written authority of the Surgeon General : Provided further, That original en- listments for the Medical Department shall be made in the grade of private, and re-enlistments and promotions of enlisted men therein, ex- cept as hereinbefore prescribed, and transfers thereto from the enlisted force of the line or other stafif departments and corps of the Army shall be governed by such regulations as the Secretary of War may prescribe: Provided further. That the enlisted men of the Hospital Corps who are in active service at the time of the approval of this Act are hereby trans- ferred to the corresponding grades of the Medical Department established by this Act : Provided further. That the total number of enlisted men in the Aledical Department shall be approximately equal to, but not exceed, except as hereinafter provided, the equivalent of five per centum of the total enlisted strength of the Army authorized from time to time by law: Provided further. That in time of actual or threatened hostilities, the Secretary of War is hereby authorized to enlist or cause to be enlisted in the Medical Department such additional number of men as the service may require: Provided further. That the number of enlisted men in each of the several grades designated below shall not exceed, except as here- inafter provided, the following percentages of the total authorized en- listed strength of the Medical Department, to wit : Master hospital ser- geants, one-half of one per centum ; hospital sergeants, one-half of one per centum ; sergeants, first class, seven per centum ; sergeants, eleven per centum ; corporals, five per centum ; and cooks, six per centum : Pro- vided further. That the number of horseshoers, saddlers, farriers, and mechanics in the Medical Department shall not exceed one each to each authorized ambulance company or like organization : Provided further, That in said department the number of privates, first class, shall not exceed twenty-five per centum of the number of privates: Provided fur- ther. That if by reason of a reduction by operation of law in the author- ized enlisted strength of the Army aforesaid the number of non-com- missioned officers of any grade in the Medical Department whose war- rants were issued previously to such reduction shall for the time being exceed the percentage hereinabove specified for such grade, no promo- tion to such grade shall be made until the percentage of non-commis- sioned officers therein shall have been reduced below that authorized for such grade on the basis of the said reduced enlisted strength, nor there- after so as to make the percentage of non-commissioned officers therein in excess of the percentage authorized on the basis of the said reduced 538 Important Federal Laws enlisted strength ; but non-commissioned officers may be re-enlisted in the grades held by them previously to such reduction regardless of the percentages aforesaid; and when under this provision the number^ of non-commissioned officers of any grade exceeds the percentage specified, any non-commissioned officer thereof, not under charges, may be dis- charged on his own application: Provided further, That privates, first class, of the Medical Department shall be eligible for ratings for addi- tional pay as follows : As dispensary assistant, $2 a month ; as nurse, $3 a month ; as surgical assistant, $5 a month : Provided further. That no enlisted man shall receive more than one rating for additional pay under the provisions of this section, nor shall any enlisted man receive any additional pay under such rating unless he shall have actually performed the duties for which he shall be rated. The President is hereby authorized to appoint and commission, by and with the advice and consent of the Senate, dental surgeons, who are citizens of the United States between the ages of twenty-one and twenty- seven years, at the rate of one for each one thousand enlisted men of the line of the Army. Dental surgeons shall have the rank, pay, and allowances of first lieutenants until they have completed eight years' ser- vice. Dental surgeons of more than eight but less than twenty-four years' service shall, subject to such examination as the President may prescribe, have the rank, pay, and allowances of captains. Dental sur- geons of more than twenty- four years' service shall, subject to such examination as the President may prescribe, have the rank, pay, and allowances of major: Provided, That the total number of dental sur- geons with rank, pay, and allowances of major shall not at any time exceed fifteen: And provided further. That all laws relating to the examination of officers of the Medical Corps for promotion shall be applicable to dental surgeons. Authority is hereby given to the Secretary of War to grant permis- sion, by revocable license, to the American National Red Cross to erect and maintain on any military reservations within the jurisdiction of the United States buildings suitable for the storage of supplies, or to occupy for that purpose buildings erected by the United States, under such regu- lations as the Secretary of War may prescribe, such supplies to be avail- able for the aid of the civilian population in case of serious national dis- aster. Corps of Engineers. Sec. 11. The Corps of Engineers shall consist of one Chief of Engineers, with the rank of brigadier general ; twenty-three colonels ; thirty lieutenant colonels; seventy-two majors; one hundred and fifty- two captains ; one hundred and forty-eight first lieutenants ; seventy-nine second lieutenants; and the enlisted men hereinafter enumerated. The Engineer troops of the Corps of Engineers shall consist of one band, seven regiments, and two mounted battalions. Each regiment of Engineers shall consist of one colonel ; one lieu- National Defense Act 539 tenant colonel ; two majors ; eleven captains ; twelve first lieutenants ; six second lieutenants ; two master engineers, senior grade ; one regimental sergeant major ; two regimental supply sergeants ; two color sergeants ; one sergeant bugler ; one cook ; one wagoner for each authorized wagon of the field and combat train, and two battalions. Each battalion of a regiment of Engineers shall consist of one major, one captain, one battalion sergeant major; three master engineers, junior grade; and three companies. Each Engineer company (regimental) shall consist of one captain; two first lieutenants; one second lieutenant; one first sergeant ; three sergeants, first class ; one mess sergeant ; one supply sergeant ; one stable sergeant ; six sergeants ; twelve corporals ; one horseshoer ; two buglers ; one saddler ; two cooks ; nineteen privates, first class; and fifty-nine privates: Provided, That the President may, in his discretion, increase a regiment of Engineers by two master engineers senior grade, and two sergeants ; each battalion of a regiment of Engi- neers by three master engineers, junior grade ; and each Engineer com- pany (regimental) by two sergeants, six corporals, one cook, twelve privates, first class, and thirty-four privates. The Engineer band shall consist of one band leader; one assistant band leader ; one first sergeant ; two band sergeants ; four band cor- porals ; two musicians, first class ; four musicians, second class ; thirteen musicians, third class ; and two cooks. Each battalion of mounted Engineers shall consist of one major; five captains ; seven first lieutenants ; three second lieutenants ; one mas- ter engineer, senior grade; one battalion sergeant major; one battalion supply sergeant ; three master engineers, junior grade ; one corporal ; one wagoner for each authorized wagon of the field and combat train ; and three mounted companies. Each mounted Engineer company shall con- sist of one captain ; two first lieutenants ; one second lieutenant ; one first sergeant ; two sergeants, first class ; one mess sergeant ; one supply ser- geant ; one stable sergeant ; four sergeants ; eight corporals ; two horse- shoers ; one saddler ; two cooks ; two buglers ; twelve privates, first class ; and thirty-seven privates : Provided. That the President may, in his dis- cretion, increase the battalions of mounted Engineers by one master engineer, senior grade ; two sergeants ; and three master engineers, junior grade ; and a mounted Engineer company by two sergeants ; three cor- porals ; eight privates, first class ; and twenty-four privates : Provided //further. That appropriate officers to command the regiments, battalions, ■ and companies herein authorized and for duty with and as staff officers of such organizations shall be detailed from the Corps of Engineers, and shall not be in excess of the numbers in each grade enumerated in this section. The enlisted force of the Corps of Engineers and the officers serving therewith shall constitute a part of the line of the Army. The Ordnance Department. Sec. 12. The Ordnance Department shall consist of one Chief of Ordnance, with the rank of brigadier general; ten colonels; 540 Important Federal Laws fifteen lieutenant colonels; thirt3'-t\vo majors; forty-two captains; forty-two first lieutenants ; the ordnance sergeants, as now author- ized by law, and such other enlisted men of grades now authorized by law as the President may direct : Provided, That ordnance ser- geants shall be selected by the Secretary of War from the sergeants of the line or Ordnance Department who shall have served faithfully for eight years, including four years in the grade of non-commissioned ofiicer : Provided further. That vacancies which may occur in the com- missioned personnel of the Ordnance Department shall be subject to the provisions of sections twenty-six and twenty-seven of the Act approved February second, nineteen hundred and one, the Acts approved June twenty-fifth, nineteen hundred and six, and February twenty-fourth, nineteen hundred and fifteen, and Acts amendatory thereof relating to the Ordnance Department : Provided further. That hereafter the Secre- tary of War is authorized to detail not to exceed thirty lieutenants from the Armv at large for duty as student officers in the establishments of the Ordnance Department for a period of two years ; and the completion of the prescribed course of instruction shall constitute the examination for detail in the Ordnance Department. The Signal Corps. Sec. 13. The Signal Corps shall consist of one Chief Signal Officer, with the rank of brigadier general ; three colonels ; eight lieu- tenant colonels; ten majors; thirty captains; seventy-five first lieuten- ants ; and the aviation section, which shall consist of one colonel ; one lieutenant colonel ; eight majors ; twenty- four captains ; and one hundred and fourteen first lieutenants ; who shall be selected from among officers of the Army at large of corresponding grades or from among officers of the grade below, exclusive of those serving by detail in staff corps or departments, who are qualified as military aviators, and shall be detailed to serve as aviation officers for periods of four years unless sooner relieved ; and the provisions of section twenty-seven of the Act of Congress approved February second, nineteen hundred and one, are hereby extended to apply to said aviation officers and to vacancies created in any arm, corps, or department of the Army by the detail of said officers therefrom; but nothing in said Act or in any other law now in force shall be held to prevent the detail or redetail at any time, to fill a vacancv among the aviation officers authorized by this Act, of any officer who, during prior service as an aviation officer of the aviation section, shall have become proficient in military aviation. Aviation officers may, when qualified therefor, be rated as junior military aviators or as military aviators, but no person shall be so rated until there shall have been issued to him a certificate to the effect that he is qualified for the rating, and no certificate shall be issued to any person until an aviation examining board, which shall be composed of three officers of experience in the aviation service and two medical offi- cers, shall have examined him, under general regulations to be prescribed National Defense Act 541 by the Secretary of War and published to the Army by the War Depart- ment, and shall have reported him to be qualified for the rating. No person shall receive the rating of military aviator until he shall have served creditably for three years as an aviation officer with the rating of a junior military aviator. Each aviation officer authorized by this Act shall, while on duty that requires him to participate regularly and frequently in aerial flights, receive an increase of twenty-five per centum in the pay of his grade and length of service under his commission. Each duly qualified junior military aviator shall, while so serving, have the rank, pay, and allow- ances of one grade higher than that held by him under his commission if his rank under said commission be not higher than that of captain, and while on duty requiring him to participate regularly and frequently in aerial flights he shall receive in addition an increase of fifty per centum in the pay of his grade and length of service under his commis- sion. Each military aviator shall, while so serving, have the rank, pay, and allowance of one grade higher than that held by him under his commission if his rank under said commission be not higher than that of captain, and while on duty requiring him to participate regularly and frequently in aerial flights he shall receive in addition an increase of seventy-five per centum of the pay of his grade and length of service under his commission : Provided further. That the provisions of the Act of March second, nineteen hundred and thirteen, allowing increase of pay and allovrances to officers detailed by the Secretary of War on avia- tion duty, are hereby repealed : Provided further, That hereafter mar- ried officers of the line of the Army shall be eligible equally with un- married officers, and subject to the same conditions, for detail to avia- tion duty ; and the Secretary of War shall have authority to cause as many enlisted men of the aviation section to be instructed in the art of flying as he may deem necessary : Provided further. That hereafter the age of officers shall not be a bar to their first detail in the aviation section of the Signal Corps, and neither their age nor their rank shall be a bar to their subsequent details in said section : Provided further. That, when it shall be impracticable to obtain from the Army officers suitable for the aviation section of the Signal Corps in the number allowed by law the dift'erence between that number and the number of suitable officers actually available for duty in said section may be made up by appoint- ments in the grade of aviator. Signal Corps, and that grade is hereby created. The personnel for said grade shall be obtained from especially qualified civilians who shall be appointed and commissioned in said grade: Provided further. That whenever any aviator shall have become unsatisfactory he shall be discharged from the Army as such aviator. The base pay of an aviator. Signal Corps, shall be $150 per month, and he shall have the allowances of a master signal electrician and the same percentage of increase in pay for length of service as is allowed to a master signal electrician. 542 Important Federal Laws The total enlisted strength of the Signal Corps shall be limited and fixed from time to time by the President in accordance with the needs of the Army, and shall consist of master signal electricians ; sergeants, first class; sergeants; corporals; cooks; horseshoers ; private, first class; and privates ; the number in each grade being fixed from time to time bv the President. The numbers in the various grades shall not exceed the following percentages of the total authorized enlisted strength of the Signal Corps, namely : Master signal electricians, two per centum ; ser- geants, first class, seven per centum ; sergeants, ten per centum ; cor- porals, twenty per centum. The number of privates, first class, shall not exceed twenty-five per centum of the number of privates. Authority is hereby given the President to organize, in his discretion, such part of the commissioned and enlisted personnel of the Signal Corps into such number of companies, battalions, and aero squadrons as the necessities of the service may demand. Bureau of Insular Affairs of the War Department. Sec. 14. Nothing in this Act shall be construed to repeal existing laws relating to the organization of the Bureau of Insular Affairs of the War Department. Chaplains. Sec. 15. The President is authorized to appoint, by and with the advice and consent of the Senate, chaplains in the Army at the rate of not to exceed, including chaplains now in service, one for each regiment of Cavalry, Infantry, Field Artillery, and Engineers, and one for each one thousand two hundred officers and men of the Coast Artil- lery Corps, with rank, pay, and allowances as now authorized by law : Provided, That in the appointment of chaplains in the Regular Army, preference and priority shall be given to applicant veterans, if otherwise duly qualified and who shall not have passed the age of forty-one years at the time of application, who have rendered honorable war service in the Army of the United States or who have been honorably discharged from such Army. Veterinarians. Sec. 16. The President is hereby authorized, by and with the advice and consent of the Senate, to appoint veterinarians and assistant veteri- narians in the Army, not to exceed, including veterinarians now in service, two such officers for each regiment of Cavalry, one for every three bat- teries of Field Artillery, one for each mounted battalion of Engineers, seventeen as inspectors of horses and mules and as veterinarians in the Quartermaster Corps, and seven as inspectors of meats for the Quarter- master Corps ; and said veterinarians and assistant veterinarians shall be citizens of the United States and shall constitute the Veterinary Corps and shall be a part of the Medical Department of the Army. Hereafter a candidate for appointment as assistant veterinarian must be a citizen of the United States, between the ages of twenty-one National Defense Act 543 and twenty-seven years, a graduate of a recognized veterinary college or university, and shall not be appointed until he shall have passed a satisfactory examination as to character, physical condition, general edu- cation, and professional qualifications. An assistant veterinarian appointed under this Act shall, for the first five years of service as such, have the rank, pay, and allowances of second lieutenant ; that after five years of service he shall have the rank, pay, and allowances of first lieutenant; that after fifteen years of service he shall be promoted to be a veterinarian with the rank, pay, and allow- ances of captain, and that after tw^enty years' service he shall have the rank, pay, and allowances of a major : Provided, That any assistant veterinarian, in order to be promoted as hereinbefore provided, must first pass a satisfactory examination, under such rules as the President may prescribe, as to professional qualifications and adaptability for the military service ; and if such assistant veterinarian shall be found defi- cient at such examination he shall be discharged from the Army \vith one year's pay. The veterinarians of Cavalry and Field Artillery now in the Army, together with such veterinarians of the Quartermaster Corps as are now employed in said corps, who at the date of the approval of this Act shall have had less than five years' governmental service, may be ap- pointed in the Veterinary Corps as assistant veterinarians with the rank, pay. and allowances of second lieutenant ; those who shall have had over five years of such service may be appointed in said corps as assistant veterinarians with the rank, pay, and allowances of first lieutenant ; and those who shall have had over fifteen years of such service may be appointed in said corps as veterinarians with the rank, pay, and allow- ances of captain: Provided, That no such appointment of anv veterina- rian shall be made unless he shall first pass satisfactorily a practical professional and physical examination as to his fitness for the military service: Provided further. That veterinarians now in the Army or in the employ of the Quartermaster Corps who shall fail to pass the pre- scribed physical examination because of disability incident to the service and sufficient to prevent them from the performance of duty valuable to the Government shall be placed upon the retired list of the Armv with seventy-five per centum of the pay to which they would have been entitled if appointed in the Veterinary Corps as hereinbefore prescribed. The Secretary of War, upon recommendation of the Surgeon Gen- eral of the Army, may appoint in the Veterinary Corps, for such time as their services may be required, such number of reserve veterinarians as may be necessary to attend public animals pertaining to the Quarter- master Corps. Reserve veterinarians so employed shall have the pay and allowances of second lieutenant during such employment and no longer: Provided, That such reserve veterinarians shall be graduates of a recog- nized veterinary college or university and shall pass a satisfactory ex- amination as to character, physical condition, general education, and pro- 544 Important Federal Laws fessional qualifications in like manner as hereinbefore required of assist- ant veterinarians ; such reserve veterinarians shall constitute a list of eligi- bles for appointment as assistant veterinarians, subject to all the condi- tions hereinbefore prescribed for the appointment of assistant veterina- rians. Within a limit of time to be fixed by the Secretary of War, candi- dates for appointment as assistant veterinarians who shall have passed satisfactorily the examinations prescribed for that grade by this Act shall be appointed, in the order of merit in which they shall have passed such examination, to vacancies as they occur, such appointments to_ be for a probationary period of two years, after which time, if the services of the probationers shall have been satisfactory, they shall be permanently appointed with rank to date from the dates of rank of their probationary appointments. Probationary veterinarians whose services are found un- satisfactory shall be discharged at any time during the probationary period, or at the end thereof, and shall have no further claims against the Government on account of their probationary service. The Secretary of War shall from time to time appoint boards of examiners to conduct the veterinary examinations hereinbefore pre- scribed, each of said boards to consist of three medical officers and two veterinarians. Composition of Infantry Units. Sec. 17. Each regiment of Infantry shall consist of one colonel, one lieutenant colonel, three majors, fifteen captains, sixteen first lieutenants, fifteen second lieutenants, one headquarters company, one machine-gun company, one supply company, and twelve infantry companies organized into three battalions of four companies each. Each battalion shall consist of one major, one first lieutenant, mounted (battalion adjutant), and four companies. Each Infantry com- pany in battahon shall consist of one captain, one first lieutenant, one second lieutenant, one first sergeant, one mess sergeant, one supply ser- geant, six sergeants, eleven corporals, two cooks, two buglers, one ma- chanic, nineteen privates (first class), and fifty-six privates. Each Infantry headquarters company shall consist of one captain, mounted (regimental adjutant) ; one regimental sergeant major, mounted; three battalion sergeants major, mounted; one first sergeant (drum major); two color sergeants; one mess sergeant; one supply sergeant: one stable sergeant ; one sergeant ; two cooks ; one horseshoer ; one band leader; one assistant band leader; one sergeant bugler; two band ser- geants; four band corporals; two musicians, first class; four musicians, second class; thirteen musicians, third class; four privates, first class, mounted : and twelve privates, mounted. Each Infantry machine-gun company shall consist of one captain, mounted ; one first lieutenant, mounted ; two second lieutenants, mounted ; one first sergeant, mounted; one mess sergeant; one supply sergeant, mounted ; one stable sergeant, mounted ; one horseshoer ; five sergeants ; National Defense Act 545 six corporals ; two coolcs ; two buglers ; one mechanic ; eight privates, first class ; and twenty-four privates. Each Infantry supply company shall consist of one captain, mounted ; one second lieutenant, mounted ; three regimental supply ser- geants, mounted; one first sergeant, mounted; one mess sergeant; one stable sergeant ; one corporal, mounted ; one cook ; one saddler ; one horseshoer; and one wagoner for each authorized wagon of the field and combat train: Provided, That the President may in his discretion increase a company of Infantry by two sergeants, six corporals, one cook, one mechanic, nine privates (first class), and thirty-one privates; an Infantry machine-gun company by two sergeants, two corporals, one mechanic, four privates, first class, and twelve privates. The commissioned officers required for the Infantry headquarters, supply, and machine-gun companies and for the companies organized into battalions shall be assigned from those hereinbefore authorized. Composition of Cavalry Units. Sec. 18. Each regiment of Cavalry shall consist of one colonel, one Heutenant colonel, three majors, fifteen captains, sixteen first lieutenants, sixteen second lieutenants, one headquarters troop, one machine-gun troop, one supply troop, and twelve troops organized into three squadrons of four troops each. Each squadron shall consist of one major, one first lieutenant (squadron adjutant), and four troops. Each troop in squadron shall consist of one captain, one first lieutenant, one second lieutenant, one first sergeant, one mess sergeant, one supply sergeant, one stable ser- geant, five sergeants, eight corporals, two cooks, two horseshoers, one saddler, two buglers, ten privates (first class), and thirty-six privates. Each headquarters troop shall consist of one captain (regimental adjutant), one regimental sergeant major, three squadron sergeants major, one first sergeant (drum major), two color sergeants, one mess sergeant, one supply sergeant, one stable sergeant, one sergeant, two cooks, one horseshoer, one saddler, two privates (first class), and nine privates, one band leader, one assistant band leader, one sergeant bugler, two band sergeants, four band corporals, two musicians (first class), four musicians (second class), and thirteen musicians (third class). Each machine-gun troop shall consist of one captain, one first lieu- tenant, two second lieutenants, one first sergeant, one mess sergeant, one supply sergeant, one stable sergeant, two horseshoers, five sergeants, six corporals, two cooks, one mechanic, one saddler, two buglers, twelve privates (first class), and thirty-five privates. Each supply troop shall consist of one captain (regimental supply ofHcer), two second lieutenants, three regimental supply sergeants, one first sergeant, one mess sergeant, one stable sergeant, one corporal, one cook, one horseshoer. one saddler, and one wagoner for each authorized wagon of the field and combat train : Provided, That the President may, in his discretion, increase each troop of Cavalry by ten privates (first (35) 546 Important Federal Laws class) and twenty-five privates; the headquarters troop by two sergeants, five corporals, one horseshoer, five privates (first class), and eighteen privates; each machine-gun troop by three sergeants, two corporals, one mechanic, one private (first class), and fourteen privates; each supply troop bv one corporal, one cook, one saddler, and one horseshoer. The commissioned officers required for the Cavalry headquarters, supply, and machine-gun troops, and for the troops organized into squadrons, shall be assigned from those hereinbefore authorized. Composition of Field Artillery Units. Sec. 19. The Field Artillery, including mountain artillery, light artillery, horse artillery, heavy artillery (field and siege types), shall con- sist of one hundred and twenty-six gun or howitzer batteries organized into twenty-one regiments. In time of actual or threatened hostilities the President is author- ized to organize such number of ammunition batteries and battalions, depot batteries and battalions, and such artillery parks with such num- bers and grades of personnel and such organizations as he may deem necessary. The officers necessary for such organization shall be sup- plied from the Officers' Reserve Corps provided by this Act and by temporary appointment as authorized by section eight of the Act of Congress' approved April twenty-fifth, nineteen hundred and fourteen. The enlisted men necessary for such organizations shall be supplied from the Regular Army Reserve provided by this Act or from the Regular Army. Each regiment of Field Artillery shall consist of one colonel, one lieutenant colonel, one captain, one headquarters comi)any. one supply company, and such number of gun and howitzer battalions as the Pres- ident may direct. Nothing shall prevent the assembling, in the same rec^iment'of gun and howitzer battalions of different calibers and classes. Each gun or howitzer battery shall consist of one captain, two first lieutenants, two second lieutenants, one first sergeant, one supply ser- geant, one stable sergeant, one mess sergeant, six sergeants, thirteen corporals, one chief mechanic, one saddler, two horseshoers, one me- chanic, two buglers, three cooks, twenty-two privates (first class), and seventy-one privates. When no enlisted men of the Quartermaster Corps are attached for such positions there shall be added to each bat- tery of mountain artillery one packmaster (sergeant, first class), one assistant packmaster (sergeant), and one cargador (corporal). _ Each headquarters company of a regiment of two battalions shall consist of one captain, one first lieutenant, one regimental sergeant major, two battalion sergeants major, one first sergeant, two color ser- geants', one mess sergeant, one supply sergeant, one stable sergeant, t^yo sergeants, nine corporals, one horseshoer, one saddler, one mechanic, three buglers, two cooks, five privates (first class), fifteen privates, one band leader, one assistant band leader, one sergeant bugler, two band National Defense Act 547 sergeants, four band corporals, two musicians (first class), four musi- cians (second class), and thirteen musicians (third class). That when a regiment consists of three battalions there shall be added to the head- quarters company one battalion sergeant major, one sergeant, three cor- porals, one bugler, one private (first class), and five privates. When no enlisted men of the Quartermaster Corps is attached for such posi- tions, there shall be added to each mountain artillery headqquarters com- pany one packmaster (sergeant, first class), one assistant packmaster (sergeant), and one cargador (corporal). Each supply company of a regiment of two battalions shall consist of one captain, one first lieutenant, two regimental supply sergeants, one first sergeant, one mess sergeant, one corporal, one cook, one horseshoer, one saddler, two privates, and one wagoner for each authorized wagon of the field train. When a regiment consists of three battalions there shall be added to the supply company one second lieutenant, one regi- mental supply sergeant, one private, and one wagoner for each addi- tional authorized wagon of the field train. Each gun or howitzer battalion shall consist of one major, one captain, and batteries as follows : Mountain artillery battalions and light artillery gun or howitzer battalions serving with the field artillery of Infantry divisions shall contain three batteries; horse artillerv battalions and heavy field artillery gun or howitzer battalions shall contain two batteries : Provided, That the President may, in his discretion, increase the headquarters company of a regiment of two battalions by two ser- geants, five corporals, one horseshoer, one mechanic, one private (first class), and six privates; the headquarters company of a regiment of three battalions by one sergeant, seven corporals, one horseshoer, one mechanic, two cooks, two privates (first class), and seven privates; the supply company of a regiment of two battalions by one corporal, one cook, one horseshoer. and one saddler; the supply company for a regi- ment of three battalions by one corporal, one cook, one horseshoer, and one saddler ; a gun or howitzer battery by three sergeants, seven cor- porals, one horseshoer, two mechanics, one bugler, thirteen privates (first class), and thirty-seven privates. Coast Artillery Corps. Sec. 20. The Coast Artillery Corps shall consist of one Chief of Coast Artillery, with the rank of brigadier general ; twenty-four colonels; twenty-four lieutenant colonels; seventy-two majors; three hundred and sixty captains ; three hundred and sixtv first lieu- tenants ; three hundred and sixty second lieutenants ; thirty-one ser- geants major, senior grade; sixty- four sergeants major, junior grade; forty-one master electricians ; seventy-two engineers ; ninety-nine elec- trician sergeants, first class ; two hundred and seventy-five assistant en- gineers ; ninety-nine electrician sergeants, second class ; one hundred and six firemen ; ninety-three radio sergeants ; sixty-two master gunners ; two hundred and sixty-three first sergeants; two hundred and sixty- 548 Important Federal Laws three supply sergeants ; two hundred and sixty-three mess sergeants ; two thousand one hundred and four sergeants ; three thousand one hun- dred and fifty-six corporals; five hundred and twenty-six cooks; five hundred and twenty-six mechanics ; five hundred and twenty-six buglers ; five thousand two hundred and twenty-five privates, first class ; fifteen thousand six hundred and seventy-five privates ; and eighteen bands, or- ganized as hereinbefore provided for the Engineer band. The rated men of the Coast Artillery Corps shall consist of casemate electricians ; observers, first class ; plotters ; chief planters ; coxswains ; chief loaders ; observers, second class ; gim commanders and gun pointers. The total number of rated men shall not exceed one thousand seven hundred and eighty-four. Coxswains shall receive $9 per month in addition to the pay of their grade. Porto Rico Regiment of Infantry. Sec. 21. The Porto Rico Regiment of Infantry of the United States Army shall hereafter have the same organization, and the same grades and numbers of commissioned ofiicers and enlisted men, as are by this Act or shall hereafter be prescribed by law for other regiments of Infantry of the Army. All vacancies created by this Act or occurring hereafter in com- missioned offices of said regiment above the grade of second lieutenant and below the grade of colonel shall, except as hereinafter provided to the contrary, be filled by promotion according to seniority in the sev- eral grades and within the regiment, subject to the examination pre- scribed by section three of the Act of Congress approved October first, eighteen hundred and ninety, and said section is hereby extended so as to apply in the cases of all officers below the grade of lieutenant colonel, who shall hereafter be examined for promotion in the Porto Rico Regi- ment of Infantry, except that the President may prescribe such a sys- tem of examination for the promotion of officers of said regiment as he may deem advisable. The colonel of said regiment shall be detailed by the President, from among officers of Infantry of the Army not below the grade of lieutenant colonel, for a period of four years unless sooner relieved. Vacancies created by this Act in the grades of lieutenant colonel and major in said regiment shall be filled by appointments from the senior captains in regimental rank of the Porto Rico regiment mentioned in the Act of March fourth, nineteen hundred and fifteen; and captains and lieutenants of said regiment shall also be eligible for such detached service, transfer, or assignment to duty with other organizations as may be approved by the Secretary of War; but vacancies created by such detachment of officers shall not be filled by promotions or appointments. All men hereafter enlisting in said regiment shall be natives of Porto Rico. All enlistments in the regiment shall hereafter be the same as is provided herein for the Regular Army, and the regiment, or any part thereof, may be ordered for service outside the island of Porto Rico. The pay and allowances of members of said regiment shall be National Defense Act 549 the same as provided by law for officers and enlisted men of like grades in the Regailar Army. Vacancies created by this Act or occurring hereafter in the grade of second lieutenant in said regiment shall be filled during any calendar year by the appointment by the President, by and with the advice and consent of the Senate, of any native of Porto Rico graduated from the United States Military Academy, and, after such appointment shall have been made or provided for, by like appointment of native citizens of Porto Rico between twenty-one and twenty-seven years of age. Provided, That officers of the Porto Rico Regiment of Infantry, United States Army, who held commissions in the Porto Rico Provi- sional Regiment of Infantry on June thirtieth, nineteen hundred and eight, shall now and hereafter take rank in their grades in the same rela- tive order held by them in said Porto Rico Provisional Regiment of Infantry on June thirtieth, nineteen hundred and eight, subject to any loss in rank due to failure to pass examinations for promotion or to sentence of court-martial. Sec. 22. All existing laws pertaining to or afifecting the United States Military Academy and civilian or military personnel on duty thereat in any capacity whatever, the officers and enlisted men on the retired list, the detached and additional officers under the Act of Con- gress approved March third, nineteen hundred and eleven, recruiting parties, recruit depots and unassigned recruits, service school detach- ments. United States disciplinary barracks guards, disciplinary organi- zations, the Philippine Scouts, and Indian scouts shall continue and re- main in force except as herein specifically provided otherwise. Original Appointments to Be Provisional. Sec. 23. Hereafter all appointments of persons other than grad- uates of the United States Military Academy to the grade of second lieutenant in the Regular Army shall be provisional for a period of two years, at the close of which period such appointments shall be made per- manent if the appointees shall have demonstrated, under such regula- tions as the President may prescribe, their suitability and moral, pro- fessional, and physical fitness for such permanent appointment, but should any appointee fail so to demonstrate his suitability and fitness, his appointment shall terminate ; and should any officer become eligible for promotion to a vacancy in a higher grade and qualify therefor before the expiration of two years from the date of his original appointment, he shall receive a provisional appointment in such higher grade, which appointment shall be made permanent when he shall have qualified for permanent appointment upon the expiration of two years from the date of his original appointment, or shall terminate if he shall fail so to qualify. Increase to Be Made in Five Increments. Sec. 24. Except as otherwise specifically provided by this Act, the increases in the commissioned and enlisted personnel of the Regular 550 Important Federal Laws Army provided by this Act shall be made in five annual increments, each of which shall be, in each grade of each arm, corps, and depart- ment, as nearly as practicable, one-fifth of the total increase authorized for each arm, corps, and department. Officers promoted to vacancies created or caused by the addition of the first increment shall be pro- moted to rank from July first, nineteen hundred and sixteen, and those promoted to vacancies created or caused by the second increment shall be promoted to rank from July first, nineteen hundred and seventeen ; those promoted to vacancies created or caused by the addition of the third increment shall be promoted to rank from July first, nineteen hundred and eighteen ; those promoted to vacancies created or caused by the addition of the fourth increment shall be promoted to rank from July first, nineteen hundred and nineteen ; and those promoted to vacan- cies created or caused by the addition of the fifth increment shall be promoted to rank from July first, nineteen hundred and twenty : Pro- vided. That in the event of actual or threatened war or similar emergency in which the public safety demands it the President is authorized to immediately organize the entire increase authorized by this Act, or so much thereof as he may deem necessary, and when, in the judgment of the President, war becomes imminent, all of said organizations that shall then be below the maximum enlisted strength authorized bv law shall be raised forthwith to that strength, and shall be maintained as nearly as possible thereat so long as war, or the imminence of war, shall con- tinue. Vacancies in the grade of second lieutenant, created or caused by the increases due to this Act, in any fiscal year shall be filled by appoint- ment in the following order: (1) Of cadets graduated from the United States Military Academy during the preceding fiscal year for whom vacancies did not become available during the fiscal year in which thev were graduated; (2) under the provisions of existing law, of enlisted men. including officers of the Philippine Scouts, whose fitness for pro- motion shall have been determined by competitive examination; (3) of members of the Officers' Reserve Corps between the ages of twenty-one and twenty-seven years ; (4) of commissioned officers of the National Guard between the ages of twenty-one and twenty-seven years; (5) of such honor graduates, between the ages of twenty-one and twentv-seven years, of distinguished colleges as are now or may hereafter be entitled to preference by general orders of the War Department; and (6) of candidates from civil life between the ages of twenty-one and twenty- seven years ; and the President is authorized to make the necessary rules and regulations to carry these provisions into effect : Provided, That anv such original vacancies not so filled, and remaining at the time of grad- uation of any class at the United States Military Academy, may be filled by the appointment of members of that class ; and all vacancies in the grade of second lieutenant not created or caused by the increase due to this Act shall be filled as provided in the Act making appropriation National Defense Act 551 for the support of the Army, approved March third, nineteen hundred and eleven : Provided further, That enlisted men of the Regular Army who have completed one year's service with an organization may be- come candidates for vacancies in the grade of second lieutenant created or caused by the increases due to the operation of this Act : Provided further. That appointments to the grade of second lieutenant in the Corps of Engineers including those created by this Act, shall continue to be made as now provided by law, but that officers of the Army or Navy of the United States may become candidates for said appointments under the provisions of section five of the Act of Congress approved February twenty-seventh, nineteen hundred and eleven, without pre- viously vacating their commissions as officers and that the Secretary of War may, in his discretion, allow persons to become candidates with- out previously establishing eligibility for appointment as junior engineer under the Engineer Bureau of the War Department : Provided further, That officers appointed to original vacancies in the grade of second lieu- tenant created or caused by this Act shall take lineal and relative rank according to dates of appointment, and the lineal and relative rank of second lieutenants appointed on the same date shall be determined under such regulations as the Secretary of War may prescribe : Provided fur- ther, That the President may recommission persons who have hereto- fore held commissions in the Regular Army and have left the service honorably, after ascertaining that they are qualified for service physi- cally, morally, and as to age and military fitness ; such recommissioned officers shall take rank at the foot of the respective grades which they held at the time of their separation from the Army : Provided further, That the provisions of existing law requiring examinations to determine fitness for promotion of officers of the Army are hereby extended to include promotions to all grades below that of brigadier general : Pro- vided further. That examinations of officers in the grades of major and lieutenant colonel shall be confined to problems involving the higher functions of staff duties and command: And provided further, That in time of war retired officers of the Army may be employed on active duty, in the discretion of the President, and when so employed they shall receive the full pay and allowances of their grade: And provided further. That hereafter any retired officer, who has been or shall be detailed on active duty, shall receive the rank, pay, and allowances of the grade, not above that of major, that he would have attained in due course of promotion if he had remained on the active list for a period beyond the date of his retirement equal to the total amount of time during which he has been detailed on active duty since his retirement. The Detached Officers. Sec. 25. That on July first, nineteen hundred and sixteen, the line of the x*\rmy shall be increased by eight hundred and twenty-two extra officers of the Cavalry, Field /Artillery, Coast Artillery Corps, and In- fantry arms of the service, of grades from first lieutenant to colonel, 552 Important Federal Laws inclusive, lawfully available for detachment from their proper arms for duty with the National Guard, or other duty, the usual period of which exceeds one year. Said extra ofhcers, together with the two hundred detached officers provided for by the Act of Congress approved March third, nineteen hundred and eleven, shall on and after July first, nine- teen hundred and sixteen, constitute the Detached Officers' List; and all positions vacated by officers assigned to said list, and the officers so assigned shall be subject to the provisions of section twenty-seven of the Act of Congress approved February second, nineteen hundred and one, with reference to details to the stafT corps. The total number of officers hereby authorized for each grade on said list entire shall be in proportion to the total number of officers of the corresponding grade now authorized by law other than this Act for all of the said four arms combined, exclusive of second lieutenants and of the two hun- dred extra officers authorized by the Act of Congress approved March third, nineteen hundred and eleven, and exclusive also of the additional officers authorized by the Act to restore lineal rank lost through the system of regimental promotion formerly in force ; and the total number of officers hereby authorized for each grade in each of said arms on said list shall be in the proportion borne by the number of officers now authorized by law other than this Act for such grade and arm to the total number of officers now authorized by law other than this Act for the corresponding grade in all of the said four arms combined, exclusive of the extra and additional officers last here- inbefore specified and excluded: Provided. That all vacancies created or caused by the foregoing provisions of this section in grades above that of second lieutenant shall be filled by promotion according to law existing on and before the date of approval of this Act, and subject to the examinations prescribed by existing law. As soon as practicable after such promotions shall have been made, there shall be detached from each arm and assigned to the Detached Officers' List a number of officers of each grade equal to the number of officers of said grade by which said arm shall have been increased by the foregoing provisions of this section ; and thereafter any vacancy created Or caused in any of the said arms of the service by the assignment of an officer of any grade to said Detached Officers' List shall be filled, subject to such examina- tion as is now or may hereafter be prescribed by law, by the promo- tion of the officer who shall be the senior in length of commissioned service of those eligible to promotion in the next lower grade in the arm in which such vacancy shall occur: Provided further. That no officer of any of said arms of the service shall be permitted to remain on said Detached Officers' List for more than forty-five days unless he shall have been actually present for duty for at least two years out of the last preceding six years with an organization composed of one or more statutory units, or the equivalent thereof, of the arm to which he shall belong. Any vacancy created in said list by the removal of any National Defense Act 553 officer therefrom because he shall not have been present for duty as prescribed in this proviso shall be filled by the transfer to said list of an officer having the same grade and belonging to the same arm as the officer whose removal from said list shall have created said vacancy ; but, except as before prescribed in this proviso, all officers who shall have been assigned to said list shall remain thereon for not less than four years from the respective dates of their assignment thereto, unless in the meantime they shall have been separated entirely from the Army, or shall have been promoted or appointed to higher offices, or shall have been retired from active service: Provided further, That after the apportionment of officers to said Detached Officers' List shall have been made as author- ized by this Act, whenever any vacancy shall have been caused in said list by the separation of an officer of any grade therefrom, such vacancy shall, except as prescribed in the last preceding proviso, be filled by the detail and assignment to said list of an officer of the corresponding grade in that arm in which there shall be found the officer of the next lower grade who at that time shall be the senior in length of commis- sioned service of all the officers of the said lower grade in all of the four arms hereinbefore specified ; if two or more officers of different arms shall be found to have equal seniority in length of commissioned service in said lower grade, the question of seniority shall be decided by their relative standing on the list of the commissioned officers of the Army : Provided further, That with a view to equalize inequalities in past promotions of officers of the line of the Army, on July first, nine- teen hundred and sixteen, the Cavalry shall be increased by seventeen colonels, and the Infantry by four colonels, all of whom shall be addi- tional officers in that grade, and shall not bar nor retard the promotion to which any officer would be entitled if the appointment of the said additional officers had never been authorized ; and after July first, nine- teen hundred and nineteen, no vacancies occurring among the said addi- tional officers shall be filled and the offices so vacated shall cease and de- termine : And provided further. That for the purpose of lessening as much as possible inequalities of promotion due to the increase in the number of officers of the line of the Army under the provisions of this Act. any vacancies created and caused by this Act in commission grades below that of lieutenant colonel in any arm of said line may, in the discretion of the President and under such regulations as he may prescribe in further- ance of the purpose stated in this proviso, be filled by the promotion or transfer without promotion of officers of other branches of the line of the Army ; but no such promotion or transfer shall be made in the case of any officer unless it shall have been recommended by an examin- ing board composed of five officers, senior in rank to such officer, and of the arm to which the promotion or transfer of such officer shall have been proposed, who after having made a personal examination of such officer and of his official record, shall have reported him qualified for 554 Important Federal Laws service in said arm in the grade to which his promotion or transfer shall have been proposed. Retirement of Officers of Philippine Scouts. Sec. 26. Captains and lieutenants of Philippine Scouts who are citizens of the United States shall hereafter be entitled to retirement under the laws governing the retirement of enlisted men of the Regular Army, except that they shall be retired in the grade held by them a:t the date of retirement, shall be entitled to retirement for disability under the same conditions as officers of the Regular Army, and that they shall receive, as retired pay, the amount allowed by law, as retired pay and allowances, of master signal electricians of the United States Army, and no more: Provided, That double time for service beyond the con- tinental limits of the United States shall not be counted for the pur- poses of this section so as to reduce the actual period of service below twenty years : Provided further. That former officers of the Philippine Scouts who, because of disability occasioned by wounds received in ac- tion, have resigned or been discharged from the service, or who have heretofore served as such for a period of more than five years and have been retired as enlisted men, shall be placed upon the retired list as officers of Philippine Scouts and thereafter receive the retired pay and allowances by this section for other officers of Philippine Scouts: And provided further, That any former officer of Philippine Scouts who vacated his office in the Philippine Scouts by discharge or resignation on account of disability contracted in the line of duty and who was subsequentlv retired as an enlisted man, except any former officer of Philippine Scouts who has been retired as an enlisted man by special Act of Congress, shall be transferred to the retired list created by this section and shall thereafter receive the retired pay and allowances author- ized by this section, and no more. Officers of Philippine Scouts retired under the provisions of this section shall not form part of the limited retired list now authorized by law. Enlistments in the Regular Army. ' Sec. 27. On and after the first day of November, nineteen hundred and sixteen, all enlistments in the Regular Army shall be for a term of seven years, the first three years to be in the active service with the organizations of which those enlisted form a part and, except as other- wise provided herein, the last four years in the Regular Army Reserve hereinafter provided for : Provided, That at the expiration of three years' continuous service with such organizations, either under a first or any subsequent enlistment, any soldier may be re-enlisted for another period of seven years, as above provided for, in which event he shall receive his final discharge from his prior enlistment : Provided further. That after the expiration of one year's honorable service any enlisted man serving within the continental limits of the United States whose company, troop, battery, or detachment commander shall report him as National Defense Act 555 proficient and sufficiently trained may, in the discretion of the Secretary of War, be furloughed to the Regular Army Reserve under such regu- lations as the Secretary of War may prescribe, but no man furloughed to the reserve shall be eligible to re-enlist in the service until the expira- tion of his term of seven years: Provided further. That in all enlist- ments hereafter accomplished under the provisions of this Act three years shall be counted as an enlistment period in computing continuous service pay: Provided further, That any noncommissioned officer discharged with an excellent character shall be permitted, at the expiration of three years in the active service, to re-enlist in the organization from which discharged with the rank and grade held by him at the time of his discharge if he re-enlists within twenty days after the date of such discharge: Provided further. That no person under the age of eighteen years shall be enlisted or mustered into the military service of the United States without the written consent of his parents or guardians, provided that such minor has such parents or guardians entitled to his custody and control : And provided further. That the President is authorized in his discretion to utilize the services of postmasters of the second, third, and fourth classes in procuring the enlistment of recruits for the Army, and for each recruit accepted for enlistment in the Army, the postmaster procuring his enlistment shall receive the sum of $5. In addition to military training, soldiers while in the active service shall hereafter be given the opportunity to study and receive instruc- tion upon educational lines of such character as to increase their military efficiency and enable them to return to civil life better equipped for industrial, commercial, and general business occupations. Civilian teachers may be employed to aid the Army Officers in giving such in- struction, and part of this instruction may consist of vocational educa- tion either in agriculture or the mechanic arts. The Secretary of War, with the approval of the President, shall prescribe rules and regulations for conducting the instruction herein provided for, and the Secretary of War shall have the power at all times to suspend, increase, or decrease the amount of such instruction offered as may in his judgment be con- sistent with the requirements of military instruction and service of the soldiers. Pay of Certain Enlisted Men. Sec. 28. Hereafter the monthly pay of enlisted men of certain grades of the Army created in this Act shall be as follows, namely: Quartermaster sergeant, senior grade, Quartermaster Corps ; master hos- pital sergeant, Medical Department ; master engineer, senior grade. Corps of Engineers ; and band leader. Infantry, Cavalry, Artillery, and Corps of Engineers, $75; hospital sergeant. Medical Department; and master engineer, junior grade. Corps of Engineers, $65; sergeant, first class. Medical Department, $50; sergeant, first class. Corps of Engineers; regi- mental supply sergeant. Infantry, Cavalry, Field Artillery, and Corps of Engineers; battalion supply sergeant, Corps of Engineers; and assist- 556 Important Federal Laws ant engineer, Coast Artillery Corps, $45 ; assistant band leader, Infantry, Cavalry, Artillery, and Corps of Engineers ; and sergeant bugler, Infan- try, Cavalry, Artillery, and Corps of Engineers, $40; musicians, first class, Infantry, Cavalry, Artillery, and Corps of Engineers; supply ser- geant, mess sergeant, and stable sergeant. Corps of Engineers ; sergeant Medical Department, $36 ; supply sergeant, Infantry, Cavalry, and Ar- tillery; mess sergeant. Infantry, Cavalry, and Artillery; cook. Medical Department ; horseshoer, Infantry, Cavalry, Artillery, Corps of Engi- neers, Signal Corps, and Medical Department ; stable sergeant. Infantry and Cavalry ; radio sergeant. Coast Artillery Corps ; and musicians, sec- ond class, Infantry, Cavalry, Artillery, and Corps of Engineers, $30; musician, third class. Infantry, Cavalry, Artillery, and Corps of Engi- neers; corporal, Medical Department, $24; saddler. Infantry, Cavalry, Field Artillery, Corps of Engineers, and Medical Department; mechanic, Infantry, Cavalry, and Field Artillery, and Medical Department ; farrier, Medical Department ; and wagoner, Infantr}', Field Artillery, and Corps of Engineers, $21 ; private, first class, Infantry, Cavalry, Artillery, and Medical Department, $18; private. Medical Department, and bugler, $15. Nothing herein contained shall operate to reduce the pay or allowances now authorized by law for any grade of enlisted men of the Army. Final Discharge of Enlisted Men. Sec. 29. No enlisted man in the Regular Army shall receive his final discharge until the termination of his seven-year term of enlistment except upon re-enlistment as provided for in this Act or as provided by law for discharge prior to expiration of term of enlistment, but when an enlisted man is furloughed to the Regular Army Reserve his account shall be closed and he shall be paid in full to the date such furlough becomes efi^ective, including allowances provided by law for discharged soldiers : Provided, That when by reason of death or disability of a member of the family of an enlisted man occurring after his enlist- ment members of his family become dependent upon him for support, he may, in the discretion of the Secretary of War, be discharged from the service of the United States or be furloughed to the Regular Army Reserve, upon due proof being made of such condition: Provided further, That when an enlisted man is discharged by purchase while in active service he shall be furloughed to the Regular Army Reserve, unless, in the discretion of the Secretary of War, he is given a final discharge from the Army. Composition of the Regular Army Reserve. Sec. 30. The Regular Army Reserve shall consist of, first, all en- listed men now in the Army Reserve or who shall hereafter become members of the Army Reserve under the provisions of existing law; second, all enlisted men furloughed to or enlisted in the Regular Army Reserve under the provisions of this Act ; and, third, any person hold- ing an honorable discharge from the Regular Army with character National Defense Act 557 reported at least good who is physically qualified for the duties of a soldier and not over forty-five years of age who enlists in the Regular Army Reserve for a period of four years. Sec. 31. The President is authorized to assign members of the Regular Army Reserve as reserves to particular organizations of the Regular Army, or to organize the Regular Army Reserve, or any part thereof, into units or detachments of any arm. corps, or department in such manner as he may prescribe, and to assign to such units and detachments ofificers of the Regular Army or of the Officers' Reserve Corps herein provided for; and he may summon the Regular Army Reserve or any part thereof for field training for a period not exceed- ing fifteen days in each year, the reservists to receive travel expenses and pay at the rate of their respective grades in the Regular Army during such periods of training; and in the event of actual or threat- ened hostilities he may mobilize the Regular Army Reserve in such manner as he may determine, and thereafter retain it, or any part thereof, in actual service for such period as he may determine the conditions demand: Provided, That all enlistments in the Regular Army, including those in the Regular Army Reserve, which are in force on the date of the outbreak of war shall continue in force for one year, unless sooner terminated by order of the Secretary of War, tut nothing herein shall be construed to shorten the time of enlistment prescribed : Provided further, That subject to such regulations as the President may prescribe for their proper identification, and location, and physical condition, the members of the Regular Army Reserve shall be paid semiannually at the rate of $24 a year while in the reserve. Regular Army Reserve in Time of War, Sec. 32. When mobilized by order of the President, the mem- bers of the Regular Army Reserve shall, so long as they may remain in active service, receive the pay and allowances of enlisted men of the Regular Army of like grades: Provided. That any enlisted man who shall have re-enlisted in the Regular Army Reserve shall receive during such active service the additional pay now provided by law for enlisted men in his arm of the service in the second enlistment period: Provided further, That upon reporting for duty, and being found phy- sically fit for service, members of the Regular Reserve shall receive a sum equal to $3 per month for each month during which they shall have belonged to the reserve, as well as the actual necessary cost of trans- portation and subsistence from their homes to the places at which they may be ordered to report for duty under such summons: And provided' further. That service in the Regular Army Reserve shall con- fer no right to retirement or retired pay, and members of the Regular Army Reserve shall become entitled to pension only through disability incurred while on active duty in the service of the United States. 558 Important Federal Laws Use of Other Departments of the Government. Sec. 33. The President may, subject to such rules and regula- tions as in his judgment may be necessary, utilize the services of mem- bers and employees of all departments of the Government of the United States, without expense to the individual reservist, for keeping in touch with, paying, and mobilizing the Regular Army Reserve, the Enlisted Reserve Corps, and other reserve organizations. Re-enlistment in Time of War. Sec. 34. For the purpose of utilizing as an auxiliary to the Regu- lar Army Reser^^es the services of men who have had experience and training in the Regular Army, or in the United States Volunteers, out- side of the continental limits of the United States, in time of actual or threatened hostilities, and after the President shall, by proclamation, have called upon honorably discharged soldiers of the Regular Army to present themselves for re-enlistment therein within a specified period, subject to such conditions as may be prescribed, any, person who shall have been discharged honorably from said Army, with character reported as at least good, and who, having been found physically qualified for the duties of a soldier, if not over fifty years of age, shall re-enlist in the line of said Army, or in the Signal, Quartermaster, or Medical Department thereof, within the period that shall be specified in said proclamation, shall receive on so re-enlisting a bounty which shall be computed at the rate of $8 for each month for the first year of the period that shall have elapsed since his last discharge from the Regular Army and the date of his re-enlistment therein under the terms of said proclamation ; at the rate of $6 per month for the second year of such period; at the rate of $4 per month for the third year of such period ; and at the rate of $2 per month for any subsequent year of such period; but no bounty in excess of $300 shall be paid to any person under the terms of this section. Enlisted Men Prohibited from Civil Employment. Sec. 35. Hereafter no enlisted man in the active service of the United States in the Army, Navy, and Marine Corps, respectively, whether a noncommissioned officer, musician, or private, shall be de- tailed, ordered, or permitted to leave his post to engage in any pursuit, business, or performance in civil life, for emolument, hire, or other- wise, when the same shall interfere with the customary emplovment and regular engagement of local civilians in the respective arts, trades, or professions. Sergeants for Duty With the National Guard. v Sec. 36. For the purpose of assisting in the instruction of the per- sonnel and care of property in the hands of the National Guard the Secretary of War is authorized to detail from the Infantry, Cavalry, Field Artillery, Corps of Engineers, Coast Artillery Corps, Medical Department, and Signal Corps of the Regular Army not to exceed one National Defense Act 559 thousand sergeants for duty with corresponding organizations of the National Guard and not to exceed one hundred sergeants for duty with the discipHnary organizations at the United States DiscipHnary Bar- racks, who shall be additional to the sergeants authorized by this Act for the corps, companies, troops, batteries, and detachments from which they may be detailed. The Officers' Reserve Corps. Sec. Z7 . For the purpose of securing a reserve of officers available for service as temporary officers in the Regular Army, as provided for in this Act and in section eight of the Act approved April twenty-fifth, nineteen hundred and fourteen, as officers of the Quartermaster Corps and other staff corps and departments, as officers for recruit rendezvous and depots, and as officers of volunteers, there shall be organized, under such rules and regulations as the President may prescribe not incon- sistent with the provisions of this Act, an Officers' Reserve Corps of the Regular Army. Said corps shall consist of sections corresponding to the various arms, staff corps, and departments of the Regular Army. Except as otherwise herein provided, a member of the Officers' Reserve Corps shall not be subject to call for service in time of peace, and whenever called upon for service shall not, without his consent, be so called in a lower grade than that held by him in said reserve corps. The President alone shall be authorized to appoint and commis- sion as reserve officers in the various sections of the Officers' Reserve Corps, in all grades up to and including that of major, such citizens as, upon examination prescribed by the President, shall be found phys- ically, mentally, and morally qualified to hold such commissions : Pro- vided, That the proportion of officers in any section of the Officers' Reserve Corps shall not exceed the proportion for the same grade in the corresponding arm, corps, or department of the Regular Army, except that the number commissioned in the lowest authorized grade in any section of the Officers' Reserve Corps shall not be limited. All persons now carried as duly qualified and registered pursuant to section twenty-three of the Act of Congress approved January twenty-first, nineteen hundred and three, shall, for a period of three years after the passage of this Act, be eligible for appointment in the Officers' Reserve Corps in the section corresponding to the arm, corps or department for which they have been found qualified, without further examination, except a physical examination, and subject to the limita- tions as to age and rank herein prescribed : Provided, That any per- son carried as qualified and registered in the grade of colonel or lieuten- ant colonel pursuant to the provisions of said Act on the date when this Act becomes effective may be commissioned and recommissioned in the Officers' Reserve Corps with the rank for which he has been found qualified and registered, but when such person thereafter shall become separated from the Officers' Reserve Corps for any reason the vacancy so caused shall not be filled, and such office shall cease and determine. 560 Important Federal Laws No person shall, except as hereinafter provided, be appointed or reappointed a second lieutenant in the Officers' Reserve Corps after he shall have reached the age of thirty-two years, a first lieutenant after he shall have reached the age of thirty-six years, a captain after he shall have reached the age of forty years, or a major after he shall have reached the age of forty-five years. When an officer of the Reserve Corps shall have reached the age limit fixed for appointment or reappointment in the grade in which commissioned he shall be honorably discharged from the service of the United States, and be entitled to retain his official title and, on occasions of ceremony, to wear the uniform of the highest grade he shall have held in the Offi- cers' Reserve Corps : Provided, That nothing in the foregoing pro- visions as to the ages of officers shall apply to the appointment or reappointment of officers of the Quartermaster, Engineer, Ordnance, Signal, Judge Advocate, and Medical sections of said Reserve Corps. One year after the passage of this Act the Medical Reserve Corps, as now constituted by law, shall cease to exist. Members thereof may be commissioned in the Officers' Reserve Corps, subject to the provisions of this Act, or may be honorably discharged from the service. The Secretary of War may, in time of peace, order first lieutenants of the medical section of the Officers' Reserve Corps, with their con- sent, to active duty in the service of the United States in such numbers as the public interests may require and the funds appropriated may permit, and may relieve them from such duty when their services are no longer necessary. While on such duty they shall receive the pay and allowances, including pay for periods of sickness and leaves of absence, of officers of corresponding rank and length of active service in the Regular Army. The commissions of all officers of. the Officers Reserve Corps shall be in force for a period of five years unless sooner terminated in the discretion of the President. Such officers may be recommissioned, either in the same or higher grades, for successive periods of five years, subject to such examinations and qualifications as the Presi- dent may prescribe and to the age limits prescribed herein : Pro- vided, That officers of the Officers' Reserve Corps shall have rank therein in the various sections of said Reserve Corps according to grades and to length of service in their grades. The Officers' Reserve Corps in War. wSec. 38. In time of actual or threatened hostilities the President may order officers of the Officers' Reserve Corps, subject to such sub- sequent physical examinations as he may prescribe, to temporary duty with the Regular Army in grades thereof which can not, for the time being, be filled by promotion, or as officers in volunteer or other organi- zations that may be authorized by law, or as officers at recruit ren- dezvous and depots^ or on such other duty as the President may pre- scribe. While such reserve officers are on such service they shall, by National Defense Act 561 virtue of their commissions as reserve officers, exercise command ap- propriate to their grade and rank in the organizations to which they may be assigned, and shall be entitled to the pay and allowances of the corresponding grades in the Regular Army, with increase of pay for length of active service, as allowed by law for officers of the Regular Army, from the date upon which they shall be required by the terms of their orders to obey the same: Provided, That officers so ordered to active service shall take temporary rank among themselves, and in their grades in the organizations to which assigned, according to the dates of orders placing them on active service ; and they may be promoted, in accordance with such rank, to vacancies in volunteer organizations or to temporary vacancies in the Regular Army thereafter occurring in the organizations in which they shall be serving: Provided further, That officers of the Officers' Reserve Corps shall not be entitled to retirement or retired pay, and shall be entitled to pension only for disability incurred in the line of duty and while in active service. Any officer who, while holding a commission in the Officers' Re- serve Corps, shall be ordered to active service by the Secretary of War shall, from the time he shall be required by the terms of his order to obey the same, be subject to the laws and regulations for the govern- ment of the Army of the United States, in so far as they are applicable to officers whose permanent retention in the military service is not con- templated. Instructions of Officers of the Officers' Reserve Corps. Sec. 39. To the extent provided for from time to time by appro^ priations for this specific purpose, the Secretary of War is authorized to order reserve officers to duty with troops or at field exercises, or for instruction, for periods not to exceed fifteen days in any one calendar year, and while so serving such officers shall receive the pay and allow- ances of their respective grades in the Regular Army : Provided, That, with the consent of the reserve officers concerned, and within the limit of funds available for the purpose, such periods of duty may be ex- tended for reserve officers as the Secretary of War may direct : Provided further. That in time of actual or threatened hostilities, after all avail- able officers of any section of the Officers' Reserve Corps corresponding to any arm, corps, or department of the Regular Army shall have been ordered into active service, officers of Volunteers may be appointed in such arm, corps, or department as may be authorized by law : Provided further. That nothing herein shall operate to prevent the appointment of any officer of the Regular Army as an officer of Volunteers before all the officers of the Officers' Reserve Corps or any section thereof shall have been ordered into active service : And provided further, That in determining the relative rank and tlie right to retirement of an officer of the Regular Army, active duty performed by him while serving in the Officers' Reserve Corps shall not be reckoned. (36) 562 , Important Federal Laws The Reserve Officers' Training Corps. Sec. 40. The President is hereby authorized to establish and main- tain in civil educational institutions a Reserve Officers' Training Corps, which shall consist of a senior division organized at universities and colleges requiring four years of collegiate study for a degree, including State universities and those State institutions that are required to pro- vide instruction in military tactics under the provisions of the Act of Congress of July second, eighteen hundred and sixty-two, donating lands for the establishment of colleges where the leading object shall be prac- tical instruction in agriculture and the mechanic arts, including military tactics, and a junior division organized at all other public or private educational institutions, except that units of the senior division may be organized at those essentially military schools which do not confer an academic degree, but which, as a result of the annual inspection of such institutions by the War Department, are specially designated by the Secretary of War as qualified for units of the senior division, and each division shall consist of units of the several arms or corps in such num- ber and of such strength as the President may prescribe. Sec. 41. The President may, upon the application of any State institution described in section forty of this Act, establish and maintain at such institutions one or more units of the Reserve Officers' Training Corps : Provided. That no such unit shall be established or maintained at any such institution until an officer of the Army shall have been de- tailed as professor of military science and tactics, nor until such institu- tion shall maintain under military instruction at least one hundred physi- cally fit male students. Sec. 42. The President may, upon the application of any estab- lished educational institution in the United States other than a State institution described in section forty of this Act, the authorities of which agree to establish and maintain a two years' elective or compulsory course of military training as a minimum for its physically fit male stu- dents, which course when entered upon by any student shall, as regards such student, be a prerequisite for graduation, establish and maintain at such institution one or more units of the Reserve Officers' Training Corps : Provided, That no such unit shall be established or maintained at any such institution until an officer of the Army shall have been de- tailed as professor of military science and tactics, nor until such insti- tution shall maintain under military instruction at least one hundred physically fit male students. Sec. 43. The Secretary of War is hereby authorized to prescribe standard courses of theoretical and practical military training for units of the Reserve Officers' Training Corps, and no unit of the senior divi- sion shall be organized or maintained at any educational institution the authorities of which fail or neglect to adopt into their curriculum the prescribed courses of military training for the senior division or to devote at least an average of three hours per week per academic year National Defense Act 565 to such military training; and no unit of the junior division shall be organized or maintained at any educational institution the authorities of which fail or neglect to adopt into their curriculum the prescribed courses of military training for the junior division, or to devote at least an average of three hours per week per academic year to such military training. Sec. 44. Eligibility to membership in the Reserve Officers' Train- ing Corps shall be limited to students of institutions in which units of such corps may be established who are citizens of the United States, who are not less than fourteen years of age, and whose bodily condition indicates that they are physically fit to perform military duty, or will be so upon arrival at military age. Sec. 45. The President is hereby authorized to detail such numbers of officers of the Army, either active or retired, not above the grade of colonel, as may be necessary, for duty as professors and assistant pro- fessors of military science and tactics at institutions where one or more units of the Reserve Officers' Training Corps are maintained ; but the total number of active officers so detailed at educational institutions shall not exceed three hundred, and no active officer shall be so detailed who has not had five years' commissioned service in the Army. In time of peace retired officers shall not be detailed under the provisions of this section without their consent. Retired officers below the grade of lieu- tenant colonel so detailed shall receive the full pay and allowances of their grade, and retired officers above the grade of major so detailed shall receive the same pay and allowances as a retired major would re- ceive under a like detail. No detail of officers on the active list of the Regular Army under the provisions of this section shall extend for more than four years. Sec. 46. The President is hereby authorized to detail for duty at institutions where one or more units of the Reserve Officers' Training Corps are maintained such number of enlisted men, either active or retired or of the Regular Army Reserve, as he may deem necessary, but the number of active noncommissioned officers so detailed shall not ex- ceed five hundred, and all active noncommissioned officers so detailed shall be additional in their respective grades to those otherwise author- ized for the Army. Retired enlisted men or members of the Regular Army Reserve shall not be detailed under the provisions of this section without their consent. While so detailed they shall receive active pay and allowances. Sec. 47. The Secretary of War, under such regulations as he may prescribe, is hereby authorized to issue to institutions at which one or more units of the Reserve Officers' Training Corps are maintained such public animals, arms, uniforms, equipment, and means of transportation as he may deem necessary, and to forage at the expense of the United States public animals so issued. He shall require from each institution to which property of the United States is issued a bond in the value of 564 Important Federal Laws the property issued for the care and safe-keeping thereof, and for its return when required. Sec. 48. The Secretary of War is hereby authorized to maintain camps for the further practical instruction of the members of the Re- serve Officers' Training Corps, no such camps to be maintained for a period longer than six weeks in any one year, except in time of actual or threatened hostilities ; to transport members of such corps to and from such camps at the expense of the United States so far as appro- priations will permit ; to subsist them at the expense of the United States while traveling to and from such camps and vv^hile remaining therein so far as appropriations will permit ; to use the Regular Army, such other military forces as Congress from time to time authorizes, and such Gov- ernment property as he may deem necessary for the military training of the members of such corps while in attendance at such camps ; to pre- scribe regulations for the government of such corps; and to authorize, in his discretion, the formation of company units thereof into battalion and regimental units. Sec. 49. The President alone, under such regulations as he may prescribe, is hereby authorized to appoint in the Officers' Reserve Corps any graduate of the senior division of the Reserve Officers' Training Corps who shall have satisfactorily completed the further training pro- vided for in section fifty of this Act, or any graduate of the junior divi- sion who shall have satisfactorily completed the courses of military training prescribed for the senior division and the further training pro- vided for in section fifty of this Act, and shall have participated in such practical instruction subsequent to graduation as the Secretary of War shall prescribe, who shall have arrived at the age of twenty-one years and who shall agree, under oath in writing, to serve the United States in the capacity of a reserve officer of the Army during a period of at least ten years from the date of his appointment as such reserve officer, unless sooner discharged by proper authority; but the total number of reserve officers so appointed shall not exceed fifty thousand: Provided, That any graduate qualified under the provisions of this section under- going a postgraduate course at any institution shall not be eligible for ap))ointment "as a reserve officer while undergoing such postgraduate course, but his ultimate eligibility upon completion of such postgraduate course for such appointment shall not be afifected because of his having undergone such postgraduate course. Sec. 50. When any member of the senior division of the Reserve Officers' Training Corps has completed two academic years of service in that division, and has been selected for further training by the presi- dent of the institution and by its professor of military science and tactics, and has agreed in writing to continue in the Reserve Officers' Training Corps for the remainder of his course in the institution, devoting five hours per week to the military training prescribed by the Secretary of War, and has agreed in writing to pursue the courses in camp training National Defense Act 565 prescribed by the Secretary of War, he may be furnished, at the expense of the United States, with commutation of subsistence at such rate, not exceeding the cost of the garrison ration prescribed for the Army, as may be fixed by the Secretary of War, during the remainder of his ser- vice in the Reserve Ofificers' Training Corps. Sec. 51. Any physically fit male citizen of the United States, be- tween the ages of twenty-one and twenty-seven years, who shall have graduated prior to the date of this Act from any educational institution at which an officer of the Army was detailed as professor of military science and tactics, and who, while a student at such institution, com- pleted courses of military training under the direction of such professor of military science and tactics substantially equivalent to those pre- scribed pursuant to this Act for the senior division, shall, after satis- factorily completing such additional practical military training as the Secretary of War shall prescribe, be eligible for appointment to the Offi- cers' Reserve Corps and as a temporary additional second lieutenant in accordance with the terms of this Act. Sec. 52. The President alone is hereby authorized to appoint and commission as a temporary second lieutenant of the Regular Army in time of peace for purposes of instruction, for a period not exceeding six months, with the allowances now provided by law for that graded but with pay at the rate of $100 per month, any reserve officer appointed pursuant to sections forty-nine and fifty-one of this Act and to attach hirn to a unit of the Regular Army for duty and training during the period covered by his appointment as such temporary second lieutenant, and upon the expiration of such service with the Regular Army such officer shall revert to his status as a reserve officer. Sec. 53. No reserve officer or temporary second lieutenant ap- pointed pursuant to this Act shall be entitled to retirment or to retired pay and shall be eligible for pension only for disability incurred in line of duty in active service or while serving with the Regular Army pur- suant to the provisions of this Act: Provided, That in "time of war the President may order reserve officers appointed under the provisions of this Act to active duty with any of the military forces of the United States in any grades not below that of second lieutenant, and while on such active duty they shall be subject to the Rules and Articles of War: And provided further, That the Adjutant General of the Army shall, under the direction and supervision of the Secretary of War, "obtain, compile, and keep continually up to date all obtainable information as to the names, ages, addresses, occupations, and qualifications for appoint- ment as commissioned officers of the Army, in time of war or other emergency, of men of suitable ages who, by reason of having received military training in civilian educational institutions or elsewhere, may be regarded as qualified and available for appointment as such commis- sioned officers. 566 Important Federal Laws Training Camps. Sec. 54. The Secretary of War is hereby authorized to maintain, upon military reservations or elsewhere, camps for the military instruc- tion and training of such citizens as may be selected for such instruction and training, upon their application and under such terms of enlistment and regulations as may be prescribed by the Secretary or War ; to use, for the purpose of maintaining said camps and imparting military in- struction and training thereat, such arms, ammunition, accouterments, equipments, tentage, field equipage, and transportation belonging to the United States as he may deem necessary ; to furnish, at the expense of the United States, uniforms, subsistence, transportation by the most usual and direct route within such limits as to territory as the Secretary of War may prescribe, and medical supplies to persons receiving instruc- tion at said camps during the period of their attendance thereat, to authorize such expenditures, from proper Army appropriations, as he may deem necessary for water, fuel, light, temporary structures, not including quarters for officers nor barracks for men, screening, and damages resulting from field exercises, and other expenses incidental to the maintenance of said camps, and the theoretical winter instruction in connection therewith ; and to sell to persons receiving instruction at said camps, for cash and at cost price plus ten per centum, quartermaster and ordnance property, the amount of such property sold to any one person to be limited to that which is required for his proper equipment. All moneys arising from such sales shall remain available throughout the fiscal year following that in which the sales are made, for the purpose of that appropriation from which the property sold was authorized to be supplied at the time of the sale. The Secretary of War is authorized further to prescribe the courses of theoretical and practical instruction to be pursued by persons attending the camps authorized by this section ; to fix the periods during which such camps shall be maintained ; to pre- scribe rules and regulations for the government thereof ; and to employ thereat officers and enlisted men of the Regular Army in such numbers and upon such duties as he may designate. The Enlisted Reserve Corps. Sec. 55. For the purpose of securing an additional reserve of en- listed men for military service with the Engineer, Signal, and Quarter- master Corps and the Ordnance and Medical Departments of the Reg- ular Army, an Enlisted Reserve Corps, to consist of such number of enlisted men of such grade or grades as may be designated by the Presi- dent from time to time, is hereby authorized, such authorization to be effective on and after the first day of July, nineteen hundred and sixteen. There may be enlisted in the grade or grades hereinbefore specified, for a period of four years, under such rules as may be prescribed by the President, citizens of the United States, or persons who have declared their intentions to become citizens of the United States, subject to such physical, educational, and practical examination as may be prescribed in National Defense Act 567 said rules. For men enlisting in said grade or grades certificates of enlistment in the Enlisted Reserve Corps shall be issued by the Adjutant General of the Army, but no such man shall be enlisted in said corps unless he shall be found physically, mentally, and morally qualified to hold such certificate and unless he shall be between the ages of eighteen and forty-five years. The certificates so given shall confer upon the holders when called into active service or for purposes of instruction and training, and duri»g the period of such active service, instruction, or training, all the authority, rights, and privileges of like grades of the Regular Army. Enlisted men of the Enlisted Reserve Corps shall take precedence in said corps according to the dates of their certificates of enlistment therein and when called into active service or when called out for purposes of instruction or training shall take precedence next below all other enlisted men of like grades in the Regular Army. And the Secretary of War is hereby authorized to issue to members of the Enlisted Reserve Corps and to persons who have participated in at least one encampment for the military instruction of citizens, conducted under the auspices of the War Department, distinctive rosettes or knots de- signed for wear with civilian clothing, and whenever a rosette or knot issued under the provision of this section shall have been lost, destroyed, or rendered unfit for use without fault or neglect upon the part of the person to whom it is issued, the Secretary of War shall cause a new rosette or knot to be issued to such person without charge therefor. Any person who is not an enlisted man of the Enlisted Reserve Corps and shall not have participated in at least one encampment for the military instruction of citizens, conducted under the auspices of the War De- partment, and who shall wear such rosette or knot shall be guilty of misdemeanor punishable by a fine of not exceeding $300, or imprison- ment not exceeding six months, or both. The President is authorized to assign members of the Enlisted Re- serve Corps as reserves to particular organizations of the Regular Army, or to organize the Enlisted Reserve Corps, or any part thereof, into units or detachments of any arm, corps, or department in such manner as he may prescribe, and to assign to such units and detachments officers of the Regular Army or of the Officers' Reserve Corps, herein provided for. To the extent provided from time to time by appropriations the Secretary of War may order enlisted men of the Enlisted Reserve Corps to active service for purposes of instruction or training for periods not to exceed fifteen days in any one calendar year: Provided, That, with the consent of such enlisted men and within the limits of funds available for such purposes, such periods of active service may be ex- tended for such number of enlisted men as may be deemed necessary. Enlisted men of the Enlisted Reserve Corps shall receive the pay and allowances of their respective grades, but only when ordered into active service, including the time required for actual travel from their homes to the places to which ordered and return to their homes : Pro- 568 Important Federal Laws vided, That said enlisted men shall not be entitled to retirement or retire- ment pay, nor shall they be entitled to pensions except for physical dis- ability incurred in line of duty while in active service or while traveling under orders of competent authority to or from designated places of duty. The uniform to be worn by enlisted men of the Enlisted Reserve Corps, except corps insignia, shall be the same as prescribed for enlisted men of the Regular Army Reserve, and that in lieu of any money allow- ance for clothing there shall be issued to each enlisted man of the En- listed Reserve Corps in time of peace such articles of clothing and equip- ment as the President may direct : Provided. That any clothing or other equipment issued to any enlisted man of the said corps shall remain the property of the United States, and in case of loss or destruction of any article, the article so lost or destroyed shall be replaced by issue to the enlisted man and the value thereof deducted from any pay due or to become due him, unless it shall be made to appear that such loss or destruction was not due to neglect or other fault on his part : Provided further. That any clothing or other equipment issued to enlisted men of the Enlisted Reserve Corps which shall have become unserviceable through ordinary wear and tear in the service of the United States shall be received back by the United States and serviceable like articles issued in lieu thereof : Provided further, That when enlisted men of the En- listed Reserve Corps shall be discharged or otherwise separated from the service, all arms, equipage, clothing, and other property issued to them shall be accounted for under such regulations as may be prescribed by the Secretary of War. Any enlisted man of the Enlisted Reserve Corps ordered to active service or for purposes of instruction or training shall, from the time he is required by the terms of the order to obey the same, be subject to the laws and regulations for the government of the Army of the United States. The Secretary of War is hereby authorized to discharge any enlisted member of the Enlisted Reserve Corps when his services shall be no longer required, or when he shall have by misconduct unfitted himself for further service in the said corps: Provided, That any enlisted man of said corps who shall be ordered upon active duty as herein provided and who shall willfully fail to comply with the terms of the order so given him shall, in addition to any other penalty to which he may be subject, forfeit his certificate of enlistment. In time of actual or threatened hostilities the President may order the Enlisted Reserve Corps, in such numbers and at such times as may be considered necessary, to active service with the Regular Army, and while on such service members of said corps shall exercise command appropriate to their several grades and rank in the organizations to which they shall be assigned and shall be entitled to the pay and allowances of the corresponding grades in the Regular Army, with increase of pay for length of service as now allowed by law for the Regular Army: Pro- National Defense Act 569 vided, That upon a call by the President for a volunteer force the mem- bers of the Enlisted Reserve Corps may be mustered into the service of the United States as volunteers for duty with the Army in the grades held by them in the said corps, and shall be entitled to the pay and allowances of the corresponding grades in the Regular Army, with in- crease of pay for length of service, as now provided by law for the Regular Army : And provided further, That enlisted men of the Enlisted Reserve Corps shall not acquire by virtue of issuance of certificates of enlistment to them a vested right to be mustered into the volunteer ser- vice of the United States. Military Equipment and Instructors at Other Schools and Colleges^ Sec. 56. Such arms, tentage, and equipment as the Secretary of War shall deem necessary for proper military training shall be supplied by the Government to schools and colleges, other than those provided for in section forty-seven of this Act, having a course of military training prescribed by the Secretary of War and having not less than one hun- dred physically fit male students above the age of fourteen years, under such rules and regulations as he may prescribe ; and the Secretary of War is hereby authorized to detail such commissioned and noncommis- sioned officers of the Army to said schools and colleges, other than those provided for in section forty-five and forty-six of this Act, detailing not less than one such officer or noncommissioned officer to each five hundred students under military instruction. Composition of the Militia. Sec. 57. The militia of the United States shall consist of all able- bodied male citizens of the United States and all other able-bodied males who have or shall have declared their intention to become citizens of the United States, who shall be more than eighteen years of age and, except as hereinafter provided, not more than forty-five years of age, and said militia shall be divided into three classes, the National Guard, the Naval Militia, and the Unorganized Militia. Composition of the National Guard. Sec. 58. The National Guard shall consist of the regularly enlisted militia between the ages of eighteen and forty-five years organized, armed, and equipped as hereinafter provided, and of commissioned offi- cers between the ages of twenty-one and sixty-four years. Exemptions from Militia Duty. Sec. 59. The Vice President of the United States ; the officers, judicial and executive, of the Government of the United States and of the several States and Territories ; persons in the military or naval ser- vice of the United States ; customhouse clerks ; persons employed by the United States in the transmission of the mail ; artificers and workmen employed in the armories, arsenals, and navy yards of the United States; pilots; mariners actually employed in the sea service of any citizen or 570 Important Federal Laws merchant within the United States, shall be exempt from militia duty without regard to age, and all persons who because of religious belief shall claim exemption from military service, if the conscientious holding of such belief by such persons shall be established under such regula- tions as the President shall prescribe, shall be exempted from militia service in a combatant capacity; but no person so exempted shall be exempt from militia service in any capacity that the President shall declare to be noncombatant. Organization of National Guard Units. Sec. 60. Except as otherwise specifically provided herein, the or- ganization of the National Guard, including the composition of all units thereof, shall be the same as that which is or may hereafter be pre- scribed for the Regular Army, subject in time of peace to such general exceptions as may be authorized by the Secretary of War. And the President may prescribe the particular unit or units, as to branch or arm of service, to be maintained in each State, Territory, or the District of Columbia in order to secure a force which, when combined, shall form complete higher tactical units. Maintenance of Other Troops by the States. Sec. 61. No State shall maintain troops in time of peace other than as authorized in accordance with the organization prescribed under this Act: Provided, That nothing contained in this Act shall be con- strued as limiting the rights of the States and Territories in the use of the National Guard within their respective borders in time of peace: Provided further. That nothing contained in this Act shall prevent the organization and maintenance of State police or constabulary. Number of the National Guard. Sec. 62. The number of enlisted men of the National Guard to be organized under this Act within one year from its passage shall be for each State in the proportion of two hundred such men for each Senator and Representative in Congress from such State, and a number to be determined by the President for each Territory and the District of Co- lumbia, and shall be increased each year thereafter in the proportion of not less than fifty per centum until a total peace strength of not less than eight hundred enlisted men for each Senator and Representative in Con- gr'ess shall have been reached : Provided, That in States which have but one Representative in Congress such increase shall be at the discretion of the President: Provided further, That this shall not be construed to prevent any State, Territory, or the District of Columbia from organ- izing the full number of troops required under this section in less time than is specifiefid in this section, or from maintaining existing organi- zations if they shall conform to such rules and regulations regarding organization, strength, and armament as the President may prescribe: And provided further, That nothing in this Act shall be construed to prevent any State with but one Representative in Congress from organ- National Defense Act 571 izing one or more regiments of troops, with such auxiHary troops as the. President may prescribe ; such organizations and members of such organ- izations to receive all the benefits accruing under this Act under the conditions set forth herein : Provided further, That the word Territory as used in this Act and in all laws relating to the land militia and Na- tional Guard shall include and apply to Hawaii, Alaska, Porto Rico, and the Canal Zone, and the militia of the Canal Zone shall be organized under such rules and regulations, not in conflict with the provisions of this Act, as the President may prescribe. Sec. 63. Any corps of Artillery, Cavalry, or Infantry existing in any of the States on the passage of the Act of May eighth, seventeen hundred and ninety-two, which by the laws, customs, or usages of said States has been in continuous existence since the passage of said Act. under its provisions and under the provisions of section two hundred and thirty-two and sections sixteen hundred and twenty-five to sixteen hundred and sixty, both inclusive, of title sixteen of the Revised Statutes of eighteen hundred and seventy-three, and the Act of January twenty- first, nineteen hundred and three, relating to the militia, shall be allowed to retain its ancient privileges, subject, nevertheless, to all duties re- quired by law of militia : Provided, That said organizations may be a part of the National Guard and entitled to all the privileges of this Act, and shall conform in all respects to the organization, discipline, and training of the National Guard in time of war: Provided further, That for purposes of training and Avhen on active duty in the service of the United States they may be assigned to higher units, as the President may direct, and shall be subject to the orders of officers under whom they shall be serving. Assignment of National Guard to Brigades and Divisions. Sec. 64. For the purpose of maintaining appropriate organization and to assist in instruction and training, the President may assign the National Guard of the several States and Territories and the District of Columbia to divisions, brigades, and other tactical units, and may de- tail officers either from the National Guard or the Regular Army to command such units : Provided, That where complete units are organ- ized within a State, Territory, or the District of Columbia the com- manding officers thereof shall not be displaced under the provisions of this section. Chiefs of Staff of National Guard Divisions. Sec. 65. The President may detail one officer of the Regular Army as chief of stafif and one officer of the Regular Army or the National Guard as assistant to the chief of stafif of any division of the National Guard in the service of the United States as a National Guard organi- zation : Provided, That in order to insure the prompt mobilization of the National Guard in time of war or other emergency, the President may, in time of peace, detail an officer of the Regular Army to perform the 572 Important Federal Laws duties of chief of stafT for each fully organized tactical division of the National Guard. Adjutants General of States and So Forth, Sec. 66. The adjutants general of the States, Territories, and the District of Columbia and the officers of the National Guard shall make such returns and reports to the Secretary of War. or to such officers as he may designate, at such times and in such form as the Secretary of War may from time to time prescribe: Provided, That the adjutants general of the Territories and of the District of Columbia shall be ap- pointed by the President with such rank and qualifications as he may prescribe, and each adjutant general for a Territory shall be a citizen of the Territory for which he is appointed. Appropriation, Apportionment, and Disbursement of Funds for the National Guard. Sec. 67. A sum of money shall hereafter be appropriated an- nually, to be paid out of any money in the Treasury not otherwise appro- priated, for the support of the National Guard, including the expense of providing arms, ordnance stores, quartermaster stores, and camp equip- age, and all other military supplies for issue to the National Guard, and such other expenses pertaining to said guard as are now or may hereafter be authorized by law. The appropriation provided for in this section shall be apportioned among the several States and Territories under just and equitable pro- cedure to be prescribed by the Secretary of War and in direct ratio to the number of enlisted men in active service in the National Guard existing in such States and Territories at the date of apportionment of said appropriation, and to the District of Columbia, under such regula- tions as the President may prescribe : Provided, That the sum so appor- tioned among the several States, Territories, and the District of Colum- bia, shall be available under such rules as may be prescribed by the Secretary of War for the actual and necessary expenses incurred by officers and enlisted men of the Regular Army when traveling on duty in connection with the National Guard ; for the transportation of sup- plies furnished to the National Guard for the permanent equipment thereof ; for office rent and necessary office expenses of officers of the Regular Army on duty with the National Guard ; for the expenses of the Militia Bureau, including clerical services, now authorized for the Division of Militia Affairs ; for expenses of enlisted men of the Regvilar Army on duty with the National Guard, including quarters, fuel, light, medicines, and medical attendance ; and such expenses shall constitute a charge against the whole sum annually appropriated for the support of the National Guard, and shall be paid therefrom and not from the allot- ment dulv apportioned to any particular State, Territory, or the Dis- trict of Columbia ; for the promotion of rifle practice, including the acquisition, construction, maintenance, and equipment of shooting gal- National Defense Act 573 leries and suitable target ranges ; for the hiring of horses and draft animals for the use of mounted troops, batteries, and wagons ; for forage for the same ; and for such other incidental expenses in connection with lawfully authorized encampments, maneuvers, and field instruction as the Secretary of War may deem necessary, and for such other expenses pertaining to the National Guard as are now or may hereafter be author- ized by law. The governor of each State and Territory and the commanding gen- eral of the National Guard of the District of Columbia shall appoint, designate, or detail, subject to the approval of the Secretary of War, an officer of the National Guard of the State, Territory, or District of Columbia who shall be regarded as property and disbursing officer for the United States. He shall receipt and account for all funds and prop- erty belonging to the United States in possession of the National Guard of his State, Territory, or District, and shall make such returns and reports concerning the same as may be required by the Secretary of War. The Secretary of War is authorized, on the requisition of the governor of a State or Territory or the commanding general of the National Guard of the District of Columbia, to pay to the property and disbursing officer thereof so much of its allotment out of the annual appropriation for the support of the National Guard as shall, in the judgment of the Secretary of War, be necessary for the purposes enum- erated therein. He shall render, through the War Department, such accounts of Federal funds intrusted to him for disbursement as may he required by the Treasury Department. Before entering upon the performance of his duties as property and disbursing officer he shall be required to give good and sufficient bond to the United States, the amount thereof to be determined by the Secretary of War, for the faithful performance of his duties and for the safe-keeping and proj^er disposition of the Federal property and funds intrusted to his care. He shall, after having qualified as property and disbursing officer, receive pay for his services at a rate to be fixed by the Secretary of War, and such compensation shall be a charge against the whole sum annually appropriated for the support of the National Guard : Provided, That when traveling in the performance of his official duties under orders issued by the proper authorities he shall be reimbursed for his actual necessary traveling expenses, the sum to be made a charge against the allotment of the State, Territory, or District of Columbia: Provided further. That the Secretary of War shall cause an inspection of the accounts and records of the property and disbursing officer to be made by an inspector general of the Army at least once each year : And pro- vided further. That the Secretary of War is empowered to make all rules and regulations necessary to. carry into effect the provisions of this section. Location of Units. Sec. 68. The States and Territories shall have the right to deter- 574 Important Federal Laws mine and fix the location of the units and headquarters of the National Guard wnthin their respective borders : Provided, That no organization of the National Guard, members of which shall be entitled to and shall have received compensation under the provisions of this Act, shall be disbanded without the consent of the President, nor, without such con- sent, shall the commissioned or enlisted strength of any such organiza- tion be reduced below the minimum that shall be prescribed therefor by the President. Enlistments in the National Guard. Sec. 69. Hereafter the period of enlistment in the National Guard shall be for six years, the first three years of which shall be in active organization and the remaining three years in the National Guard Re- serve, hereinafter provided for, and the qualifications for enlistment shall be the same as those prescribed for admission to the Regular Army : Provided, That in the National Guard the privilege of con- tinuing in active service during the whole of an enlistment period and of re-enlisting in said service shall not be denied by reason of anything contained in this Act. Federal Enlistment Contract. Sec. 70. Enlisted men in the National Guard of the several States, Territories, and the District of Columbia now serving under enlistment contracts which contain an obligation to defend the Constitution of the United States and to obey the orders of the President of the United States shall be recognized as members of the National Guard under the provisions of this Act for the unexpired portion of their present enlist- ment contracts. When any such enlistment contract does not contain such obligation, the enlisted man shall not be recognized as a member of the National Guard until he shall have signed an enlistment contract and taken and subscribed to the following oath of enlistment, upon signing which credit shall be given for the period already served under the old enlistment contract : *T do hereby acknowledge to have volun- tarily enlisted this — day of , 19 — . as a soldier in the National Guard of the United States and of the State of , for the period of three years in service and three years in the reserve, under the condi- tions prescribed by law, unless sooner discharged by proper authority. And I do solemnly swear that I will bear true faith and allegiance to the United States of America and to the State of , and that I will serve them honestly and faithfully against all their enemies whomso- ever, and that I will obey the orders of the President of the United States and of the governor of the State of , and of the officers appointed over me according to law and the rules and articles of war." Sec. 71. Hereafter all men enlisting for service in the National Guard shall sign an enlistment contract and take and subscribe to the oath prescribed in the preceding section of this Act. National Defense Act 575 Discharge of Enlisted Men From the National Guard. Sec. 72. An enlisted man discharged from service in the National Guard shall receive a discharge in writing in such form and with such classification as is or shall be prescribed for the Regular Army, and in time of peace discharges may be given prior to the expiration of terms of enlistment under such regulations as the President may prescribe. Federal Oath for National Guard Officers. Sec. 7^. Commissioned officers of the National Guard of the sev- eral States, Territories, and the District of Columbia now serving under commissions regularly issued shall continue in office, as officers of the National Guard, without the issuance of new commissions : Provided, That said officers have taken, or shall take and subscribe to the follow- ing oath of office: *T, , do solemnly swear that I will support and defend the Constitution of the United States and the constitution of the State of , against all enemies, foreign and domestic; that I will bear true faith and allegiance to the same; that I will obey the orders of the President of the United States and of the governor of the State of ; that I make this obligation freely, without any mental reservation or purpose of evasion, and that I will well and faithfully discharge the duties of the office of in the National Guard of the United States and of the State of upon which I am about to enter, so help me God." Qualifications for National Guard Officers. Sec. 74. Persons hereafter commissioned as officers of the National Guard shall not be recognized as such under any of the provisions of this Act unless they shall have been selected from the following classes and shall have taken and subscribed to the oath of office prescribed in the preceding section of this Act : Officers or enlisted men of the Na- tional Guard ; officers on the reserve or unassigned list of the National Guard ; officers, active or retired, and former officers of the United States Army, Navy, and Marine Corps ; graduates of the United States Military and Naval Academies and graduates of schools, colleges, and universities where military science is taught under the supervision of an officer of the Regular Army, and, for the technical branches and staff corps or departments, such other civilians as may be especially qualified for duty therein. Sec. 75. The provisions of this Act shall not apply to any person hereafter appointed an officer of the National Guard unless he first shall have successfully passed such tests as to his physical, moral, and pro- fessional fitness as the President shall prescribe. The examination to determine such qualifications for commission shall be conducted by a board of three commissioned officers appointed by the Secretary of War from the Regular Army or the National Guard, or both. Filling of Vacancies When Drafted into Federal Service. Sec. 76. All vacancies occurring in any grade of commissioned 576 Important Federal Laws officers in any organization in the military service of the United States and composed of persons drafted from the National Guard under the provisions of this Act shall be filled by the President, as far as prac- ticable, by the appointment of persons similarly taken from said guard, and in the manner prescribed by law for filling similar vacancies occur- ring in the volunteer forces. Elimination and Disposition of Officers. Sec. 77 . At any time the moral character, capacity, and general fitness for the service of any National Guard officer may be determined by an efficiency board of three commissioned officers, senior in rank to the officer whose fitness for service shall be under investigation, and if the findings of such board be unfavorable to such officer and be ap- • proved by the official authorized to appoint such an officer, he shall be discharged. Commissions of officers of the National Guard may be vacated upon resignation, absence without leave for three months, upon the recommendation of an efficiency board, or pursuant to sentence of a court-martial. Officers of said guard rendered surplus by the disband- ment of their organizations shall be placed in the National Guard Re- serve. Officers may, upon their own application, be placed in the said reserve. The National Guard Reserve. Sec. 7'$>. Subject to such rules and regulations as the President may prescribe, a National Guard Reserve shall be organized in each State, Territory, and the District of Columbia, and shall consist of such organizations, officers, and enlisted men as the President may prescribe, or members thereof may be assigned as reserves to an active organiza- tion of the National Guard : Provided, That members of said reserve, when engaged in field or coast-defense training with the active National Guard, shall receive the same Federal pay and allowances as enlisted men of like grade on the active list of said guard when likewise en- gaged : Provided further. That, except as otherwise specificallv pro- vided in this Act, no commissioned or enlisted reservist shall receive any pay or allowances out of any appropriation made by Congress for National Guard purposes. Reserve Battalions for Recruit Training. Sec. 79. When members of the National Guard and the enlisted reserve thereof of any State, Territory, or the District of Columbia shall have been brought into the service of the United States in time of war, there shall be immediately organized, either from such enlisted reserve or from the unorganized militia, in such State, Territory, or District, one reserve battalion for each regiment of Infantry or Cavalry, or each nine batteries of Field Artillery, or each twelve companies of Coast Artillery, brought into the service of the United States, and such re- serve battalion shall constitute the fourth battalion of any such regi- ment or twelve companies of Coast Artillery. Reserve battalions shall National Defense Act 577 consist of four companies of such strength as may be prescribed by the President of the United States. When the members of three or more regiments of the National Guard of any State, Territory, or District shall have been brought into the service of the United States, the reserve battalions of such regiments may be organized into provisional regiments and higher units. If for any reason there shall not be enough volun- tary enlistments to keep the reserve battalions at the prescribed strength, a sufficient number of the unorganized militia shall be drafted into the service of the United States to maintain each of such battalions at the proper strength. As vacancies occur from death or other causes in any organization in the service of the United States and composed of men taken from the National Guard, men shall be transferred from the re- serve battalions to the organizations in the field so that such organiza- tions may be maintained at war strength. Officers for the reserve bat- talions provided for herein shall be drafted from the National Guard Reserve or Coast Artillery companies of the National Guard or the Officers' Reserve Corps, such officers to be taken, if practicable, from the States, respectively, in which the battalions shall be organized. Offi- cers and noncommissioned officers returned to their home stations be- cause of their inability to perform active field service may be assigned to reserve battalions for duty, and all soldiers invalided home shall be assigned to and carried on the rolls of reserve battalions until returned to duty or until discharged. Leaves of Absence for Certain Government Employees. Sec. 80. All officers and employees of the United States and of the District of Columbia who shall be members of the National Guard shall be entitled to leave of absence from their respective duties, without loss of pay, time, or efficiency rating, on all days during which they shall be engaged in field or coast-defense training ordered or authorized under the provisions of this Act. Militia Bureau of the War Department. Sec. 81. The National Militia Board created by section eleven of the Act of May twenty-seventh, nineteen hundred and eight, amending section twenty of the Act of January twenty-first, nineteen hundred and three, shall, from the date of the approval of this Act, be abolished. The Militia Division now existing in the War Department shall hereafter be known as the Militia Bureau of said department, shall, like other bu- reaus of said department, be under the immediate supervision of the Secretary of War, and shall not form a part of any other bureau, office, or other organization, but the Chief of the Militia Bureau shall be ex officio a member of the General Stafif Corps : Provided, That the Presi- dent may, in his discretion, assign to duty in the T»ililitia Bureau as assistants to the chief thereof not to exceed one colonel and one lieu- tenant colonel of the National Guard, for terms of four years, and any such officer while so assigned shall, subject to such regulations as the (37) 578 • Important Federal Laws President may prescribe, receive out of the whole fund appropriated for the support of the militia the pay and allowances of a Regular Army officer having the same rank and length of service as said Na- tional Guard officer, whose prior service in the Organized Militia shall be counted in ascertaining his rights under this proviso. Armament, Equipment, and Uniform of the National Guard. Sec. 82. The National Guard of the United States shall, as far as practicable, be uniformed, armed, and equipped with the same type of uniforms, arms, and equipments as are or shall be provided for the Regular Army. Sec. 83. The Secretary of War is hereby authorized to procure, under such regulations as the President may prescribe, by purchase or manufacture, within the limits of available appropriations made by Congress, and to issue from time to time to the National Guard, upon requisition of the governors of the several States and Territories or the commanding general of the National Guard of the District of Columbia, such number of United States service arms, with all accessories, field- artillerv materiel, engineer, coast artillery, signal, and sanitary materiel, accouterments, field uniforms, clothing, equipage, publications, and mil- itary stores of all kinds, including pubhc animals, as are necessary to arm', uniform, and equip for field service the National Guard in the several States, Territories, and the District of Columbia : Provided, That as a condition precedent to the issue of any property as provided for by this Act, the State. Territory, or the District of Columbia desiring such issue shall make adequate provision, to the satisfaction of the Secretary of War, for the protection and care of such property: Provided further, That, whenever it shall be shown to the satisfaction of the Secretary oi War that the National Guard of any State, Territory, or the District of Columbia, is properly organized, armed, and equipped for field ser- vice, funds allotted to that State, Territory, or District for the support of its National Guard may be used for the purchase, from the War Department, of any article issued by any of the supply departments of the Army. Sec. 84. Under such regulations as the President may prescribe, whenever a new type of equipment, small arm. or field gun shall have been issued to the National Guard of the several States, Territories, and the District of Columbia, such equipment, small arms, and field guns, including all accessories, shall be furnished without charging the cost or value thereof or any expense connected therewith against the appro- priations provided for the support of the National Guard. Sec. 85. Each State, Territory, and the District of Columbia shall, on the receipt of new property issued to replace obsolete or condemned prior issues, turn in to the War Department or otherwise dispose of, in accordance with the directions of the Secretary of War, all property National Defense Act 579 so replaced or condemned, and shall not receive any money credit there- for. Sec. 86. Any State, Territory, or the District of Columbia may, with the approval of the Secretary of War, purchase for cash from the War Department for the use of the National Guard, including the officers thereof, any stores, supplies, material of war, and military pub- lications furnished to the Army, in addition to those issued under the provisions of this Act, at the price at which they shall be listed to the Army, with cost of transportation added. The funds received from such sale shall be credited to the appropriation to which they shall belong, shall not be covered into the Treasury, and shall be available until expended to replace therewith the supplies sold to the States in the manner herein authorized: Provided, That stores, supplies, and materiel of war so purchased by a State, Territory, or the District of Columbia may, in time of actual or threatened war, be requisitioned by the United States for use in the military service thereof, and when so requisitioned by the United States and delivered credit for the ultimate return of such property in kind shall be allowed to such State, Territory, or the District of Columbia. Disposition and Replacement of Damaged Property, and So Forth. Sec. 87. All military property issued to the National Guard as herein provided shall remain the property of the United States. When- ever any such property issued to the National Guard in any State or Territory or the District of Columbia shall have been lost, damaged, or destroyed, or become unserviceable or unsuitable by use in service or from any other cause, it shall be examined by a disinterested surveying officer of the Regular Army or the National Guard, detailed by the Sec- retary of War, and the report of such surveying officer shall be for- warded to the Secretary of War. or to such officer as he shall designate to receive such reports; and if it shall appear to the Secretary of War from the record of survey that the property was lost, damaged, or de- stroyed through unavoidable causes, he is hereby authorized to' relieve the State or Territory or the District of Columbia from further account- ability therefor. If it shall appear that the loss, damage, or destruction of property was due to carelessness or neglect, or that its loss, damage, or destruction could have been avoided by the exercise of reasonable care, the money value of such property shall be charged to the account- able State, Territory, or District of Columbia, to be paid from State, Territory, or District funds, or any funds other than Federal. If the' articles so surveyed are found to be unserviceable or unsuitable, the Secretary of War shall direct what disposition, by sale or otherwise, shall be made of them ; and if sold, the proceeds of such sale, as well as stoppages against officers and enlisted men, and the net proceeds of collections made from any person or from any State, Territory, or Dis- trict to reimburse the Government for the loss, damage, or destruction of any property, shall be deposited in the Treasury of the United States 580 . Important Federal Laws as a credit to said State, Territory, or the District of Columbia, ac- countable for said property, and as a part of and in addition to that portion of its allotment set aside for the purchase of similar supplies, stores, or material of war: Provided further, That if any State, Terri- tory, or the District of Columbia shall neglect or refuse to pay, or to cause to be paid, the money equivalent of any loss, damage, or destruc- tion of property charged against such State, Territory, or the District of Columbia by the Secretary of War after survey by a disinterested officer appointed as hereinbefore provided, the Secretary of War is hereby authorized to debar such State, Territorv, or the District of Columbia from further participation in any and all appropriations for the National Guard until such payment shall have been made. Sec. 88. The net proceeds of the sale of condemned stores issued to the National Guard and not charged to State allotments shall be cov- ered into the Treasury of the United States, as shall also stoppages against officers and enlisted men, and the net proceeds of collections made from any person to reimburse the Government for the loss, dam- age, or destruction of said property not charged against the State allot- ment issued for the use of the National Guard. Horses for Cavalry and Field Artillery of National Guard. Sec. 89. Funds allotted by the Secretary of War for the support of the National Guard shall be available for the purchase, under such regulations as the Secretary of War may prescribe, of horses conform- ing to the Regular Army standards for the use of Field Artillery and Cavalry of the National Guard, said horses to remain the property of the United States and to be used solely for military purposes. Horses so purchased may be issued not to exceed thirty-two to any one battery or troop, under such regulations as the Secretary of War may prescribe ; and the Secretary of War is further authorized to issue, in lieu of purchase, for the use of such organizations, condemned Army horses which are no longer fit for service, but which may be suitable for the purposes of instruction, such horses to be sold as now provided by law when said purposes shall have been served. Sec. 90. Funds allotted by the Secretary of War for the support of the National Guard shall be available for the purchase and issue of forage, bedding, shoeing, and veterinary services, and supplies for the Government horses issued to any battery or troop, and for the compen- sation of competent help for the care of the material, animals, and equipment thereof, under such regulations as the Secretary of War may prescribe: Provided, That the men to be compensated, not to exceed five for each battery or troop, shall be duly enlisted therein and shall be detailed by the battery or troop commander, under such regulations as the Secretary of War may prescribe, and shall be paid by the United States disbursing officer in each State, Territory, and the District of Columbia. National Defense Act 581 Discipline to Conform to That of Regular Army. Sec. 91. The discipHne (which includes training) of the National Guard shall conform to the system which is now or may hereafter be prescribed for the Regular Army, and the training shall be carried out by the several States. Territories, and the District of Columbia so as to conform to the provisions of this Act. tTraining of the National Guard. Sec. 92. Each company, troop, battery, and detachment in the National Guard shall assemble for drill and instruction, including indoor target practice, not less than forty-eight times each year, and shall, in addition thereto, participate in encampments, maneuvers, or other exer- cises, including outdoor target practice, at least fifteen days in training each year, including target practice, unless such company, troop, bat- tery, or detachment shall have been excused from participation in any part thereof by the Secretary of War: Provided, That credit for an assembly for drill or for indoor target practice shall not be given unless the number of officers and enlisted men present for duty at such assem- bly shall equal or exceed a minimum to be prescribed by the President, nor unless the period of actual military duty and instruction participated in by each officer and enlisted man at each such assembly at which he shall be credited as having been present shall be of at least one and one-half hours' duration and the character of training such as may be prescribed by the Secretary of War. Inspections of the National Guard. Sec. 93. The Secretary of War shall cause an inspection to be made at least once each year by inspectors general, and if necessary by other officers, of the Regular Army, detailed by him for that purpose, to de- termine whether the amount and condition of the property in the hands of the National Guard is satisfactory; whether the National Guard is organized as hereinbefore prescribed : whether the officers and enlisted men possess the physical and other qualifications prescribed ; whether the organization and the officers and enlisted men thereof are suffi- ciently armed, uniformed, equipped, and being trained and instructed for active duty in the field or coast defense, and whether the records are being kept in accordance with the requirements of this Act. The reports of such inspections shall serve as the basis for deciding as to the issue to and retention by the National Guard of the military property provided for by this Act, and for determining what organizations and individuals shall be considered as constituting parts of the National Guard within the meaning of this Act. Encampment and Maneuvers. Sec. 94. Under such regulations as the President may prescribe the Secretary of War is authorized to provide for the participation of the whole or any part of the National Guard in encampments, ma- neuvers, or other exercises, including outdoor target practice, for field 582 . Important Federal Laws or coast-defense instruction, either independently or in conjunction with any part of the Regular Army, and there may be set aside from the funds appropriated for that purpose and allotted to any State, Territory, or the District of Columbia, such portion of said funds as may be neces- sary for the payment, subsistence, transportation, and other proper ex- penses of such portion of the National Guard of such State, Territory, or the District of Columbia as shall participate in such encampments, maneuvers, or other exercises, including outdoor target practice, for field and coast-defense instruction ; and the officers and enlisted men of such National Guard while so engaged shall be entitled to the same pay, subsistence, and transportation as officers and enlisted men of correspond- ing grades of the Regular Army are or hereafter may be entitled by law. Sec. 95. When any part of the National Guard practicipates in encampments, maneuvers, or other exercises, including outdoor target practice, for field or coast-defense instruction at a United States mili- tary post, or reservation, or elsewhere, if in conjunction with troops of the United States, the command of such military post or reservation and of the officers and troops of the United States on duty there or else- where shall remain with the commander of the United States troops Avithout regard to the rank of the commanding or other officer of the National Guard temporarily engaged in the encampments, maneuvers, or other exercises. Use of Regular Army Personnel. Sec. 96. The Secretary of War may detail one or more officers and enlisted men of the Regular Army to attend any encampment, maneuver, or other exercise for field or coast-defense instruction of the National Guard, who shall give such instruction and information to the officers and men assembled for such encampment, maneuver, or other exercise as may be directed by the Secretary of War or requested by the governor or by the commanding officer of the National Guard there on duty. Sec. 97. Under such regulations as the President may prescribe the Secretary of War may provide camps for the instruction of officers and enlisted men of the National Guard. Such camps shall be conducted by officers of the Regular Army detailed by the Secretary of War for that purpose, and may be located either within or without the State, Territory, or District of Columbia to which the members of the Na- tional Guard designated to attend said camps shall belong. Officers and enlisted men attending such camps shall be entitled to pay and trans- portation, and enlisted men to subsistence in addition, at the same rates as for encampments or maneuvers for field or coast-defense instruction. Sec. 98. When any portion of the National Guard shall partici- pate in encampments, maneuvers, or other exercises, including outdoor target practice, for field or coast-defense instruction, under the provi- sions of this Act, it may, after being duly mustered, be paid at any time after such muster for the period from the date of leaving the home National Defense Act 583 rendezvous to date of return thereto as determined in advance, both dates inckisive ; and such payment, if otherwise correct, shall pass to the credit of the disbursing officer making the same. National Guard Officers and Men at Service Schools, and So Forth. Sec. 99. Under such regulations as the President may prescribe, the Secretary of War may, upon the recommendation of the governor of any State or Territory or the commanding general of the National Guard of the District of Columbia, authorize a limited number of se- lected officers or enlisted men of the National Guard to attend and pursue a regular course of study at any military service school of the United States, except the United States Military Academy; or to be attached to an organization of the same arm, corps, or department_ to which such officer or enlisted man shall belong, for routine practical instruction at or near an Army post during a period of field training or other outdoor exercises ; and such officer or enlisted man shall receive, out of anv National Guard allotment of funds available for the purpose, the same travel allowances and quarters, or commutation of quarters, and the same pay. allowances, and subsistence to which an officer or enlisted man of the Regular Army would be entitled for attending such school, college, or practical course of instruction under orders from proper military authority, while in actual attendance at such school, college, or practical course of instruction: Provided, That in no case shall the pay and allowances authorized by this section exceed those of a captain. Detail of Officers of Regular Army to Duty With the National Guard. Sec. 100. The Secretary of War shall detail officers of the active list of the Army to duty with the National Guard in each State, Terri- torv, or District of Columbia, and officers so detailed may accept com- missions in the National Guard, with the permission of the President and terminable in his discretion, v^ithout vacating their commissions in the Regular Army or being prejudiced in their relative or lineal standing therein. The Secretary of War may, upon like application, detail one or more enlisted men of the Regular Army with each State. Territory, or District of Columbia for duty in connection with the National Guard. But nothing in this section shall be so construed as to prevent the detail of retired officers as now provided by law. National Guard, When Subject to Laws Governing Regular Army. Sec. 101. The National Guard when called as such into the service of the United States shall, from the time they are required by the terms of the call to respond thereto, be subject to the laws and regulations governing the Regular Army, so far as such laws and regulations are applicable to officers and enlisted men whose permanent retention in the militarv service, either on the active list or in the retired list, is not contemplated by existing law. 584 Important Federal Laws System of Courts-Martial for National Guard. Sec. 102. Except in organizations in the service of the United States, courts-martial in the National Guard shall be of three kinds, namely, general courts-martial, special courts-martial, and summary courts-martial. They shall be constituted like, and have cognizance of the same subjects, and possess like powers, except as to punishments, as similar courts provided for by the laws and regulations governing the Army of the United States, and the proceedings of courts-martial of the National Guard shall follow the forms and modes of procedure pre- scribed for said similar courts. Sec. 103. General courts-martial of the National Guard not in the service of the United States may be convened by orders of the Presi- dent, or of the governors of the respective States and Territories, or by the commanding general of the National Guard of the District of Columbia, and such courts shall have the power to impose fines not exceeding $200; to sentence to forfeiture of pay and allowances; to a reprimand ; to dismissal or dishonorable discharge from the service ; to reduction of noncommissioned officers to the ranks; or any two or more of such punishments may be combined in the sentences imposed by such courts. Sec. 104. In the National Guard, not in the service of the United States, the commanding officer of each garrison, fort, post, camp, or other place, brigade, regiment, detached battalion, or other detached command, may appoint special courts-martial for his command ; but such special courts-martial may in any case be appointed by superior authority when by the latter seemed desirable. Special courts-martial shall have power to try any person subject to military law, except a commissioned officer, for any crime or offense made punishable by the military laws of the United States, and such special courts-martial shall have the same powers of punishment as do general courts-martial, ex- cept that fines imposed by such courts shall not exceed $100. Sec. 105. In the National Guard, not in the service of the United States, the commanding officer of each garrison, fort, post, or other place, regiment or corps, detached battalion, company, or other detach- ment of the National Guard may appoint for such place or command a summary court to consist of one officer, who shall have power to admin- ister oaths and to try the enlisted men of such place or command for breaches of discipline and violations of laws governing such organi- zations ; and said court, when satisfied of the guilt of such soldier, may impose fines not exceeding $25 for any single offense ; may sentence noncommissioned officer to reduction to the ranks ; may sentence to for- feiture of pay and allowances. The proceedings of such court shall be informal, and the minutes thereof shall be the same as prescribed for summary courts of the Army of the United States. Sec. 106. All courts-martial of the National Guard, not in the service of the United States, including summary courts, shall have power National Defense Act 585 to sentence to confinement in lieu of fines authorized to be imposed : Pro- vided, That such sentences of confinement shall not exceed one day for each dollar of fine authorized. Sec. 107. No sentence of dismissal from the service or dishon- orable discharge, imposed by a National Guard court-martial, not in the service of the United States, shall be executed until approved by the governor of the State or Territory concerned, or by the commanding general of the National Guard of the District of Columbia. Sec. 108. In the National Guard, not in the service of the United States, presidents of courts-martial and summary court officers shall have power to issue warrants to arrest accused persons and to bring them before the court for trial whenever such persons shall have dis- obeyed an order in writing from the convening authority to appear be- fore such court, a copy of the charge or charges having been delivered to the accused with such order, and to issue subpoenas and subpoenas duces tecum and to enforce by attachment attendance of witnesses and the production of books and papers, and to sentence for a refusal to be sworn or to answer as provided in actions before civil courts. xA.ll processes and sentences of said courts shall be executed by such civil officers as may be prescribed by the laws of the several States and Territories, and in any State where no provision shall have been made for such action, and in the Territories and the District of Columbia, such processes and sentences shall be executed by a United States mar- shal or his duly appointed deputy, and it shall be the duty of any United States marshal to execute all such processes and sentences and make return thereof to the officer issuing or imposing the same. Pay for National Guard Officers. Sec. 109. Certain commissioned officers on the active list belonging to organizations of the National Guard of each State, Territory, and the District of Columbia participating in the apportionment of the an- nual appropriation for the support of the National Guard shall receive compensation for their services, except during periods of service for which they may become lawfully entitled to the same pay as officers of corresponding grades of the Regular Army, as follows, not to include longevity pay : A captain $500 per year and the same pay shall be paid to every officer of higher rank than that of captain, a first lieutenant $240 per year, and a second lieutenant $200 per year. Regulations to be prescribed by the Secretary of War shall determine the amount and character of service that must be rendered by officers to entitle them to the whole or specific parts of the maximum pay hereinbefore authorized: Provided, That all staff officers, aids-de-camp, and chaplains shall re- ceive not to exceed one-half of the pay of a captain, except that regi- mental adjutants, and majors and captains in command of machine-gun companies, ambulance companies, field hospital companies, or sanitary troops shall receive the pay hereinbefore authorized for a captain. 586 Important Federal Laws Pay for National Guard Enlisted Men. Sec. 110. Each enlisted man on the active list belonging to an organization of the National Guard of a State, Territory, or the District of Columbia, participating in the apportionment of the annual appro- priation for the support of the National Guard, shall receive compensa- tion for his services, except during periods of service for which he may become lawfully entitled to the same pay as an enlisted man of corresponding grade in the Regular Army, at a rate equal to twenty- five per centum of the initial pay now provided by law for enlisted men of corresponding grades of the Regular Army: Provided, That such enlisted man shall receive the compensation herein provided if he shall have attended not less than forty-eight regular drills during any one year, and a proportionate amount for attendance upon a lesser number of such drills, not less than twenty-four ; and no such enlisted man shall receive any part of said compensation except as authorized by this proviso and the three provisos next following: Provided further, That the compensation provided herein shall be computed for semiannual periods, beginning the first day of January and the first day of July of each year, in proportion to the number of drills attended ; and no compensation shall be paid to any enlisted man for the first semiannual period of any year unless he shall have attended during said period at least twenty- four drills, but any lesser number of drills attended during said period shall be reckoned with the drills attended during the second semiannual period in computing the compensation, if any, due him for that year: Provided further, That when any man enters into an enlist- ment other than an immediate re-enlistment he shall be entitled to propor- tional compensation for that year if during the remainder of the year he shall attend a number of drills whose ratio to twenty-four is not less than the ratio of the part of the year so served to the whole year; and when any man's enlistment shall expire the compensation, if any, to which he may be entitled shall be determined in like manner : Provided further, That periods of any actual military duty equivalent to the drills herein prescribed (except those periods of service for which members of the National Guard may become lawfully entitled to the same pay as officers and enlisted men of the corresponding grades in the Regular Army) may be accepted as service in lieu of such drills when so pro- vided by the Secretary of War. All amounts appropriated for the purpose of this and the last preceding section shall be disbursed and accounted for by the officers and agents of the Quartermaster Corps of the Army, and all disburse- ments under the foregoing provisions of this section shall be made as soon as practicable after the thirty-first day of December and the thirtieth day of June of each year upon pay rolls prepared and authen- ticated in the manner to be prescribed by the Secretary of War : Pro- vided, That stoppages may be made against the compensation payable to any officer or enlisted man hereunder to cover the cost of public National Defense Act 587 property lost or destroyed by and chargeable to such officer or enlisted man. Except as otherwise specifically provided herein, no money appro- priated under the provisions of this or the last preceding section shall be paid to any person not on the active list, nor to any person over sixty-four years of age, nor to any person who shall fail to qualify as to fitness for military service under such regulations as the Secretary of War shall prescribe, nor to any State, Territory, or District, or officer or enlisted' man in the National Guard thereof, unless and until such State, Territory, or District provides by law that stafif officers, including officers of the Pay, Inspection, Subsistence, and Medical Departments, hereafter appointed shall have had previous military experience and shall hold their positions until they shall have reached the age of sixty-four years, unless retired prior to that time by reason of resignation, disability, or for cause to be determined by a court- martial legally convened for that purpose, and that vacancies among said officers shall be filled by appointment from the officers of the militia of such State, Territory, or District : Provided further. That the preceding proviso shall not apply to any State. Territory, or Dis- trict until sixty, days next after the adjournment of the next session of its legislature held after the approval of this Act. National Guard When Drafted Into Federal Service. ] Sec. 111. When Congress shall have authorized the use of the armed land forces of the United States, for any purpose requiring the use of troops in excess of those of the Regular Army, th^ President may, under such regulations, including such physical examination, as he may prescribe, draft into the military service of the United States, to serve therein for the period of the war unless sooner discharged, any or all members of the National Guard and of the National Guard Reserve. All persons so drafted shall, from the date of their draft, stand discharged from the militia, and shall from said date be subject to such laws and regulations for the government of the Army of the United States as may be applicable to members of the Volunteer Army, and shall be embodied in organizations corresponding as far as prac- ticable to those of the Regular Army or shall be otherwise assigned as the President may direct. The commissioned officers of said organi- zations shall be appointed from among the members thereof, officers with rank not above that of colonel to be appointed by the President alone, and all other officers to be appointed by the President by and with the advice and consent of the Senate. Officers and enlisted men in the service of the United States under the terms of this section shall have the same pay and allowances as officers and enlisted men of the Regular Army of the same grades and the same prior service. Rights to Pensions. Sec. 112. When any officer or enlisted man of the National Guard 588 Important Federal Laws drafted into the service of the United States in time of war is dis- abled by reason of wounds or disability received or incurred while in the active service of the United States in time of war, he shall be entitled to all the benefits of the pension laws existing at the time of his service, and in case such officer or enlisted man dies in the active service of the United States in time of war or in returning to his place of residence after being mustered out of such service, or at any other time in consequence of wounds or disabilities received in such active service, his widow and children, if any, shall be entitled to all the bene- fits of such pension laws. Encouragement of Rifle Practice. Sec. 113. The Secretary of War shall annually submit to Con- gress recommendations and estimates for the establishment and main- tenance of indoor and outdoor rifle ranges, under such a comprehensive plan as will ultimately result in providing adequate facilities for rifle practice in all sections of the country. And that all ranges so established and all ranges which may have already been constructed, in whole or in part, with funds provided by Congress shall be open for use by those in any branch of the military or naval service of the United States and by all able-bodied males capable of bearing arms, under rea- sonable regulations to be prescribed by the controlling authorities and approved by the Secretary of War. That the President may detail capa- ble officers and noncommissioned officers of the Regular Army and National Guard to duty at such ranges as instructors for the purpose of training the citizenry in the use of the military arm. Where rifle ranges sh'hll have been so established and instructors assigned to duty thereat, the Secretary of War shall be authorized to provide for the issue of a reasonable number of standard military rifles and such quantities of ammunition as may be available for use in conducting such rifle practice. Temporary Vacancies in Regular Army Due to Details to the Na- tional Guard. Sec. 114. In time of war the temporary vacancies created in any grade not above that of colonel among the commissioned personnel of any arm, stafif corps, or department of the Regular Army, through ap- pointments of officers thereof to higher rank in organizations composed of members taken from the National Guard, shall be filled by tem- porary promotions according to seniority in rank from officers holding commissions in the next lower grade in said arm, staflF, corps, or depart- ment, and all vacancies created in any grade by such temporary pro- motions shall be in like manner filled from, and thus create temporary vacancies in, the next lower grade, and the vacancies that shall remain thereafter in said arm, stafif corps, or department and that can not be filled by temporary promotions, as prescribed in this section, may be filled by the temporary appointment of officers of such number and National Defense Act 589 grade or grades as shall maintain said arm, corps, or department at the full commissioned strength authorized by law : Provided, That in the staff corps and departments subject to the provisions of sections twenty-six and twenty-seven of the Act of February second, nineteen hundred and one, and Acts amendatory thereof, temporary vacancies that can not be filled by temporary promotions as hereinbefore pre- scribed shall be filled by temporary details in the manner prescribed in said sections twenty-six and twenty-seven, and Acts amicndatory there- of, and the resulting temporary vacancies in the branches of the Army from which the details shall be so made shall be filled as hereinbefore in this section prescribed : Provided further, That officers temporarily pro- moted or appointed under the terms of this section shall be promoted or appointed by the President, by and with the advice and consent of the Senate, for terms that shall not extend beyond the war or the pass- ing of the emergencv for which additional forces were brought into the military service of the United States, and at the termination of the war or the passing of the emergency said offiicers shall be discharged from the positions held by them under their temporary commissions or appointments, and officers detailed as herein authorized shall be relieved from their temporary details : And provided further. That officers tem- porarily promoted under the provisions of this section shall not vacate their permanent commissions nor be prejudiced in their relative or lineal standing in the Regular Army. Physical Examination. Sec. 115. Every officer and enlisted man of the National Guard who shall be called into the service of the United States as such shall be examined as to his physical fitness under such regulations as the President may prescribe without further commission or enlistment : Pro- vided, That immediately preceding the muster out of an officer or en- listed man called into the active service of the United States he shall be physically examined under rules prescribed by the President of the United States, and the record thereof shall be filed and kept in the War Department. Noncompliance With Federal Act. Sec. 116. Whenever any State shall, within a limit of time to be fixed by the President, have failed or refused to comply with or enforce any requirement of this Act, or any regulation promulgated thereunder and in aid thereof by the President or the Secretary of War, the Na- tional Guard of such State shall be debarred, wholly or in part, as the President may direct, from receiving from the United States any pe- cuniary or other aid, benefit, or privilege authorized or provided by this Act or any other law. Applicable to Land Forces Only. Sec. 117. The provisions of this Act in respect to the militia shall be applicable only to militia organized as a land force and not to the 590 Important Federal Laws Naval Militia, which shall consist of such part of the militia as may be prescribed by the President for each State, Territory, or District : Provided, That each State, Territory, or District maintaining a Naval Militia as herein prescribed may be credited to the extent of the number thereof in the quota that would otherwise be required by section sixty- two of this Act. Necessary Rules and Regulations. Sec. 118. The President shall make all necessary rules and regula- tions and issue such orders as may be necessary for the thorough organi- zation, discipline, and government of the militia provided for in this Act. Annual Estimates Required. Sec. 1 19. The Secretary of War shall cause to be estimated annually the amount necessary for carrying out the provisions of so much of this Act as relates to the militia, and no money shall be expended under said provisions except as shall from time to time be appropriatted for carrying them out. Purchase or Procurement of Military Supplies in Time of Actual or Imminent War. Sec. 120. The President, in time of war or when war is immi- nent, is empowered, through the head of any department of the govern- ment, in addition to the present authorized methods of purchase or pro- curement, to ])lace an order with any individual, firm, association, com- pany, corporation, or organized manufacturing industry for such product or material as may be rec|uired, and which is of the nature and kind usually produced or capable of being produced by such individual, firm, company, association, corporation, or organized manufacturing industry. Compliance with all such orders for products or material shall be obligatory on any individual, firm, association, company, corporation, or organized manufacturing industry or the responsible head or heads thereof and shall take precedence over all other orders and contracts theretofore placed with such individual, firm, company, association, cor- poration, or organized manufacturing industry, and any individual, firm, association, company, corporation, or organized manufacturing industry or the responsible head or heads thereof owning or operating any plant equipped for the manufacture of arms or ammunition, or parts of ammu- nition, or any necessary supplies or equipment for the Army, and any individual, firm, association, company, corporation, or organized manu- facturing industry or the responsible head or heads thereof owning or operating any manufacturing plant, which, in the opinion of the Secre- tary of War shall be capable of being readily transformed into a plant for the manufacture of arms or ammunition, or parts thereof, or other necessary supplies or equipment, who shall refuse to give to the United States such preference in the matter of the execution of orders, or who shall refuse to manufacture the kind, quantity, or quality of arms National Defense Act 591 or ammunition, or the parts thereof, or any necessary supplies or equip- ment, as ordered by the Secretary of War. or who shall refuse to furnish such arms, ammunition, or parts of ammunition, or other supplies or equipment, at a reasonable price as determined by the Secretary of War, then, and in either such case, the President, through the head of any department of the government, in addition to the present author- ized methods of purchase or procurement herein provided for, is hereby authorized to take immediate possession of any such plant or plants, and through the Ordnance Department of the United States Army, to manufacture therein in time of war, or when war shall be imminent, such product or material as may be required, and any individual, firm, company, association, or corporation, or organized manufacturing indus- try, or the responsible head or heads thereof, failing to comply with the provisions of this section shall be deemed guilty of a felony, and upon conviction shall be punished by imprisonment for not more than three years and by a fine not exceed $50,000. The compensation to be paid to any individual, firm, company, asso- ciation, corporation, or organized manufacturing industry for its prod- ucts or material, or as rental for use of any manufacturing plant while used by the United States, shall be fair and just. The Secretary of War shall also make, or cause to be made, a com- plete list of all privately owned plants in the United States equipped to manufacture arms or ammunition, or the component parts thereof. He shall obtain full and complete information regarding the kind of arms or ammunition, or the component parts thereof, manufactured or that can be manufactured by each such plant, the equipment in each plant, and the maximum capacity thereof. He shall also prepare, or cause to be prepared, a list of privately owned manufacturing plants in the United States capable of being readily transformed into ammimi- tion factories, where the capacity of the plant is sufficient to warrant transforming such plant or plants into ammunition factories in time of war or when war shall be imminent ; and as to all such plants the Secretary of War shall obtain full and complete information as to the equipment of each such plant, and he shall prepare comprehensive plans for transforming each such plant into an ammunition factory, or a factory in which to manufacture such parts of ammunition as in the opinion of the Secretary of War such plant is best adapted. The President is hereby authorized, in his discretion, to appoint a Board on Mobilization of Industries Essential for Military Prepared- ness, nonpartisan in character, and to take all necessary steps to pro- vide for such clerical assistance as he may deem necessarv to organize and co-ordinate the work hereinbefore described. Investigation As to Government Manufacture of Arms, and So Forth. Sec. 121. The Secretary of War is hereby authorized to appoint a board of five citizens, two of whom shall be civilians and three of whom shall be officers of the Army, to investigate and report to him 592 Important Federal Laws the feasibility, desirability, and practicability of the government manu- facturing arms, munitions, and equipment, showing in said report the comparative prices of the arms, munitions, and equipment manufactured in government plants and those manufactured in private plants, the amount of money necessary to build and operate government plants for the manufacture of arms, munitions, and equipment ; showing also what the government plants and arsenals are now doing in the way of manu- facturing arms, munitions, and equipment, and what saving has accrued to the government by reason of its having manufactured a large part of its own arms, munitions, and equipment for the last four years. And the Secretar}^ of War is hereby directed to transmit said report to Con- gress on or before January first nineteen hundred and seventeen. Investigation Concerning Medals of Honor. Sec. 122. A board to consist of five general officers on the retired list of the Army shall be convened by the Secretary of War, within sixty days after the approval of this Act. for the purpose of investigat- ing and reporting upon past awards or issues of the so-called congres- sional medal of honor by or through the War Department; this with a view to ascertain what medals of honor, if any, have been awarded or issued for any cause other than distinguished conduct by an officer or enlisted man in action involving actual conflict with an enemy by such officer or enlisted man or by troops with which he was serving at the time of such action. And in any case in which said board shall find and report that said medal was issued for any cause other than that hereinbefore specified the name of the recipient of the medal so issued shall be stricken permanently from the official medal of honor list. It shall be a misdemeanor for him to wear or publicly display said medal, and, if he shall still be in the Army, he shall be required to return said medal to the War Department for cancellation. Said board shall have full and free access to and use of all records pertaining to the award or issue of medals of honor by or through the War Depart- ment. The actual and necessary expenses of said board and its mem- bers shall be paid out of any appropriations available for contingent expenses of the Army of the War Department. Procurement of Gauges, Dies, Jigs, and So Forth, Necessary for Manufacture of Arms, and So Forth. Sec. 123. The Secretary of War be. and he is hereby, authorized to prepare or cause to be prepared, to purchase or otherwise procure, such gauges, dies, jigs, tools, fixtures, and other special aids and appliances, including specifications and detailed drawings, as may be necessary for the immediate manufacture, by the government and by private manufac- turers, of arms, ammunition, and special equipment necessary to arm and equip the land forces likely to be required by the United States in time of war : Provided, That in the expenditure of any sums appropriated National Defense Act 593 to carry out the purposes of this section the existing laws prescribing competition in the procurement of suppHes by purchase shall not govern, whenever in the opinion of the Secretary of War such action will be for the best interest of the public service. Nitrate Supply. Sec. 124. The President of the United States is hereby author- ized and empowered to make, or cause to be made, such investigation as in his judgment is necessary to determine the best, cheapest, and most available means for the production of nitrates and other products for munitions of war and useful in the manufacture of fertilizers and other useful products by water power or any other power as in his judgment is the best and cheapest to use ; and is also hereby authorized and empowered to designate for the exclusive use of the United States, if in his judgment such means is best and cheapest, such site or sites, upon any navigable or nonnavigable river or rivers or upon the public lands, as in his opinion will be necessary for carrying out the purposes of this Act ; and is further authorized to construct, maintain, and operate, at or on any site or sites so designated, dams, locks, improve- ments to navigation, power houses, and other plants and equipment or other means than water power as in his judgment is the best and cheapest, necessary or convenient for the generation of electrical or other power and for the production of nitrates or other products needed for munitions of war and useful in the manufacture of fertil- izers and other useful products. The President is authorized to lease, purchase, or acquire, by con- demnation, gift, grant, or devise, such lands and rights of way as may be necessary for the construction and operation of such plants, and to take from any lands of the United States, or to purchase or acquire by condemnation materials, minerals, and processes, patented or otherwise, necessary for the construction and operation of such plants and for the manufacture of such products. The products of such plants shall be used by the President for military and naval purposes to the extent that he may deem necessary, and any surplus which he shall determine is not required shall be sold and disposed or by him under such regulations as he may prescribe. The President is hereby authorized and empowered to employ such officers, agents, or agencies as may in his discretion be necessary to enable him to carry out the purposes herein specified, and to authorize and require such officers, agents, or agencies to perform any and all of the duties imposed upon him by the provisions hereof. The sum of $20,000,000 is hereby appropriated, out of any moneys in the Treasury not otherwise appropriated, available until expended, to enable the President of the United States to carry out the purposes herein provided for. The plant or plants provided for under this Act shall be con- OS) 594 Important Federal Laws structed and operated solely by the government and not in conjunc- tion with any other industry or enterprise carried on by private capital. In order to raise the money appropriated by this Act and necessary to carry its provisions into effect, the Secretary of the Treasury, upon the request of the President of the United States, may issue and sell, or use for such purpose or construction hereinabove authorized, any of the bonds of the United States now available in the Treasury of the United States under the Act of August fifth, nineteen hundred and nine, the Act of February fourth, nineteen hundred and ten, and the Act of March second, nineteen hundred and eleven, relating to the issue of bonds for the construction of the Panama Canal, to a total amount not to exceed $20,000,000: Provided, That any Panama Canal bonds issued and sold or used under the provisions of this section may be made payable at such time after issue as the Secretary of the Treas- ury, in his discretion, may deem advisable, and fix, instead of fifty years after date of issue, as in said Act of August fifth, nineteen hun- dred and nine, not exceeding fifty years. Protection of the Uniform. Sec. 125. It shall be unlawful for any person not an officer or enlisted man of the United States Army, Navy, or Tvlarine Corps, to wear the duly prescribed uniform of the United States Army, Navy, or Marine Corps, or any distinctive part of such uniform, or a uniform any part of which is similar to a distinctive part of the duly prescribed uniform of the United States Army, Navy, or Marine Corps: Provided, That the foregoing provision shall not be construed so as to prevent officers or enlisted men of the National Guard from wearing, in pur- suance of law and regulations, the uniform lawfully prescribed to be worn bv such officers or enlisted men of the National Guard ; nor to prevent members of the organization known as the Boy Scouts of America, or the Naval Militia, or such other organizations as the Secretary of War may designate, from wearing their prescribed uni- forms ; nor to prevent persons who in time of war have served hon- orably as officers of the United States Army, Navy, or Marine Corps, Regular or Volunteer, and whose most recent service was terminated by an honorable discharge, muster out, or resignation, from wearing, upon occasions of ceremony, the uniform of the highest grade they have held by brevet or other commission in such Regular or Volunteer service ; nor to prevent any person who has been honorably discharged from the United States Army, Navy, or Marine Corps, Regular or Volunteer, from wearing his uniform from the place of his discharge to his home, within three months after the date of such discharge; nor to prevent the members of military societies composed entirely of hon- orably discharged officers or enlisted men, or both, of the United States Army, Navy, or Marine Corps, Regular or Volunteer, from wearing, upon occasions of ceremony, the uniform duly prescribed by such societies to be worn by the members thereof ; nor to prevent National Defense Act 595 the instructors and members of the duly organized cadet corps of a State university, State college, or public high school offering a regular course in military instruction from wearing the uniform duly pre- scribed by the authorities of such university, college, or public high school for wear by the instructors and members of such cadet corps ; nor to prevent the instructors and members of the duly organized cadet corps of any other institution of learning offering a regular course in military instruction, and at which an officer or enlisted man of the United States Army, Navy, or Marine Corps is lawfully detailed for duty as instructor in military science and tactics, from wearing the uniform duly prescribed by the authorities of such institution of learn- ing for wear by the instructors and members of such cadet corps ; nor to prevent civilians attendant upon a course of military or naval instruc- tion authorized and conducted by the military or naval authorities of the United States from wearing, while in attendance upon such course of instruction, the uniform authorized and prescribed by such mili- tary or naval authorities for wear during such course of instruction ; or to prevent any person from wearing the uniform of the United States Army, Navy, or Marine Corps in any playhouse or theater or in moving-picture films while actually engaged in representing therein a military or naval character not tending to bring discredit or reproach upon the United States Army. Navy, or Marine Corps : Provided further, That the uniforms worn by officers or enlisted men of the National Guard, or by the members of the military societies or the instructors and members of the cadet corps referred to in the pre- ceding proviso shall include some distinctive mark or insignia to be prescribed by the Secretary of War to distinguish such uniforms from the uniforms of the United States Army, Navy, and Marine Corps: And provided further, That the members of the military societies and the instructors and members of the cadet corps hereinbefore men- tioned shall not wear the insignia of rank prescribed to be worn by officers of the United States Army, Navy, or Marine Corps, or any insignia of rank similar thereto. Any person who offends against the provisions of this section shall, on conviction, be punished by a fine not exceeding $300, or by impris- onment not exceeding six months, or by both such fine and impris- onment. Sec. 126. On and after July first, nineteen hundred and sixteen, an enlisted man when discharged from the service, except by way of punishment for an offense, shall receive 3i^ cents per mile from the place of his discharge to the place of his acceptance for enlistment, enrollment, or original muster into the service, at his option : Provided, That for sea travel on discharge transportation and subsistence only shall be furnished to enlisted men. Sec. 127. Nothing in this Act shall be held or construed so as to 596 Important Federal Laws discharge any officer from the Regular Army or to deprive him of the commission which he now holds therein. Sec. 128. All laws and parts of laws in so far as they are incon- sistent with this Act are hereby repealed. THE CONSCRIPTION ACT. Approved May IS. 1017. An Act to authorize the President to increase temporarily the Military Estab- lishment of the United States. Powers Conferred Upon the President. That in view of the existing emergency, which demands the raising of troops in addition to those now available, the President be, and he is hereby, authorized — First. Immediately to raise, organize, officer, and equip all or such number of increments of the Regular Army provided by the national defense Act approved June third, nineteen hundred and sixteen, or such part thereof as he may deem necessary ; to raise all organizations of the Regular Army, including those added by such increments, to the maxi- mum enlisted strength authorized by law. Vacancies in the Regular Army created or caused by the addition of increments as herein authorized which can not be filled by promotion may be filled by temporary ap- pointment for the period of the emergency or until replaced by per- manent appointments or by provisional appointments made under the provisions of section twenty-three of the national defense Act approved June third, nineteen hundred and sixteen, and hereafter provisional ap- pointments under said section may be terminated whenever it is deter- mined, in the manner prescribed by the President, that the officer has not the suitability aiid fitness requisite for permanent appointment. Second. To draft into the military service of the United States, organize, and officer, in accordance with the provisions of section one hundred and eleven of said national defense Act, so far as the provi- sions of said section may be applicable and not inconsistent with the terms of this Act, any or all members of the National Guard and of the National Guard Reserves, and said members so drafted into the military service of the United States shall serve therein for the period of the existing emergency unless sooner discharged : Provided, That when so drafted the organizations or units of the National Guard shall, so far as practicable, retain the State designations of their respective organizations. Third. To raise by draft as herein provided, organize and equip an additional force of five hundred thousand enlisted men, or such part or parts thereof as he may at any time deem necessary, and to provide the necessary officers, line and stafif, for said force and for organizations of the other forces hereby authorized, or by combining organizations of said other forces, by ordering members of the Officers' Reserve Corps to Conscription Act 597 temporary duty in accordance with the provisions of section thirty- eight of the national defense Act approved June third, nineteen hundred and sixteen ; by appointment from the Regular Army, the Officers Re- serve Corps, from those duly qualified and registered pursuant to sec- tion twenty-three of the Act of Congress approved January twenty-first, nineteen hundred and three (Thirty-second Statutes at Large, page seven hundred and seventy-five), from the members of the National Guard drafted into the service of the United States, from those who have been graduated from edutational institutions at which military instruction is compulsory, or from those who have had honorable serv- ice in the Regular Army, the National Guard, or in the volunteer forces, or from the country at large; by assigning retired officers of the Regular Army to active duty with such force with their rank on the retired list and the full pay and allowances of their grade; or by the appoint- ment of retired officers and enlisted men, active or retired, of the Regu- lar Army as commissioned officers in such forces : Provided, That the organization of said force shall be the same as that of the correspond- ing organizations of the Regular Army : Provided further, That the President is authorized to increase or decrease the number of organiza- tions prescribed for the typical brigades, divisions, or army corps of the Regular x\rmy. and to prescribe such new and different organiza- tions and personnel for army corps, divisions, brigades, regiments, battalions, squadrons, companies, troops, and batteries as the efficiency of the service may require : Provided further, That the number of or- ganizations in a regiment shall not be increased nor shall the number of regiments be decreased : Provided further, That the President in his discretion may organize, officer, and equip for each Infantry and Cavalry brigade three machine-gun companies, and for each Infantry and Cavalry division four machine-gun companies, all in addition to the machine-gun companies comprised in organizations included in such brigades and divisions : Provided further, That the President in his discretion mav organize for each division one armored motor-car ma- chine-gun company. The machine-gun companies organized under this section shall consist of such commissioned and enlisted personnel and be equipped in such manner as the President may prescribe : And provided further. That officers with rank not above that of colonel shall be ap- pointed by the President alone, and officers above that grade by the President by and with the advice and consent of the Senate : Provided further. That the President may in his discretion recommission in the Coast Guard persons who have heretofore held commissions in the Revenue-Cutter Service or the Coast Guard and have left the service honorably, after ascertaining that they are qualified for service physically, morally, and as to age and military fitness. Fourth. The President is further authorized, in his discretion and at such time as he mav determine, to raise and begin the training- of an additional force of five hundred thousand men organized, officered, 598 Important Federal Laws and equipped, as provided for the force first mentioned in the preceding paragraph of this section. Fifth. To raise by draft, organize, equip, and officer, as provided in the third paragraph of this section, in addition to and for each of the above forces, such recruit training units as he may deem necessary for the maintenance of such forces at the maximum strength. Sixth. To raise, organize, officer, and maintain during the emer- gency such number of ammunition batteries and battaHons, depot bat- teries and battaHons, and such artillery parks, with such numbers and grades of personnel as he may deem necessary. Such organizations shall be officered in the manner provided in the third paragraph of this section, and enlisted men may be assigned to said organizations from any of the forces herein provided for or raised by selective draft as by this Act provided/ Seventh. The President is further authorized to raise and main- tain by voluntary enlistment, to organize, and equip, not to exceed four infantry divisions, the officers of which shall be selected in the manner provided by paragraph three of section one of this Act: Provided, That the organization of said force shall be the same as that of the corre- sponding organization of the Regular Army : And provided further, That there shall be no enlistments in said force of men under twenty- five years of age at time of enlisting: And provided further. That no such volunteer force shall be accepted in any unit smaller than a division. Selective Draft. Sec. 2. That the enlisted men required to raise and maintain the organizations of the Regular Army and to complete and maintain the organizations embodying the members of the National Guard drafted into the service of the United States, at the maximum legal strength as by this Act provided, shall be raised by voluntary enlistment, or if and whenever the President decides that they can not eflfectually be so raised or maintained, then by selective draft ; and all other forces hereby authorized, except as provided in the seventh paragraph of section one, shall be raised and maintained by selective draft exclusively ; but this provision shall not prevent the transfer to any force of training cadres from other forces. Such draft as herein provided shall be based upon liability to military service of all male citizens, or male persons not alien enemies who have declared their intention to become citizens, between the ages of twenty-one and thirty years, both inclusive, and shall take place and be maintained under such regulations as the Presi- dent may prescribe not inconsistent with the terms of this Act. Quotas for the several States, Territories, and the District of Columbia, or sub- divisions thereof, shall be determined in proportion to the population thereof, and credit shall be given to any State, Territory, District, or subdivision thereof, for the number of men who were in the military service of the United States as members of the National Guard on April first, nineteen hundred and seventeen, or who have since said date en- Conscription Act , 599 tered the military service of the United States from any such State, Territory, District, or subdivision, either as members of the Regular Army or the National Guard. All persons drafted into the service of the United States and all officers accepting commissions in the forces herein provided for shall, from the date of said draft or acceptance, be subject to the laws and regulations governing the Regular Army, except as to promotions, so far as such laws and regulations are applicable to per- sons whose permanent retention in the military service on the active or retired list is not contemplated by existing law, and those drafted shall be required to serve for the period of the existing emergency un- less sooner discharged: Provided, That the President is authorized to raise and maintain by voluntary enlistment or draft, as herein pro- vided, special and technical troops as he may deem necessary, and to embodv them into organizations and to officer them as provided in the third paragraph of section one and section nine of this Act. Organiza- tions of the forces herein provided for, except the Regular Army and the divisions authorized in the seventh paragraph of section one, shall, as far as the interests of the service permit, be composed of men who come, and of officers who are appointed from, the same State or locality. Bounties and Substitutes Prohibited. Sec. 3. No bounty shall be paid to induce any person to enlist in the military service of the United States; and no person liable to mili- tary service shall hereafter be permitted or allowed to furnish a substi- tute for such service ; nor shall any substitute be received, enlisted, or enrolled in the military service of the United States; and no such per- son shall be permitted to escape such serA'ice or to be discharged there- from prior to the expiration of his term of service by the payment of money or any other valuable thing whatsoever as consideration for his release from military service or liability thereto. Exemptions. Sec. 4. That the Vice-President of the United States, the officers, legislative, executive, and judicial, of the United States and of the sev- eral States, Territories, and the District of Columbia, regular or duly ordained ministers of religion, students who at the time of the approval of this Act are preparing for the ministry in recognized theo- logical or divinity schools, and all persons in the military and naval serv- ice of the United States shall be exempt from the selective draft herein prescribed ; and nothing in this Act contained shall be construed to re- quire or compel any person to serve in any of the forces herein pro- vided for who is found to be a member of any well-recognized religious sect or organization at present organized and existing and whose exist- ing creed or principles forbid its members to participate in war in any form and whose religious convictions are against war or participation therein in accordance with the creed or principles of said religious organizations, but no person so exempted shall be exempted from serv- ice in any capacity that the President shall declare to be noncombatant ; 600 Important Federal Laws and the President is hereby authorized to exck:de or discharge from said selective draft and from the draft under the second paragraph of sec- tion one hereof, or to draft for partial military service only from those liable to draft as in this Act provided, persons of the following classes : County and municipal officials ; customhouse clerks ; persons em- ployed by the United States in the transmission of the mail ; artificers and workmen employed in the armories, arsenals, and navy yards of the United States, and such other persons employed in the service of the United States as the President may designate ; pilots ; mariners actually employed in the sea service of any citizen or merchant within the United States ; persons engaged in industries, including agriculture, found to be necessary to the maintenance of the Military Establishment or the efifect- ive operation of the military forces or the maintenance of national interest during the emergency : those in a status with respect to persons dependent upon them for support which renders their exclusion or discharge advisable ; and those found to be physically or morally de- ficient. No exemption or exclusion shall continue when a cause there- for no longer exists : Provided, That notwithstanding the exemptions enumerated herein, each State, Territory, and the District of Columbia shall be required to supply its quota in the proportion that its population bears to the total population of the United States. The President is hereby authorized, in his discretion, to create and establish throughout the several States and subdivisions thereof and in the Territories and the District of Columbia local boards, and where, in his discretion, practicable and desirable, there shall be created and estab- lished one such local board in each county or similar subdivision in each State, and one for approximately each thirty thousand of population in each city of thirty thousand population or over, according to the last census taken or estimates furnished by the Bureau of Census of the Department of Cominerce. Such boards shall be appointed by the Presi- dent, and shall consist of three or more members, none of whom shall be connected with the IVIilitary Establishment, to be chosen from among- the local authorities of such subdivisions or from other citizens resid- ing in^ the subdivision or area in which the respective boards will have jurisdiction under the rules and regulations prescribed by the Presi- dent. Such boards shall have power within their respective jurisdiction to hear and determine, subject to review as hereinafter provided, all questions of exemption under this Act, and all questions of or claims for including or discharging individuals or classes of individuals from the selective draft, which shall be made under rules and regulations prescribed by the President, except any and every question or claim for including or excluding or discharging persons or classes of persons from the selective draft under the provisions of this Act authorizing the President to exclude or discharge from the selective draft "Persons engaged in industries, including agriculture, found to be necessary to the maintenance of the Military Establishment, or the effective opera- Conscription Act 601 tion of the military forces, or the maintenance of national interest dur- ing the emergency." The President is hereby authorized to estabHsh additional boards, one in each Federal judicial district of the United States, consisting of such number of citizens, not connected with the Military Establishment, as the President may determine, who shall be appointed by the Presi- dent. The President is hereby authorized, in his discretion, to establish more than one such board in any Federal judicial district of the United States, or to establish one such board having jurisdiction of an area extending into more than one Federal judicial district. Such district boards shall review on appeal and affirm, modify, or reverse any decision of any local board having jurisdiction in the area in which any such district board has jurisdiction under the rules and regulations prescribed by the President. Such district boards shall have exclusive original jurisdiction within their respective areas to hear and determine all questions or claims for including or excluding or discharg- ing persons or classes of persons from the selective draft, under the provisions of this Act, not included within the original jurisdiction of such local boards. The decisions of such district boards shall be final except that, in accordance with such rules and regulations as the President may prescribe, he may affirm, modify or reverse any such decision. Any vacancy in any such local board or district board shall be filled by the President, and any member of any such local board or district board may be removed and another appointed in his place by the President, whenever he considers that the interest of the nation de- mands it. The President shall make rules and regulations governing the organ- ization and procedure of such local boards and district boards, and pro- viding for and governing appeals from such local boards to such district boards, and reviews of the decisions of any local board by the district board having jurisdiction, and determining and prescribing the several areas in which the respective local boards and district boards shall have jurisdiction, and all other rules and regulations necessary to carry out the terms and provisions of this section, and shall provide for the issu- ance of certificates of exemption, or partial or limited exemptions, and for a system to exclude and discharge individuals from selective draft. Registration. Sec. 5. That all male persons between the ages of twenty-one and thirty, both inclusive, shall be subject to registration in accordance with regulations to be prescribed by the President ; and upon proclamation by the President or other public notice given by him or by his direction stating the time and place of such registration it shall be the duty of all persons of the designated ages, except officers and enlisted men of the Regular Army, the Navy, and the National Guard and Naval Militia while in the service of the United States, to present themselves 602 Important Federal Laws for and submit to registration under the provisions of this Act; and every such person shall be deemed to have notice of the requirements of this Act upon the publication of said proclamation or other notice as aforesaid given by the President or by his direction ; and any person who shall willfully fail or refuse to present himself for registration or to submit thereto as herein provided, shall be guilty of a misdemeanor and shall, upon conviction in the district court of the United States having jurisdiction thereof, be punished by imprisonment for not more than one year, and shall thereupon be duly registered: Provided, That in the call of the docket precedence shall be given, in courts trying the same, to the trial of criminal proceedings under this Act : Provided fur- ther. That persons shall be subject to registration as herein provided who shall have attained their twenty-first birthday and who shall not have attained their thirty-first birthday on or before the day set for the registration, and all persons so registered shall be and remain subject to draft into the forces hereby authorized, unless exempted or excused therefrom as in this Act pro'vided : Provided further, That in the case of temporary absence from actual place of legal residence of any person liable to registration as provided herein such registration may be made by mail under regulations to be prescribed by the President. Use of State and National Officers. Sec. 6. That the President is hereby authorized to utilize the ser- vice of any or all departments and any or all officers or agents of the United States and of the several States, Territories, and the District of Columbia, and subdivisions thereof, in the execution of this Act, and all officers and agents of the United States and of the several States, Ter- ritories, and subdivisions thereof, and of the District of Columbia, and all persons designated or appointed under regulations prescribed by the President whether such appointments are made by the President him- self or by the governor or other officer of any State or Territory to perform any dutv in the execution of this Act, are hereby required to perform such duty as the President shall order or direct, and all such officers and agents and persons so designated or appointed shall hereby have full authority for all acts done by them in the execution of this Act by the direction of the President. Correspondence in the execution of this Act may be carried in penalty envelopes bearing the frank of the War Department. Any person charged as herein provided with the duty of carrying into effect any of the provisions of this Act or the regulations made or directions given thereunder who shall fail or neglect to perform such duty ; and any person charged with such duty or having and exercising any authoritv under said Act, regulations, or directions, who shall knowingly make or be a party to the making of any false or incorrect registration, physical examination, exemption, enlistment, en- rollment, or muster; and any person who shall make or be a party to the making of any false statement or certificate as to the fitness or liability of'himself or any other person for service under the provisions Conscription Act 603 of this Act, or regulations made by the President thereunder, or other- wise evades or aids another to evade the requirements of this Act or of said regulations, or who, in any manner, shall fail or neglect fully to perform any duty required of him in the execution of this Act, shall, if not subject to military law, be guilty of a misdemeanor, and upon con- viction in the district court of the United States having jurisdiction thereof, be punished by imprisonment for not more than one year, or, if subject to military law, shall be tried by court-martial and suffer such punishment as a court-martial may direct. Voluntary Enlistments. Sec. 7. That the qualifications and conditions for voluntary en- listment as herein provided shall be the same as those prescribed by ex- isting law for enlistments in the Regular Army, except that recruits must be between the ages of eighteen and forty years, both inclusive, at the time of their enlistment ; and such enlistments shall be for the period of the emergency unless sooner discharged. All enlistments, including those in the Regular Army Reserve, which are in force on the date of the approval of this Act and which would terminate during the emergency shall continue in force during the emergency unless sooner discharged ; but nothing herein contained shall be construed to shorten the period of any existing enlistment : Provided, That all per- sons enlisted or drafted under any of the provisions of this Act shall as far as practicable be grouped into units by States and the political sub- divisions of the same : Provided further, That all persons who have enlisted since April first, nineteen hundred and seventeen, either in the Regular Army or in the National Guard, and all persons who have enlisted in the National Guard since June third, nineteen hundred and sixteen, upon their application, shall be discharged upon the termina- tion of the existing emergency. The President may provide for the discharge of any or all enlisted men whose status with respect to dependents renders such discharge advisable ; and he may also authorize the employment on any active duty of retired enlisted men of the Regular Army, either with their rank on the retired list or in higher enlisted grades, and such retired enlisted men shall receive the full pay and allowances of the grades in which they are actively employed. Appointment of General Officers of the Nevv^ Army. Sec. 8. That the President, by and with, the advice and consent of the Senate, is authorized to appoint for the period of the existing emergency such general officers of appropriate grades as may be neces- sary for duty with brigades, divisions, and higher units in which the forces provided for herein may be organized by the President, and gen- eral officers of appropriate grade for the several Coast Artillery dis- tricts. In so far as such appointments may be made from any of the forces herein provided for, the appointees may be selected irrespective of the grades held by them in such forces. Vacancies in all grades in 604 Important Federal Laws the Regular Army resulting from the appointment of officers thereof to higher grades in the forces other than the Regular Army herein pro- vided for shall be filled by temporary promotions and appointments in the manner prescribed for filling temporary vacancies by section one hundred and fourteen of the national defense Act approved June third, nineteen hundred and sixteen ; and officers appointed under the pro- visions of this Act to higher grades in the forces other than the Regular Army herein provided for shall not vacate their permanent commissions nor be prejudiced in their relative or lineal standing in the Regular Army. Appointment for Period of War. Sec. 9. That the appointments authorized and made as provided by the second, third, fourth, fifth, sixth, and seventh paragraphs of section one and by section eight of this Act, and the temporary appointments in the Regular Army authorized by the first paragraph of section one of this Act, shall be for the period of the emergency, unless sooner termi- nated bv discharge or otherwise. The President is hereby authorized to discharge any officer from the office held by him under such appoint- ment for any cause which, in the judgment of the President, would promote the public service ; and the general commanding any division and higher tactical organization or territorial department is authorized to appoint from time to time military boards of not less than three nor more than five officers of the forces herein provided for to examine into and report upon the capacity, qualification, conduct, and efficiency of any commissioned officer within his command other than officers of the Reo-ular Army holding permanent or provisional commissions therein. Each member of such board shall be superior in rank to the officer whose qualifications are to be inquired into, and if the report of such board be adverse to the continuance of any such officer and be approved by the President, such officer shall be discharged from the service at the discretion of the President with one month's pay and allowances. Pay of Officers and Enlisted Men. Sec. 10. That all officers and enlisted men of the forces herein provided for other than the Regular Army shall be in all respects on the same footing as to pay, allowances, and pensions as officers and enlisted men of corresponding grades and length of service in the Regular Army ; and commencing June one. nineteen hundred and seventeen, and continuing until the termination of the emergency, all enlisted men of the Army of the United States in active service whose base pay does not exceed $21 per month shall receive an increase of $15 per month; those whose base pay is $24, an increase of $12 per month ; those whose base pav is $30, $36, or $40, an increase of $8 per month ; and those whose base pay in $45 or more, an increase of $6 per month : Provided, That the increases of pay herein authorized shall not enter into the com- putation of the continuous-service pay. Conscription Act 605 Restrictions Suspended. Sec. 11. That all existing restrictions upon the detail, detachment, and employment of officers and enlisted men of the Regular Army are hereby suspended for the period of the present emergency. Prohibition of Intoxicating Liquors. Sec. 12. That the President of the United States, as Commander in Chief of the Army, is authorized to make such regulations governing the prohibition of alcoholic liquors in or near military camps and to the officers and enlisted men of the Army as he may from time to time deem necessary or advisable : Provided, That no person, corporation, partner- ship, or association shall sell, supply, or have in his or its possession any intoxicating or spirituous liquors at any military station, canton- ment, camp, fort, post, officers or enlisted men's club, which is being used at the time for military purposes under this Act, but the Secretary of War may make regulations permitting the sale and use of intoxicating liquors for medicinal purposes. It shall be unlawful to sell any intoxi- cating liquor, including beer, ale, or wine, to any officer or member of the military forces while in uniform, except as herein provided. Any person, corporation, partnership, or association violating the provisions of this section or the regulations made thereunder shall, unless other- wise punishable under the Articles of War, be deemed guilty of a mis- demeanor and be punished by a fine of not more than $1,000 or impris- onment for not more than twelve months, or both. Prohibition of Houses of Prostitution. Sec. 13. That the Secretary of War is hereby authorized, em- powered, and directed during the present war to do everything by him deemed necessary to suppress and prevent the keeping or setting up of houses of ill fame, brothels, or bawdy houses within such distance as he may deem needful of any military camp, station, fort, post, canton- ment, training, or mobilization place, and any person, corporation, part- nership, or association receiving or permitting to be received for im- moral purposes any person into any place, structure, or building used for the purpose of lewdness, assignation, or prostitution within such distance of said places as may be designated, or shall permit any such person to remain for immoral purposes in any such place, structure, or building as aforesaid, or who shall violate any order, rule, or regulation issued to carry out the object and purpose of this section shall, unless otherwise punishable under the Articles of War, be deemed guilty of a misdemeanor and be punished by a fine of not more than $1,000, or imprisonment for not more than twelve months, or both. Repeal. Sec. 14. That all laws and parts of laws in conflict with the pro- visions of this Act are hereby suspended during the period of this emergency. 606 Important Federal Laws SHIPPING BOARD ACT. Act of September 7, 1916. An Act to establish a United States Shipping Board for the purpose of encour- aging, developing, and creating a naval auxiliary and naval reserve and a merchant marine to meet the requirements of the commerce of the United States with its Territories and possessions and with foreign countries; to regulate carriers by water engaged in the foreign and interstate commerce of the United States; and for other purposes. Meaning of Terms. Sec. 1. That when used in this Act the term "common carrier by water in foreign commerce" means a common carrier, except ferry- boats running on regular routes, engaged in the transportation by wateX of passengers or property between the United States or any of its Districts, Territories, or possessions and a foreign country, whether in the import or export trade : Provided, That a cargo boat commonly called an ocean tramp shall not be deemed such "common carrier by water in foreign commerce." The term "common carrier by water in interstate commerce" means a common carrier engaged in the transportation by water of passengers or property on the high seas or the Great Lakes on regular routes from port to port between one State, Territory, District, or possession of the United States and any other State, Territory, Dis- trict, or possession of the United States, or between places in the same Territory, District, or Possession. The term "common carrier by water" means a common carrier by water in foreign commerce or a common carrier by water in inter- state commerce on the high seas or the Great Lakes on regular routes from port to port. The term "other person subject to this Act" means any person not included in the term "common carrier by water," carrying on the business of forwarding or furnishing wharfage, dock, warehouse, or other terminal facilities in connection with a common carrier by water. The term "person" includes corporations, partnerships, and asso- ciations, existing under or authorized by the laws of the United States, or any State, Territory, District, or possession thereof, or of any foreign country. Citizenship Requirement. Sec. 2. That within the meaning of this Act no corporation, part- nership, or association shall be deemed a citizen of the United States unless the controlling interest therein is owned by citizens oi the United States, and, in the case of a corporation, unless its president and managing directors are citizens of the United States and the cor- poration itself is organized under the laws of the United States or of a State, Territory, District, or possession thereof. The provisions of this Act shall apply to receivers and trustees of Shipping Board Act 607 all persons to whom the Act applies, and to the successors or assignees of such persons. United States Shipping Board. Sec. 3. That a board is hereby created, to be known as the United States Shipping Board, and hereinafter referred to as the board. The board shall be composed of five commissioners, to be appointed by the President, by and with the advice and consent of the Senate ; said board shall annually elect one of its members as chairman and one as vice chairman. The first commissioners appointed shall continue in office for terms of two, three, four, five, and six years, respectively, from the date of their appointment, the term of each to be designated by the Presi- dent, but their successors shall be appointed for terms of six years, except that any person chosen to fill a vacancy shall be appointed only for the unexpired term of the commissioner whom he succeeds. The commissioners shall be appointed with due regard to their fitness for the efficient discharge of the duties imposed on them by this Act. and to a fair representation of the geographical divisions of the country. Xot more than three of the commissioners shall be ap- pointed from the same political party. No commissioner shall be in the employ of or hold any official relation to any common carrier bv water or other person subject to this Act, or own any stocks or bonds thereof, or be pecuniarily interested therein. No commissioner shall actively engage in any other business, vocation, or employment. Any commis- sioner may be removed by the President for inefficiency, neglect of duty, or malfeasance in office. A vacancy in the board shall not impair the right of the remaining members of the board to exercise all its powers. The board shall have an official seal, which shall be judicially noticed. The board may adopt rules and regulations in regard to its proce- dure and the conduct of its business. Salaries of Officials ; Organization. Sec. 4. That each member of the board shall receive a salary of $7,500 per annum. The board shall appoint a secretary, at a salary of $5,000 per annum, and employ and fix the compensation of such attor- neys, officers, naval architects, special experts, examiners, clerks, and other employees as it may find necessary for the proper performance of its duties and as may be appropriated for by the Congress. The Presi- dent, upon the request of the board, may authorize the detail of officers of the military, naval, or other services of the United States for such duties as the board may deem necessary in connection with its business. With the exception of the secretary, a clerk to each commissioner, the attorneys, naval architects, and such special experts and examiners as the board may from time to time find necessary to employ for the conduct of its work, all employees of the board shall be appointed from 608 Important Federal Laws lists of eligibles to be supplied by the Civil Service Commission and in accordance with the civil-service law. The expenses of the board, including necessary expenses for trans- portation, incurred by the members of the board or by its employees under its orders, in making any investigation, or upon official business in any other place than in the city of Washington, shall be allowed and paid on the presentation of itemized vouchers therefor approved by the chairman of the board. Until otherwise provided by law the board may rent suitable offices for its use. The Auditor for the State and other Departments shall receive and examine all accounts of expenditures of the board. Authority to Build, Charter or Buy Vessel. Sec. 5. That the board, with the approval of the President, is authorized to have constructed and equipped in American shipyards and navy yards or elsewhere, giving preference, other things being equal, to domestic yards, or to purchase, lease, or charter, vessels suitable, as far as the commercial requirements of the marine trade of the United States may permit, for use as naval auxiliaries or Army transports, or for other naval or military purposes, and to make necessary repairs on and altera- tions of such vessels : Provided, That neither the board nor any corpo- ration formed under section eleven in which the United States is then a stockholder shall purchase, lease, or charter any vessel — (a) Which is then engaged in the foreign or domestic commerce of the United States, unless it is about to be withdrawn from such com- merce without any intention on the part of the owner to return it thereto within a reasonable time ; (b) Which is under the registry or flag of a foreign country which is then engaged in war; (c) Which is not adapted, or can not by reasonable alterations and repairs be adapted, to the purposes specified in this section; ^ (d) Which, upon expert examination made under the direction of the board, a written report of such examination being filed as a public record, is not without alteration or repair found to be at least seventy- five per centum as efficient as at the time it was originally put in com- mission as a seaworthy vessel. Transfers of Government Owned Vessels to Board. Sec. 6. That the President may transfer either permanently or for limited periods to the board such vessels belonging to the War or Navy Department as are suitable for commercial uses and not required for military or naval use in time of peace, and cause to be transferred to the board vessels owned by the Panama Railroad Company and not re- quired in its business. Charters to Citizens. Sec. 7. That the board, upon terms and conditions prescribed by it Shipping Board Act 609 and approved by the President, may charter, lease, or sell to any person, a citizen of the United States, any vessel so purchased, constructed, or transferred. Sale of Unserviceable Vessels. Sec. 8. That when any vessel purchased or constructed by or trans- ferred to the board as herein provided, and owned by the United States, becomes, in the opinion of the board, unfit for the purposes of this Act, it shall be appraised and sold at public or private competitive sale after due advertisement free from the conditions and restrictions of this Act. American Registry and Enrollment Allowed. Sec. 9. That any vessel purchased, chartered, or leased from the board may be registered or enrolled and licensed, or both registered and enrolled and licensed, as a vessel of the United States and entitled to the benefits and privileges appertaining thereto: Provided, That foreign- built vessels admitted to American registry or enrollment and license under this Act, and vessels owned, chartered, or leased by any corpo- ration in which the United States is a stockholder, and vessels sold, leased, or chartered to any person a citizen of the United States, as pro- vided in this Act, may engage in the coastwise trade of the United States. Every vessel purchased, chartered, or leased from the board shall, unless otherwise authorized by the board, be operated only under such registry or enrollment and license. Such vessels while employed solely as merchant vessels shall be subject to all laws, regulations, and liabili- ties governing merchant vessels, whether the United States be interested therein as owner, in whole or in part, or hold any mortgap-e. lien, or other interest therein. No such vessel, without the approval of the board, shall be transferred to a foreign registry or flag, or sold ; nor, except under regulations prescribed by the board, be chartered or leased. When the United States is at war, or during any national emergency the existence of which is declared by proclamation of the President, no vessel registered or enrolled and licensed under the laws of the United States shall, without the approval of the board, be sold, leased, or char- tered to any person not a citizen of the United States, or transferred to a foreign registry or flag. No vessel registered or enrolled and licensed under the laws of the United States, or owned by any person a citizen of the United States, except one which the board is prohibited from pur- chasing, shall be sold tO' any person not a citizen of the United States or transferred to a foreign registry or flag, unless such vessel is first tendered to the board at the price in good faith offered by others, or, if no such offer, at a fair price to be determined in the manner provided in section ten. Any vessel sold, chartered, leased, transferred, or operated in viola- tion of this section shall be forfeited to the United States, and whoever violates any provision of this section shall be giiilty of a misdemeanor and subject to a fine of not more than $5,000 or to imprisonment of not more than five years, or both such fine and imprisonment. (39) 610 Important Federal Laws Possession by the President for Military or Naval Use. Sec. 10. That the President, upon giving to the person interested such reasonable notice in writing as in his judgment the circumstances permit, may take possession, absohitely or temporarily, for any naval or miHtarv purpose, of any vessel purchased, leased, or chartered from the board :' Provided, That if, in the judgment of the President, an emer- gency exists requiring such action he may take possession of any such vessel without notice. Thereafter, upon ascertainment by agreement or otherwise , the United States shall pay the person interested the fair actual value based upon normal conditions at the time of taking of the interest of such per- son in every vessel taken absolutely, or if taken for a limited period, the fair charter value under normal conditions for such period. In case of disagreement as to such fair value it shall be determined by appraisers, one to be appointed by the board, one by the person interested, and a third by the two so appointed. The finding of such appraisers shall be final and binding upon both parties. Shipping Corporation — Charter and Purposes. Sec. 11. That the board, if in its judgment such action is necessary to carry out the purposes of this Act, may form under the laws of the District of Columbia one or more corporations for the purchase, con- struction, equipment, lease, charter, maintenance, and operation of mer- chant vessels in the commerce of the United States. The total capital stock thereof shall not exceed $50,000,000. The board may, for and on behalf of the United States, subscribe to, purchase, and vote not less than a majority of the capital stock of any such corporation, and do all other things in regard thereto necessary to protect the interests of the United States and to carry out the purposes of this Act. The board, with the approval of the President, may sell any or all of the stock of the United States in such corporation, but at no time shall it be a minority stockholder therein : Provided, That no corporation in which the United States is a stockholder, formed under the authority of this section, shall engage in the operation of any vessel constructed, purchased, leased, chartered, or transferred under the authority of this Act unless the board shall be unable, after a bona fide effort, to contract with any person a citizen of the United States for the purchase, lease, or charter of such vessel under such terms and conditions as may be prescribed by the board. The board shall give public notice of the fact that vessels are offered and the terms and conditions upon which a contract will be made, and shall invite competitive offerings. In the event the board shall, after full compliance with the terms of this proviso, determine that it is unable to enter into a contract with such private parties for the purchase, lease, or charter of such vessel, it shall make a full report to the President, who shall examine such report, and if he shall approve the same he shall make an order declaring that the conditions have been found to exist Shipping Board x\ct 611 which justify the operation of such vessel by a corporation formed under the provisions of this section. At the expiration of five years from the conclusion of the present European war the operation of vessels on the part of any such corpora- tion in which the United States is then a stockholder shall cease and the said corporation stand dissolved. The date of the conclusion of the war shall be declared by proclamation of the President. The vessels and other property of any such corporation shall revert to the board. The board may sell, lease, or charter such vessels as provided in section seven and shall dispose of the property other than vessels on the best available terms and, after payment of all debts and obligations, deposit the pro- ceeds thereof in the Treasury to its credit. All stock in such corpora- tions owned by others than the United States at the time of dissolution shall be taken over by the board at a fair and reasonable value and paid for with funds to the credit of the board. In case of disagreement, such value shall be determined in the manner provided in section ten. Investigations by the Board — Reports. Sf.c. 12. That the board shall investigate the relative cost of build- ing merchant vessels in the United States and in foreign maritime coun- tries, and the relative cost, advantages, and disadvantages of operating in the foreign trade vessels under United States registry and under foreign registry. It shall examine the rules under which vessels are constructed abroad and in the United States, and the methods of classi- fying and rating same, and it shall examine into the subject of marine insurance, the number of companies in the United States, domestic and foreign, engaging in marine insurance, the extent of the insurance on hulls and cargoes placed or written in the United States, and the extent of reinsurance of American maritime risks in foreign companies, and ascertain what steps may be necessary to develop an ample marine in.?ur- ance system as an aid in the development of an American merchant marine. It shall examine the navigation laws of the United States and the rules and regulations thereunder, and make such recommendations to the Congress as it deems proper for the amendment, improvement, and revision of such laws, and for the development of the American merchant marine. It shall investigate the legal status of mortgage loans en vessel property, with a view to means of improving the security of such loans and of encouraging investment in American shipping. It shall, on or before the first day of December in each year, make a report to the Congress, which shall include its recommendations and the results of its investigations, a summary of its transactions, and a statement of all expenditures and receipts under this Act, and of the operations of any corporation in which the United States is a stock- holder, and the names and compensation of all persons employed by the board. Bond Issue Authorized. Sec. 13. That for the purpose of carrying out the provisions of sec- 612 Important Federal Laws tions five and eleven no liability shall be incurred exceeding a total of $50,000,000 and the Secretary of the Treasury, upon the request of the board, approved by the President, shall from time to time issue and sell or use any of the bonds of the United States now available in the Treasury under the Acts of August fifth, nineteen hundred and nine, February fourth, nineteen hundred and ten, and March second, nineteen hundred and eleven, relating to the issue of bonds for the construction of the Panama Canal, to a total amount not to exceed $50,000,000: Provided, That any bonds issued and sold or used under the provisions of this section may be made payable at such time within fifty years after issue as the Secretary of the Treasury may fix, instead of fiftv years after the date of issue, as prescribed in the Act of August fifth, nineteen hundred and nine. The proceeds of such bonds and the net proceeds of all sales, char- ters and leases of vessels and of sales of stock made by the board, and all other moneys received by it from any source, shall be covered into the Treasury to the credit of the board, and are hereby permanently appropriated for the purpose of carrying out the provisions of sections five and eleven. Common Carriers by Water — Restrictions. Sec. 14. That no common carrier by water shall directly or indi- rectly — First. Pay, or allow, or enter into any combination, agreement, or understanding, express or implied, to pay or allow, a deferred rebate to any shipper. The term "deferred rebate" in this Act means a return of any portion of the freight money by a carrier to any shipper as a consideration for the giving of all or any portion of his shipments to the same or any other carrier, or for any other purpose, the payment of which is deferred beyond the completion of the service for which it is paid, and is made onlv if, during both the period for which computed and the period of deferment, the shipper has complied with the terms of the rebate agreement or arrangement. Second. Use a fighting ship either separately or in conjunction with any other carrier, through agreement or otherwise. The term "fighting ship" in this Act means a vessel used in a particular trade by a carrier or group of carriers for the purpose of excluding, preventing, or reducing competition by driving another carrier out of said trade. Third. Retaliate against any shipper by refusing, or threatening to refuse, space accommodations when such are available, or resort to other discriminating or unfair methods, because such shipper has pat- ronized any other carrier or has filed a complaint charging unfair treat- ment, or for any other reason. Fourth. Make any unfair or unjustlv discriminatory contract with any shipper based on the volume of freight offered, or unfairly treat or unjustly discriminate against any shipper in the matter of (a) cargo space accommodations or other facilities, due regard being had for the Shipping Board Act 613 proper loading of the vessel and the available tonnage; (b) the loading and landing of freight in proper condition; or (c) the adjustment and settlement of claims. Any carrier who violates any provision of this section shall be guilty of a misdemeanor punishable by a fine of not more than $25,000 for each ofifense. Statement of All Rate Agreements to be Filed With Board. Sec. 15. That every common carrier by water, or other person sub- ject to this Act, shall file immediately with the board a true copy, or, if oral, a true and complete memorandum, of every agreement with another such carrier or other person subject to this Act, or modifica- tion or cancellation thereof, to which it may be a party or conform in whole or in part, fixing or regulating transportation rates or fares ; giving or receiving special rates, accommodations, or other special privileges or advantages ; controlling, regulating, preventing, or destroying compe- tition ; pooling or apportioning earnings, losses, or traffic ; allotting ports or restricting or otherwise regulating the number and character of sail- ings between ports ; limiting or regulating in any way the volume or character of freight or passenger traffic to be carried ; or in any manner providing for an exclusive, preferential, or co-operative working ar- rangement. The term "agreement" in this section includes understand- ings, conferences, and other arrangements. The board may by order disapprove, cancel, or modify any agree- ment, or any modification or cancellation thereof, whether or not pre- viously approved by it, that it finds to be unjustly discriminatory or unfair as between carriers, shippers, exporters, importers, or ports, or between exporters from the United States and their foreign competitors, or to operate to the detriment of the commerce of the United States, or to be in violation of this Act, and shall approve all other agreements, modifications, or cancellations. Agreements existing at the time of the organization of the board shall be lawful until disapproved by the board. It shall be unlawful to carry out any agreement or any portion thereof disapproved by the board. All agreements, modifications, or cancellations made after the organ- ization of the board shall be lawful only when and as long as approved by the board, and before approval or after disapproval it shall be unlaw- ful to carr}^ out in whole or in part, directly or indirectly, any such agreement, modification, or cancellation. Every agreement, modification, or cancellation lawful under this section shall be excepted from the provisions of the Act approved July second, eighteen hundred and ninety, entitled "An Act to protect trade and commerce against unlawful restraints and monopolies," and amend- ments and Acts supplementary thereto, and the provisions of sections seventy-three to seventy-seven, both inclusive, of the Act approved August twenty-seventh, eighteen hundred and ninety-four, entitled "An 614 Important Federal Laws Act to reduce taxation, to provide revenue for the Government, and for other purposes," and amendments and Acts supplementary thereto. Whoever violates any provision of this section shall be liable to a penalty of $1,0(X) for each day such violation continues, to be recov- ered by the United States in a civil action. Preferences Forbidden. Sec. 16. That it shall be unlawful for any common carrier by water, or other person subject to this Act, either alone or in conjunction with any other person, directly or indirectly — First. To make or give any undue or unreasonable preference or advantage to any particular person, locality, or description of traffic in any respect whatsoever, or to subject any particular person, locality, or description of traffic to any undue or unreasonable prejudice or dis- advantage in any respect whatsoever. Second. To allow any person to obtain transportation for property at less than the regular rates then established and enforced on the line of such carrier, by means of false billing, false classification, false weigh- ing, false report of weight, or by any other unjust or unfair device or means. Third. To induce, persuade, or otherwise influence any marine insurance company or underwriter, or agent thereof, not to give a com- peting carrier by water as favorable a rate of insurance on vessel or cargo, having due regard to the class of vessel or cargo, as is granted to such carrier or other person subject to this Act. Common Carriers in Foreign Commerce — Unjust Rates bv. Forbidden. Sec. 17. That no common carrier by water in foreign commerce shall demand, charge, or collect any rate, fare, or charge which is un- justly discriminatory between shippers or ports, or unjustly prejudicial to exporters of the United States as compared with their foreign com- petitors. Whenever the board finds that any such rate, fare, or charge is demanded, charged, or collected it may alter the same to the extent necessary to correct such unjust discrimination or prejudice and make an order that the carrier shall discontinue demanding, charging, or col- lecting any such unjustly discriminatory or prejudicial rate, fare, or charge. Every such carrier and every other person subject to this Act shall establish, observe, and enforce just and reasonable regulations and prac- tices relating to or connected with the receiving, handling, storing, or delivery of property. Whenever the board finds that anv such regu- lation or practice is unjust or unreasonable it mav determine, prescribe, and order enforced a just and reasonable regulation or practice. Just and Reasonable Rates Required in Interstate Commerce. Sec. 18. That every common carrier by water in interstate com- merce shall establish, observe, and enforce just and reasonable rates, fares, charges, classifications, and tariffs, and just and reasonable regu- Shipping Board Act 615 lations and practices relating thereto and to the issuance, form, and substance of tickets, receipts, and bills of lading, the manner and method of presenting, marking, packing, and delivering property for transporta- tion, the carrying of personal, sample, and excess baggage, the facilities for transportation, and all other matters relating to or connected with the receiving, handling, transporting, storing, or delivering of property. Every such carrier shall file with the board and keep open to public inspection, in the form and manner and within the time prescribed by the board, the maximum rates, fares, and charges for or in connection wath transportation between points on its own route; and if a through route has been established, the maximum rates, fares, and charges for or in connection with transportation between points on its own route and points on the route of any other carrier by water. No such carrier shall demand, charge, or collect a greater compen- sation for such transportation than the rates, fares, and charges filed in compliance wnth this section, except with the approval of the board and after ten davs' public notice in the form and manner prescribed by the board, stating the increase proposed to be made ; but the board for good cause shown may waive such notice. Whenever the board finds that any rate, fare, charge, classification, tarifif, regulation, or practice, demanded, charged, collected, or observed by such carrier is unjust or unreasonable, it may determine, prescribe, and order enforced a just and reasonable maximum rate, fare, or charge, or a just and reasonable classification, tarifif, regulation, or practice. Restriction on Increasing Reduced Rates. Sec. 19. That whenever a common carrier by water in interstate commerce reduces its rates on the carriage of any spedes of ^ freight to or from competitive points below a fair and remunerative basis with the intent of driving out or otherwise injuring a competitive carrier by water, it shall not increase such rates unless after hearing the board finds that such proposed increase rests upon changed conditions other than the elimination of said competition. Unauthorized Giving or Receiving Information of Shipments Unlaw- ful. Sec. 20. That it shall be unlawful for any common carrier by . water or other person subject to this Act, or any officer, receiver, trustee, lessee, agent, or employee of such carrier or person, or for any other person authorized by such carrier or person to receive information, knowingly to disclose to or permit to be acquired by any person other than the shipper or consignee, without the consent of such shipper or consignee, ' any information concerning the nature, kind, quantity, desti- nation, consignee, or routing of any property tendered or delivered to such common carrier or other person subject to this Act for transporta- tion in interstate or foreign commerce, which information may be used to the detriment or prejudice of such shipper or consignee, or which 616 Important Federal Laws may improperly disclose his business transactions to a competitor, or which may be used to the detriment or prejudice of any carrier; and it shall also be unlawful for any person to solicit or knowingly receive any such information which may be so used. Nothing in this Act shall be construed to prevent the giving of such information in response to any legal process issued under the authority of any court, or to any officer or agent of the Government of the United States, or of any State, Territory, District, or possession thereof, in the exercise of his powers, or to any officer or other duly authorized person seeking such information for the prosecution of persons charged with or suspected of crime, or to another carrier, or its duly authorized agent, for the purpose of adjusting mutual traffic accounts in the ordinary course of business of such carriers. Reports to be Filed With Board. Sec. 21. That the board may require any common carrier by water, or other person subject to this Act, or any officer, receiver, trustee, lessee, agent, or employee therof, to file with it any periodical or special report, or any account, record, rate, or charge, or any memorandum of any facts and transactions appertaining to the business of such carrier or other person subject to this Act. Such report, account, record, rate, charge, or memorandum shall be under oath whenever the board so requires, and shall be furnished in the form and within the time prescribed by the board. Whoever fails to file any report, account, record, rate, charge, or memorandum as required by this section shall forfeit to the United States the sum of $100 for each day of such default. Whoever willfully falsifies, destroys, mutilates, or alters any such report, account, record, rate, charge, or memorandum, or willfully files a false report, account, record, rate, charge, or memorandum shall be guilty of a misdemeanor, and subject upon conviction to a fine of not more than $1,000, or imprisonment for not more than one year, or to both such fine and imprisonment. Complaints of Violation — Investigation. Sec. 22. That any person may file with the board a sworn com- plaint setting forth any violation of this Act by a common carrier by water, or other person subject to this Act, and asking repaartion for the injury, if any, caused thereby. The board shall furnish a copy of the complaint to such carrier or other person, who shall, within a reason- able time specified by the board, satisfy the complaint or answer it in writing. If the complaint is not satisfied the board shall, except as otherwise provided in this Act. investigate it in such manner and by such means, and make such order as it deems proper. The board, if the complaint is filed within two years after the cause of action accrued, mav direct the payment, on or before a day named, of full reparation to the complainant for the injury caused by such violation. The board, upon its own motion, may in like manner and, except Shipping Board Act 617 as to orders for the payment of money, with the same powers, inves- tigate any violation of this Act. Orders of the Board — Full Hearing, etc. Sec. 23. Orders of the board relating to any violation of this Act shall be made only after full hearing, and upon a sworn complaint or in proceedings instituted of its own motion. All orders of the board other than for the payment of money made under this Act shall continue in force for such time, not exceeding two years, as shall be prescribed therein by the board, unless suspended, mod- ified, or set aside by the board or any court of competent jurisdiction. Record of Investigations. Sec. 24. That the board shall enter of record a written report of every investigation made under this Act in which a hearing has been held, stating its conclusions, decision, and order, and, if reparation is awarded, the findings of fact on which the award is made, and shall furnish a copy of such report to all parties to the investigation. The board may publish such reports in the form best adapted for public information and use, and such authorized publications shall, with- out further proof or authentication, be competent evidence of such re- ports in all courts of the United States and of the States, Territories, Districts, and possessions thereof. Rehearings. Sec. 25. That the board may reverse, suspend, or modify, upon such notice and in such manner as it deems proper, any order made by it. Upon application of any party to a decision or order it may grant a rehearing of the same or any matter determined therein, but no such application for or allowance of a rehearing shall, except by special order of the board, operate as a stay of such order. Investigations of Unequal Treatment of American Vessel by Foreign Government. Sec. 26. The board shall have power, and it shall be its duty whenever complaint shall be made to it, to investigate the action of any foreign Government with respect to the privileges afiforded and burdens imposed upon vessels of the United States engaged in foreign trade whenever it shall appear that the laws, regulations, or practices of any foreign Government operate in such a manner that vessels of the United States are not accorded equal privileges in foreign trade with vessels of such foreign countries or vessels of other foreign countries, either in trade to or from the ports of such foreign country or in respect of the passage or transportation through such foreign country of passen- gers or goods intended for shipment or transportation in such vessels of the United States, either to or from ports of such foreign country or to or from ports of other foreign countries. It shall be the duty of the board to report the results of its investigation to the President with its recommendations and the President is hereby authorized and em- 618 Important Federal Laws powered to secure by diplomatic action equal privileges for vessels of the United States engaged in such foreign trade. And if by such dip- lomatic action the President shall be unable to secure such equal privi- leges then the President shall advise Congress as to the facts and his conclusions by special message, if deemed important in the public in- terest, in order that proper action may be taken thereon. Authority to Secure Testimony, etc. Sec. 27. That for the purpose of investigating alleged violations of this Act, the board may by subpoena compel the attendance of wit- nesses and the production of books, papers, documents, and other evi- dence from any place in the United States at any designated place of hearing. Subpoenas may be signed by any commissioner, and oaths or affirmations may be administered, witnesses examined, and evidence re- ceived bv any commissioner or examiner, or, under the direction of the board, by anv person authorized under the laws of the United States or of any State, Territory, District, or possession thereof to administer oaths. Persons so acting under the direction of the board and wit- nesses shall, unless employees of the board, be entitled to the same fees and mileage as in the courts of the United States. Obedience to any such subpcena shall, on application by the board, be enforced as are orders of the board other than for the payment of money. Testimony, Compulsory. Sec. 28. That no person shall be excused, on the ground that it may tend to incriminate him or subject him to a penalty or forfeiture, from attending and testifying, or producing books, papers, documents, and other evidence, in obedience to the subpoena of the board or of any court in any proceeding based upon or growing out of any alleged viola- tion of this Act; but no natural person shall be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, mat- ter, or thing as to which, in obedience to a subpoena and under oath, he may so testify or produce evidence, except that no person shall be ex- empt from prosecution and punishment for perjury committed in so testifying. Jurisdiction of District Courts. Sec. 29. That in case of violation of any order of the board, other than an order for the payment of money, the board, or any party in- jured by such violation, or the Attorney General, may apply to a district court having jurisdiction of the parties ; and if, after hearing, the court determines that the order was regularly made and duly issued, it shall enforce obedience thereto by a writ of injunction or other proper pro- cess, mandatory or otherwise. Sec. 30. That in case of violation of any order of the board for the payment of money the person to whom such award was made may file in the district court for the district in which such person resides, or in which is located any office of the carrier or other person to whom Shipping Board Act 619 the order was directed, or in which is located any point of call on a regular route operated by the carrier, or in any court of general juris- diction of a State, Territory, District, or possession of the United States having jurisdiction of the parties, a petition or suit setting forth briefly the causes for which he claims damages and the order of the board in the premises. In the district court the findings and order of the board shall be prima facie evidence of the facts therein stated, and the petitioner shall not be liable for costs, nor shall he be liable for costs at any subse- quent stage of the proceedings unless they accrue upon his appeal. If a petitioner in a district court finally prevails, he shall be allowed a reasonable attorney's fee, to be taxed and collected as part of the costs of the suit. All parties in whose favor the board has made an award of repara- tion by a single order may be joined as plaintiffs, and all other parties to such order may be joined as defendants, in a single suit in any dis- trict in which any one such plaintifif could maintain a suit against any one such defendant. Service of process against any such defendant not found in that district may be made in any district in which is located anv office of, or point of call on a regular route operated by, such defendant. Judgment may be entered in favor of any plaintiff against the defendant liable to that plaintifif. No petition or suit for the enforcement of an order for the pay- ment of money shall be maintained unless filed within one year from the date of the order. Venue and Procedure. Sec. 31. That the venue and procedure in the courts of the United States in suits brought to enforce, suspend, or set aside, in whole or in part, any order of the board shall, except as herein otherwise pro- vided, be the same as in similar suits in regard to orders of the Inter- state Commerce Commission, but such suits may also be maintained in any district court having jurisdiction of the parties. General Penalty for Violations. Sec. 32. That whoever violates any provision of this Act, except where a dififerent penalty is provided, shall be guilty of a misdemeanor, punishable by fine of not to exceed $5,000. Interstate Commerce Commission Powers Not Affected. Sec. 33. That this Act shall not be construed to affect the power or jurisdiction of the Interstate Commerce Commission, nor to confer upon the board concurrent power or jurisdiction over any matter within the power or jurisdiction of such commission ; nor shall this Act be construed to apply to intrastate commerce. Invalidity of Any Provision Not to Affect Remainder of Act. Sec. 34. That if any provision of this Act, or the application of such provision to certain circumstances, is held unconstitutional, the 620 Important Federal Laws remainder of the Act, and the appHcation of such provision to circum- stances other than those as to which it is held unconstitutional, shall not be affected thereby. Appropriation for Expenses. Sec. 35. That for the fiscal year ending June thirtieth, nineteen hundred and seventeen, the sum of $100,000 is hereby appropriated, out of any moneys in the Treasury of the United States not otherwise appropriated, for the purpose of defraying the expenses of the estab- lishment and maintenance of the board, including the payment of sal- aries herein authorized. Clearance to be Refused Vessel Declining Freight From Any Citizen. Sec. 36. The Secretary of the Treasury is authorized to refuse a clearance to any vessel or other vehicle laden with merchandise destined for a foreign or domestic port whenever he shall have satisfactory reason to believe that the master, owner, or other officer of such vessel or other vehicle refuses or declines to accept or receive freight or cargo in good condition tendered for such port of destination or for some intermediate port of call, together with the proper freight or transporta- tion charges therefor, by any citizen of the United States, unless the same is fully laden and has no space accommodations for the freight or cargo so tendered, due regard being had for the proper loading of such vessel or vehicle, or unless such freight or cargo consists of merchandise for which such vessel or vehicle is not adaptable. WAR RISK INSURANCE. Act of September 2, 1914. An Act to authorize the establishment of a Bureau of War Risk Insurance in the Treasury Department. Whereas the foreign commerce of the United States is now greatly impeded and endangered through the absence of adequate facilities for the insurance of American vessels and their cargoes against the risks of war ; and. Whereas it is deemed necessary and expedient that the United States shall temporarily provide for the export shipping trade of the United States adequate facilities for the insurance of its commerce against the risks of war : Therefore, Section 1. That there is established in the Treasury Department a bureau to be known as the Bureau of War Risk Instirance, the director of which shall be entitled to a salary at the rate of $5,000 per annum. Sec. 2. That the said Bureau of War Risk Insurance, subject to the general direction of the Secretary of the Treasury, shall, as soon as practicable, make provisions for the insurance by the United States of American vessels, their freight and passage moneys, and cargoes shipped War Risk Insurance 621 or to be shipped therein, against loss or damage by the risks of war, whenever it shall appear to the Secretary that American vessels, shippers, or importers in American vessels are unable in any trade to secure ade- quate war risk insurance on reasonable terms. Sec. 3. That the Bureau of War Risk Insurance, with the approval of the Secretary of the Treasury, is hereby authorized to adopt and pub- lish a form of war risk policy, and to fix reasonable rates of premium for the insurance of American vessels, their freight and passage moneys and cargoes against war risks, which rates shall be subject to such change, to each port and for each class, as the Secretary shall find may be required by the circumstances. The proceeds of the aforesaid premiums when received shall be covered into the Treasury of the United States. Sec. 4. That the Bureau of War Risk Insurance, with the approval of the Secretary of the Treasury, shall have power to make any and all rules and regulations necessary for carrying out the purposes of this Act. Sec. 5. That the Secretary of the Treasury is authorized to estab- lish an advisory board, to consist of three members skilled in the practices of war risk insurance, for the purpose of assisting the Bureau of War Risk Insurance in fixing rates of premium and in adjustment of claims for losses, and generally in carrying out the purposes of this Act ; the compensation of the members of said board to be determined by the Secretary of the Treasury, but not to exceed $25 a day each, while actually employed. In the event of disagreement as to the claim for losses, or amount thereof, between the said bureau and the parties to such contract of insurance, an action on the claim may be brought against the United States in the District Court of the United States, sitting in admiralty, in the district in which the claimant or his agent may reside. Sec. 6. That the Director of the Bureau of War Risk Insurance, upon the adjustment of any claims for losses in respect of which no action shall have been begun, shall, on approval of the Secretary of the Treasury, promptly pay such claim for losses to the party in interest ; and the Secretary of the Treasury is directed to make provision for the speedy adjustment of claims for losses and also for the prompt notifica- tion of parties in interest of the decisions of the bureau on their claims. Sec. 7 . That for the purpose of paying losses accruing under the provisions of this Act there is hereby appropriated, out of any money in the Treasurv of the United States not otherwise appropriated the sum of $15,000,000. (As amended March 3. 1917.) Sec. 8. That there is hereby appropriated, for the purpose of defraying the expenses of the establishment and maintenance of the Bureau of War Risk Insurance, including the payment of salaries herein authorized and other personal services in the District of Columbia, out of anv monev in the Treasurv of the United States not otherwise appro- priated, the sum of $100,000! Sec. 9. That the President is authorized whenever, in his judgment, the necessity of further war insurance by the United States shall have 622 Important Federal Laws ceased to exist, to suspend the operations of this Act in so far as it authorizes insurance by the United States against loss or damage by risks of war, which suspension shall be made, at any event, within four years after the passage of this Act, but shall not affect any insurance outstand- ing at the time or any claims pending adjustment. For the purpose of the final adjustment of any such outstanding insurance or claims, the Bureau of War Risk Insurance may, in the discretion of the President, be continued in existence a further period not exceeding one year. (As amended March 3, 1917.) Sec. 10. That a detailed statement of all expenditures under this Act and of all receipts hereunder shall be submitted to Congress at the beginning of each regular session. Sec. 11. That this Act shall take effect from and after its passage. Act of March 3, 1917. Supplemental section. That all moneys received from premiums and from salvage shall be covered into the Treasury to the credit of the appropriation made for the payment of losses and be available for the purposes thereof. TRADEMARKS AND COPYRIGHT. TRADE-MARK LAWS. Act of February 20, 1905 as Amended. An Act to authorize the registration of trade-marks used in commerce with foreign nations or among the several States or with Indian tribes, and to protect the same. Registration of Trade-Marks. Sec. 1. That the owner of a trade-mark tised in commerce with for- eign nations, or among the several States, or with Indian tribes, provided such owner shall be domiciled within the territory of the United States, or resides in or is located in any foreign country which, by treaty, con- vention, or law, affords similar privileges to the citizens of the United States, may obtain registration for such trade-mark by complying with the following requirements : First, by filing in the Patent Office an application therefor, in writing, addressed to the Commissioner of Pat- ents, signed by the applicant, specifying his name, domicile, location, and citizenship; the class of merchandise and the particular description of goods comprised in such class to which the trade-mark is appropriated; a statement of the mode in which the same is applied and affixed to goods, and the length of time during which the trade-mark has been used ; a description of the trade-mark itself shall be included, if desired by the applicant or required by the commissioner, provided such de- scription is of a character to meet the approval of the commissioner. With this statement shall be filed a drawing of the trade-mark, signed by the applicant, or his attorney, and such number of specimens of the trade-mark as actually used as may be required by the Commissioner of Patents. Second, by paying into the Treasury of the United States the sum of ten dollars, and otherwise complying with the requirements of this act and such regulations as may be prescribed by the Commissioner of Patents. (As amended by Act of Feb. 18, 1909.) Written Declaration. Sec. 2. That the application prescribed in the foregoing section, in order to create any right whatever in favor of the party filing it, must be accompanied by a written declaration verified by the applicant, or by a member of the firm or an officer of the corporation or association applying, to the effect that the applicant believes himself or the firm, corporation, or association in whose behalf he makes the application to be the owner of the trade-mark sought to be registered, and that no other person, firm, corporation, or association, to the best of the appli- cant's knowledge and belief, has the right to use such trade-mark in 624 Important Federal Laws the United States, either in the identical form or in such near resem- blance thereto as might be calculated to deceive ; that such trade-mark is used in commerce among- the several States, or with foreign nations, or with Indian tribes, and that the description and drawing presented truly represent the trade-mark sought to be registered. If the applicant resides or is located in a foreign country, the statement required shall, in addi- tion to the foregoing, set forth that the trade-mark has been registered by the applicant, or that an application for the registration thereof has been filed by him in the foreign country in which he resides or is located, and shall give the date of such registration, or the application therefor, as the case may be, except that in the application in such cases it shall not be necessary to state that the mark has been used in commerce with the United States or among the States thereof. The verification required by this section may be made before any person within the United States authorized by law to administer oaths, or, when the appli- cant resides in a foreign country, before any minister, charge d' affaires, consul, or commercial agent holding commission under the Government of the United States, or before any notary public, judge, or magistrate having an official seal and authorized to administer oaths in the foreign country in which the applicant may be whose authority shall be proved by a certificate of a diplomatic or consular officer of the United States. (As amended by Act of February 18, 1909.) Nonresident to Designate Representative. Sec. 3. That every applicant for registration of a trade-mark, or for renewal of registration of a trade-mark, who is not domiciled within the United States, shall, before the issuance of the certificate of regis- tration, as hereinafter provided for, designate, by a notice in writing, filed in the Patent Office, some person residing within the United States on whom process or notice of proceedings affecting the right of owner- ship of the trade-mark of which such applicant may claim to be the owner, brought under the provisions of this act or under other laws of the United State§., may be served, with the same force and effect as if served upon the applicant or registrant in person. For the purposes of this act it shall be deemed sufficient to serve such notice upon such applicant, registrant, or representative by leaving a copy of such process or notice addressed to him at the last address of which the Commis- sioner of Patents has been notified. Applications Previously Filed in Foreign Country. Sec. 4. That an application for registration of a trade-mark filed in this country by any person who has previously regularly filed in any foreign country which, by treaty, convention, or law, affords similar privileges to citizens of the United States an application for registration of the same trade-mark shall be accorded the same force and effect as would be accorded to the same application if filed in this country on the date on which application for registration of the same trade-mark was Trade-Marks 625 first filed in such foreign country: Provided, That such application is filed in this country within four months from the date on which the ap- plication was first filed in such foreign country: And provided, That certificate of registration shall not be issued for any mark for registra- tion of which application has been filed by an applicant located in a foreign country until such mark has been actually registered by the applicant in the country in which he is located. When Trade-Mark Not to be Granted. Sec. 5. That no mark by which the goods of the owner of the mark may be distinguished from other goods of the same class shall be refused registration as a trade-mark on account of the nature of such mark unless such mark — (a) Consists of or comprises immoral or scandalous matter. (b) Consists of or comprises the flag or coat of arms or other insignia of the United States or any simulation thereof, or of any State or municipality or of any foreign nation, or of any design or picture that has been or may hereafter be adopted by any fraternal society as its emblem, or of any name, distinguishing mark, character, emblem, colors, flag or banner adopted by any institution, organization, club, or society which was incorporated in any State in the United States prior to the date of the adoption and use by the applicant : Provided, That said name, distinguishing mark, character, emblem, colors, flag, or banner was adopted and publicly used by said institution, organization, club, or society prior to the date of adoption and use by the applicant: Provided, That trade-marks which are identical with a registered or known trade- mark owned and in use by another and appropriated to merchandise of the same descriptive properties, or which so nearly resemble a registered or known trade-mark owned and in use by another and appropriated to merchandise of the same descriptive properties as to be likely to cause confusion pr mistake in the mind of the public or to deceive purchasers shall not be registered : Provided, That no mark which consists merely in the name of an individual, firm, corporation, or association not written, printed, impressed, or woven in some particular or distinctive manner, or in association with a portrait of the individual, or merely in words or devices which are descriptive of the goods w^ith which they are used, or of the character or quality of such goods, or merely a geographical name or term, shall be registered under the terms of this Act: Provided further, That no portrait of a living individual may be registered as a trade-mark except by the consent of such individual, evidenced by an instrument in writing : And provided further, That nothing herein shall prevent the registration of any mark used by the applicant or his pred- ecessors, or by those from whom title to the mark is derived, in com- merce with foreign nations or among the several States or with Indian tribes which was in actual and exclusive use as a trade-mark of the applicant, or his predecessors from whom he derived title, for ten years next preceding February twentieth, nineteen hundred and five: Pro- (40) 626 Important Federal Laws vided further, That nothing herein shall prevent the registration of a trade-mark otherwise registrable because of its being the name of the applicant or a portion thereof. (As amended by act of January 8, 1913.) Examination by Commissioner of Patents. Sec. 6. That on the filing of an application for registration of a trade-mark which complies with the requirements of this Act, and the payment of the fees herein provided for, the Commissioner of Patents shall cause an examination thereof to be made; and if on such exami- nation it shall appear that the applicant is entitled to have his trade-mark registered under the provisions of this Act, the commissioner shall cause the mark to be published at least once in the Official Gazette of the Patent Office. Any person who believes he would be damaged by the registration of a mark may oppose the same by filing notice of opposi- tion, stating the grounds therefor, in the Patent Office within thirty days after the publication of the mark sought to be registered, which said notice of opposition shall be verified by the person filing the same before one of the officers mentioned in section two of this act. An oppo- sition may be filed by a duly authorized attorney, but such opposition shall be null and void unless verified by the opposer within a reasonable time after such filing. If no notice of opposition is filed within said time, the commissioner shall issue a certificate of registration therefor, as hereinafter provided for. If on examination an application is re- fused, the commissioner shall notify the applicant, giving him his reasons therefor. (As amended by Act of March 2, 1907.) Interference. Sec. 7. That in all cases where notice of opposition has been filed the Commissioner of Patents shall notify the applicant thereof and the grounds therefor. Whenever application is made for the registration of a trade-mark which is substantially identical with a trade-mark appropriated to goods of the same descriptive properties, for which a certificate of registra- tion has been previously issued to another, or for registration of which another has previously made application, or which so nearly resembles such trade-mark, or a known trade-mark owned and used by another, as, in the opinion of the commissioner, to be likely to be mistaken there- for by the public, he may declare that an interference exists as to such trade-mark, and in every case of interference or opposition to registra- tion he shall direct the examiner in charge of interferences to determine the question of the right of registration to such trade-mark, and of the sufficiency of objections to registration, in such manner and upon such notice to those interested as the commissioner may by rules prescribe. The commissioner may refuse to register the mark against the reg- istration of which objection is filed, or may refuse to register both of two interfering marks, or may register the mark, as a trade-mark, for the person first to adopt and use the mark, if otherwise entitled to register Trade-Marks 627 the same, unless an appeal is taken, as hereinafter provided for, from his decision, by a party interested in the proceeding, within such time (not less than twenty days) as the commissioner may prescribe. Appeals to Commissioner. Sec. 8. That every applicant for the registration of a trade-mark, or for the renewal of the registration of a trade-mark, which applica- tion is refused, or a party to an interference against whom a decision has been rendered, or a party who has filed a notice of opposition as to a trade-mark, may appeal from the decision of the examiner in charge of trade-marks, or the examiner in charge of interferences, as the case may be, to the commissioner in person, having once paid the fee for such appeal. ; Appeals to Court. Sec. 9. That if an applicant for registration of a trade-mark, or a party to an interference as to a trade-mark, or a party who has filed opposition to the registration of a trade-mark, or party to an application for the cancelation of the registration of a trade-mark, is dissatisfied with the decision of the Commissioner of Patents, he may appeal to the court of appeals of the District of Columbia, on complying with the conditions required in case of an appeal from the decision of the com- missioner by an applicant for a patent, or a party to an interference as to an invention, and the same rules of practice and procedure shall gov- ern in every stage of such proceedings, as far as the same may be applicable. . • ■ , Trade-Mark Assignable. Sec. 10. That every registered trade-mark, and every mark for the registration of which application has been made, together with the appli- cation for registration of the same, shall be assignable in connection with the good will of the business in which the mark is used. Such assignment must be by an instrument in writing and duly acknowledged according to the laws of the country or State in which the same is executed ; any such assignment shall be void as against any subsequent purchaser for a valuable consideration, without notice, unless it is recorded in the Patent Office within three months from date thereof. The commissioner shall keep a record of such assignments. Certificates, Records, Books, Etc. Sec. 11. That certificates of registration of trade-marks shall be issued in the name of the United States of America, under the seal of the Patent Office, and shall be signed by the Commissioner of Patents, and a record thereof, together with printed copies of the drawing and statement of the applicant, shall be kept in books for that purpose. The certificate shall state the date on which the application for registration was received in the Patent Office. Certificates of registration of trade- marks may be issued to the assignee of the applicant, but the assignment must first be entered of record in the Patent Office. 628 Important Federal Laws Written or printed copies of any records, books, papers, or drawings relating to trade-marks belonging to the Patent Office, and of certificates of registration, authenticated by the seal of the Patent office and certified by the commissioner thereof, shall be evidence in all cases wherein the originals could be evidence ; and any person making application therefor and paying the fee required by law shall have certified copies thereof. Certificates in Force Twenty Years. Sec. 12. That a certificate of registration shall remain in force for twenty years, except that in the case of trade-marks previously registered in a foreign country such certificates shall cease to be in force on the day on which the trade-mark ceases to be protected in such foreign country, and shall in no case rernain in force more than twenty years, unless renewed. Certificates of registration may be from time to time renewed for like periods on payment of the renewal fees required by this act. upon request by the registrant, his legal representatives, or transferees of record in the Patent Office, and such request may be made at any time not more than six months prior to the expiration of the period for which the certificates of registration were issued or renewed. Certificates of registration in force at the date at which this act takes effect shall remain in force for the period for which they were issued, but shall be renewable on the same conditions and for the same periods as certificates issued under the provisions of this Act, and when so renewed shall have the same force and effect as certificates issued under this act. Application by Person Injured by Trade-Mark. Sec. 13. That whenever any person shall deem himself injured by the registration of a trade-mark in the Patent Office he may at any time apply to the Commissioner of Patents to cancel the registration thereof. The commissioner shall refer such application to the examiner in charge of interferences, who is empowered to hear and determine this question and who shall give notice thereof to the registrant. If it appear after a hearing before the examiner that the registrant was not entitled to the use of the mark at the_ date of his application for registration thereof, or that the mark is not used by the registrant, or has been abandoned, and the examiner shall so decide, the commissioner shall cancel the regis- tration. Appeal may be taken to the commissioner in person from the decision of examiner of interferences. Fees. Sec. 14. That the following shall be the rates for trade-mark fees: On filing each original application for registration of a trade-mark, ten dollars : Provided, That an application for registration of a trade- mark pending at the date of the passage of this act, and on which cer- tificate of registration shall not have issued at such date, may, at the option of the applicant, be proceeded with and registered under the provisions of this act without the payment of further fee. Trade-Marks 629 On filing each application for renewal of the registration of a trade- mark, ten dollars. On filing notice of opposition to the registration of a trade-mark, ten dollars. On an appeal from the examiner in charge of trade-marks to the Commissioner of Patents, fifteen dollars. On an appeal from the decision of the examiner in charge of inter- ferences, awarding ownership of a trade-mark or canceling the registra- tion of a trade-mark, to the Commissioner of Patents, fifteen dollars. For certified and uncertified copies of certificates of registration and other papers, and for recording transfers and other papers, the same fees as required by law for such copies of patents and for recording assignments and other papers relating to patents. Laws Applicable. Sec. 15. That sections forty-nine hundred and thirty-five and forty- nine hundred and thirty-six of the Revised Statutes, relating to the pay- ment of patent fees and to the repayment of fees paid by mistake, are hereby made applicable to trade-mark fees. Registration Prima Facie Evidence of Ownership. Sec. 16. That the registration of a trade-mark under the provision of this act shall be prima facie evidence of ownership. Any person who shall, without the consent of the owner thereof, reproduce, counterfeit, copy, or colorably imitate any such trade-mark and affix the same to mer- chandise of substantially the same descriptive properties as those set forth in the registration, or to labels, signs, prints, packages, wrappers, or receptacles intended to be used upon or in connection with the sale of merchandise of substantially the same descriptive properties as those set forth in such registration, and shall use, or shall have used, such repro- duction, counterfeit, copy, or colorable imitation in commerce among the several States, or with a foreign nation, or with the Indian tribes, shall be liable to an action for damages therefor at the suit of the owner there- of ; and whenever in any such action a verdict is rendered for the plain- tifif, the court may enter judgment therein for any sum above the amount found by the verdict as the actual damages, according to the circum- stances of the case, not exceeding three times the amount of such ver- dict, together with the costs. Jurisdiction of Courts. Sec. 17. That the circuit and territorial courts of the United States and the supreme court of the District of Columbia shall have original jurisdiction, and the circuit courts of appeal of the United States and the court of appeals of the District of Columbia shall have appellate jurisdiction of all suits at law or in equity respecting trade-marks regis- tered in accordance with the provisions of this act, arising under the present act, without regard to the amount in controversy. 630 Important Federal Laws Supreme Court Writs of Certiorari. Sec. 18. That writs of certiorari may be granted by the Supreme Court of the United States for the review of cases arising under this act in the same manner as provided for patent cases by the act creatmg the circuit court of appeals. Injunctions. Sec. 19. That the several courts vested with jurisdiction of cases arising under the present act shall have power to grant injunctions, according to the course and principles of equity, to prevent the violation of any right of the owner of a trade-mark registered under this act, on such terms as the court may deem reasonable ; and upon a decree being rendered in any such case for wrongful use of a trade-mark the com- plainant shall be entitled to recover, in addition to the profits to be accounted for by the defendant, the damages the complainant has sus- tained thereby, and the court shall assess the same or cause the same to be assessed under its direction. The court shall have the same power to increase such damages, in its discretion, as is given by section sixteen of this act for increasing damages found by verdict in actions of law ; and in assessing profits the plaintiff shall be required to prove defendant's sales only ; defendant must prove all elements of cost which are claimed. Orders of Court in Injunction Cases. Sec. 20. That in any case involving the right to a trade-mark regis- tered in accordance with the provisions of this act, in which the verdict has been found for the plaintiflf, or an injunction issued, the court may order that all labels, signs, prints, packages, wrappers, or receptacles in the possession of the defendant, bearing the trade-mark of the plaintiff or complainant, or anv reproduction, counterfeit, copy, or colorable imi- tation thereof, shall be delivered up and destroyed. Any injunction that may be granted upon hearing, after notice to the defendant, to prevent the violation of any right of the owner of a trade-mark registered in accordance with the provisions of this act, by any circuit court of the United States, or by a judge thereof, may be served on the parties against whom such injunction may be granted anywhere in the United States where they may be found,' and shall be operative, and may be enforced by proceedings to punish for contempt, or otherwise, by the court by which such injunction was granted, or by any other circuit court, or judge thereof, in the United States, or by the Supreme Court of the District of Columbia, or a judge thereof. The said courts, or judges thereof, shall have jurisdiction to enforce said injunction, as herein pro- vided, as fully as if the injunction had been granted by the circuit court in which it is sought to be enforced. The clerk of the court or judge granting the injunction shall, when required to do so by the court or judge which application to enforce said injunction is made, transfer without delay to said court a certified copy of all the papers on which the said injunction was granted that are on file in his office. Trade-Marks 63 1 No Relief in Case of Unlawful Business. Sec. 21. That no action or suit shall be maintained under the pro- visions of this act in any case when the trade-mark is used in unlawful business, or upon any article injurious in itself, or which mark has been used with the resign of deceiving the public in the purchase of merchan- dise, or has been abandoned, or upon any certificate of registration fraud- ulently obtained. Suits in Equity for Damages. Sec. 22. That whenever there are interfering registered trade- marks, any person interested in any one of them may have relief against the interfering registrant, and all persons interested under him, by suit in equity against the said registrant ; and the court, on notice to adverse parties and other due proceedings had according to the course of equity, may adjudge and declare either of the registrations void in whole or in part according to the interest of the parties in the trade-mark, and may order the certificate of registration to be delivered up to the Commis- sioner of Patents for cancellation. Not to Affect Other Remedies. _ Sec. 23. That nothing in this act shall prevent, lessen, impeach, or avoid any remedy at law or in equity which any party aggrieved by any wrongful use of any trade-mark might have had if the provisions of this act had not been passed. Pending Cases. Sec. 24. That all applications for registration pending in the office of the Commissioner of Patents at the time of the passage of this act may be amended with a view to bringing them, and the certificate issued upon such applications, under its provisions, and the prosecution of such applications may be proceeded with under the provisions of this act. Fraudulent Registration. Sec. 25. That any person who shall procure registration of a trade- mark, or entry thereof, in the office of the Commissioner of Patents by a false or fraudulent declaration or representation, oral or in writing, or by any false means, shall be liable to pay any damages sustained in consequence thereof to the injured party, to be recovered by an action on the case. Rules and Regulations. Sec. 26. That the Commissioner of Patents is authorized to make rules and regulations, not inconsistent with law, for the conduct of pro- ceedings in reference to the registration of trade-marks provided for by this act. Articles Imported Not to Imitate Name of Domestic Product. Sec. 27. That no article of imported merchandise which shall copy or simulate the name of any domestic manufacture, or manufacturer or trader or of any manufacturer or trader located in any foreign 632 Important Federal Laws country which, by treaty, convention, or law affords similar privileges to citizens of the United States, or which shall copy or simulate a trade- mark registered in accordance with' the provisions of this act or shall bear a name or mark calculated to induce the public to believe that the article is manufactured in the United States, or that it is manufactured in any foreign country or locality other than the country or locality in which it is in fact manufactured, shall be admitted to entry at any custom- house of the United States ; and, in order to aid the officers of the customs in enforcing this prohibition, any domestic manufacturer or trader, and any foreign manufacturer or trader, who is entitled under the provisions of a treaty, convention, declaration, or agreement between the United States and any foreign country to the advantages afforded by law to citi- zens of the United States in respect to trade-marks and commercial names, may require his name and residence, and the name of the locality in which his goods are manufactured, and a copy of the certificate of registration of his trade-mark, issued in accordance with the provisions of this act, to be recorded in books which shall be kept for this purpose in the Department of the Treasury, under such regulations as the Secretary of the Treasury shall prescribe, and may furnish to the department facsimiles of his name, the name of the locality in which his goods are manufactured, or of his registered trade-mark ; and thereupon the Secre- tary of the Treasury shall cause one or more copies of the same to be transmitted to each collector or other proper officer of customs. Notice of Trade-Mark. Sec. 28. That it shall be the duty of the registrant to give notice to the public that a trade-mark is registered, either by affixing thereon the words "Registered in U. S. Patent Office," or abbreviated thus, "Reg. U. S. Pat. Off.," or when, from the character or size of the trade-mark^ or from its manner of attachment to the article to which it is appro- priated, this can not be done, then by affixing a label containing a like notice to the package or receptacle wherein the article or articles are inclosed ; and in any suit for infringement by a party failing so to give notice of registration no damages shall be recovered, except on proof that the defendant was duly notified of infringement and continued the same after such notice. Definitions. Sec. 29. That in construing this act the following rules must be observed, except where the contrary intent is plainly apparent from the context thereof: The United States includes and embraces all terri- tory which is under the .jurisdiction and control of the United States. The word "States" includes and embraces the District of Columbia, the Territories of the United States, and such other territory as shall be vmder the jurisdiction and control of the United States. The terms "person" and "owner," and any other word or term used to designate the Trade-Marks 633 applicant or other entitled to a benefit or privilege or rendered liable under the provisions of this act, include a firm, corporation, or association as well as a natural person. The term ''applicant" and "registrant" embrace the successors and assigns of such applicant or registrant. The term "trade-mark" includes any mark which is entitled to registration under the terms of this act, and whether registered or not, and a trade- mark shall be deemed to be "affixed" to an article when it is placed in any manner in or upon either the article itself or the receptacle or pack- age or upon the envelope or other thing in, by, or with which the goods are packed or inclosed or otherwise prepared for sale or distribution. Date of Effect. Sec. 30. That this act shall be in force and take eflfect April first, nineteen hundred and five. All acts and parts of acts inconsistent with this act are hereby repealed except so far as the same may apply to certificates of registration issued under the act of Congress approved March third, eighteen hundred and eighty-one, entitled "An act to auth- orize the registration of trade-marks and protect the same," or under the act approved August fifth, eighteen hundred and eighty-two, entitled "An act relating to the registration of trade-marks." Act of May 4. 1906. An Act to amend the laws of the United States relating to the registration of trade-marks. ******* Classes of Merchandise. Sec. 2. That the Commissioner of Patents shall establish classes of merchandise for the purpose of trade-mark registration, and shall deter- mine the particular descriptions of goods comprised in each class. On a single application for registration of a trade-mark the trade-mark maybe registered at the option of the applicant for any or all goods upon which the mark has actually been used comprised in a single class of merchan- dise, provided the particular descriptions of goods be stated. Owners of Trade-Mark Having Plant in This Country. Sec. 3. That any owner of a trade-mark who shall have a manu- facturing establishment within the territory of the United States shall be accorded, so far as the registration and protection of trade-marks used on the products of such establishment are concerned, the same rights and privileges that are accorded to owners of trade-marks domiciled within the territory of the United States by the act entitled "An act to authorize the registration of trade-marks used in commerce with foreign nations or among the several States or with Indian tribes, and to protect the same," approved February twentieth, nineteen hundred and five. Sec. 4. That this act shall take effect July first, nineteen hundred and six. 634 Important Federal Laws COPYRIGHT LAW. Act of March 4, 1909, as Amended. An Act to amend and consolidate the acts respecting copyright. Exclusive Rights. Sec. 1. That any person entitled thereto, upon complying with the provisions of this Act, shall have the exclusive right : (a) To print, reprint, publish, copy, and vend the copyrighted work ; (b) To translate the copyrighted work into other languages or dia- lects, or make any other version thereof, if it be a literary work ; to dramatize it if it be a nondramatic work; to convert it into a novel or other nondramatic work if it be a drama; to arrange or adapt it if it be a musical work; to complete, execute, and finish it if it be a model or design for a work of art ; (c) To deliver or authorize the delivery of the copyrighted work in public for profit if it be a lecture, sermon, address, or similar produc- tion; (d) To perform or represent the copyrighted work publicly if it be a drama or, if it be a dramatic work and not reproduced in copies for sale, to vend any manuscript or any record whatsoever thereof ; to make or to procure the making of any transcription or record thereof by or from which, in whole or in part, it may in any manner or by any method be exhibited, performed, represented, produced, or reproduced ; and to exhibit, perform, represent, produce, or reproduce it in any manner or by any method whatsoever; (e) To perform the copyrighted work publicly for profit if it be a musical composition and for the purpose of public performance for profit; and for the purposes set forth in subsection (a) hereof, to make any arrangement or setting of it or of the melody of it in any system of notation or any form of record in which the thought of an author may be recorded and from which it may be read or reproduced : Pro- vided, That the provisions of this Act, so far as they secure copyright controlling the parts of instruments serving to reproduce mechanically the musical work, shall include only compositions published and copy- righted after this Act goes into efifect, and shall not include the works of a foreign author or composer unless the foreign state or nation of which such author or composer is a citizen or subject grants, either by treaty, convention, agreement, or law, to citizens of the United States similar rights: And provided further, and as a condition of extending the copyright control to such mechanical reproductions. That whenever the owner of a musical copyright has used or pemiitted or knowingly acquiesced in the use of the copyrighted work upon the parts of instru- ments serving to reproduce mechanically the musical work, any other person may make similar use of the copyrighted work upon the payment to the copyright proprietor of a royalty of two cents on each such part manufactured, to be paid by the manufacturer thereof; and the copyright Copyright Laws 635 proprietor may require, and if so the manufacturer shall furnish a report under oath on the twentieth day of each month on the number of parts of instruments manufactured during the previous month serving to reproduce mechanically said musical work, and royalties shall be due on the parts manufactured during any month upon the twentieth of the next succeeding month. The payment of the royalty provided for by this sec- tion shall free the articles or devices for which such royalty has been paid from further contribution to the copyright except in case of public performance for profit : And provided further, That it shall be the duty of the copyright owner, if he uses the musical composition himself for the manufacture of parts of instruments serving to reproduce mechan- ically the musical work, or licenses others to do so, to file notice thereof, accompanied by a recording fee, in the copyright office, and any failure to file such notice shall be a complete defense to any suit, action, or pro- ceeding for any infringement of such copyright. In case of the failure of such manufacturer to pay to the copyright proprietor within thirty days after demand in writing the full sum of royalties due at said rate at the date of such demand the court may award taxable costs to the plaintiff and a reasonable counsel fee, and the court may, in its discretion, enter judgment therein for any sum in addition over the amount found to be due as royalty in accordance with the terms of this Act, not exceeding three times such amount. The reproduction or rendition of a musical composition by or upon coin-operated machines shall not be deemed a public performance for profit unless a fee is charged for admission to the place where such reproduction or rendition occurs. Right of Common Law or in Equity. Sec. 2. That nothing in this Act shall be construed to annul or limit the right of the author or proprietor of an unpublished work, at common law or in equity, to prevent the copying, publication, or use of such unpublished work without his consent, and to obtain damages there- for. Component Parts of Copyrightable Work, Sec. 3. That the copyright provided by this Act shall protect all the copyrightable component parts of the work copyrighted, and all mat- ter therein in which copyright is already subsisting, but without extend- ing the duration or scope of such copyright. The copyright upon com- posite works or periodicals shall give to the proprietor thereof all the rights in respect thereto which he would have if each part were individ- ually copyrighted under this Act. Works Protected. Sec. 4. That the works for which copyright may be secured under this Act shall include all the writings of an author. 636 Important Federal Laws Classification of Copyright Works. Sec. 5. That the apphcation for registration shall specify to which of the following classes the work in which copyright is claimed belongs : (a) Books, including composite and cyclopaedic works, directories, gazetteers, and other compilations ; (b) Periodicals, including newspapers; (c) Lectures, sermons, addresses (prepared for oral delivery) ; (d) Dramatic or dramatico-musical compositions; (e) Musical compositions; (f) Maps; (g) Works of art; models or designs for works of art; (h) Reproductions of a work of art; (i) Drawings or plastic works of a scientific or technical character; (j) Photographs; (k) Prints and pictorial illustrations; (1) Motion-picture photoplays ; (m) Motion-pictures other than photoplays: Provided, nevertheless, That the above specifications shall not be held to limit the subject-matter of copyright as defined in section four of this Act, nor shall any error in classification invalidate or impair the copyright protection secured under this Act. New Editions. Sec. 6. That compilations or abridgements, adaptations, arrange- ments, dramatizations, translations, or other versions of works in the public domain, or of copyrighted works when produced with the consent of the proprietor of the copyright in such works, or works republished with new matter, shall be regarded as new works subject to copyright under the provisions of this Act; but the publication of any such new works shall not affect the force or validity of any subsisting copyright upon the matter employed or any part thereof, or be construed to imply an exclusive right to such use of the original works, or to secure or extend copyright in such original works. Not Subject to Copyright. Sec. 7. That no copyright shall subsist in tbe original text of any work which is in the public domain, or in any work which was published in this country or any foreign country prior to the going into eflfect of ths Act and has not been already copyrighted in the United States, or in any publication of the United States Government, or any reprint, in whole or in part, thereof: Provided, however, That the publication or repub- lication by the Government, either separately or in a public document, of any material in which copyright is subsisting shall not be taken to cause any abridgement or annulment of the copyright or to authorize any use or appropriation of such copyright material without the consent of the copyright proprietor. Copyright Laws 637 Terms of Copyright. Sec. 8. That the author or proprietor of any work made the subject of copyright by this Act, or his executors, administrators, or assigns, shall have copyright for such work under the conditions and for the terms specified in this xA.ct : Provided, however. That the copyright secured by this Act shall extend to the work of an author or proprietor who is a citizen or subject of a foreign state or nation, only: (a) When an alien author or proprietor shall be domiciled within the United States at the time of the first publication of his work ; or (b) When the foreign state or nation of which such author or pro- prietor is a citizen or subject grants, either by treaty, convention, agree- ment, or law, to citizens of the United States the benefit of copyright on substantially the same basis as to its own citizens, or copyright protection substantially equal to the protection secured to such foreign author under this Act or by treaty ; or when such foreign state or nation is a party to an international agreement which provides for reciprocity in the grant- ing of copyright, by the terms of which agreement the United States may, at its pleasure, become a party thereto. The existence of the reciprocal conditions aforesaid shall be deter- mined by the President of the United States, by proclamation made from time to time, as the purposes of this Act may require. Publication With Notice Imitates Copyright. Sec. 9. That any person entitled thereto by this Act may secure copyright for his work by publication thereof with the notice of copy- right required by this Act ; and such notice shall be affixed to each copy thereof published or offered for sale in the United States by authority of the copyright proprietor, except in the case of books seeking ad interim protection under section twenty-one of this Act. Registration of Copyright. Sec. 10. That such person may obtain registration of his claim to copyright by complying with the provisions of this Act, including the deposit of copies, and upon such compliance the register of copyrights shall issue to him the certificate provided for in section fifty-five of this Act. Copyright Protection of Unpublished Works. Sec. 11. That copyright may also be had of the works of an author of which copies are not reproduced for sale, by the deposit, with claim of copyright, of one complete copy of such work if it be a lecture or similar production or a dramatic musical, or dramatico-musicai compo- sition ; of a title and description, with one print taken from each scene or act, if the work be a motion-picture photoplay ; or a photographic print if the work be a photograph ; of a title and description, with not less than two prints taken from diiTerent sections of a complete motion picture, if the work be a motion picture other than a photoplay ; or of a photograph or other identifying reproduction thereof, if it be a work of 638 Important Federal Laws art or a plastic work or drawing. But the privilege of registration of copyright secured hereunder shall not exempt the copyright proprietor from the deposit of copies, under sections twelve and thirteen of this Act, where the work is later reproduced in copies for sale. Two Copies of Edition Deposited. Sec. 12. That after copyright has been secured by publication of the work with. the notice of copyright as provided in section nine of this Act, there shall be promptly deposited in the copyright office or in the mail addressed to the register of copyrights, Washington, District of Columbia, two complete copies of the best edition thereof then published, or if the work is by an author who is a citizen or subject of a foreign state or nation and has been published in a foreign country, one complete copy of the best edition then published in such foreign country, which copies or copy, if the work be a book or periodical, shall have been pro- duced in accordance with the manufacturing provisions specified in sec- tion fifteen of this Act; or if such work be a contribution to a periodical, for which contribution special registration is requested, one copy of the issue or issues containing such contribution ; or if the work is not repro- duced in copies for sale, there shall be deposited the copy, print, photo- graph, or other identifying reproduction provided by section eleven of this Act, such copies or copy, print, photograph, or other reproduction to be accompanied in each case by a claim of copyright. No action or pro- ceeding shall be maintained for infringement of copyright in any work until the provisions of this Act with respect to the deposit of copies and registration of such work shall have been complied with. Failure to Deposit Copies. Sec. 13. That should the copies called for by section twelve of this Act not be promptly deposited as herein provided, the register of copy- rights may at any time after the publication of the work, upon actual notice, require the proprietor of the copyright to deposit them, and after the said demand shall have been made, in default of the deposit of copies of the work within three months from any part of the United States, except an outlying territorial possession of the United States, or within six months from any outlying territorial possession of the United States, or from any foreign country, the proprietor of the copyright shall be liable to a fine of one hundred dollars and to pay to the Library of Con- gress twice the amount of the retail price of the best edition of the work, and the copyright shall become void. Postmaster's Receipt. Sec. 14. That the postmaster to whom are delivered the articles deposited as provided in sections eleven and twelve of this Act shall, if requested, give a receipt therefor and shall mail them to their destination without cost to the copyright claimant. Copyright Laws 639 Character of Printing. Sec. 15. That of the printed book or periodical specified in section five, subsections (a) and (b) of this Act, except the original text of a book of foreign origin in a language or languages other than English, the text of all copies accorded protection under this act, except as below provided, shall be printed from type set within the limits of the United States, either by hand or by the aid of any kind of typesetting machine, or frorn plates made within the limits of the United States from type set therein, or. if the text be produced by lithographic process, or photo- engraving process, then by a process wholly performed within the limits of the United States, and the printing of the text and binding of the said book shall be performed within the limits of the United States; which requirements shall extend also to the illustrations within a book consisting of printed text and illustrations produced by lithographic process, or photo-engraving process, and also to separate lithographs or photo- engravings, except where in either case the subjects represented are located in a foreign country and illustrate a scientific work or reproduce a work of art ; but they shall not apply to works in raised characters for the use of the blind, or to books of foreign origin in a language or lan- guages other than English, or to books published abroad in the English language seeking ad interim protection under this Act. Affidavits. Sec. 16. That in the case of the book the copies so deposited shall be accompanied by an affidavit, under the official seal of any officer auth- orized to administer oaths within the United States, duly made by the person claiming copyright or by his duly authorized agent or representa- tive residing in the United States, or by the printer who has printed the book, setting forth that the copies deposited have been printed from type set within the limits of the United States or from plates made within the limits of the United States from type set therein ; or, if the text be pro- duced by lithographic process, or photo-engraving process, that such process was wholly performed within the limits of the United States, and that the printing of the text and binding of the said book have also been performed within the limits of the United States. Such affi- davit shall state also the place where and the establishment or establish- ments in which such type was set or plates were made or lithographic process, or photo-engraving process or printing and binding were per- formed and the date of the completion of the printing of the book or the date of publication. False Affidavits. Sec. 17. That any person who, for the purpose of obtaining regis- tration of a claim to copyright, shall knowingly make a false affidavit as to his having complied with the above' conditions shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punished by a 640 Important Federal Laws fine of not more than one thousand dollars, and all of his rights and privileges under said copyright shall thereafter be forfeited. Notice of Copyright. Sec. 18. That the notice of copyright required by section nine of this act shall consist either of the word "Copyright" or the abbreviation "Copr." accompanied by the name of the copyright proprietor, and if the work be a printed literary, musical, or dramatic work, the notice shall include also the year in which the copyright was secured by publication. In the case, however, of copies of works specified in subsections (f) to (k), inclusive, of section five of this act, the notice may consist of the letter C inclosed with a circle, thus: (C), accompanied by the initials, monogram, mark, or symbol of the copyright proprietor : Provided, That on some accessible })ortion of such copies or of the margin, back, perma- nent base, or pedestal, or of the substance on which such copies shall be mounted, his name shall appear. But in the case of works in which copyright is subsisting when this act shall go into effect, the notice of copyright may be either in one of the forms prescribed herein or in one of those prescribed by the Act of June eighteenth, eighteen hundred and seventy-four. Same. Sec. 19. That the notice of copyright shall be applied, in the case of a book or other printed publication, upon its title-page or the page immediately following, or if a periodical either upon the title-page or upon the first page of text of each separate numl)er or under the title heading, or if a musical work either upon its title-page or the first page of music : Provided, That one notice of copyright in each volume or in each number of a newspaper or periodical published shall suffice. Omission of Notice. Sec. 20. That where the copyright proprietor has sought to comply with the provisions of this Act with respect to notice, the omission bv accident or mistake of the prescribed notice from a particular copy or copies shall not invalidate the copyright or prevent recovery for infringe- ment against any person who, after actual notice of the copyright, begins an undertaking to infringe it, but shall prevent the recovery of damages against an innocent infringer who has been misled by the omission of the notice; and in a suit for infringement no permanent injunction shall be had unless the copyright proprietor shall reimburse to the innocent infringer his reasonable outlay innocently incurred if the court, in its discretion, shall so direct. Ad Interim Copyright. Sec. 21. That in the case of a book published abroad in the English language before publication in this country, the deposit in the copyright office, not later than thirty days after its publication abroad, of one com- Copyright Laws 641 plete copy of the foreign edition, with a request for the reservation of the copyright and a statement of the name and nationality of the author and of the copyright proprietor and of the date of pubUcation of the said book, shall secure to the author or proprietor an ad interim copyright, which shall have all the force and effect given to copyright by this Act, and shall endure until the expiration of thirty days after such deposit in the copyright office. Extension to Full Term. Sec. 22. That whenever within the period of such ad interim pro- tection an authorized edition of such book shall be published within the United States, in accordance with the manufacturing provisions specified in section fifteen of this Act, and whenever the provisions of this Act as to deposit of copies, registration, filing of affidavit, and the printing of the copyright notice shall have been duly complied with, the copyright shall be extended to endure in such book for the full term elsewhere provided in this Act. Duration of Copyright. Sec. 23. That the copyright secured by this Act shall endure for twenty-eight years from the date of first publication, whether the copy- righted work bears the author's true name or is published anonymously or under an assumed name : Provided, That in the case of any posthu- mous work or of any periodical, cyclopedic, or other composite work upon which the copyright was originally secured by the proprietor thereof, or of any work copyrighted by a corporate body (otherwise than as assignee or licensee of the individual author) or by an employer for whom such work is made for hire, the proprietor of such copyright shall be entitled to a renewal and extension of the copyright in such work for the further term of twenty-eight years when application for such renewal and extension shall have been made to the copyright office and duly regis- tered therein within one year prior to the expiration of the original term of copyright : And provided further, That in the case of any other copy- righted work, including a contribution by an individual author to a peri- odical or to a cyclopaedic or other composite work when such contribu- tion has been separately registered, the author of such work, if still living, or the widow, widower, or children of the author, if the author be not living, or if such author, widow, widower, or children be not living, then the author's executors, or in the absence of a will, his next of kin shall be entitled to a renewal and extension of the copyright in such work for a further term of twenty-eight years when application for such renewal and extension shall have been made to the copyright office and duly regis- tered therein within one year prior to the expiration of the original term of copyright : And provided further, That in default of the registration of such application for renewal and extension, the copyright in any work shall determine at the expiration of twenty-eight years from first publi- cation. (41) 642 Important Federal Laws Extension of Subsisting Copyrights. Sec. 24. That the copyright subsisting in any work at the time when this Act goes into effect may, at the expiration of the term provided for under existing law, be renewed and extended by the author of such work if still living, or the widow, widower, or children of the author, if the author be not living, or if such author, widow, widower, or children be not living, then by the author's executors, or in the absence of a will, his next of kin, for a further period such that the entire term shall be equal to that secured by this Act, including the renewal period : Provided, however. That if the work be a composite work upon which copyright was originally secured by the proprietor thereof, then such proprietor shall be entitled to the privilege of renewal and extension granted under this section : Provided, That application for such renewal and extension shall be made to the copyright office and duly registered therein within one year prior to the expiration of the existing term. Infringement of Copyright. Sec. 25. That if any person shall infringe the copyright in any work protected under the copyright laws of the United States such per- son shall be liable : (a) To an injunction restraining such infringement; (b) To pay to the copyright proprietor such damages as the copy- right proprietor may have suft'ered due to the infringement, as well as all the profits which the infringer shall have made from such infringement, and in proving profits the plaintiff' shall be required to prove sales only and the defendant shall be required to prove every element of cost which he claims, or in lieu of actual damages and profits such damages as to the court shall appear to be just, and in assessing such damages the court may, in its discretion, allow the amounts as hereinafter stated, but in case of a' newspaper reproduction of a copyrighted photograph such damages shall not exceed the sum of two hundred dollars nor be less than the sum of fiftv dollars, and in the case of the infringement of an undram- atized or nondramatic work by means of motion pictures, where the infringer shall show that he was not aware that he was infringing, and that such infringement could not have been reasonably foreseen, such damages shall not exceed the sum of one hundred dollars ; and in the case of an infringement of a copyrighted dramatic or dramatico-musical work by a maker of motion pictures and his agencies for distribution thereof to exhibitors, where such infringer shows that he was not aware that he was infringing a copyrighted work, and that such infringements could not reasonably have been foreseen, the entire sum of such damages recov- erable bv the copyright proprietor from such infringing maker and his agencies' for the distribution to exhibitors of such infringing motion- picture shall not exceed the sum of five thousand dollars nor be less than two hundred and fifty dollars, and such damages shall in no other case exceed the sum of five thousand dollars nor be less than the sum of two Copyright Laws 643 hundred and fifty dollars, and shall not be regarded as a penalty. But the foregoing exceptions shall not deprive the copyright proprietor of any other remedy given him under this law, nor shall the limitation as to the amount of recovery apply to infringements occurring after the actual notice to a defendant, either by service of process in a suit or other written notice served upon him. First. In the case of a painting, statue, or sculpture, ten dollars for every infringing copy made or sold by or found in the possession of the infringer or his agents or employees; Second. In the case of any work enumerated in section five of this Act, except a painting, statue, or sculpture, one dollar for every infringing copy made or sold by or found in the possession of the infringer or his agents or employees ; Third. In the case of a lecture, sermon, or address, fifty dollars for every infringing delivery; Fourth. In the case of a dramatic or dramatico-musical or a choral or orchestral composition, one hundred dollars for the first and fifty dol- lars for every subsequent infringing performance ; in the case of other musical compositions, ten dollars for every infringing performance ; (c) To deliver up on oath, to be impounded during the pendency of the action, upon such terms and conditions as the court may prescribe, all articles alleged to infringe a copyright; (d) To deliver up on oath for destruction all the infringing copies or devices, as well as all plates, molds, matrices, or other means for making such infringing copies as the court may order; (e) Whenever the owner of a musical copyright has used or permitted the use of the copyrighted work upon the parts of musical instruments serving to reproduce mechanically the musical work, then in case of infringement of such copyright by the unauthorized manufacture, use. or sale of interchangeable parts, such as disks, rolls, bands, or cylin- ders for use in mechanical music-producing machines adapted to repro- duce the copyrighted music, no criminal action shall be brought, but in a civil action an injunction may be granted upon such terms as the court may impose, and the plaintiff shall be entitled to recover in lieu of profits and damages a royalty as provided in section one, subsection (e), of this Act : Provided, also, That whenever any person, in the absence of a license agreement, intends to use a copyrighted musical composition upon the parts of instruments serving to reproduce mechanically the musical work, relying upon the compulsory license provision of this Act, he shall serve notice of such intention, by registered mail, upon the copyright pro- prietor at his last address disclosed by the records of the copyright office, sending to the copyright office a duplicate of such notice ; and in case of his failure so to do the court may, in its discretion, in addition to sums hexeinabove mentioned, award the complainant a further sum, not to exceed three times the amount provided by section one, subsection (e), 644 Important Federal Laws by way of damages, and not as a penalty, and also a temporary injunction until the full award is paid. Rules and regoilations for practice and procedure under this section shall be prescribed by the Supreme Court of the United States. Judgment Enforcing Remedies. Sec. 26. That any court given jurisdiction under section thirty-four of this Act may proceed in any action, suit, or proceeding instituted for violation of any provision hereof to enter a judgment or decree enforcing the remedies herein provided. Different Proceedings United in One Action. Sec. 27. That the proceeding for an injunction, damages, and profits, and those for the seizure of infringing copies, plates, molds, matrices, and so forth, aforementioned, may be united in one action. Penalty for Wilful Infringement. Se6. 28. That any person who willfully and for profit shall infringe any copyright secured by this Act, or who shall knowingly and willfully aid or abet such infringement, shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punished by imprisonment for not exceeding one year or by a fine of not less than one hundred dollars nor more than one thousand dollars, or both, in the discretion of the court ; Provided, however, That nothing in this Act shall be so construed as to prevent the performance of religious or secular works, such as oratorios, cantatas, masses, or octavo choruses by public schools, church choirs, or vocal societies, rented, borrowed, or obtained from some public library, public school, church choir, school choir, or vocal society, provided the performance is given for charitable or educational purposes and not for profit. False Notice of Copyright. Sec. 29. That any person who, with fraudulent intent, shall insert or impress any notice of copyright required by this Act, or words of the same purport, in or upon any uncopyrighted article, or with fraudulent intent shall remove or alter the copyright notice upon any article duly copyrighted shall be guilty of a misdemeanor, punishable by a fine of not less than one hundred dollars and not more than one thousand dollars. Any person who shall knowingly issue or sell any article bearing a notice of United States copyright which has not been copyrighted in this coun- try, or who shall knowingly import any article bearing such notice or words of the same purport, which has not been copyrighted in this coun- try, shall be liable to a fine of one hundred dollars. Prohibition of Importation of Articles With False Notice of Copyright. Sec. 30. That the importation into the United States of any article bearing a false notice of copyright when there is no existing copyright thereon in the United States, or any piratical copies of any work copy- righted in the United States, is prohibited. Copyright Laws 645 Prohibition of Importation of Books. Sec. 31. That during the existence of the American copyright in any book the importation into the United States of any piratical copies thereof or of any copies thereof (although authorized by the author or proprietor) which have not been produced in accordance with the manu- facturing provisions specified in section fifteen of this Act, or any plates of the same not made from type set within the limits of the United States, or any copies thereof produced by lithographic or photo-engraving pro- cess not performed within the limits of the United States, in accordance with the provisions of section fifteen of this Act, shall be, and is hereby, prohibited : Provided, however, That, except as regards piratical copies, such prohibition shall not apply : (a) To works in raised characters for the use of the blind; (b) To a foreign newspaper or magazine, although containing mat- ter copyrighted in the United States printed or reprinted by authority of the copyright proprietor, unless such newspaper or magazine contains also copyright matter printed or reprinted without such authorization ; (c) To the authorized edition of a book in a foreign language or languages of which only a translation into English has been copyrighted in this country ; (d) To any book published abroad with the authorization of the author or copyright proprietor when imported under the circumstances stated in one of the four subdivisions following, that is to say: First. When imported, not more than one copy at one time, for individual use and not for sale ; but such privilege of importation shall not extend to a foreign reprint of a book by an American author copy- righted in the United States ; Second. When imported by the authority or for the use of the United States ; Third. When imported, for use and not for sale, not more than one copy of any such book in any one invoice, in good faith, by or for any society or institution incorporated for educational, literary, philo- sophical, scientific, or religious purposes, or for the encouragement of the fine arts, or for any college, academy, school, or seminary of learning, or for any State, school, college, university, or free public library in the United States : Fourth. When such books form parts of libraries or collections purchased en bloc for the use of societies, institutions, or libraries desig- nated in the foregoing paragraph, or form parts of the libraries or per- sonal baggage belonging to persons or families arriving from foreign countries and are not intended for sale : Provided, That copies imported as above may not lawfully be used in any way to violate the rights of the proprietor of the American copyright or annul or limit the copyright protection secured by this Act, and such unlawful use shall be deemed an infringement of copyright. 646 Important Federal Laws Seizure of Unlawfully Imported Copies. Sec. 32. That any and all articles prohibited importation by this Act which are brought into the United States from any foreign country (except in the mails) shall be seized and forfeited by like proceedings as those provided by law for the seizure and condemnation of property imported into the United States in violation of the customs revenue laws. Such articles when forfeited shall be destroyed in such manner as the Secretary of the Treasury or the court, as the case may be, shall direct: Provided, however, That all copies of authorized editions of copyright books imported in the mails or otherwise in violation of the provisions of this Act may be exported and returned to the country of export whenever it is shown to the satisfaction of the Secretary of the Treasury, in a written application, that such importation does not involve willful negligence or fraud. Authority for Rules and Regulations. Sec. 33. That the Secretary of the Treasury and the Postmaster- General are hereby empowered and required to make and enforce such joint rules and regulations as shall prevent the importation into the United States in the mails of articles prohibited importation by this Act, and may require notice to be given to the Treasury Department or Post Office Department, as the case may be, by copyright proprietors or injured parties, of the actual or contemplated importation or articles prohibited importation by this Act, and which infringe the rights of such copyright proprietors or injured parties. Jurisdiction of Courts. Sec. 34. That all actions, suits, or proceedings arising under the copyright laws of the United States shall be originally cognizable by the circuit courts of the United States, the district court of any Territory, the supreme court of the District of Columbia, the district courts of Alaska, Hawaii, and Porto Rico, and the courts of first instance of the Philippine Islands. District in Which Suit May be Brought. Sec. 35. That civil actions, suits, or proceedings arising under this Act may be instituted in the district of which the defendant or his agent is an inhabitant, or in which he may be found. Injunctions May be Granted. Sec. 36. That any such court or judge thereof shall have power, upon bill in equity filed by any party aggrieved, to grant injunctions to prevent and restrain the violation of any right secured by said laws, according to the course and principles of courts of equity, on such terms as said court or judge may deem reasonable. Any injunction that may be granted restraining and enjoining the doing of anything forbidden by this Act may be served on the parties against whom such injunction mav be granted anywhere in the United States, and shall be operative through- Copyright Laws 647 out the United States and be enforceable by proceedings in contempt or otherwise by any other court or judge possessing jurisdiction of the defendants. Certified Copy of Papers Filed. Sec. Z7. That the clerk of the court, or judge granting the injunc- tion, shall, when required so to do by the court hearing the application to enforce said injunction, transmit without delay to said court a certified copy of all the papers in said cause that are on file in his office. Judgments Reviewed. Sec. 38. That the orders, judgments, or decrees of any court men- tioned in section thirty-four of this Act arising under the copyright laws of the United States may be reviewed on appeal or writ of error in the manner and to the extent now provided by law for the review of cases determined in said courts, respectively. Limitation of Criminal Proceedings. Sec. 39. That no criminal proceeding shall be maintained under the provisions of this Act unless the same is commenced within three years after the cause of action arose. Full Costs Allowed. Sec. 40. That in all actions, suits, or proceedings under this Act, except when brought by or against the United States or any officer there- of, full costs shall be allowed, and the court may award to the prevailing party a reasonable attorney's fee as part of the costs. Copyright District from Property Interest. Sec. 41. That the copyright is distinct from the property in the material object copyrighted, and the sale or conveyance, by gift or other- wise, of the material object .shall not of itself constitute a transfer of the copyright, nor shall the assignment of the copyright constitute a trans- fer of the title to the material object ; but nothing in this Act shall be deemed to forbid, prevent, or restrict the transfer of any copy of a copy- righted work the possession of which has been lawfully obtained. Copyright May be Disposed of. Sec. 42. That copyright secured under this or previous Acts of the United States may be assigned, granted, or mortgaged by an instru- ment in writing signed by the proprietor of the copyright, or may be bequeathed by will. Foreign Assignment to be Acknowledged. Sec. 43. That every assignment of copyright executed in a foreign country shall be acknowledged by the assignor before a consular officer or secretary of legation of the United States authorized by law to administer oaths or perform notarial acts. The certificate of such acknowledgment under the hand and official seal of such consular officer or secretary of legation shall be prima facie evidence of the execution of the instrument. 648 Important Federal Laws Assignments to be Recorded. Sec. 44. That every assignment of copyright shall be recorded in the copyright office within three calendar months after its execution in the United States or within six calendar months after its execution with- out the limits of the United States, in default of which it shall be void as against any subsequent purchaser or mortgagee for a valuable consid- eration, without notice, whose assignment has been duly recorded. Register of Copyrights to Record Assignments. Sec. 45. That the register of copyrights shall, upon payment of the prescribed fee, record such assignment, and shall return it to the sender with a certificate of record attached under seal of the copyright office, and upon the payment of the fee prescribed by this Act he shall furnish to any person requesting the same a certified copy thereof under the said seal. Substitution of Assignee's Name. Sec. 46. That when an assignment of the copyright in a specified book or other work has been recorded the assignee may substitute his name for that of the assignor in the statutory notice of copyright pre- scribed by this Act. Copyright Records. Sec. 47. That all records and other things relating to copyrights required by law to be preserved shall be kept and preserved in the copy- right office. Library of Congress, District of Columbia, and shall be under the control of the register of copyrights, who shall, under the direction and supervision of the Librarian of Congress, perform all the duties relating to the registration of copyrights. Register of Copyrights and Assistant. Sec. 48. That there shall be appointed by the Librarian of Congress a register of copyrights, at a salary of four thousand dollars per annum, and one assistant register of copyrights, at a salary of three thousand dollars per annum, who shall have authority during the absence of the register of copyrights to attach the copyright office seal to all papers issued from the said office and to sign such certificates and other papers as may be necessary. There shall also be appointed by the Librarian such sub- ordinate assistants to the register as may from time to time be authorized by law. Handling of Fees. Sec. 49. That the register of copyrights shall make daily deposits in some bank in the District of Columbia, designated for this purpose by the Secretary of the Treasury as a national depository, of all moneys received to be applied as copyright fees, and shall make weekly deposits with the Secretary of the Treasury in such manner as the latter shall direct, of all copyright fees actually applied under the provisions of this Act, and annual deposits of sums received which it has not been possible Copyright Laws 649 to apply as copyright fees or to return to the remitters, and shall also make monthly reports to the Secretary of the Treasury and to the Librarian of Congress of the applied copyright fees for each calendar month, together with a statement of all remittances received, trust funds on hands, moneys refunded, and unpaid balances. Bond of Register of Copyrights. Sec. 50. That the register of copyrights shall give bond to the United States in the sum of twenty thousand dollars, in form to be approved by the Solicitor of the Treasury and with sureties satisfactory to the Secretary of the Treasury, for the faithful discharge of his duties. Annual Report. Sec. 51. That the register of copyrights shall make an annual re- port to the Librarian of Congress, to be printed in the annual report on the Library of Congress, of all copyright business for the previous fiscal year, including the number and kind of works which have been deposited in the copyright office during the fiscal year, under the provisions of this Act. Seal of Copyright Office. Sec. 52. That the seal provided under the Act of July eighth, eighteen hundred and seventy, and at present used in the copyright office, shall continue to be the seal thereof, and by it all papers issued from the copyright office requiring authentication shall be authenticated. Rules for the Registration of Copyrights. Sec. 53. That, subject to the approval of the Librarian of Congress, the register of copyrights shall be authorized to make rules and regula- tions for the registration of claims to copyright as provided by this Act. Records. Sec. 54. That the register of copyrights shall provide and keep such record books in the copyright office as are required to carry out the provisions of this Act, and whenever deposit has been made in the copy- right office of a copy of any work under the provisions of this Act he shall make entry thereof. Certificate of Registration. Sec. 55. That in the case of each entry the person recorded as the claimant of the copyright shall be entitled to a certificate of registration under seal of the copyright office, to contain the name and address of said claimant, the name of the country of which the author of the work is a citizen or subject, and when an alien author domiciled in the United States at the time of said registration, then a statement of that fact, in- cluding his place of domicile, the name of the author (when the records of the copyright office shall show the same), the title of the work which is registered for which copyright is claimed, the date of the deposit of the copies of such work, the date of publication if the work has been repro- duced in copies for sale, or publicly distributed, and such marks as to 650 Important Federal Laws class designation and entry number as shall fully identify the entry. In the case of a book the certificate shall also state the receipt of the affidavit, as provided by section sixteen of this Act, and the date of the completion of the printing, or the date of the publication of the book, as stated in the said affidavit. The register of copyrights shall prepare a printed form for the said certificate, to be filled out in each case as above provided for in the case of all registrations made after this Act goes into eifect, and in the case of all previous registrations so far as the copyright office record books shall show such facts, which certificate, sealed with the seal of the copyright office, shall, upon payment of the prescribed fee, be given to any person making application for the same. Said certificate shall be admitted in any court as prima facie evidence of the facts stated therein. In addition to such certificate the register of copyrights shall furnish, upon request, without additional fee, a receipt for the copies of the work deposited to complete the registration. Index to Registrations. Six. 56. That the register of copyrights shall fully index all copy- right registrations and assignments and shall print at periodic intervals a catalogue of the titles of articles deposited and registered for copy- right, together with suitable indexes, and at stated intervals shall print complete and indexed catalogues for each class of copyright entries, and may thereupon, if expedient, destroy the original manuscript catalogue cards containing the titles included in such printed volumes and represent- ing the entries made during such intervals. The current catalogues of copyright entries and the index volumes herein provided for shall be ad- mitted in any court as prima facie evidence of the facts stated therein as regards any copyright registration. Distribution of Catalogues of Copyright Entries. Sec. 57. That the said printed current catalogues as they are issued shall be promptly distributed by the copyright office to the collectors of customs of the United States and to the postmasters of all exchange offices of receipt of foreign mails, in accordance with revised lists of such collectors of customs and postmasters prepared by the Secretary of the Treasury and the Postmaster-General, and they shall also be fur- nished to all parties desiring them at a price to be determined by the register of copyrights, not exceeding five dollars per annum for the com- plete catalogue of copyright entries and not exceeding one dollar per annum for the catalogues issued during the year for any one class of sub- jects. The consolidated catalogues and indexes shall also be supplied to all persons ordering them at such prices as may be determined to be reasonable, and all subscriptions for the catalogues shall be received by the Superintendent of Public Documents, who shall forward the said publications ; and the moneys thus received shall be paid into the Treas- ury of the United States and accounted for under such laws and Treasury regulations as shall be in force at the time. Copyright Laws 651 Record Books, Etc., Open to Inspectors. Sec. 58. That the record books of the copyright ofiice, together with the indexes to such record books, and all works deposited and retained in the copyright office, shall be open to public inspection ; and copies may be taken of the copyright entries actually made in such record books, subject to such safeguards and regulations as shall be pre- scribed by the register of copyrights and approved by the Librarian of Congress. Disposition of Copyright Deposits. Sec. 59. That of the articles deposited in the copyright office under the provisions of the copyright laws of the LTnited States or of this Act, the Librarian of Congress shall determine what books and other articles shall be transferred to the permanent collections of the Library of Con- gress, including the law library, and what other books or articles shall be placed in the reserve collections of the Library of Congress for sale or exchange, or be transferred to other governmental libraries in the Dis- trict of Columbia for use therein. Same. Sec. 60. That of any articles undisposed of as above provided, together with all titles and correspondence relating thereto, the Librarian of Congress and the register of copyrights jointly shall, at suitable inter- vals, determine what of these received during any period of years it is desirable or useful to preserve in the permanent files of the copyright office, and, after due notice as hereinafter provided, may within their discretion cause the remaining articles and other things to be destroyed : Provided, That there shall be printed in the Catalogue of Copyright Entries from February to November, inclusive, a statement of the years of receipt of such articles and a notice to permit any author, copyright proprietor, or other lawful claimant to claim and remove before the expiration of the month of December of that year anything found which relates to any of his productions deposited or registered for copyright within the period of years stated, not reserved or disposed of as pro- vided for in this Act : And provided further. That no manuscript of an unpublished work shall be destroyed during its term of copyright without specific notice to the copyright proprietor of record, permitting him to claim and remove it. Fees. Sec. 6L That the register of copyrights shall receive, and the persons to whom the services designated are rendered shall pay, the fol- lowing fees: For the registration of any work subject to copyright, deposited under the provisions of this Act, one dollar, which sum is to include a certificate of registration under seal : Provided, That in the case of photographs the fee shall be fifty cents where a certificate is not de- manded. For every additional certificate of registration made, fifty cents. For recording and certifying any instrument of writing for the assignment 652 Important Federal Laws of copyright, or any such Hcense specified in section one, subsection (e), or for any copy of such assignment or Hcense, duly certified, if not over three hundred words in length, one dollar ; if more than three hundred and less than one thousand words in length, two dollars ; if more than one thousand words in length, one dollar additional for each one thou- sand words or fraction thereof over three hundred words. For recording the notice of user or acquiescence specified in section one, subsection (e), twenty-five cents for each notice if not over fifty words, and an addi- tional twenty-five cents for each additional one hundred words. For comparing any copy of an assignment with the record of such document in the copyright office and certifying the same under seal, one dollar. For recording the extension or renewal of copyright provided for in sections twenty-three and twenty-four of this Act, fifty cents. For recording the transfer of the proprietorship of copyrighted articles, ten cents for each title of a book or other article, in addition to the fee prescribed for recording the instrument of assignment. For any re- quested search of copyright office records, indexes, or deposits, fifty cents for each full hour of time consumed in making such search : Pro- vided, That only one registration at one fee shall be required in the case of several volumes of the same book deposited at the same time. Definitions. Sec. 62. That in the interpretation and construction of this Act "the date of publication" shall in the case of a work of which copies are reproduced for sale or distribution be held to be the earliest date when copies of the first authorized edition were placed on sale, sold, or publicly distributed by the proprietor of the copyright or under his author- ity, and the word "author" shall include an employer in the case of works made for hire. Repealing Clause. Sec. 63. That all laws or parts of laws in conflict with the provi- sions of this Act are hereby repealed, but nothing in this Act shall afifect causes of action for infringement of copyright heretofore committed now pending in courts of the United States, or which may hereafter be instituted ; but such causes shall be prosecuted to a conclusion in the manner heretofore provided by law. Date of Enforcement. Sec. 64. That this Act shall go into efifect on the first day of July, nineteen hundred and nine. MORAL REFORM. TRANSPORTATION OF PRIZE-FIGHT PICTURES. Act of July 31, 1912. An Act to prohibit the importation and the interstate transportation of films or other pictorial representations of prize fights, and for other purposes. Prize-fight Films — Sending by Mail or Express Unlawful. Sec. 1. That it shall be unlawful for any person to deposit or cause to be deposited in the United States mails for mailing or delivery, or to deposit or cause to be deposited with any express company or other common carrier for carriage, or to send or carry from one 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 Colum- bia, or to bring or to cause to be brought into the United States from abroad, any film or other pictorial representation of any prize fight or encounter of pugilists, under whatever name, which is designed to be used or may be used for purposes of public exhibition. Receiving, Etc., Unlawful. Sec. 2. That it shall be unlawful for any person to take or receive from the mails, or any express company or other common carrier, with intent to sell, distribute, circulate, or exhibit any matter or thing herein forbidden to be deposited for mailing, delivery, or carriage in interstate commerce. Penalty. Sec. 3. That any person violating any of the provisions of this Act shall for each offense, upon conviction thereof, be fined not more than one thousand dollars or sentenced to imprisonment at hard labor for not more than one year, or both, at the discretion of the court. THE WHITE SLAVE ACT. Act of June 25, 1910. An Act to further regulate interstate and foreign commerce by prohibiting the transportation therein for immoral purposes of women and girls, and for other purposes. Definitions. Section 1. That the term "interstate commerce," as used in this Act, shall include transportation from any State or Territory or the District of Columbia to any other State or Territory or the District of Columbia, and the term "foreign commerce," as used in this Act, shall include transportation from any State or Territory or the District of 654 Important Federal Laws Columbia to any foreign country and from any foreign country to any State or Territory or the District of Columbia. Transportation of Females for Immoral Purposes Prohibited. Sec. 2. That any person who shall knowingly transport or cause to be transported, or aid or assist in obtaining transportation for, or in transporting, in interstate or foreign commerce, or in any Territory or in the District of Columbia, any woman or girl for the purpose of prostitu- tion or debauchery, or for any other immoral purpose, or with the intent and purpose to induce, entice, or compel such woman or girl to become a prostitute or to give herself up to debauchery, or to engage in any other immoral practice ; or who shall knowingly procure or obtain, or cause to be procured or obtained, or aid or assist in procuring or obtaining, any ticket or tickets, or any form of transportation or evidence of the right thereto, to be used by any woman or girl in interstate or foreign com- merce, or in any Territory or the District of Columbia, in going to any place for the purpose of prostitution or debauchery, or for any other immoral purpose, or with the intent or purpose on the part of such person to induce, entice, or compel her to give herself up to debauchery, or any other immoral practice, whereby any such woman or girl shall be trans- ported in interstate or foreign commerce, or in any Territory or the District of Columbia, shall be deemed guilty of a felony, and upon con- viction thereof shall be punished by a fine not exceeding five thousand dollars, or by imprisonment of not more than five years, or by both such fine and imprisonment, in the discretion of the court. Inducing Female to Travel Interstate for Immoral Purposes Pro- hibited. Sec. 3. That any person who shall knowingly persuade, induce, entice, or coerce, or cause to be persuaded, induced, enticed, or coerced, or aid or assist in persuading, inducing, enticing, or coercing any woman or girl to go from one place to another in interstate or foreign commerce, or in any Territory or the District of Columbia, for the purpose of pros- titution or debauchery, or for any other immoral purpose, or with the intent and purpose on the part of such person that such woman or girl shall engage in the practice of prostitution or debauchery, or any other immoral practice, whether with or without her consent, and who shall thereby knowingly cause or aid or assist in causing such woman or girl to go and to be carried or transported as a passenger upon the line or route of any common carrier or carriers in interstate or foreign com- merce, or any Territory or the District of Columbia, shall be deemed guilty of a felony and on conviction thereof shall be punished by a fine of not more than five thousand dollars, or by imprisonment for a term not exceeding five years, or by both such fine and imprisonment, in the discretion of the court. Same — Female Under Eighteen Years of Age. Sec. 4. That any person who shall knowingly persuade, induce, White Slave Act 655 entice, or coerce any woman or girl under the age of eighteen years fronj any State or Territory or the District of Columbia to any other State or Territory or the District of Columbia, with the purpose and intent to induce or coerce her, or that she shall be induced or coerced to engage in prostitution or debauchery, or any other immoral practice, and shall in furtherance of such purpose knowingly induce or cause her to go and to be carried or transported as a passenger in interstate commerce upon the line or route of any common carrier or carriers, shall be deemed guilty of a felony, and on conviction thereof shall be punished by a fine of not more than ten thousand dollars, or by imprisonment for a term not exceeding ten years, or by both such fine and imprisonment, in the discretion of the court. Court Jurisdiction. Sec. 5. That any violation of any of the above sections two, three, and four shall be prosecuted in any court having jurisdiction of crimes within the district in which said violation was committed, or from, through, or into which any such woman or girl may have been carried or transported as a passenger in interstate or foreign commerce, or in any Territory or the District of Columbia, contrary to the provisions of anv of said sections. International Agreement — Foreign Females, etc. Sec. 6. That for the purpose of regulating and preventing the trans- portation in foreign commerce of alien women and girls for purposes of prostitution and debauchery, and in pursuance of and for the purpose of carrying out the terms of the agreement or project of arrangement for the suppression of the white-slave traffic, adopted July twenty-fifth, nine- teen hundred and two, for submission to their respective governments by the delegates of various powers represented at the Paris conference and confirmed by a formal agreement signed at Paris on May eighteenth, nineteen hundred and four, and adhered to by the United States on June sixth, nineteen hundred and eight, as shown by the proclamation of the President of the United States, dated June fifteenth, nineteen hundred and eight, the Commissioner-General of Immigration is hereby designated as the authority of the United States to receive and centralize information concerning the procuration of alien women and girls with a view to their debauchery, and to exercise supervision over such alien women and girls, receive their declarations, establish their identity, and ascertain from them who induced them to leave their native countries, respectively ; and it shall be the duty of said Commissioner-General of Immigration to receive and keep on file in his office the statements and declarations which may be made by such alien women and girls, and those which are herein- after required pertaining to such alien women and girls engaged in pros- titution or debauchery in this country, and to furnish receipts for such statements and declarations provided for in this act to the persons, respectively, making and filing them. 656 Important Federal Laws Every person who shall keep, maintain, control, support or harbor in any house or place for the purpose of prostitution, or for any other immoral purpose, any alien woman or girl within three years after she shall have entered the United States from any country, party to the said arrangement for the suppression of the white-slave traffic, shall file with the Commissioner-General of Immigration a statement in writing setting forth the name of such alien woman or girl, the place at which she is kept, and all facts as to the date of her entry into the United States, the port through which she entered, her age, nationality, and parentage, and concerning her procuration to come to this country within the knowledge of such person, and any person who shall fail within thirty days after such person shall commence to keep, maintain, control, support, or harbor in any house or place for the purpose of prostitution, or for any other immoral purpose, any alien woman or girl within three years after she shall have entered the United States from any of the countries, party to the said arrangement for the suppression of the white-slave traffic, to file such statement concerning such alien woman or girl with the Commis- sioper-General of Immigration, or who shall knowingly and wilfully state falsely or fail to disclose in such statement any fact within his knowledge or belief with reference to the age, nationality, or parentage of any such alien woman or girl, or concerning her procuration to come to this coun- try, shall be deemed guilty of a misdemeanor, and on conviction shall be punished by a fine of not more than two thousand dollars, or by impris- onment for a term not exceeding two years, or by both such fine and imprisonment, in the discretion of the court. In any prosecution brought under this section, if it appear that any such statement required is not on file in the office of the Commissioner- General of Immigration, the person whose duty it shall be to file such statement shall be presumed to have failed to file said statement, as herein required, unless such person or persons shall prove otherwise. No per- son shall be excused from furnishing the statement, as required by this section, on the ground or for the reason that the statement so required by him, or the information therein contained, might tend to criminate him or subject him to a penalty or forfeiture, but no person shall be prose- cuted or subjected to any penalty or forfeiture, under any law of the United States for or on account of any transaction, matter, or thing, concerning which he may truthfully report in such statement, as required bv the provisions of this section. Definitions. Sec. 7. That the term "Territory," as used in this Act, shall include the district of Alaska, the insular possessions of the United States, and the Canal Zone. The word "person," as used in this Act, shall be con- strued to import both the plural and the sigular, as the case demands, and shall include corporations, companies, societies, and associations. When construing and enforcing the provisions of this Act, the act, omis- sion, or failure of any officer, agent, or other person, acting for or Liquor Shipments 657 employed by any other person or by any corporation, company, society, or association within the scope of his employment or office, shall in every case be also deemed to be the act, omission, or failure of such other person, or of such company, corporation, society, or association, as well as that of the person himself. Sec. 8. That this Act shall be known and referred to as the White-slave traffic Act. LIQUOR SHIPMENTS IN INTERSTATE COMMERCE. Act of March 1, 1913. The Webb-Kenyon Act. An Act divesting intoxicating liquors of their interstate character in certain cases. That the shipment or transportation, in any manner or by any means whatsoever, of any spirituous, vinous, malted, fermented, or other intoxicating liquor of any kind, from one State, Territory, or District of the United States, or place noncontiguous to but subject to the jurisdic- tion thereof, or from any foreign country into any State, Territory, or District of the United States, or place noncontiguous to but subject to the jurisdiction thereof, which said spirituous, vinous, malted, fermented, or other intoxicating liquor is intended, by any person interested therein, to be received, possessed, sold, or in any manner used, either in the orig- inal package or otherwise, in violation of any law of such State, Terri- tory, or District of the United States, or place noncontiguous to but subject to the jurisdiction thereof, is hereby prohibited. Advertisement in and Shipment Into Dry Territory Prohibited. (Act of March 3, 1917.) Sec. 5. That no letter, postal card, circular, newspaper, pamphlet, or publication of any kind containing any advertisement of spirituous, vinous, malted, fermented, or other intoxicating liquors of any kind, or containing a solicitation of an order or orders for said liquors, or any of them, shall be deposited in or carried by the mails of the United States, or be delivered by any postmaster or letter carrier, when addressed or directed to any person, firm, corporation, or association, or other ad- dressee, at any place or point in any State or Territory of the United States at which it is by the law in force in the State or Territory at that time unlawful to advertise or solicit orders for such liquors, or any of them, respectively. If the publisher of any newspaper or other publication or the agent of such publisher, or if any dealer in such liquors or his agent, shall knowingly deposit or cause to be deposited, or shall knowingly send or cause to be sent, anything to be conveyed or delivered by mail in violation of the provisions of this section, or shall knowingly deliver or cause to be delivered by mail anything herein forbidden to be carried by mail, (42) 658 Important Federal Laws shall be fined not more than $1,000 or imprisoned not more than six months, or both ; and for any subsequent offense shall be imprisoned not more than one year. Any person violating any provision of this section may be tried and punished, either in the district in which the unlawful matter or publication was mailed or to which it was carried by mail for delivery, according to direction thereon, or in which it was caused to be delivered by mail to the person to whom it was addressed. Whoever shall order, purchase, or cause intoxicating liquors to be transported in interstate commerce, except for scientific, sacramental, medicinal, and mechanical purposes, into any State or Territory the laws of which State or Territory prohibit the manufacture or sale therein of intoxicating liquors for beverage purposes shall be punished as aforesaid : Provided, That nothing herein shall authorize the shipment of liquor into any State contrary to the laws of such State : Provided further, That the Postmaster General is hereby authorized and directed to make public from time to time in suitable bulletins or public notices the names of States in which it is unlawful to advertise or solicit orders for such liquors. BANKRUPTCY ACT. Act of July 1, 1808, as amended. An Act to establish a uniform system of bankruptcy throughout the United States. CHAPTER I. Definitions. Meaning of Words and Phrases. Sec. 1. a The words and phrases used in this Act and in pro- ceedings pursuant hereto shall, unless the same be inconsistent with the context, be construed as follows: (1) "A person against whom a petition has been filed" shall include a person who has filed a volun- tary petition; (2) "adjudication" shall mean the date of the entry of a decree that the defendant, in a bankruptcy proceeding, is a bank- rupt, or if such decree is appealed from, then the date when such decree is finally confirmed; (3) "appellate courts" shall include the circuit courts of appeals of the United States, the supreme courts of the Territories, and the Supreme Court of the United States; (4) "bank- rupt" shall include a person against whom an involuntary petition or an application to set a composition aside or to revoke a discharge has been filed, or who has filed a voluntary petition, or who has been adjudged a bankrupt; (5) "clerk" shall mean the clerk of a court of bankruptcy; (6) "corporations" shall mean all bodies having any of the powers and privileges of private corporations not possessed by indi- viduals or partnerships, and shall include limited or other partner- ship associations organized under laws making the capital subscribed alone responsible for the debts of the association; (7) "court" shall mean the court of bankruptcy in which the proceedings are pend- ing, and may include the referee; (8) "courts of bankruptcy" shall in- clude the district courts of the United States and of the Territories, the supreme court of the District of Columbia, and the United States court of the Indian Territory, and of Alaska ; (9) "creditor" shall include anyone who owns a demand or claim provable in bankruptcy, and may include his duly authorized agent, attorney, or proxy; (10) "date of bankruptcy," or "time of bankruptcy," or "commencement of proceedings," or "bankruptcy," with reference to time, shall mean the date when the petition was filed; (11) "debt" shall include any debt, demand, or claim provable in bankruptcy; (12) "discharge" shall mean the release of a bankrupt from all of his debts which are provable 660 Important Federal Laws in bankruptcy, except such as are excepted by this Act; (13) "docu- ment" shall include any book, deed, or instrument in writing; (14) "holiday" shall include Christmas, the Fourth of July, the Twenty- second of February, and any day appointed by the President of the United States or the Congress of the United States as a holiday or as a day of public fasting or thanksgiving; (15) a person shall be deemed insolvent within the provisions of this Act whenever the aggre- gate of his property, exclusive of any property which he may have conveyed, transferred, concealed, or removed, or permitted to be con- cealed or removed, with intent to defraud, hinder or delay his creditors, shall not, at a fair valuation, be sufficient in amount to pay his debts ; (16) "judge" shall mean a judge of a court of bankruptcy, not includ- ing the referee; (17) '"oath" shall include affirmation; (18) "officer" shall include clerk, marshal, receiver, referee, and trustee, and the imposing of a duty upon or the forbidding of an act by any officer shall include his successor and any person authorized by law to perform the duties of such officer; (19) "persons" shall include corporations, except where otherwise specified, and officers, partnerships, and women, and when used with reference to the commission of acts which are herein forbidden shall include persons who are participants in the for- bidden acts, and the agents, officers, and members of the board of di- rectors or trustees, or other similar controlling bodies of corporations ; (20) "petition" shall mean a paper filed in a court of bankruptcy or with a clerk or deputy clerk by a debtor praying for the benefits of this Act, or by creditors alleging the commission of an act of bank- ruptcy by a debtor therein named; (21) "referee" shall mean the ref- eree who has jurisdiction of the case or to whom the case has been referred, or any one acting in his stead; (22) "conceal" shall include secrete, falsify, and mutilate; (23) "secured creditor" shall include a creditor who has security for his debt upon the property of the bank- rupt of a nature to be assignable under this Act. or who owns such a debt for which some indorser. surety, or other persons secondarily liable for the bankrupt has such security upon the bankrupt's assets ; (24) "States" shall include the Territories, the Indian Territory, Alaska, and the District of Columbia; (25) "transfer" shall include the sale and every other and different mode of disposing of or parting with property, or the possession of property, absolutely or conditionally, as a payment, pledge, mortgage, gift, or security; (26) "trustee" shall include all of the trustees of an estate ; (27) "wage-earner" shall mean an individual who works for wages, salary, or hire, at a rate of com- pensation not exceeding one thousand five hundred dollars per year ; (28) words importing the masculine gender may be applied to and include corporations, partnerships, and women ; (29) words importing the plural number may be applied to and mean only a single person or thing; (30) words importing the singular number may be applied to and mean several persons or things. Bankruptcy 661 CHAPTER II. Creation of Courts of Bankruptcy and Their Jurisdiction. Sec. 2. That the courts of bankruptcy, as hereinbefore defined, viz, the district courts of the United States in the several States, the supreme court of the District of Cokimbia, the district courts of the several Territories, and the United States courts in the Indian Terri- tory and the District of Alaska, are hereby made courts of bankruptcy, and are hereby invested, within their respective territorial limits as now established, or they may be hereafter changed, with such jurisdic- tion at law and in equity as will enable them to exercise original jurisdic- tion in bankruptcy proceedings, in vacation in chambers and during their respective terms, as they are now or may be hereafter held, to (1) ad- judge persons bankrupt who have had their principal place, of business, resided, or had their domicile within their respective territorial juris- dictions for the preceding six months, or the greater portion thereof, or who do not have their principal place of business, reside, or have their domicile within the United States, but have property within their jurisdictions, or who have been adjudged bankrupts by courts of com- petent jurisdiction without the United States, and have property withiru their jurisdictions; (2) allow claims, disallow claims, reconsider allowed or disallowed claims, and allow or disallow them against bankrupt es- tates ; (3) appoint receivers or the marshals, upon application of parties in interest, in case the courts shall find it absolutely necessary, for the preservation of estates, to take charge of the property of bankrupts after the filing of the petition and until it is dismissed or the trustee is qualified ; (4) arraign, try, and punish bankrupts, officers, and other persons, and the agents, officers, members of the board of directors or trustees, or other similar controlling bodies, of corporations for viola- tions of this Act, in accordance with the laws of procedure of the United States now in force, or such as may be hereafter enacted, regu- lating trials for the alleged violation of laws of the United States; (5) authorize the business of bankrupts to be conducted for limited periods by receivers, the marshals, or trustees, if necessary in the best interests of the estates, and allow such officers additional compensa- tion for such services, as provided in section forty-eight of this Act ; (6) bring in and substitute additional persons or parties in proceed- ings in bankruptcy when necessary for the complete determination of a matter in controversy; (7) cause the estates of bankrupts to be collected, reduced to money and distributed, and determine controver- sies in relation thereto, except as herein otherwise provided; (8) close estates, whenever it appears that they have been fully administered, by approving the final accounts and discharging the trustees, and re- open them whenever it appears they were closed before being fully administered; (9) confirm or reject compositions between debtors and their creditors, and set aside compositions and reinstate the cases; (10) consider and confirm, modify or overrule, or return, Ayith instruc- 662 Important Federal Laws tions for further proceedings, records and findings certified to them by referees; (11) determine all claims of bankrupts to their exemptions; (12) discharge or refuse to discharge bankrupts and set aside dis- charges and reinstate the cases; (13) enforce obedience by bankrupts, officers, and other persons to all lawful orders, by fine or imprisonment or fine and imprisonment; (14) extradite bankrupts from their respec- tive districts to other districts; (15) make such orders, issue such process, and enter such judgments in additions to those specifically provided for as may be necessary for the enforcement of the provi- sions of this Act; (16) punish persons for contempts committed before referees; (17) pursuant to the recommendation of creditors, or when they neglect to recommend the appointment of trustees, appoint trustees, and upon complaints of creditors, remove trustees for cause upon hear- ings and after notices to them; (18) tax costs, whenever they are allowed by law, and render judgments therefor against the unsuccess- -ful party, or the successful party for cause, or in part against each of ithe parties, and against estates, in proceedings in bankruptcy; (19) transfer cases to other courts of bankruptcy ; and (20) exercise ancil- lary jurisdiction over persons or property within their respective terri- torial limits in aid of a receiver or trustee appointed in any bankruptcy proceedings pending in any other court of bankruptcy. Nothing in this section contained shall be construed to deprive a court of bankruptcy of any power it would possess were certain specific powers not herein emmierated. (Ac amended June 25, 1910.) CHAPTER III. Bankrupt. Acts of Bankruptcy. Sec. 3. a Acts of bankruptcy by a person shall consist of^ his having (1) conveyed, transferred, concealed, or removed, or permitted to be concealed or removed, any part of his property with intent to hinder, delay, or defraud his creditors, or any of them ; or (2) transferred, while insolvent, any portion of his property to one or more of his creditors with intent to prefer such creditors over his other creditors ; or (3) sufifered or permitted, while insolvent, any creditor to obtain a preference through legal proceedings, and not having at least five days before a sale or final disposition of anv property afifected by such preference vacated or dis- charged such preference; or (4) made a general assignment for the benefit of his creditors, or, being insolvent, applied for_ a receiver or trustee for his property or because of insolvency a receiver or trustee has been put in charge' of his property under the laws of a State, of a Territory, or of the United States; or (5) admitted in writing his in- ability to pay his debts and his willingness to be adjudged a bank- rupt on that ground. b A petition may be filed against a person who is insolvent and who has committed an act of bankruptcy within four months after Bankruptcy 663 the commission of such act. Such time shall not expire until four months after (1) the date of the recording or registering of the trans- fer or assignment when the act consists in having made a transfer of any of his property with intent to hinder, delay, or defraud his creditors or for the purpose of giving a preference as hereinbefore provided, or a general assignment for the benefit of his creditors, if by law such recording or registering is required or permitted, or, if it is not, from the date when the beneficiary takes notorious, exclusive, or continuous possession of the property unless the petitioning creditors have received actual notice of such transfer or assignment. c It shall be a complete defense to any proceedings in bankruptcy instituted under the first subdivision of this section to allege and prove that the party proceeded against was not insolvent as defined in this Act at the time of the filing the petition against him, and if solvency at such date is proved by the alleged bankrupt the proceedings shall be dismissed, and under said subdivision one the burden of proving solvency shall be on the alleged bankrupt. d Whenever a person against whom a petition has been filed as hereinbefore provided under the second and third subdivisions of this section takes issue with and denies the allegation of his insolvency, it shall be his duty to appear in court on the hearing, with his books, papers, and accounts, and submit to an examination, and give testimony as to all matters tending to establish solvency or insolvency, and in case of his failure to so attend and submit to examination the burden of proving his solvency shall rest upon him. e Whenever a petition is filed by any person for the purpose of having another adjudged a bankrupt, and an application is made to take charge of and hold the property of the alleged bankrupt, or any part of tiie same, prior to the adjudication and pending a hearing on the petition, the petitioner or applicant shall file in the same court a bond with at least two good and suf^cient sureties wdio shall reside within the jurisdiction of said court, to be approved by the court or a judge thereof, in such sum as the court shall direct, conditioned for the pay- ment, in case such petition is dismissed, to the respondent, his or her personal representatives, all costs, expenses, and damages occa- sioned by such seizure, taking, and detention of the property of the alleged bankrupt. If such petition be dismissed by the court or withdrawn by the petitioner, the respondent or respondents shall be allowed all costs, counsel fees, expenses, and damages occasioned by such seizure, taking, or detention of such property. Counsel fees, costs, expenses, and dam- ages shall be fixed and allowed by the court, and paid by the obligors in such bond. Who May Become Bankrupts. Sec. 4. a Any person except a municipal, railroad, insurance, or 664 Important Federal Laws banking cor'-nrition ^hnll he entitled to the benefits of this Act as a voluntary bankrupt. b Any natural person, except a wage-earner, or a person engaged chiefly in farming or the tillage of the soil, any unincorporated com- pany, and any moneyed, business or commercial corporation, except a municipal, railroad, insurance, or banking corporation, owing debts to the amount of one thousand dollars or over, may be adjudged an in- voluntary bankrupt upon default or an impartial trial, and shall be subject to the provisions and entitled to the benefits of this Act. The bankruptcy of a corporation shall not release its officers, di- rectors, or stockholders, as such, from any liability under the laws of a State or Territory or of the United States. (As amended June 25, 1910.) Partners. '; Sec. 5. a a partnership, during the continuation of the partner- ship business, or after its dissolution and before the final settlement thereof, may be adjudged a bankrupt. b The creditors of the partnership shall appoint the trustee ; in other respects so far as possible the estate shall be administered as here- in provided for other estates. c The court of bankruptcy which has jurisdiction of one of the partners may have jurisdiction of all the partners and of the adminis- tration of the partnership and individual property. d The trustee shall keep separate accounts of the partnership prop- erty and of the property belonging to the individual partners. e The expenses shall be paid from the partnership property and the individual property in such proportions as the court shall deter- mine. f The net proceeds of the partnership shall be appropriated to the payment of the partnership debts, and the net proceeds of the individual estate of each partner to the payment of his individual debts. Should any surplus remain of the property of any partner after paying his' individual debts, such surplus shall be added to the partnership assets and be applied to the payment of the partnership debts. Should any surplus of the partnership property remain after paying the partnership debts, such surplus shall be added to the assets of the individual part- ners in the proportion of their respective interests in the partnership. g The court may permit the proof of the claim of the partnership estate against the individual estates, and vice versa, and may marshal the assets of the partnership estate and individual estates so as to pre- vent preferences and secure the equitable distribution of the property of the several estates. h In the event of one or more but not all of the members of a partnership being adjudged bankrupt, the partnership propertv shall not be administered in bankruptcy, unless by consent of the partner or partners not adjudged bankrupt ; but such partner or partners not Bankruptcy 665 adjudged bankrupt shall settle the partnership business as expeditiously as its nature will permit, and account for the interest of the partner or partners adjudged bankrupt. Exemption of Bankrupts. Sec. 6. a This Act shall not afifect the allowance to bankrupts of the exemptions which are prescribed by the State laws in force at the time of the filing of the petition in the State wherein they have had their domicile for the six months or the greater portion thereof immediately preceding the filing of the petition. Duties of Bankrupts. Sec. 7. a The bankrupt shall (1) attend the first meeting of his creditors, if directed by the court or a judge thereof to do so, and the hearing upon his application for a discharge, if filed ; (2) com- ply with all lawful orders of the court; (3) examine the correctness of all proofs of claims filed against his estate; (4) execute and deliver such papers as shall be ordered by the court; (5) execute to his trus- tee transfers of all his property in foreign countries ; (6) immediately inform his trustee of any attempt, by his creditors or other persons, to evade the provisions of this Act, coming to his knowledge; (7) in case of any person having to his knowledge proved a false claim against his estate, disclose that fact immediately to his trustee ; (8) prepare, make oath to. and file in court within ten days, unless further time is granted, after the adjudication, if an involuntary bankrupt, and with the petition if a voluntary bankrupt, a schedule of his property, show- ing the amount and kind of property, the location thereof, its money value in detail, and a list of his creditors, showing their residences, if known, if unknown, that fact to be stated, the amount due each of them, the consideration thereof, the security held by them, if any. and a claim for such exemptions as he may be entitled to, all in triplicate, one copy of each for the clerk, one for the referee, and one for the trustee; and (9) wdien present at the first meeting of his creditors, and at such other times as the court shall order, submit to an examination con- cerning the conducting of his business, the cause of his bankruptcy, his dealings with his creditors and other persons, the amount, kind, and whereabouts of his property, and, in addition, all matters which may afTect the administration and settlement of his estate ; but no testimony given by him shall be oft'ered in evidence against him in any criminal proceeding : Provided, however. That he shall not be required to attend a meeting of his creditors, or at or for an examination at a place more than one hundred and fifty miles distant from his home or principal place of business, or to examine claims except when presented to him, unless ordered by the court, or a judge thereof, for cause shown, and the bankrupt shall be paid his actual expenses from the estate when examined or required to attend at any place other than the city, town, or village of his residence. 666 Important Federal Laws Death or Insanity of Bankrupts. Sec. 8. a The death or insanity of a bankrupt shall not abate the proceedings, but the same shall be conducted and concluded in the same manner, so far as possible, as though he had not died or become insane : Provided, That in case of death the widow and chil- dren shall be entitled to all rights of dower and allowance fixed by the laws of the State of the bankrupt's residence. Protection and Detention of Bankrupts. Sec. 9. a A bankrupt shall be exempt from arrest upon civil process except in the following cases: (T) When issued from a court of bankruptcy for contempt or disobedience of its lawful orders; (2) when issued from a State court having jurisdiction, and served within such State, upon a debt or claim from which his discharge in bank- ruptcy would not be a release, and in such case he shall be exempt from such arrest when in attendance upon a court of bankruptcy or engaged in the performance of a duty imposed by this Act. b The judge may, at any time after the filing of a petition by or against a person, and before the expiration of one month after the qualification of the trustee, upon satisfactory proof by the affidavits of at least two persons that such bankrupt is about to leave the district in which he resides or has his principal place of business to avoid ex- amination, and that his departure will defeat the proceedings in bank- ruptcv, issue a warrant to the marshal, directing him to bring such bankrupt forthwith before the court for examination. If upon hearing the evidence of the parties it shall appear to the court or a judge there- of that the allegations are true and that it is necessary, he shall order such marshal to keep such bankrupt in custody not exceeding ten days, but not imprison him, until he shall be examined and released or give bail conditioned for his appearance for examination, from time to time, not exceeding in all ten days, as required by the court, and for his obedience to all lawful orders made in reference thereto. Extradition of Bankrupts. Sec. 10. a Whenever a warrant for the apprehension of a bank- rupt shall have been issued, and he shall have been found within the jurisdiction of a court other than the one issuing the warrant, he may be extradited in the same manner in which persons under indictment are now extradited from one district within which a district court has juris- diction to another. Suits By and Against Bankrupts. Sec. 11. a A suit which is founded upon a claim from which a discharge would be a release, and which is pending against a person at the time of the filing of a petition against him, shall be stayed until after an adjudication or the dismissal of the petition; if such person is adjudged a bankrupt, such action may be further stayed until twelve months after the date of such adjudication, or, if within that time Bankruptcy 667 such person applies for a discharge, then until the question of such discharge is determined. b The court may order the trustee to enter his appearance and de- fend any pending suit against the bankrupt. c A trustee may, with the approval of the court, be permitted to prosecute as trustee any suit commenced by the bankrupt prior to the adjudication, with like force and effect as though it had been com- menced by him. d Suits shall not be brought by or against a trustee of a bank- rupt estate subsequent to two years after the estate has been closed. Compositions, When Confirmed. Sec. 12. a A bankrupt may ofifer, either before or after adjudica- tion, terms of composition to his creditors after, but not before, he has been examined in open court or at a meeting of his creditors, and has filed in court the schedule of his property and the list of his cred- itors required to be filed by bankrupts. In compositions before adjudi- cation the bankrupt shall file the required schedules, and thereupon the court shall call a meeting of creditors for the allowance of claims, examination of the bankrupt, and preservation or conduct of estates, at which meeting the judge or referee shall preside; and action upon the petition for adjudication shall be delayed until it shall be deter- mined whether such composition shall be confirmed. b An application for the confirmation of a composition may be filed in the court of bankruptcy after, but not before, it has been accepted in writing by a majority in number of all creditors whose claims have been allowed, which number must represent a majority in amount of such claims, and the consideration to be paid by the bankrupt to his creditors, and the money necessary to pay all debts which have priority and the cost of the proceedings, have been deposited in such place as shall be designated by and subject to the order of the judge. c A date and place, with reference to the convenience of the parties in interest, shall be fixed for the hearing upon each application for the confirmation of a composition, and such objections as may be made to its confirmation. d The judge shall confirm a composition if satisfied that (1) it is for the best interests of the creditors; (2) the bankrupt has not been guilty of any of the acts or failed to perform any of the duties which would be a bar to his discharge; and (3) the offer and its acceptance are in good faith and have not been made or procured except as herein provided, or by any means, promises, or acts herein forbidden. e Upon the confirmation of a composition, the consideration shall be distributed as the judge shall direct, and the case dismissed. When- ever a composition is not confirmed, the estate shall be administered in bankruptcy as herein provided. (As amended June 25. 1910.) 668 Important Federal Laws Compositions, When Set Aside. Sec. 13. a The judge may, upon the appHcation of parties in interest filed at any time within six months after a composition has been confirmed, set the same aside and reinstate the case if it shall be made to appear upon a trial that fraud was practiced in the procuring of such composition, and that the knowledge thereof has come to the petitioners since the confirmation of such composition. Discharges, When Granted. Sec. 14. a Any person may, after the expiration of one month and within the next twelve months subsequent to being adjudged a bank- rupt, file an application for a discharge in the court of bankruptcy in which the proceedings are pending ; if it shall be made to appear to the judge that the bankrupt was unavoidably prevented from filing it with- in such time, it may be filed within but not after the expiration of the next six months. b The judge shall hear the application for a discharge and such proofs and pleas as may be made in opposition thereto by the trustee or other j^arties in interest, at such time as will give the trustee or parties in interest a reasonable opportunity to be fully heard, and in- vestigate the merits of the application and discharge the applicant unless he has ( 1 ) committed an ofTense punishable by imprisonment as herein provided; or (2) with intent to conceal his financial condition, destroyed, concealed, or failed to keep books of account or records from which such condition might be ascertained; or (3) obtained money or property on credit upon a materially false statement in writing, made by him to any person or his representative for the purpose of obtaining credit from such person; or (4) at any time subsequent to the first day of the four months immediately preceding the filing of the peti- tion transferred, removed, destroyed, or concealed, or permitted to be removed, destroyed, or concealed, any of his property, with intent to hinder, delay, or defraud his creditors; or (5) in voluntary proceed- ings been granted a discharge in bankruptcy within six years; or (6) in the course of the proceedings in bankruptcy refused to obey any law- ful order of, or to answer any material question approved by the court: Provided. That a trustee shall not interpose objections to a bank- rupt's discharge until he shall be authorized so to do at a meeting of creditors called for that purpose. c The confirmation of a composition shall discharge the bankrupt from his debts, other than those agreed to be paid by the terms of the composition and those not affected by a discharge. (As amended June 25, 1910.) Discnarges, When Revoked. Sec. 15. a The judge may, upon the application of parties in in- terest who have not been guilty of undue laches, filed at any time within one year after a discharge shall have been granted, revoke it upon a trial if it shall be made to appear that it was obtained through the Bankruptcy o69 fraud of the bankrupt, and that the knowledge of the fraud has come to the petitioners since the granting of the discharge, and that the actual facts did not warrant the discharge. Co-Debtors of Bankrupts. Sec. 16. a The liability of a person who is a co-debtor with, or guarantor or in any manner a surety for, a bankrupt shall not be altered by the discharge of such a bankrupt. Debts Not Affected by a Discharge. Sec. 17. a A discharge in bankruptcy shall reiease a bankrupt from all of his provable debts, except such as (1) are due as a tax levied by the United States, the State, county, district, or municipality in which he resides: (2) are liabilities for obtaining property by false pretenses or false representations, or for willful and malicious injuries to the person or property of another, or for alimony due or to become due, or for maintenance or support of wife or child, or for seduction of an unmarried female, or for breach of promise of marriage, accom- panied by seduction, or for criminal conversation; (3) have not been duly scheduled in time for proof and allowance, with the name of the creditor if known to the bankrupt, unless such creditor had notice or actual knowledge of the proceedings in bankruptcy ; or (4) were created by his fraud, embezzlement, misappropriation, or defalca- tion while acting as an officer or in anv fiduciary capacity. (As amended March 2, 1917.) CHAPTER IV. Courts and Procedure Therein. Process, Pleadings, and Adjudications. Sec. 18. a Upon the filing of a petition for involuntary bankruptcy, service thereof, with a writ of subpoena, shall be made upon the per- son therein named as defendant in the same manner that service of such process is now had upon the commencement of a suit in equity in the courts of the United States, except that it shall be returnable within fifteen days, unless the judge shall for cause fix a longer time; but in case personal service can not be made, then notice shall be given by publication in the same manner and for the same time as provided lay law for notice by publication in suits to enforce a legal or equitable lien in courts of the United States, except that, unless the judge shall otherwise direct, the order shall be published not more than once a w-eek for two consecutive weeks, and the return day shall be ten days after the last publication unless the judge shall for cause fix a longer time. b The bankrupt, or any creditor, may appear and plead to the petition within five days after the return day, or within such further time as the court may allow. c All pleadings setting up matters of fact shall be verified under oath. 670 Important Federal Laws d If the bankrupt, or any of his creditors, shall appear, within the time limited, and controvert the facts alleged in the petition, the judge shall determine, as soon as may be, the issues presented by the plead- ings, without the intervention of a jury, except in cases where a jury trial is given by this Act, and makes the adjudication or dismiss the petition. e If on the last day within which pleadings may be filed none are filed by the bankrupt or any of his creditors, the judge shall on the next day, if present, or as soon thereafter as practicable, make the adjudication or dismiss the petition. f If the judge is absent from the district, or the division of the district in which the petition is pending, on the next day after the last day on which pleadings may be filed, and none have been filed by the bankrupt or any of his creditors, the clerk shall forthwith refer the case to the referee. g Upon the filing of a voluntary petition the judge shall hear the petition and make the adjudication or dismiss the petition. If the judge is absent from the district, or the division of the district in which the petition is filed at the time of the filing, the clerk shall forthwith refer the case to the referee. Jury Trials. Sec. 19. a A person against whom an involuntary petition has been filed shall be entitled to have a trial by jury, in respect to the question of his insolvency, except as herein otherwise provided, and any act of bankruptcy alleged in such petition to have been committed, upon filing a written application therefor at or before the time within which an answer may be filed. If such application is not filed within such time, a trial by jury shall be deemed to have been waived. b If a jury is not in attendance upon the court, one may be specially summoned for the trial, or the case may be postponed, or, if the case is pending in one of the district courts within the jurisdiction of a circuit court of the United States, it may be certified for trial to the circuit court sitting at the same place, or by consent of parties when sitting at any other place in the same district, if such circuit court has or is to have a jury first in attendance. c The right to submit matters in controversy, or an alleged oft'ense under this Act, to a jury shall be determined and enjoyed, except as provided by this Act. according to the United States laws now in force or such as may be hereafter enacted in relation to trials by jury. Oaths, Affirmations. Sec. 20. a Oaths required by this Act, except upon hearings in court, may be administered by (1) referees; (2) officers authorized to administer oaths in proceedings before the courts of the United States, or under the laws of the State where the same are to be taken; and Bankruptcy 671 (3) diplomatic or consular officers of the United States in any foreign country. b Any person conscientiously opposed to taking an oath may, in lieu thereof, affirm. Any person who shall affirm falsely shall be pun- ished as for the making of a false oath. Evidence. Sec. 21. a A court of bankruptcy may, upon application of any officer, bankrupt, or creditor, by order require any designated person, including the bankrupt and his wife, to appear in court or before a referee or the judge of any State court, to be examined concerning the acts, conduct, or property of a bankrupt whose estate is in process of administration under this Act : Provided, That the wife may be exam- ined only touching business transacted by her or to wdiich she is a party, and to determine the fact whether she has transacted or been a party to any business of the bankrupt. b The right to take depositions in proceedings under this Act shall be determined and enjoyed according to the United States laws now in force, or such as may be hereafter enacted relating to the taking of depositions, except as herein provided. c Notice of the taking of depositions shall be filed with the ref- eree in every case. When depositions are to be taken in opposition to the allowance of a claim notice shall also be served upon the claim- ant, and when in opposition to a discharge notice shall also be served upon the bankrupt. d Certified copies of proceedings before a referee, or of papers, when issued by the clerk or referee, shall be admitted as evidence with like force and efifect as certified copies of the records of district courts of the United States are now or may hereafter be admitted as evi- dence. e A certified copy of the order approving the bond of a trustee shall constitute conclusive evidence of the vesting in him of the title to the property of the bankrupt, and if recorded shall impart the same notice that a deed from the bankrupt to the trustee if recorded would have imparted had not bankruptcy proceedings intervened. f A certified copy of an order confirming or setting aside a com- position, or granting or setting aside a discharge, not revoked, shall be evidence of the jurisdiction of the court, the regularity of the pro- ceedings, and of the fact that the order was made. g A certified copy of an order confirming a composition shall con- stitute evidence of the revesting of the title of his property in the bankrupt, and if recorded shall impart the same notice that a deed from the trustee to the bankrupt if recorded would impart. Reference of Cases After Adjudication, Sec. 22. a After a person has been adjudged a bankrupt the judge may cause the trustee to proceed with the administration of the estate, or refer it (1) generally to the referee or specially with only limited 672 Important Federal Laws authority to act in the premises or to consider and report upon spec- ified issues; or (2) to any referee within the territorial jurisdiction of the court, if the convenience of parties in interest will be served thereby, or for cause, or if the bankrupt does not do business, reside, or have his domicile in the district. b The judge may, at any time, for the convenience of parties or for cause, transfer a case from one referee to another. Jurisdiction of United States and State Courts. Sec. 23. a The United States circuit courts shall have jurisdic- tion of all controversies at law and in equity, as distinguished from proceedings in bankruptcy, between trustees as such and adverse claim- ants concerning the property acquired or claimed by the trustees, in the same manner and to the same extent only as though bankruptcy proceedings had not been instituted and such controversies had been between the bankrupts and such adverse claimants. b Suits by the trustee shall only be brought or prosecuted in the courts where the bankrupt, whose estate is being administered by such trustee, might have brought or prosecuted them if proceedings in bankruptcy had not been instituted, unless by consent of the proposed defendant, except suits for the recovery of property under section sixty, subdivision b ; section sixty-seven, subdivision e ; and section seventy, subdivision e. c The United States circuit courts shall have concurrent jurisdic- tion with the courts of bankruptcy, within their respective territorial limits, of the offenses enumerated in this Act. Jurisdiction of Appellate Courts. Sec. 24. a The Supreme Court of the United States, the circuit courts of appeals of the United States, and the supreme courts of the Territories, in vacation in chambers and during their respective terms, as now or as they may be hereafter held, are hereby invested with appellate jurisdiction of controversies arising in bankruptcy proceed- ings from the courts of bankruptcy from which they have appellate jurisdiction in other cases. The Supreme Court of the United States shall exercise a like jurisdiction from courts of bankruptcy not within any organized circuit of the United States and from the supreme court of the District of Columbia. b The several circuit courts of appeal shall have jvirisdiction in equity, either interlocutory or final, to superintend and revise in mat- ter of law the proceedings of the several inferior courts of bankruptcy within their jurisdiction. Such power shall be exercised on due notice and petition by any party aggrieved. Appeals and Writs of Error. Sec. 25. a That appeals, as in equity cases, may be taken in bank- ruptcy proceedings from the courts of bankruptcy to the circuit court of appeals of the United States, and to the supreme court of the Bankruptcy 673 Territories, in the following cases, to wit, (1) from a judgment ad- judging or refusing to adjudge the defendant a bankrupt; (2) from a judgment granting or denying a discharge; and (3) from a judgment allowing or rejecting a debt or claim of five hundred dollars or over. Such appeal shall be taken within ten days after the judgment appealed from has been rendered, and may be heard and determined by the appellate court in term or vacation, as the case may be. b From any final decision of a court of appeals, allowing or re- jecting a claim under this Act, an appeal may be had under such rules and within such time as may be prescribed by the Supreme Court of the United States, in the following cases and no other: 1. Where the amount in controversy exceeds the sum of two thou- sand dollars, and the" question involved is one which might have been taken on appeal or writ of error from the highest court of a State to the Supreme Court of the United States ; or 2. Where some Justice of the Supreme Court of the United States shall certify that in his opinion the determination of the question or questions involved in the allowance or rejection of such claim is essen- tial to a uniform construction of this Act throughout the United States. c Trustees shall not be required to give bond when they take appeals or sue out writs of error. d Controversies may be certified to the Supreme Court of the United States from other courts of the United States, and the former court may exercise jurisdiction thereof and issue writs of certiorari pursuant to the provisions of the United States laws now in force or such as may be hereafter enacted. Arbitration of Controversies. Sec. 26. a The trustee may, pursuant to the direction of the court, submit to arbitration any controversy arising in the settlement of the estate. b Three arbitrators shall be chosen by mutual consent, or one by the trustee, one by the other party to the controversy, and the third by the two so chosen, or if they fail to agree in five days after their appointment the court shall appoint the third arbitrator. c The written finding of the arbitrators, or a majority of them, as to the issues presented, may be filed in court and shall have like force and effect as the verdict of a jury. Compromises. Sec. 27. a The trustee may, with the approval of the court, com- promise any controversy arising in the administration of the estate upon such terms as he ma}^ deem for the best interests of the estate. Designation of Newspapers. Sec. 28. a Courts of bankruptcy shall by order designate a news- paper published within their respective territorial districts, and in the county in which the bankrupt resides or the major part of his property (43) 674 Important Federal Laws is situated, in which notices required to be published by this Act and orders which the court may direct to be pubhshed shall be inserted. Any court may in a particular case, for the convenience of parties in interest, designate some additional newspaper in which notices and orders in such case shall be published. Offenses. Sec. 29. a A person shall be punished, by imprisonment for a period not to exceed five years, upon conviction of the offense of having knowingly and fraudulently appropriated to his own use, embezzled, spent, or unlawfully transferred any property or secreted or destroyed any document belonging to a bankrupt estate which came into his charge as trustee. b A person shall be punished, by imprisonment for a period not to exceed two years, upon conviction of the offense of having knowingly and fraudulently (1) concealed while a bankrupt, or after his discharge, from his trustee any of the property belonging to his estate in bank- ruptcy; or (2) made a false oath or account in, or in relation to, any proceeding in bankruptcy; (3) presented under oath any false claim for proof against the estate of a bankrupt, or used any such claim in composition personally or by agent, proxy, or attorney, or as agent, proxy, or attorney ; or (4) received any material amount of property from a bankrupt after the filing of the petition, with intent to defeat this Act; or (5) extorted or attempted to extort any money or property from any person as a consideration for acting or forbearing to act in bankruptcy proceedings. c A person shall be punished by fine, not to exceed five hundred dollars, and forfeit his office, and the same shall thereupon become vacant, upon conviction of the offense of having knowingly (1) acted as a referee in a case in which he is directly or indirectly interested; or (2) purchased, while a referee, directly or indirectly, any property of the estate in bankruptcy of which he is referee; or (3) refused, while a referee or trustee, to permit a reasonable opportunity for the inspection of the accounts relating to the affairs of, and the papers and records of, estates in his charge by parties in interest when directed bv the court so to do. d A person shall not be prosecuted for anv offense arising under this Act unless the indictment is found or the information is filed in court within one year after the commission of the offense. Rules, Forms, and Orders. Sec. 30. a All necessary rules, forms, and orders as to procedure and for carrying this Act into force and effect shall be prescribed, and may be amended from time to time, by the Supreme Court of the United States. Computation of Time. Sec. 31. a Whenever time is enumerated by days in this Act, Bankruptcy 675 or in any proceeding in bankruptcy, the number of days shall be com- puted by excluding' the first and including the last, unless the last fall on a Sunday or holiday, in which event the day last included shall be the next day thereafter which is not a Sunday or a legal holiday. Transfer of Cases. Sec. 32. a In the event petitions are filed against the same person, or against dififerent members of a partnership, in different courts of bankruptcy each of which has jurisdiction, the cases shall be trans- ferred, by order of the courts relinquishing jurisdiction, to and be con- solidated by the one of such courts which can proceed with the same for the greatest convenience of parties in interest. CHAPTER V. Officers, Their Duties and Compensation. Creation of Tv^^o Oflfices. Sec. 33. a The offices of referee and trustee are hereby created. Appointment, Removal, and Districts of Referees. Sec. 34. a Courts of bankruptcy shall, within the territorial limits of which they respectively have jurisdiction, (1) appoint referees, each for a term of two years, and may, in their discretion, remove them because their services are not needed or for other cause; and (2) desig- nate, and from time to time change, the limits of the districts of ref- erees, so that each county, where the services of a referee are needed, may constitute at least one district. Qualifications of Referees. Sec. 35. a Individuals shall not be eligible to appointment as ref- erees unless they are respectively (1) competent to perform the duties of that office; (2) not holding any office of profit or emolument under the laws of the United States or of any State other than commissioners of deeds, justices of the peace, masters in chancery, or notaries public; (3) not related by consanguinity or affinity, within the third degree as determined by the common law, to any of the judges of the courts of bankruptcy or circuit courts of the United States, or of the justices or judges of the appellate courts of the districts wherein thev may be appointed ; and (4) residents of, or have their offices in, the territorial districts for which they are to be appointed. Oaths of Office of Referees. Sec. 36. a Referees shall take the same oath of office as that prescribed for judges of United States courts. Number of Referees. Sec. 37. a Such number of referees shall be appointed as may be necessary to assist in expeditiously transacting the bankruptcy busi- ness pending in the various courts of bankruptcy. 676 Important Federal Laws Jurisdiction of Referees. Sec. 38. a Referees respectively are hereby invested, subject al- ways to a review by the judge, within the limits of their districts as estabhshed from time to time, with jurisdiction to (1) consider all petitions referred to them by the clerks and make the adjudications or dismiss the petitions; (2) exercise the powers vested in courts of bank- ruptcy for the administering of oaths to and the examination of per- sons as witnesses and for requiring the production of documents in proceedings before them, except the power of commitment; (3) exer- cise the powers of the judge for the taking possession and releasing of the property of the bankrupt in the event of the issuance by the clerk of a certificate showing the absence of a judge from the judicial district, or the division of the district, or his sickness, or inability to act ; (4) perform such part of the duties, except as to questions arising out of the applications of bankrupts for compositions or discharges, as are by this x^ct conferred on courts of bankruptcy and as shall be pre- scribed by rules or orders of the courts of bankruptcy of their respective districts, except as herein otherwise provided; and (5) upon the appH- cation of the trustee during the examination of the bankrupts, or other proceedings, authorize the employment of stenographers at the expense of the estates at a compensation not to exceed ten cents per folio for reporting and transcribing the proceedings. Duties of Referees. Sec. 39. a Referees shall (1) declare dividends and prepare and deliver to trustees dividend sheets showing the dividends declared and to whom payable: (2) examine all schedules of property and lists of creditors filed by bankrupts and cause such as are incomplete or de- fective to be amended; (3) furnish such information concerning the estates in process of administration before them as may be requested by the parties in interest; (4) give notices to creditors as herein pro- vided; (5) make up records embodying the evidence, or the substance thereof, as agreed upon by the parties in all contested matters arising before them, whenever requested to do so by either of the parties thereto, together with their findings therein, and transmit them to the judges; (6) prepare and file the schedules of property and lists of cred- itors required to be filed by the bankrupts, or cause the same to be done, when the bankrupts fail, refuse, or neglect to do so ; (7) safely keep, perfect, and transmit to the clerks the records, herein required to be kept by them, when the cases are concluded; (8) transmit to the clerks such papers as may be on file before them whenever the same are needed in any proceedings in courts, and in like manner secure the return of such papers after they have been used, or, if it be imprac- ticable to transmit the original papers, transmit certified copies thereof by mail ; (9) upon application of any party in interest, reserve the evi- dence taken or the substance thereof as agreed upon by the parties before them when a stenographer is not in attendance; and (10) when- Bankruptcy 677 ever their respective offices are in the same cities or towns where the courts of bankruptcy convene, call upon and receive from the clerks all papers filed in courts of bankruptcy which have been referred to them, b Referees shall not (1) act in cases in which they are directly or indirectly interested; (2) practice as attorneys and counselors at law in any bankruptcy proceedings; or (3) purchase, directly or indi- rectly, any property of an estate in bankruptcy. Compensation of Referees, Sec. 40. a Referees shall receive as full compensation for their services, payable after they are rendered, a fee of fifteen dollars de- posited with the clerk at the time the petition is filed in each case, except w4ien a fee is not required from a voluntary bankrupt, and twenty-five cents for every proof of claim filed for allowance, to be paid from the estate, if any, as a part of the cost of administration, and from estates which have been administered before them one per centum commis- sions on all moneys disbursed to creditors by the trustee, or one-half of one per centum on the amount to be paid to creditors upon the con- firmation of a composition. b Whenever a case is transferred from one referee to another the judge shall determine the proportion in which the fee and commissions therefor shall be divided between the referees. c In the event of the reference of a case being revoked before it is concluded, and when the case is especially referred, the judge shall determine what part of the fee and commissions shall be paid to the referee. Contempts Before Referees. Sec. 41. a A person shall not, in proceedings before a referee, (1) disobey or resist any lawful order, process, or writ; (2) misbehave during a hearing or so near the place thereof as to obstruct the same ; (3) neglect to produce, after having been ordered to do so, any perti- nent document; or (4) refuse to appear after having been subpoenaed, or, upon appearing, refuse to take the oath as a witness, or, after hav- ing taken the oath, refuse to be examined according to law : Provided, That no person shall be required to attend as a witness before a referee at a place outside of the State of his residence, and more than one hundred miles from such place of residence, and only in case his lawful mileage and fee for one day's attendance shall be first paid or ten- dered to him. b The referee shall certify the facts to the judge, if any person shall do any of the things forbidden in this section. The judge shall thereupon, in a summary manner, hear the evidence as to the acts complained of, and, if it is such as to warrant him in so doing, punish such person in the same manner and to the same extent as for a con- tempt committed before the court of bankruptcy, or commit such per- son upon the same conditions as if the doing of the forbidden act had 678 Important Federal Laws occurred with reference to the process of, or in the presence of, the court. Records of Referees. Sec. 42. a The records of all proceedings in each case before a referee shall be kept as nearly as may be in the same manner as records are now kept in equity cases in circuit courts of the United States. b A record of the proceedings in each case shall be kept in a sepa- rate book or books, and shall, together with the papers on file, consti- tute the records of the case. c The book or books containing a record of the proceedings shall, when the case is concluded before the referee, be certified to by him, and, together with such papers as are on file before him, be transmitted to the court of bankruptcy and shall there remain as a part of the records of the court. Referee's Absence or Disability. Sec. 43. a Whenever the office of a referee is vacant, or its occu- pant is absent or disqualified to act. the judge may act, or may appoint another referee, or another referee holding an appointment under the same court may, by order of the judge, temporarily fill the vacancy. Appointment of Trustees. Sec. 44. a The creditors of a bankrupt estate shall, at their first meeting after the adjudication or after a vacancy has occurred in the office of trustee, or after an estate has been reopened, or after a com- position has been set aside or a discharge revoked, or if there is a vacancy in the office of trustee, appoint one trustee or three trustees of such estate. If the creditors do not appoint a trustee or trustees as herein provided, the court shall do so. Qualifications of Trustees. Sec. 45. a Trustees may be (1) individuals who are respectively competent to perform the duties of that office, and reside or have an office in the judicial district within which they are appointed, or (2) corporations authorized by their charters or by law to act in such capac- ity and having an office in the judicial district within which they are appointed. Death or Removal of Trustees. Sec. 46. a The death or removal of a trustee shall not abate any suit or proceeding which he is prosecuting or defending at the time of his death or removal, but the same may be proceeded with or de- fended by his joint trustee or successor in the same manner as though the same had been commenced or was being defended by such joint trustee alone or by such successor. Duties of Trustees, Sec. 47. a Trustees shall respectively (1) account for and pay Bankruptcy 679 over to the estates under their control all interest received by them upon property of such estates ; (2) collect and reduce to money the property of the estates for which they are trustees, under the direction of the court, and close up the estate as expeditiously as is compatible with the best interests of the parties in interest ; and such trustees, as to all property in the custody or coming into the custody of the bank- ruptcy court, shall be deemed vested with all the rights, remedies, and powers of a creditor holding a lien by legal or equitable proceedings thereon ; and also, as to all property not in the custody of the bank- ruptcy court, shall be deemed vested with all the rights, remedies, and powers of a judgment creditor holding an execution duly returned unsatisfied; (3) deposit all money received by them in one of the desig- nated depositories; (4) disburse money only by check or draft on the depositories in which it has been deposited; (5) furnish such inforrna- tion concerning the estates of which they are trustees and their admin- istration as may be requested by parties in interest; (6) keep regular accounts showing all amounts received and from what sources and all amounts expended and on what accounts; (7) lay before the final meet- ing of the creditors detailed statements of the administration of the estates; (8) make final reports and file final accounts with the courts fifteen days before the days fixed for the final meetings of the creditors; (9) pay dividends within ten days after they are declared by the ref- erees; (10) report to the courts, in writing, the condition of the estates and the amounts of money on hand, and such other details as may be required by the courts, within the first month after their appointment and every two months thereafter, unless otherwise ordered by the courts; and (11) set apart the bankrupt's exemptions and report the items and estimated value thereof to the court as soon as practicable after their appointment. b Whenever three trustees have been appointed for an estate, the concurrence of at least two of them shall be necessary to the validity of their every act concerning the administration of the estate. c The trustee shall, within thirty days after the adjudication, file a certified copy of the decree of adjudication in the office where con- veyances of real estate are recorded in every county where the bank- rupt owns real estate not exempt from execution, and pay the fee for such filing, and he shall receive a compensation of fifty cents for each copy so filed, which, together with the filing fee, shall be paid out of the estate of the bankrupt as a part of the costs and disbursements of the proceedings. (As amended June 25, 1910.) Compensation of Trustees, Receivers and Marshals. Sec. 48. a Trustees shall receive for their services, payable after thev are rendered, a fee of five dollars deposited with the clerk at the time the petition is filed in each case, except when a fee is not required from a voluntary bankrupt, and such commissions on all moneys dis- bursed or turned over to any person, including lien holders, by them. 680 Important Federal Laws as may be allowed them by the courts, not to exceed six per centum on the first five hundred dollars or less, four per centum on moneys in excess of five hundred dollars and less than fifteen hundred dollars, two per centum on moneys in excess of fifteen hundred dollars and less than ten thousand dollars, and one per centum on moneys in excess of ten thousand dollars. And in case of the confirmation of a compo- sition after the trustee has qualified the court may allow him, as com- pensation, not to exceed one-half of one per centum of the amount to be paid the creditor on such compensation. b In the event of an estate being administered by three trustees instead of one trustee or by successive trustees, the court shall appor- tion the fees and commissions between them according to the services actually rendered, so that there shall not be paid to trustees for the administering of any estate a greater amount than one trustee would be entitled to. c The court may, in its discretion, withhold all compensation from any trustee who has been removed for cause. d Receivers or marshals appointed pursuant to section two, sub- division three, of this Act shall receive for their services, payable after they are rendered, compensation by way of commissions upon the moneys disbursed or turned over to any person, including lien holders, by them, and also upon the moneys turned over by them or afterwards realized by the trustees from property turned over in kind by them to the trustees, as the court may allow, not to exceed six per centum on the first five hundred dollars or less, four per centum on moneys in excess of five hundred dollars and less than one thousand five hundred dollars, two per centum on moneys in excess of one thousand five hun- dred dollars and less than ten thousand dollars, and one per centum on moneys in excess of ten thousand dollars : Provided, That in case of the confirmation of a composition such commissions shall not exceed one-half of one per centum of the amount to be paid creditors on such compositions : Provided further. That when the receiver or marshal acts as a mere custodian and does not carry on the business of the bank- rupt as provided in clause five of section two of this Act, he shall not receive nor be allowed in any form or guise more than two per centum on the first thousand dollars or less, and one-half of one per centum on all above one thousand dollars on moneys disbursed by him or turned over by him to the trustee and on moneys subseciuently realized from property turned over by him in kind to the trustee : Provided further. That before the allowance of compensation notice of application there- for, specifying the amount asked, shall be given to creditors in the manner indicated in section fifty-eight of this Act. e Where the business is conducted by trustees, marshals, or re- ceivers, as provided in clause five of section two of this Act, the court may allow such officers additional compensation for such services by way of commissions upon the moneys disbursed or turned over to any Bankruptcy 681 person, including lien holders, by them, and, in cases of receivers or marshals, also upon the moneys turned over by them or afterwards realized by the trustees from property turned over in kind by them to the trustees ; such commissions not to exceed six per centum on the first five hundred dollars or less, four per centum on moneys in excess of five hundred dollars and less than one thousand five hundred dollars, two per centum on moneys in excess of one thousand five hundred dol- lars and less than ten thousand dollars, and one per centum on moneys in excess of ten thousand dollars: Provided, That in case of the con- firmation of a composition such commissions shall not exceed one-half of one per centum of the amount to be paid creditors on such composi- tion: Provided further. That before the allowance of compensation notice of application therefor, specifying the amount asked, shall be given to creditors in the manner indicated in section fifty-eight of this Act. (As amended June 25, 1910.) Accounts and Papers of Trustees. Sec. 49. a The accounts and papers of trustees shall be open to the inspection of officers and all parties in interest. Bonds of Referees and Trustees. Sec. 50. a Referees, before assuming the duties of their offices, and within such time as the district courts of the United States having jurisdiction shall prescribe, shall respectively qualify by entering into bond to the United States in such sum as shall be fixed by such courts, not to exceed five thousand dollars, with such sureties as shall be ap- proved by such courts, conditioned for the faithful performance of their official duties. b Trustees, before entering upon the performance of their official duties, and within ten days after their appointment, or within such fur- ther time, not to exceed five days, as the court may permit, shall re- spectively qualify by entering into bond to the United States, with such sureties as shall be approved by the courts, conditioned for the faithful performance of their official duties. c The creditors of a bankrupt estate, at their first meeting after the adjudication, or after a vacancy has occurred in the office of trus- tee, or after an estate has been reopened, or after a composition has been set aside or a discharge revoked, if there is a vacancy in the office of trustee, shall fix the amount of the bond of the trustee ; they may at any time increase the amount of the bond. If the creditors do not fix the amount of the bond of the trustee as herein provided the court shall do so. d The court shall require evidence as to the actual value of the property of sureties. e There shall be at least two sureties upon each bond. f The actual value of the property of the sureties, over and above 682 Important Federal Laws their liabilities and exemptions, on each bond shall equal at least the amount of such bond. g Corporations organized for the purpose of becoming sureties upon bonds, or authorized by law to do so. may be accepted as sureties upon the bonds of referees and trustees whenever the courts are satisfied that the rights of all parties in interest will be thereby amply protected. h Bonds of referees, trustees, and designated depositories shall be filed of record in the of^ce of the clerk of the court and may be sued upon in the name of the United States for the use of any person in- jured by a breach of their conditions. i Trustees shall not be liable, personally or on their bonds, to the United States, for any penalties or forfeitures incurred by the bank- rupts under this Act, of whose estates they are respectively trustees. j Joint trustees may give joint or several bonds. k if any referee or trustee shall fail to give bond, as herein pro- vided and within the time limited, he shall be deemed to have declined his appointment, and such failure shall create a vacancy in his office. 1 Suits upon referees' bonds shall not be brought subsequent to two years after the alleged breach of the bond. m Suits upon trustees' bonds shall not be brought subsequent to two years after the estate has been closed. Duties of Clerks. Sec. 51. a Clerks shall respectively (1) account for, as for other fees received by them, the clerk's fee paid in each case and such other fees as may be received for certified copies of records which may be prepared for persons other than officers; (2) collect the fees oi the clerk, referee, and trustee in each case instituted before filing the petition, except the petition of a proposed voluntary bankrupt which is accompanied by an affidavit stating that the petitioner is with- out, and can not obtain, the money with which to pay such fees; (3) deliver to the referees upon application all papers which may be re- ferred to them, or, if the offices of such referees are not in the same cities or towns as the offices of such clerks, transmit such papers by mail, and in like manner return papers which were received from such referees after they have been used ; (4) and within ten days after each case has been closed pay to the referee, if the case was referred, the fee collected for him, and to the trustee the fee collected for him at the time of filing the petition. Compensation of Clerks and Marshals. Sec. 52. a Clerks shall respectively receive as full compensation for their service to each estate, a filing fee of ten dollars, except when a fee is not required from a voluntary bankrupt. b Alarshals shall respectively receive from the estate where an adjudication in bankruptcy is made, except as herein otherwise pro- vided, for the performance of their services in proceedings in bank- Bankruptcy 683 ruptcy, the same fees, and account for them in the same way, as they are entitled to receive for the performance of the same or similar ser- vices in other cases in accordance with laws now in force, or such as may be hereafter enacted, fixing the compensation of marshals. Duties of Attorney-General. Sec. 53. a The Attorney-General shall annually lay before Con- gress statistical tables showing for the whole country, and by States, the number of cases during the year of voluntary and involuntary bank- ruptcy ; the amount of the property of the estates; the dividends paid and the expenses of administering such estates ; and such other like information as he may deem important. Statistics of Bankruptcy Proceedings. Sec. 54. a Officers shall furnish in writing and transmit by mail such information as is within their knowledge, and as may be shown by the records and papers in their possession, to the Attorney-General, for statistical purposes, within ten days after being requested by him to do so. CHAPTER VT Creditors. Meetings of Creditors. Sec. 55. a The court shall cause the first meeting of the cred- itors of a bankrupt to be held not less than ten nor more than thirty days after the adjudication, at the county seat of the county in which the bankrupt has had his principal place of business, resided, or had his domicile ; or if that place would be manifestly inconvenient as a place of meeting for the parties in interest, or if the bankrupt is one who does not do business, reside, or have his domicile within the United States, the court shall fix a place for the meeting which is the most con- venient for parties in interest. If such meeting should by any mis- chance not be held within such time, the court shall fix the date, as soon as may be thereafter, when it shall be held. b At the first meeting of creditors the judge or referee shall pre- side, and, before proceeding with the other business, may allow or dis- allow the claims of creditors there presented, and may publicly examine the bankrupt or cause him to be examined at the instance of any cred- itor. c The creditors shall at each meeting take such steps as may be pertinent and necessary for the promotion of the best interests of the estate and the enforcement of this Act. d A meeting of creditors, subsequent to the first one, may be held at any time and place when all of the creditors who have secured the allowance of their claims sign a written consent to hold a meeting at such time and place. e The court shall call a meeting of creditors whenever one-fourth or more in number of those who have proven their claims shall file a 684 Important Federal Laws written request to that effect ; if such request is signed by a majority of such creditors, which number represents a majority in amount of such claims, and contains a request for such meeting to be held at a designated place, the court shall call such meeting at such place within thirty days after the date of the filing of the request. f Whenever the affairs of the estate are ready to be closed a final meeting of creditors shall be ordered. Voters at Meetings of Creditors. Sec. 56. a Creditors shall pass upon matters submitted to them at their meetings by a majority vote in number and amount of claims of all creditors whose claims have been allowed and are present, except as herein otherwise provided. b Creditors holding claims which are secured or have priority shall not, in respect to such claims, be entitled to vote at creditors' meetings, nor shall such claims be counted in computing either the number of creditors or the amount of their claims, unless the amounts of such claims exceed the values of such securities or priorities, and then only for such excess. Proof and Allowance of Claims. Sec. 57. a Proof of claims shall consist of a statement under oath, in Avriting. signed by a creditor setting forth the claim, the considera- tion therefor, and whether any, and, if so, what, securities are held therefor, and whether any, and, if so, what, payments have been made thereon, and that the sum claimed is justly owing from the bankrupt to the creditor. b Whenever a claim is founded upon an instrument of writing, such instrument, unless lost or destroyed, shall be filed with the proof of claim. If such instrument is lost or destroyed, a statement of such fact and of the circumstances of such loss or destruction shall be filed under oath with the claim. After the claim is allowed or disallowed, such instrument may be withdrawn by permission of the court, upon leaving a copy thereof on file with the claim. c Claims after being proved may, for the purpose of allowance, be filed by the claimants in the court where the proceedings are pending or before the referee if the case has been referred. d Claims which have been duly proved shall be allowed, upon re- ceipt by or upon presentation to the court, unless objection to their allowance shall be made by parties in interest, or their consideration be continued for cause by the court upon its own motion. e Claims of secured creditors and those who have priority may be allowed to enable such creditors to participate in the proceedings at creditors' meetings held prior to the determination of the value of their securities or priorities, but shall be allowed for such sums only as to the courts seem to be owing over and above the value of their securities or priorities. Bankruptcy 685 f Objections to claims shall be heard and determined as soon as the convenience of the court and the best interests of the estates and the claimants will permit. g The claims of creditors who have received preferences, void- able under section sixty, subdivision b, or to whom conveyances, trans- fers, assignments, or incumbrances, void or voidable under section sixty- seven, subdivision e, have been made or given, shall not be allowed unless such creditors shall surrender such preferences, conveyances, transfers, assignments, or incumbrances. h The value of securities held by secured creditors shall be deter- mined by converting the same into money according to the terms of the agreement pursuant to which such securities were delivered to such creditors or by such creditors and the trustee, by agreement, arbitra- tion, compromise, or litigation, as the court may direct, and the amount of such value shall be credited upon such claims, and a dividend shall be paid only on the unpaid balance. i Whenever a creditor, whose claim against a bankrupt estate is secured by the individual undertaking of any person, fails to prove such claim, such person may do so in the creditor's name, and if he discharge such undertaking in whole or in part he shall be subrogated to that extent to the rights of the creditor. j Debts owing to the United States, a State, a county, a district, or a municipality as a penalty or forfeiture shall not be allowed, except for the amount of the pecuniary loss sustained by the act, transaction, or proceeding out of which the penalty or forfeiture arose, with reason- able and actual costs occasioned thereby and such interest as may have accrued thereon according to law. k Claims which have been allowed may be reconsidered for cause and reallowed or rejected in whole or in part, according to the equities of the case, before but not after the estate has been closed. 1 Whenever a claim shall have been reconsidered and rejected, in whole or in part, upon which a dividend has been paid, the trustee may recover from the creditor the amount of the dividend received upon the claim if rejected in whole, or the proportional part thereof if re- jected only in part. m The claim of any estate which is being administered in bank- ruptcy against any like estate may be proved by the trustee and allowed by the court in the same manner and upon like terms as the claims of other creditors. n Claims shall not be proved against a bankrupt estate subsequent to one year after the adjudication ; or if they are liquidated by litigation and the final judgment therein is rendered within thirtv days before or after the expiration of such time, then within sixty days after the rendition of such judgment : Provided. That the right of infants and insane persons without guardians, without notice of the proceedings, may continue six months longer. 686 Important Federal Laws Notices to Creditors. Sec. 58. a Creditors shall have at least ten days' notice by mail, to their respective addresses as they appear in the list of creditors of the bankrupt, or as afterwards filed with the papers in the case by the creditors, unless they waive notice in writing, of (1) all examinations of the bankrupt; (2) all hearings upon applications for the confirma- tion of compositions; (3) all meetings of creditors; (4) all proposed sales of property; (5) the declaration and time of payment of divi- dends; (6) the filing of the final accounts of the trustee, and the time when and the place where they will be examined and passed upon; (7) the proposed compromise of any controversy; (8) the proposed dis- missal of the proceedings, and (9) there shall be thirty days' notice of all applications for the discharge of bankrupts. b Notice to creditors of the first meeting shall be published at least once and may be published such number of additional times as the court may direct : the last publication shall be at least one week prior to the date fixed for the meeting. Other notices may be published as the court shall direct. c All notices shall be given by the referee, unless otherwise ordered by the judge. (As amended June 25, 1910.) Who May File and Dismiss Petitions. Sec. 59. a Any qualified person may file a petition to be adjudged a voluntary bankrupt. b Three or more creditors who have provable claims against any person which amount in the aggregate, in excess of the value of secur- ities held by them, if any, to five hundred dollars or over; or if all of the creditors of such person are less than twelve in number, then one of such creditors whose claim equals such amount may file a petition to have him adjudged a bankrupt. c Petitions shall be filed in duplicate, one copy for the clerk and one for service on the bankrupt. d If it be averred in the petition that the creditors of the bank- rupt are less than twelve in number, and less than three creditors have joined as petitioners therein, and the answer avers the existence of a large number of creditors, there shall be filed with the answer a list under oath of all the creditors, with their addresses, and thereupon the court shall cause all such creditors to be notified of the pendency of such petition and shall delay the hearing upon such petition for a rea- sonable time, to the end that parties in interest shall have an opportu- nity to be heard ; if upon such hearing it shall appear that a sufficient number have joined in such petition, or if prior to or during such hear- ing a sufficient number shall join therein, the case may be proceeded with, but otherwise it shall be dismissed. e In computing the number of creditors of a bankrupt for the pur- pose of determining how many creditors must join in the petition, such creditors as were employed by him at the time of the filing of the peti- Bankruptcy 687 tion or are related to him by consanguinity or affinity within the third degree, as determined by the common law, and have not joined in the petition, shall not be counted. f Creditors other than original petitioners may at any time enter their appearance and join in the petition, or file an answer and be heard in opposition to the prayer of the petition. g A voluntary or involuntary petition shall not be dismissed by the petitioner or petitioners or for want of prosecution or by consent of parties until after notice to the creditors, and to that end the court shall, before entertaining an application for dismissal, require the bank- rupt to file a list, under oath, of all his creditors, with their addresses, and shall cause notice to be sent to all such creditors of the pendency of such application, and shall delay the hearing thereon for a reason- able time to allow all creditors and parties in interest opportunity to be heard. (As amended June 25, 1910.) Preferred Creditors. Sec. 60. a A person shall be deemed to have given a preference if, being insolvent, he has, within four months before the filing of the petition, or after the filing of the petition and before the adjudication, procured or suffered a judgment to be entered against himself in favor of any person, or made a transfer of any of his property, and the eft'ect of the enforcement of such judgment or transfer will be to enable any one of his creditors to obtain a greater percentage of his debt than any other of such creditors of the same class. Where the preference con- sists in a transfer, such period of four months shall not expire until four months after the date of the recording or registering of the trans- fer, if by law such recording or registering is required. b If a bankrupt shall have procured or suffered a judgment to be entered against him in favor of any person or have made a transfer of any of his property, and if, at the time of the transfer, or of the entry of the judgment, or of the recording or registering of the transfer if by law recording or registering thereof is required, and being within four months before the filing of the petition in bankruptcy or after the filing thereof and before the adjudication, the bankrupt be insolvent and the judgment or transfer then operate as a preference, and the person receiving it or to be benefited thereby, or his agent acting therein, shall then have reasonable cause to believe that the enforcement of such judgment or transfer would efi^ect a preference, it shall be void- able by the trustee and he may recover the property or its value from such person. And for the purpose of such recovery any court of bank- ruptcy, as hereinbefore defined, and any state court which would have had jurisdiction if bankruptcy had not intervened, shall have concurrent jurisdiction. c If a creditor has been preferred, and afterwards in good faith gives the debtor further credit without security of any kind for prop- erty which becomes a part of the debtor's estates, the amount of such 688 Important Federal Laws new credit remaining unpaid at the time of the adjudication in bank- ruptcy may be set off against the amount which would otherwise be recoverable from him. d If a debtor shall, directly or indirectly, in contemplation of the filing of a petition by or against him, pay money or transfer property to an attorney and counselor at law, solicitor in equity, or proctor in admiralty for services to be rendered, the transaction shall be re-exam- ined by the court on petition of the trustee or any creditor and shall only be held valid to the extent of a reasonable amount to be deter- mined by the court, and the excess may be recovered by the trustee for the benefit of the estate. (As amended June 25, 1910.) CHAPTER VII. Estates. Depositories for Money. Sec. 61. a Courts of bankruptcy shall designate, by order, bank- ing institutions as depositories for the money of bankrupt estates, as convenient as may be to the residences of trustees, and shall require bonds to the United States, subject to their approval, to be given by such banking institutions, and may from time to time as occasion may require, by like order increase the number of depositories or the amount of any bond or change such depositories. Expenses of Administering Estates. Sec. 62. a The actual and necessary expenses incurred by officers in the administration of estates shall, except where other provisions are made for their payment, be reported in detail, under oath, and examined and approved or disapproved by the court. If approved, they shall be paid or allowed out of the estates in which they were incurred. Debts Which May be Proved. Sec. 63. a Debts of the bankrupt which may be proved and al- lowed against his estate which are (1) a fixed liability, as evidenced by a judgment or an instrument in writing, absolutely owing at the time of the filing of the petition against him, whether then payable or not, with any interest thereon which would have been recoverable at that date or with a rebate of interest upon such as were not then pay- able and did not bear interest; (2) due as costs taxable against an in- voluntary bankrupt who was at the time of the filing of the petition against him plaintiff in a cause of action which would pass to the trustee and which the trustee declines to prosecute after notice; (3) founded upon a claim for taxable costs incurred in good faith by a creditor before the filing of the petition in an action to recover a provable debt; (4) founded upon an open account, or upon a contract express or im- plied; and (5) founded upon provable debts reduced to judgments after the filing of the petition and before the consideration of the bankrupt's application for a discharge, less costs incurred and interests accrued Bankruptcy 689 after the filing of the petition and up to the time of the entry of such judgments. b UnHquidated claims against the bankrupt may, pursuant to ap- plication to the court, be liquidated in such manner as it shall direct, and may thereafter be proved and allowed against his estate. Debts Which Have Priority. Sec. 64. a The court shall order the trustee to pay all taxes legally due and owing by the bankrupt to the United States, State, county, district, or municipality in advance of the payment of dividends to creditors, and upon filing the receipts of the proper public officers for such payment he shall be credited with the amount thereof, and in case any question arises as to the amount or legality of any such tax the same shall be heard and determined by the court. b The debts to have priority, except as herein provided, and to be paid in full out of bankrupt estates, and the order of payment shall be (1) the actual and necessary cost of preserving the estate subsequent to filing the petition; (2) the filing fees paid by creditors in involuntary cases, and, where property of the bankrupt, transferred or concealed by him either before or after the filing of the petition, shall have been recovered for the benefit of the estate of the bankrupt by the efforts and at the expense of one or more creditors, the reasonable expenses of such recovery; (3) the cost of administration, including the fees and mileage payable to witnesses as now or hereafter provided by the laws of the United States, and one reasonable attorney's fee, for the profes- sional services actually rendered, irrespective of the number of attor- neys employed, to the petitioning creditors in involuntary cases, to the bankrupt in involuntary cases while performing the duties herein pre- scribed, and to the bankrupt in voluntary cases, as the court may allow; (4) wages due to workmen, clerks, traveling or city salesmen, or ser- vants which have been earned within three months before the date of commencement of proceedings, not to exceed three hundred dollars to each claimant; and (5) debts owing to any person who by the laws of the States or the United States is entitled to priority. c In the event of the confirmation of a composition being set aside, or a discharge revoked, the property acquired by the bankrupt in addi- tion to his estate at the time the composition was confirmed or the adju- dication was made shall be applied to the payment in full of the claims of creditors for property sold to him on credit, in good faith, while such composition or discharge was in force, and the residue, if any, shall be applied to the payment of the debts which were owing at the time of the adjudication. (As amended June 15, 1906.) Declaration and Payment of Dividends, Sec. 65. a Dividends of an equal per centum shall be declared and paid on all allowed claims, except such as have priority or are secured. (44) 690 Important Federal Laws • b The first dividend shall be declared within thirty days after the adjudication, if the money of the estate in excess of the amount neces- sary to pay the debts which have priority and such claims as have not been, but probably will be, allowed equals five per centum or more of such allowed claims. Dividends subsequent to the first shall be declared upon like terms as the first and as often as the amount shall equal ten per centum or more and upon closing the estate. Dividends may be declared oftener and in smaller proportions if the judge shall so order : Provided. That the first dividend shall not include more than fifty per centum of the money of the estate in excess of the amount necessary to pay the debts which have priority and such claims as probably will be allowed: And provided further, that the final dividend shall not be declared within three months after the first dividend shall be declared. c The rights of creditors who have received dividends, or in whose favor final dividends have been declared, shall not be afifected by the proof and allowance of claims subsequent to the date of such payment or declarations of dividends ; but the creditors proving and securing the allowance of such claims shall be paid dividends equal in amount to those alreadv received by the other creditors if the estate equals so much before such other creditors are paid any further dividends. d Whenever a person shall have been adjudged a bankrupt by a court without the United States and also by a court of bankruptcy, creditors residing within the United States shall first be paid a dividend equal to that received in the court without the United States by other creditors before creditors who have received a dividend in such courts shall be paid any amounts. e A claimant shall not be entitled to collect from a bankrupt estate any greater amount than shall accrue pursuant to the provisions of this Act. Unclaimed Dividends. Sec. 66. a Dividends which remain unclaimed for six months after the final dividend has been declared shall be paid by the trustee into court. b Dividends remaining unclaimed for one year shall, under the direction of the court, be distributed to the creditors whose claims have been allowed but not paid in full, and after such claims have been paid in full the balance shall be paid to the bankrupt: Provided. That in case unclaimed dividends belong to minors such minors may have one year after arriving at majority to claim such dividends. Liens. Sec. 67. a Claims which for want of record or for other reasons would not have been valid liens as against the claims of the creditors of the bankrupt shall not be liens against his estate. b Whenever a creditor is prevented from enforcing his rights as against a lien created, or attempted to be created, by his debtor, who Bankruptcy 691 afterwards becomes a bankrupt, the trustee of the estate of such bank- rupt shall be subrogated to and may enforce such rights of such creditor for the benefit of the estate. c A lien created by or obtained in or pursuant to any suit or pro- ceeding at law or in equity, including an attachment upon mesne process or a judgment bv confession, which was begun against a person within four months before the filing of a petition in bankruptcy by or against such person shall be dissolved by the adjudication of such person to be a bankrupt if (1) it appears that said lien was obtained and per- mitted while the defendant was insolvent and that its existence and enforcement will work a preference, or (2) the party or parties to be benefited thereby had reasonable cause to believe the defendant was insolvent and in contemplation of bankruptcy, or (3) that such Hen was sought and permitted in fraud of the provisions of this Act ; or if the dissolution of such lien would militate against the best interests of the estate of such person the same shall not be dissolved, but the trustee of the estate of such person, for the benefit of the estate, shall be sub- rogated to the rights of the holder of such lien and empowered to per- fect and enforce the same in his name as trustee with like force and effect as such holder might have done had not bankruptcy proceedings intervened. d Liens given or accepted in good faith and not in contemplation of or in fraud upon this Act, and for a present consideration, which have been recorded according to law, if record thereof was necessary in order to impart notice, shall, to the extent of such present consideration only, not be affected by this Act. e That all conveyances, transfers, assignments, or incumbrances of his property, or any part thereof, made or given by a person adjudged a bankrupt under the provisions of this Act subsequent to the passage of this Act and within four months prior to the filing of the petition with the intent and purpose on his part to hinder, delay, or defraud his creditors, or any of them, shall be null and void as against the creditors of such debtor, except as to purchasers in good faith and for a present fair consideration ; and all property of the debtor conveyed, transferred, assigned, or encumbered as aforesaid shall, if he be adjudged a bank- rupt, and the same is not exempt from execution and liability for debts by the law of his domicile, be and remain a part of the assets and estate of the bankrupt and shall pass to his said trustee, whose duty it shall be to recover and reclaim the same by legal proceedings or other- wise for the benefit of the creditors. And all conveyances, transfers, or incumbrances of his property made by a debtor at any time within four months prior to the filing of the petition against him, and while insolvent, which are held null and void as against the creditors of such debtor by the laws of the State, Territory, or District in which such property is situate, shall be deemed null and void under this Act against the creditors of such debtor if he be adjudged a bankrupt, and such 692 Important Federal Laws property shall pass to the assignee and be by him reclaimed and recov- ered for the benefit of the creditors of the bankrupt. For the purpose of such recovery any court of bankruptcy as hereinbefore defined, and any State court which would have had jurisdiction if bankruptcy had not intervened, shall have concurrent jurisdiction. f That all levies, judgments, attachments, or other liens, obtained through legal proceedings against a person who is insolvent, at any time within four months prior to the filing of a petition in bankruptcy against him, shall be deemed null and void in case he is adjudged a bankrupt, and the property affected by the levy, judgment, attachment, or other lien shall be deemed wholly discharged and released from the same, and shall pass to the trustee as a part of the estate of the bank- rupt, unless the court shall, on due notice, order that the right under such levy, judgment, attachment, or other lien shall be preserved for the benefit of the estate ; and thereupon the same may pass to and shall be preserved by the trustee for the benefit of the estate as aforesaid. And the court may order such conveyance as shall be necessary to carry the purposes of this section into effect : Provided, That nothing herein contained shall have the effect to destroy or impair the title obtained by such levy, judgment, attachment, or other lien, of a bona fide pur- chaser for value who shall have acquired the same without notice or reasonable cause for inquiry. (As amended June 25, 1910.) Set-Offs and Counterclaims. Sec. 68. a In all cases of mutual debts or mutual credits between the estate of a bankrupt and a creditor the account shall be stated and one debt shall be set off against the other, and the balance only shall be allowed or paid. b x\ set-oft' or counterclaim shall not be allowed in favor of any debtor of the bankrupt which (1) is not provable against the estate; or (2) was purchased by or transferred to him after the filing of the petition, or within four months before such filing, with a view to such use and with knowledge or notice that such bankrupt was insolvent, or had committed an act of bankruptcy. Possession of Property. Sec. 69. a A judge may, upon satisfactory proof, by affidavit, that a bankrupt against whom an involuntary petition has been filed and is pending has committed an act of bankruptcy, or has neglected or is neglecting, or is about to so neglect his property that it has thereby deteriorated or is thereby deteriorating or is about thereby to deter- iorate in value, issue a warrant to the marshal to seize and hold it subject to further orders. Before such warrant is issued the petitioners applying therefor shall enter into a bond in such an amount as the judge shall fix, with such sureties as he shall approve, conditioned to indemnify such bankrupt for such damages as he shall sustain in the event such seizure shall prove to have been wrongfully obtained. Such Bankruptcy 693 property shall be released, if such bankrupt shall give bond in a sum which shall be fixed by the judge, with such sureties as he shall ap- prove, conditioned, to turn over such property, or pay the value thereof in money to the trustee, in the event he is adjudged a bankrupt pur- suant to such petition. Title to Property. Sec. 70. a The trustee of the estate of a bankrupt, upon his ap- pointment and qualification, and his successor or successors, if he shall have one or more, upon his or their appointment and qualification, shall in turn be vested by operation of law with the title of the bankrupt, as of the date he was adjudged a bankrupt, except in so far as it is to property which is exempt, to all (1) documents relating to his prop- erty; (2) interests in patents, patent rights, copyrights, and trade- marks; (3) powers which he might have exercised for his own benefit, but not those which he might have exercised for some other person; (4) property transferred by him in fraud of his creditors; (5) property which prior to the filing of the petition he could by any means have transferred or which might have been levied upon and sold under judi- cial process against him : Provided, That when any bankrupt shall have any insurance policy which has a cash surrender value payable to him- self, his estate, or personal representatives, he may within thirty days after the cash surrender value has been ascertained and stated to the trustee by the company issuing the same, pay or secure to the trustee the sum so ascertained and stated, and continue to hold, own, and carry such policy free from the claims of the creditors participating in the distribution of his estate under the bankruptcy proceedings, otherwise the policy shall pass to the trustee as assets ; and (6) rights of action arising upon contracts or from the unlawful taking or detention of, or injury to, his property. b All real and personal property belonging to bankrupt estates shall be appraised by three disinterested appraisers ; they shall be ap- pointed by, and report to, the court. Real and personal propertv shall, when practicable, be sold subject to the approval of the court; it shall not be sold otherwise than subject to the approval of the court for less than seventy-five per centum of its appraised value. c The title to property of a bankrupt estate which has been sold, as herein provided, shall be conveyed to the purchaser by the trustee. d Whenever a composition shall be set aside, or discharge revoked, the trustee shall, upon his appointment and qualification, be vested as herein provided with the title to all of the property of the bankrupt as of the date of the final decree setting aside the composition or revokino- the discharge. e The trustee may avoid any transfer by the bankrupt of his prop- erty which any creditor of such bankrupt might have avoided, and may recover the property so transferred, or its value, from the person to whom it was transferred, unless he was a bona fide holder for value 694 Important Federal Laws prior to the date of the adjudication. Such property may be recovered or its value collected from whoever may have received it, except a bona fide holder for value. For the purpose of such recovery any court of bankruptcy as hereinbefore defined, and any State court which would have had jurisdiction if bankruptcy had not intervened, shall have con- current jurisdiction. f Upon the confirmation of a composition offered by a bankrupt, the title to his property shall thereupon revest in him. The Time When This Act Shall Go Into Effect. a This Act shall go into full force and efifect upon its passage: Provided, however, That no petition for vountary bankruptcy shall be filed within one month of the passage thereof, and no petition for invol- untary bankruptcy shall be filed within four months of the passage thereof. b Proceedings commenced under State insolvency laws before the passage of this Act shall not be afifected by it. Sec. 71. That the clerks of the several district courts of the United States shall prepare and keep in their respective offices com- plete and convenient indexes of all petitions and discharges in bank- ruptcy heretofore or hereafter filed in the said courts, and shall, when requested so to do, issue certificates of search certifying as to whether or not any such petitions or discharges have been filed; and said clerks shall be entitled to receive for such certificates the same fees as now allowed by law for certificates as to judginents in said courts: Pro- vided. That said bankruptcy indexes and dockets shall at all_ times^ be open to inspection and examination by all persons or corporations with- out any fee or charge therefor. Sec. 72. That neither the referee, receiver, marshal, nor trustee shall in any form or guise receive, nor shall the court allow him, any other or further compensation for his services than that expressly au- thorized and prescribed in this Act. (As amended June 25, 1910.) Note. — General orders and forms in bankruptcy are prepared by the United States Supreme Court and are published by the United States Printing Office, and are for sale by the Superintendent of Docu- ments, Washington, D. C. . ■ _ . THE CRIMINAL CODE. Act of March 4, 1909. An Act to codify, revise, and amend the penal laws of the United States: That the penal laws of the United States be, and they hereby are, codified, revised, and amended, with title, chapters, headnotes, and sections, entitled, numbered, and to read as follows : CHAPTER ONE. Offenses Against the Existence of the Government. Treason. Sec. 1. Whoever, owing allegiance to the United States, levies war against them or adheres to their enemies, giving them aid and com- fort within the United States or elsewhere, is guilty of treason. Punishment. Sec. 2. Whoever is convicted of treason shall sufifer death ; or, at the discretion of the court, shall be imprisoned not less than five years and fined not less than ten thousand dollars, to be levied on and col- lected out of any or all of his property, real and personal, of which he was the owner at the time of committing such treason, any sale or conveyance to the contrary notwithstanding ; and every person so convicted of treason shall, moreover, be incapable of holding any office vmder the United States. Misprision of Treason. Sec. 3. Whoever, owing allegiance to the United States and hav- ing knowledge of the commission of any treason against them, con- ceals, and does not, as soon as may be, disclose and make known the same to the President or to some judge of the United States, or to the governor or to some judge or justice of a particular State, is guilty of misprision of treason and shall be imprisoned not more than seven years and fined not more than one thousand dollars. Inciting Rebellion. Sec. 4. Whoever incites, sets on foot, assists, or engages in any rebellion or insurrection against the authority of the United States or the laws thereof, or gives aid or comfort thereto, shall be imprisoned not more than ten years, or fined not more than ten thousand dollars, or both ; and shall, moreover, be incapable of holding any office under the United States. 696 Important Federal Laws Criminal Correspondence With Foreign Governments. Sec. 5. Every citizen of the United States, whether actually resi- dent or abiding within the same, or in any place subject to the juris- diction thereof, or in any foreign country, without the permission or authority of the government, directly or indirectly, commences or car- ries on any verbal or written correspondence or intercourse with any foreign government or any officer or agent thereof, with an intent to influence the measures or conduct of any foreign government or of any officer or agent thereof, in relation to any disputes or controver- sies with the United States, or to defeat the measures of the govern- ment of the United States ; and every person, being a citizen of or resident within the United States or in any place subject to the juris- diction thereof, and not duly authorized, counsels, advises, or assists in any such correspondence with such intent, shall be fined not more than five thousand dollars and imprisoned not more than three years ; but nothing in this section shall be construed to abridge the right of a citizen to apply, himself or his agent, to any foreign government or the agents thereof for redress of any injury which he may have sus- tained from such government or any of its agents or subjects. Seditious Conspiracy. Sec. 6. If two or more persons in any State or Territory, or in any place subject to the jurisdiction of the United States, con- spire to overthrow, put down, or to destroy by force the government of the United States, or to levy war against them, or to oppose by force the authority thereof, or by force to prevent, hinder, or delay the execution of any law of the United States, or by force to seize, take, or possess any property of the United States contrary to the authority thereof, they shall each be fined not more than five thousand dollars, or imprisoned not more than six years, or both. Recruiting Soldiers or Sailors to Serve Against the United States. Sec. 7. Whoever recruits soldiers or sailors within the United States, or in any place subject to the jurisdiction thereof, to engage in armed hostility against the same, or opens within the United States, or in any place subject to the jurisdiction thereof, a recruiting station for the enlistment of such soldiers or sailors to serve in any manner in armed hostility against the United States, shall be fined not more than one thousand dollars and imprisoned not more than five years'. Enlistment to Serve Against the United States. Sec. 8. Every person enlisted or engaged within the United States or in any place subject to the jurisdiction thereof, with intent to serve in armed hostility against the United States, shall be fined one hun- dred dollars and imprisoned not more than three years. Criminal Code 697 CHAPTER TWO. Offenses Against Neutrality. Accepting a Foreign Commission. Sec. 9. Every citizen of the United States who, within the ter- ritory or jurisdiction thereof, accepts and exercises a commission to serve a foreign prince, state, colony, district, or people, in war, by land or by sea, against any prince, state, colony, district, or people, with whom the United States are at peace, shall be fined not more than two thousand dollars and imprisoned not more than three years. Enlisting in Foreign Service. Sec. 10. Whoever, within the territory or jurisdiction of the United States, enlists, or enters himself, or hires or retains another person to enlist or enter himself, or to go beyond the limits or jurisdiction of the United States with intent to be enlisted or entered in the service of any foreign prince, state, colony, district, or people, as a soldier, or as a marine or seaman, on board of any vessel of war, letter of marque, or privateer, shall be fined not more than one thousand dol- lars and imprisoned not more than three years. Arming Vessels Against People at Peace With the United States. Sec. 11. Whoever, within the territory or jurisdiction of the United States, fits out and arms, or attempts to fit out and arm, or procures to be fitted out and armed, or knowingly is concerned in the furnishing, fitting out, or arming of any vessel, with intent that such vessel shall be employed in the service of any foreign prince or state, or of any colony, district, or people, to cruise or commit hostilities against the subjects, citizens, or property of any foreign prince or state, or of any colony, district, or people, with whom the United States are at peace, or whoever issues or delivers a commission within the territory or jurisdiction of the United States for any vessel, to the intent that she may be so employed, shall be fined not more than ten thousand dollars and imprisoned not more than three years. And every such vessel, her tackle, apparel, and furniture, together with all mate- rials, arms, ammunition, and stores which may have been procured for the building and equipment thereof, shall be forfeited, one-half to the use of the informer and the other half to the use of the United States. . Augmenting Force of Foreign Vessel of War. Sec. 12. Whoever, within the territory or jurisdiction of the United States, increases or augments, or procures to be increased or aug- mented, or knowingly is concerned in increasing or augmenting, the force of any ship of war, cruiser, or other armed vessel which, at the time of her arrival within the United States, was a ship of war, or cruiser, or armed vessel, in the service of any foreign prince or state, or of any colony, district, or people, or belonging to the subjects 698 Important Federal Laws or citizens of any such prince or state, colony, district, or people, the same being at war with any foreign prince or state, or of any colony, district, or people, with whom the United States are at peace, by add- ing to the number of the guns of such vessel, or by changing those on board of her for guns of a larger caliber, or by adding thereto any equipment solely applicable to war, shall be fined not more than one thousand dollars and imprisoned not more than one year. Military Expeditions Against People at Peace With United States. Sec. 13. Whoever, within the territory or jurisdiction of the United States, begins, or sets on foot, or provides or prepares the means for, any military expedition or enterprise, to be carried on from thence against the territory or dominions of any foreign prince or state, or of any colony, district, or people, with whom the United States are at peace, shall be fined not more than three thousand dollars and imprisoned not more than three years. Enforcement of Foregoing Provisions. Sec. 14. The district courts shall take cognizance of all complaints, by whomsoever instituted, in cases of captures made within the waters of the United States, or within a marine league of the coasts or shores thereof. In every case in which a vessel is fitted out and armed, or attempted to be fitted out and armed, or in which the force of any vessel of war, cruiser, or other armed vessel is increased or augmented, or in which any military expedition or enterprise is begun or set on foot, contrary to the provisions and prohibitions of this chapter ; and in every case of the capture of a vessel within the jurisdiction or pro- tection of the United States as before defined ; and in every case in which any process issuing out of any court of the United States is disobeyed or resisted by any person having the custody of any vessel of war, cruiser, or other armed vessel of any foreign prince, or state, or of any colony, district, or people, or of any subjects or citizens of any foreign prince or state, or of any colony, district, or people, it shall be lawful for the President, or such other person as he shall have empowered for that purpose, to employ such part of the land or naval forces of the United States, or of the militia thereof, for the purpose of taking possession of and retaining any such vessel, with her prizes, if any, in order to enforce the execution of the prohibitions and penalties of this chapter, and the restoring of such prizes in the cases in which restoration shall be adjudged; and also for the purpose of preventing the carrying on of any such expedition or enterprise from the territory or judisdiction of the United States against the territory or dominion of any foreign prince or state, or of any colony, district, or people with whom the United States are at peace. Compelling Foreign Vessels to Depart. Sec. 15. It shall be lawful for the President, or such person as he Criminal Code 699 shall empower for that purpose, to employ such part of the land or naval forces of the United States, or of the militia thereof, as shall be necessary to compel any foreign vessel to depart the United States in all cases in which, by the laws of nations or the treaties of the United States, she ought not to remain within the United States. Armed Vessels to Give Bond on Clearance. Sec. 16. The owners or consignees of every armed vessel sailing out of the ports of, or under the jurisdiction of. the United States, belonging wholly or in part to citizens thereof, shall, before clearing out the same, give bond to the United States, with sufficient sureties, in double the amount of the value of the vessel and cargo on board, including her armament, conditioned that the vessel shall not be em- ployed by such owners to cruise or commit hostilities against the sub- jects, citizens, or property of any foreign prince or state, or of any colony, district, or people with whom the United States are at peace. Detention by Collector of Customs. Sec. 17. The several collectors of the customs shall detain any vessel manifestly built for warlike purposes, and about to depart the United States, or any place subject to the jurisdiction thereof, the cargo of which principally consists of arms and munitions of war, when the number of men shipped on board, or other circumstances, render it probable that such vessel is intended to be employed by the owners to cruise or commit hostilities upon the subjects, citizens, or property of any foreign prince or state, or of any colony, district, or people with whom the United States are at peace, until the decision of the President is had thereon, or until the owner gives such bond and security as is required of the owners of armed vessels by the preceding section. Construction of This Chapter. Sec. 18. The provisions of this chapter shall not be construed to extend to any subject or citizen of any foreign prince, state, colony, district, or people who is transiently within the United States and enlists or enters himself on board of any vessel of war, letter of marque, or privateer, which at the time of its arrival within the United States was fitted and equipped as such, or hires or retains another subject or citizen of the same foreign prince, state, colony, district, or people who is transiently within the United States to enhst or enter himself to serve such foreign prince, state, colony, district, or people on board such vessel of war, letter of marque, or privateer, if the United States shall then be at peace with such foreign prince, state, colony, district, or people. Nor shall they be construed to prevent the prosecution or punishment of treason, or of any piracy defined by the laws of the United States. 700 Important Federal Laws CHAPTER THREE. Offenses Against the Elective Franchise and Civil Rights of Citizens. Conspiracy to Injure, etc., Citizens in the Exercise of Civil Rights. Sec. 19. If two or more persons conspire to injure, oppress, threaten, or intimidate any citizen in the free exercise or enjoyment of any right or privilege secured to him by the Constitution or laws of the United States, or because of his having so exercised the same, or if two or more persons go in disguise on the highway, or on the premises of another, with intent to prevent or hinder his free exercise or enjoyment of any right or privilege so secured, they shall be fined not more than five thousand dollars and imprisoned not more than ten years, and shall, moreover, be thereafter ineligible to any office, or place of honor, profit, or trust created by the Constitution or laws of the United States. Depriving Persons of Civil Rights Under Color of State Law, Sec. 20. Whoever, under color of any law, statute, ordinance, regulation, or custom, willfully subjects, or causes to be subjected, any inhabitant of any State, Territory, or District to the deprivation of any rights, privileges, or immunities secured or protected by the Con- stitution and laws of the United States, or to different punishments, pains, or penalties, on account of such inhabitant being an alien, or by reason of his color, or race, than are prescribed for the punishment of citizens, shall be fined not more than one thousand dollars, or impris- oned not more than one vear, or both. Conspiracy to Prevent Person From Holding Office or Discharge of Duty. Sec. 21. If two or more persons in any State, Territory or Dis- trict conspire to prevent, by force, intimidation, or threat, any person from accepting or holding any office, trust, or place of confidence under the United States, or from discharging any duties thereof ; or to induce by like means any officer of the United States to leave any State, Ter- ritory, district, or place, where his duties as an officer are required to be performed, or to injure him in his person or property on account of his lawful discharge of the duties of his office, or while engaged in the lawful discharge thereof, or to injure his property so as to molest, interrupt, hinder, or impede him in the discharge of his official duties, each of such persons shall be fined not more than five thousand dollars, or imprisoned not more than six years, or both. Unlawful Presence of Troops at Elections. Sec. 22. Every officer of the Army or Navy, or other person in the civil, military, or naval service of the United States, who orders, brings, keeps, or has under his authority or control any troops or Criminal Code 701 armed men at any place where a general or special election is held in any State, unless such force be necessary to repel armed enemies of the United States, shall be lined not more than five thousand dollars and imprisoned not more than five years. Intimidation of Voters by Officers, etc., of Army and Navy. Sec. 23. Every officer or other person in the military or naval service of the United States who, by force, threat, intimidation, order, advice, or otherwise, prevents, or attempts to prevent, any qualified voter of any State from freely exercising the right of suffrage at any general or special election in such State shall be fined not more than five thousand dollars and imprisoned not more than five years. Officers of Army or Navy Prescribing Qualifications of Voters. Sec. 24. Every officer of the Army or Navy who prescribes or fixes, or attempts to prescribe or fix, whether by proclamation, order, or otherwise, the qualifications of voters at any election in any State shall be punished as provided in the preceding section. Officers, etc., of Army or Navy Interfering With Officers of Elec- tion, etc. Sec. 25. Every officer or other person in the military or naval service of the United States who. by force, threat, intimidation, order, or otherwise, compels, or attempts to compel, any officer holding an election in any State to receive a vote from a person not legally quali- fied to vote, or who imposes, or attempts to impose, any regulations for conducting any general or special election in a State dift"erent from those prescribed by law, or who interferes in any manner with any officer of an election in the discharge of his duty, shall be punished as provided in section twenty-three. Persons Disqualified From Holding Office; When Soldiers, etc., May Vote. Sec. 26. Every person convicted of any offense defined in the four preceding sections shall, in addition to the punishment therein pre- scribed, be disqualified from holding any office of honor, profit, or trust under the United States ; but nothing therein shall be construed to prevent any officer, soldier, sailor, or marine from exercising the right of suffrage in any election district to which he may belong, if otherwise qualified according to the laws of the State in which he offers to vote. CHAPTER FOUR. Offenses Against the Operations of the Government. Forgery of Letters Patent. Sec. 27. Whoever shall falsely make, forge, counterfeit, or alter any letters patent granted or purporting to have been granted by the President of the United States ; or whoever shall pass, utter, or publish. 702 Important Federal Laws or attempt to pass, utter, or publish as genuine, any such forged, counterfeited, or falsely altered letters patent, knowing the same to be forged, counterfeited, or falsely altered, shall be fined not more than five thousand dollars and imprisoned not more than ten years. Forging Bond, Bid, Public Record, Etc. Sec. 28. Whoever shall falsely make, alter, forge, or counterfeit or cause or procure to be falsely made, altered, forged, or counter- feited, or willingly aid, or assist in the false making, altering, forging, or counterfeiting, any bond, bid, proposal, contract, guarantee, secur- ity, official bond, public record, affidavit, or other writing for the pur- pose of defrauding the United States ; or shall utter or publish as true, or cause to be uttered or published as true, or have in his possession with the intent to utter or publish as true, any such false, forged, altered, or counterfeited bond, bid, proposal, contract, guarantee, security, official bond, public record, affidavit, or other writing, for the purpose of defrauding the United States, knowing the same to be false, forged, altered, or counterfeited ; or shall transmit to, or present at, or cause or procure to be transmitted to, or presented at, the office of any officer of the United States, any such false, forged, altered, or counterfeited bond, bid, proposal, contract, guarantee, security, official bond, public record, affidavit, or other writing, knowing the same to be false, forged, altered, or counterfeited, for the purpose of defrauding the United States, shall be fined not more than one thousand dollars, or imprisoned not more than ten years, or both. Forging Deeds, Powers of Attorney, Etc. Sec. 29. Whoever shall falsely make, alter, forge, or counterfeit, or cause or procure to be falsely made, altered, forged, or counter- feited, or willingly aid or assist in the false making, altering, for- ging, or counterfeiting, any deed, power of attorney, order, certificate, receipt, contract, or other writing, for the purpose of obtaining or receiving, or of enabling any other person, either directly or indirectly, to obtain or receive from the United States, or any of their officers or agents, any sum of money ; or whoever shall utter or publish as true, or cause to be uttered or published as true, any such false, forged, altered, or counterfeited deed, power of attorney, order, cer- tificate, receipt, contract, or other writing, with intent to defraud the United States, knowing the same to be false, altered, forged, or coun- terfeited ; or whoever shall transmit to, or present at, or cause or pro- cure to be transmitted to, or presented at, any office or officer of the Government of the United States, any deed, power of attorney, order, certificate, receipt, contract, or other writing, in support of, or in relation to, any account or claim, with intent to defraud the United States, knowing the same to be false, altered, forged, or counterfeited, shall be fined not more than one thousand dollars and imprisoned not more than ten years. Criminal Code 703 Having Forged Papers in Possession. Sec. 30. Whoever, knowingly and with intent to defraud the United States, shall have in his possession any false, altered, forged, or counterfeited deed, power of attorney, order, certificate, receipt, con- tract, or other writing, for the purpose of enabling another to obtain from the United States, or from any officer or agent thereof, any sum of money, shall be fined not more than five hundred dollars, or im- prisoned not more than five years, or both. False Acknowledgments. Sec. 31. Whoever, being an officer authorized to administer oaths or to take and certify acknowledgments, shall knowingly make any false acknowledgment, certificate, or statement concerning the appear- ance before him or the taking of an oath or affirmation by any person with respect to any proposal, contract, bond, undertaking, or other matter, submitted to, made with, or taken on behalf of, the United States, and concerning which an oath or affirmation is required by law or regulation made in pursuance of law. or with respect to the financial standing of any principal, surety, or other party to any such proposal, contract, bond, undertaking, or other instrument, shall be fined not more than two thousand dollars, or imprisoned not more than two years, or both. Falsely Pretending to be United States Officer. Sec. 32. Whoever, with intent to defraud either the United States or anv person, shall falsely assume or pretend to be an officer or em- ployee acting under the authority of the United States, or any depart- ment, or any officer of the Government thereof, and shall take upon himself to act as such, or shall in such pretended character demand or obtain from any person or from the United States, or any depart- ment, or any officer of the Government thereof, any money, paper, document, or other valuable thing, shall be fined not more than one thousand dollars, or imprisoned not more than three years, or both. False Personation of Holder of Public Stocks. Sec. 33. Whoever shall falsely personate any true and lawful holder of any share or sum in the public stocks or debt of the United States, or any person entitled to any annuity, dividend, pension, prize money, wages, or other debt due from the United States, and, under color of such false personation, shall transfer or endeavor to transfer such public stock or any part thereof, or shall receive or endeavor to receive the money of such true and lawful holder thereof, or the money of any person really entitled to receive such annuity, dividend, pension, prize money, wages, or other debt, shall be fined not more than five thousand dollars and imprisoned not more than ten years. False Demand of Fraudulent Power of Attorney. Sec. 34. Whoever shall knowingly or fraudulently demand or 704 Important Federal Laws endeavor to obtain any share or sum in the public stocks of the United States, or to have any part thereof transferred, assigned, sold, or con- veyed, or to have any annuity, dividend, pension, prize money, wages, or other debt due from the United States, or any part thereof, received, or paid by virtue of any false, forged or counterfeited power of attorney, authority, or instrument, shall be fined not more than five thousand dollars and imprisoned not more than ten years. Making or Presenting False Claims. Sec. 35. Whoever shall make or cause to be made, or present or cause to be presented, for payment or approval, to or by any person or officer in the civil, military, or naval service of the United States, anv claim upon or against the Government of the United States, or any department or officer thereof, knowing such claim to be false, fic- titious, or fraudulent ; or whoever, for the purpose of obtaining or aid- ing to obtain the payment or approval of such claim, shall make or use, or cause to be made or used, any false bill, receipt, voucher, roll, account, claim, certificate, affidavit, or deposition, knowing the same to contain any fraudulent or fictitious statement or entry ; or whoever shall enter into any agreement, combination, or conspiracy to defraud the Government of the United States, or any department or officer thereof, by obtaining or aiding to obtain the payment or allowance of any false or fraudulent claim ; or whoever, having charge, possession, custody, or control of any money or other public propertv used or to be used in the military or naval service, with intent to defraud the United States or willfullv to conceal such money or other property, shall deliver or cause to be delivered, to any other person having authority to receive the same, any amount of such money or other property less than that for which he received a certificate or took a receipt ; or whoever, being authorized to make or deliver any certificate, voucher, receipt, or other paper certifying the receipt of arms, ammunition, provisions, clothing, or other property so used or to be used, shall make or deliver the same to any other person without a full knowledge of the truth of the facts stated therein, and with intent to defraud the United States, shall be fined not more than five thousand dollars, or imprisoned not inore than five years, or both. And whoever shall knowingly purchase or receive in pledge for any obligation or indebtedness from any sol- dier, officer, sailor, or other person called into or employed in the military or naval service, any arms, equipments, ammunition, clothes, military stores, or other public property, whether furnished to the soldier, sailor, officer, or person, under a clothing allowance or other- wise, such soldier, sailor, officer, or other person not having the lawful right to pledge or sell the same, shall be fined not more than five hun- dred dollars, and imprisoned not more than two years. Embezzling Arms, Stores, Etc. Sec. 36. Whoever shall steal, embezzle, or knowingly apply to Criminal Code 705 his own use, or unlawfully sell, convey, or dispose of, any ordnance, arms, ammunition, clothing, subsistence, stores, money, or other prop- erty of the United States, furnished or to be used for the military or naval service, shall be punished as prescribed in the preceding section. Conspiracy to Commit Offense Against the United States. Sec. Z7. If two or more persons conspire either to commit any ofifense against the United States, or to defraud the United States in any manner or for any purpose, and one or more of such parties do any act to effect the object of the conspiracy, each of the parties to such conspiracy shall be fined not more than ten thousand dollars, or imprisoned not more than two years, or both. Delaying or Defrauding Captor or Claimant, Etc., of Prize Property. Sec. 38. Whoever shall willfully do, or aid or advise in the doing, of any act relating to the bringing in, custody, preservation, sale, or other disposition of any property captured as prize, or relating to any documents or papers connected with the property, or to any deposition or other document or paper connected with the proceedings, with intent to defraud, delay, or injure the United States or any captor or claimant of such property, shall be fined not more than ten thousand dollars, or imprisoned not more than five years, or both. Bribery of United States Officer. Sec. 39. Whoever shall promise, ofifer, or give, or cause or pro- cure to be promised, offered, or given, any money or other thing of value, or shall make or tender any contract, undertaking, obligation, gratuity, or security for the payment of money, or for the delivery or conveyance of anything of value, to any officer of the United States, or to any person acting for or on behalf of the United States in any official function, under or by authority of any department or office of the Government thereof, or to any officer or person acting for or on behalf of either House of Congress, or of any committee of either House, or both Houses thereof, with intent to influence his decision or action on any question, matter, cause, or proceeding which may at any time be pending, or which may by law be brought before him in his official capacity, or in his place of trust or profit, or with intent to in- fluence him to commit or aid in committing, or to collude in, or allow, any fraud, or make opportunity for the commission of any fraud, on the United States, or to induce him to do or omit to do any act in viola- tion of his lawful duty, shall be fined not more than three times the amount of money or value of the thing so offered, promised, given, made, or tendered, or caused or procured to be so offered, promised, given, made or tendered, and imprisoned not more than three years. Unlawfully Taking or Using Papers Relating to Claim-s. Sec. 40. Whoever shall take and carry a\A'ay, without authority from the United States, from the place where it has been filed, lodged, (45) 706 Important Federal Laws or deposited, or where it may for the time being actually be kept by authority of the United States, any certificate, affidavit, deposition, writ- ten statement of facts, power of attorney, receipt, voucher, assignment, or other document, record, file, or paper, prepared, fitted, or intended to be used or presented in order to procure the payment of money from or by the United States, or any officer or agent thereof, or the allowance or payment of the whole or any part of any claim, account, or demand against the United States, whether the same has or has not already been so used or presented, and whether such claim, account, or demand, or any part thereof, has or has not already been allowed or paid; or whoever shall present, use, or attempt to use, any such docu- ment, record, file, or paper so taken and carried away, in order to pro- cure the payment of any money from or by the United States, or any officer or agent thereof, or the allowance or payment of the whole or any part of any claim, account, or demand against the United States, shall be fined not more than five thousand dollars, or imprisoned not more than ten years, or both. Persons Interested Not to Act as Agents of the Government. Sec. 41. No officer or agent of any corporation, joint stock com- pany, or association, and no member or agent of any firm, or person directly or indirectly interested in the pecuniary profits or contracts of such corporation, joint stock company, association, or firm, shall be employed or shall act as an officer or agent of the United States for the transaction of business with such corporation, joint stock company, association, or firm. Whoever shall violate the provision of this sec- tion shall be fined not more than two thousand dollars and imprisoned not more than two years. Enticing Desertions From the Military or Naval Service. Sec. 42. Whoever shall entice or procure, or attempt or endeavor to entice or procure, any soldier in the military service, or any sea- man or other person in the naval service of the United States, or who has been recruited for such service, to desert therefrom, or shall aid any such soldier, seaman, or other person in deserting or in attempting to desert from such service ; or whoever shall harbor, conceal, protect, or assist any such soldier, seaman, or other person who may have deserted from such service, knowing him to have deserted therefrom, or shall refuse to give up and deliver such soldier, seaman, or other person on the demand of any officer authorized to receive him, shall be imprisoned not more than three years and fined not more than two thousand dollars. Enticing Away Workmen. Sec. 43. Whoever shall procure or entice any artificer or workman retained or employed in any arsenal or armory, to depart from the same during the continuance of his engagement, or to avoid or break his contract with the United States ; or whoever, after due notice of the Criminal Code 707 engagement of such workman or artificer, during the continuance of such engagement, shall retain, hire, or in anywise employ, harbor, or conceal such artificer or workman, shall be fined not more than fifty dollars, or imprisoned not more than three months, or both. Injuries to Fortifications, Harbor Defenses, Etc. Sec. 44. Whoever shall willfully trespass upon, injure, or destroy any of the works or property or material of any submarine mine or torpedo, or fortification or harbor-defense system owned or constructed or in process of construction by the United States, or shall willfully interfere with the operation or use of any such submarine mine, tor- pedo, fortification, or harbor-defense system, shall be fined not more than five thousand dollars, or imprisoned not more than five vears, or both. Unlawfully Entering Upon Military Reservation, Fort, Etc. Sec. 45. Whoever shall go upon any military reservation, army post, fort, or arsenal, for any purpose prohibited by law or military regulation made in pursuance of law, or whoever shall re-enter or be found within any such reservation, post, fort, or arsenal, after having been removed therefrom or ordered not to re-enter by any officer or person in command or charge thereof, shall be fined not more than five hundred dollars, or imprisoned not more than six months, or both. Robbery or Larceny of Personal Property of the United States. Sec. 46. Whoever shall rob another of any kind or description of personal property belonging to the United States, or shall feloniouslv take and carry away the same, shall be fined not more than five thou- sand dollars, or imprisoned not more than ten years, or both. Embezzling, Stealing, Etc., Public Property. Sec. 47. Whoever shall embezzle, steal, or purloin anv money, property, .record, voucher, or valuable thing whatever, of the moneys, goods, chattels, records, or property of the United States, shall be fined not more than five thousand dollars, or imprisoned not more than five years, or both. Receivers, Etc., of Stolen Public Property. Sec. 48. Whoever shall receive, conceal, or aid in concealino-, or shall have or retain in his possession with intent to convert to his own use or gain, any money, property, record, voucher, or valuable thing whatever, of the moneys, goods, chattels, records, or property of the United States, which has theretofore been embezzled, stolen, or pur- loined by any other person, knowing the same to have been so em- bezzled, stolen, or purloined, shall be fined not more than five thousand dollars, or imprisoned not more than five years, or both ; and such person may be tried either before or after the conviction of the prin- cipal offender. 708 Important Federal Laws Timber Depredations on Public Lands. Sec. 49. Whoever shall cut, or cause or procure to be cut, or shall wantonly destroy, or cause to be wantonly destroyed, any timber growing on the public lands of the United States; or whoever shall remove, or cause to be removed, any timber from said public lands, with intent to export or to dispose of the same; or whoever, being the owner, master, or consignee of any vessel, or the owner, director, or agent of anv railroad, shall knowingly transport any timber so cut or removed from said lands, or lumber manufactured therefrom, shall be fined not more than one thousand dollars, or imprisoned not more than one year, or both. Nothing in this section shall prevent any miner or agriculturist from clearing his land in the ordinary working of his mining claim, or in the preparation of his farm for tillage, or from taking the timber necessar>^ to support his improvements, or the takmg of timber for the use of the United States. And nothing in this section shall interfere with or take away any right or privilege under any existing law of the United States to cut or remove timber from any public lands. Timber, Etc., Depredations on Indian and other Reservations. Sec. 50. Whoever shall unlawfully cut, or aid in unlawfully cut- ting, or shall wantonly injure or destroy, or procure to be wantonly injured or destroyed, any tree, growing, standing, or being upon any land of the United States which, in pursuance of law, has been reserved or purchased by the United States for any public use, or upon any Indian reservation or lands belonging to or occupied by any tribe of Indians under the aaithority of the United States, or any Indian allotment while the title to the same shall be held in trust by the Government, or while the same shall remain inalienable by the allottee without the consent of the United States, shall be fined not more than five hundred dollars, or imprisoned not more than one year, or both. Boxing, Etc., Timber on Public Lands for Turpentine, Etc. Sec. 51. Whoever shall cut, chip, chop, or box any tree upon any lands belonging to the United States, or upon any lands covered by or embraced in any unperfccted settlement, application, filing, entry, selec- tion, or location, made under any law of the United States, for the purpose of obtaining from such tree any pitch, turpentine, or other substance, or shall knowingly encourage, cause, procure, or aid in the cutting, chipping, chopping, or boxing of any such tree, or shall buy, trade "for, or in any manner acquire any pitch, turpentine, or other substance, or any article or commodity made from any such pitch, turpentine, or other substance, when he has knowledge that the same has been so unlawfully obtained from such trees, shall be fined not more than five hundred dollars, or imprisoned not more than one year, or both. Criminal Code 709 Setting Fire to Timber on Public Lands. Sec. 52. Whoever shall willfully set on fire, or cause to be set on fire, any timber, underbrush, or grass upon the public domain, or shall leave or suffer fire to burn unattended near any timber or other inflammable material shall be fined not more than five thousand dollars, or imprisoned not more than two years, or both. Failing to Extinguish Fires. Sec. 53. Whoever shall build a fire in or near any forest, timber, or other inflammable material upon the public domain, or upon any Indian reservation, or lands belonging to or occupied by any tribe of Indians under the authority of the United States, or upon any Indian allotment while the title to the same shall be held in trust by the Government, or while the same shall remain inalienable by the allottee without the consent of the United States, shall, before leaving said fire, totallv extinguish the same; and whoever shall fail to do so shall be fined not more than one thousand dollars, or imprisoned not more than one year, or both. Fines to be Paid into School Fund. Sec. 54. In all cases arising under the two preceding sections the fines collected shall be paid into the public school fund of the county in which the lands where the offense was committed are situated. Trespassing on Bull Run National Forest, Oregon. Sec. 55. Whoever, except forest rangers and other persons employed by the United States to protect the forest, federal and state ofificer's in the discharge of their duties, and the employees of the water board of the city of Portland, State of Oregon, shall knowingly tres- pass upon any part of the reserve known as Bull Run National Forest, in the Cascade Mountains, in the State of Oregon, or shall enter thereon for the purpose of grazing stock, or shall engage in grazing stock thereon, or shall permit stock of any kind to graze thereon, shall be fined not more than five hundred dollars, or imprisoned not more than six months, or both. Breaking Fence or Gate Inclosing Reserved Lands, or Driving or Permitting Live Stock to Enter Upon. Sec. 56. Whoever shall knowingly and unlawfully break, open, or destroy anv gate, fence, hedge, or wall inclosing any lands of the United States which, in pursuance of any law, have been reserved or purchased by the United States for any public use; or whoever shall drive any cattle, horses, hogs, or other -live stock upon any such lands for the purpose of destroying the grass or trees on said lands, or where they may destroy the said grass or trees ; or whoever shall knowingly permit his cattle, horses, hogs, or other live stock, to enter through any such inclosure upon any such lands of the United States, where such cattle, horses, hogs, or other live stock may or can destroy the grass or trees or other property of the United States on the said 710 Important Federal Laws lands, shall be fined not more than five hundred dollars, or imprisoned not more than one year, or both : Provided, That nothino^ in this sec- tion shall be construed to apply to unreserved public lands. Injuring or Removing Posts or Monuments. Sec. 57. Whoever shall willfully destroy, deface, change, or re- move to another place any section corner, quarter-section corner, or meander post, on any Government line of survey, or shall willfully cut down any witness tree or any tree blazed to mark the line of a Govern- ment survey, or shall willfully deface, change, or remove any monument or bench mark of any Government survey, shall be fined not more than two hundred and fifty dollars, or imprisoned not more than six months, or both. Interrupting Surveys. Sec. 58. Whoever in any manner, by threats or force, shall inter- rupt, hinder, or prevent the surveying of the public lands, or of any private land claim which has been or may be confirmed by the United States, by the persons authorized to survey the same, in conformity with the instructions of the Commissioner of the General Land Office, shall be fined not more than three thousand dollars and imprisoned not more than three years. Agreement to Prevent Bids at Sale of Lands. Sec. 59. \Mioever, before or at the time of the public sale of any of the lands of the United States, shall bargain, contract, or agree, or attempt to bargain, contract, or agree with any other person, tliat the last-named person shall not bid upon or purchase the land so offered for sale, or any parcel thereof ; or whoever by intimidation, combination, or unfair management shall hinder or prevent, or attempt to hinder or prevent, any person from bidding upon or purchasing any tract of land so offered for sale, shall be fined not more than one thousand dol- lars, or imprisoned not more than two years, or both. Injuries to United States Telegraph, Etc., Lines. Sec. 60. Whoever shall willfully or maliciously injure or destroy any of the works, property, or material of any telegraph, telephone, or cable line, or system, operated or controlled by the United States, whether constructed, or in process of construction, or shall willfully or maliciously interfere in any way with the working or use of anv such line, or system, or shall willfully or maliciously obstruct, hinder, or delay the transmission of any communication over anv such line, .or system, shall be fined not more than one thousand dollars, or imprisoned not more than three years, or both. Counterfeiting Weather Forecast. Sec. 61. Whoever shall knowingly issue or publish any counterfeit weather forecast or warning of weather conditions falsely represent- ing such forecast or warning to have been issued or published by the Criminal Code 711 Weather Bureau, United States Sig-nal Service, or other branch of the Government service, shall be fined not more than five hundred dol- lars, or imprisoned not more than ninety days, or both. Interfering With Employees of Bureau of Animal Industry; Penalty. Sec. 62. Whoever shall forcibly assault, resist, oppose, prevent, impede, or interfere with any officer or employee of the Bureau of Animal Industry of the Department of Ao^riculture in the execution of his duties, or on account of the execution of his duties, shall be fined not more than one thousand dollars, or imprisoned not more than one year, or both ; and whoever shall use any deadly or dangerous weapon in resisting any officer or employee of the Bureau of Animal Industrv of the Department of Agriculture in the execution of his duties, with intent to commit a bodily injury upon him or to deter or prevent him from discharging his duties, or on account of the per- formance of his duties, shall be fined not more than one thousand dollars, or imprisoned not more than five years, or both. Forgery of Certificate of Entry. Sec. 63. Whoever shall forge, counterfeit, or falsely alter any cer- tificate of entry made or required to be made in pursuance of law by any officer of the customs, or shall use any such forged, counterfeited, or falsely altered certificate, knowing the same to be forged, counter- feited, or falsely altered, shall be fined not more than ten thousand dollars and imprisoned not more than three years. Concealment or Destruction of Invoices. Etc. Sec. 64. Whoever shall willfully conceal or destroy any invoice, book, or paper relating to any merchandise liable to duty, which has been or may be imported into the United States from any foreign port or country, after an inspection thereof has been demanded by the collector of any collection district, or shall at any time conceal or destroy airy such invoice, book, or paper for the purpose of suppressing any evidence of fraud therein contained, shall be fined not more than five thousand dollars, or imprisoned not more than two years, or both. Resisting Revenvie Officers ; Rescuing or Destroying Seized Proper- ty, Etc. Sec. 65. Whoever shall forcibly assault, resist, oppose, prevent, impede, or interfere with any officer of the customs or of the internal revenue, or his deputy, or any person assisting him in the execution of his duties, or any person authorized to make searches and seizures, in the execution of his duty, or shall rescue, attempt to rescue, or cause to be rescued, any property which has been seized by any per- son so authorized ; or whoever before, at, or after such seizure, in order to prevent the seizure or securing of any goods, wares, or mer- chandise by any person so authorized, shall stave, break, throw over- board, destroy, or remove the same, shall be fined not more than two 712 Important Federal Laws thousand dollars, or imprisoned not more than one year, or both ; and whoever shall use any deadly or dangerous weapon in resisting any person authorized to make searches or seizures, in the execution of his duty, with intent to commit a bodily injury upon him or to deter or prevent him from discharging his duty, shall be imprisoned not more than ten years. Falsely Assuming to be a Revenue Officer. Sec. 66. Whoever shall falsely represent himself to be a reve- nue officer, and, in such assumed character, demand or receive any money or other article of value from any person for any duty or tax due to the United States, or for any violation or pretended violation of any revenue law of the United States, shall be fined not more than five hundred dollars and imprisoned not more than two years. Offering Presents to Revenue Officers. Sec. 67. Whoever, being engaged in the importation into *the United States of any goods, wares, or merchandise, or being interested as principal, clerk, or agent in the entry of any goods, wares, or mer- chandise, shall at any time make, or offer to make, to any officer of the revenue, any gratuity or present of money or other thing of value, shall be fined not more than five thousand dollars, or imprisoned not more than two years, or both. Admitting Merchandise to Entry for Less Than Legal Duty. Sec. 68. Whoever, being an officer of the revenue, shall, by any means whatever, knowingly admit or aid in admitting to entry, any goods, wares, or merchandise, upon payment of less than the amount of duty legally due thereon, shall be removed from office and fined not more than five thousand dollars, or imprisoned not more than two years, or both. Securing Entry of Merchandise by False Samples, Etc. Sec. 69. Whoever, by any means whatever, shall knowingly efifect, or aid in effecting, any entry of goods, wares, or merchandise, at less than the true weight or measure thereof, or upon a false classification thereof as to quality or value, or by the payment of less than the amount of duty legally due thereon, shall be fined not more than five thousand dollars, or imprisoned not more than two years, or both. False Certification by Consular Officers. Sec. 70. Whoever, being a consul, or vice-consul, or other person employed in the consular service of the United States, shall knowingly certify falsely to any invoice, or other paper, to which his certificate is by law authorized or required, shall be fined not more than ten thou- sand dollars and imprisoned not more than three years. Taking Seized Property From Custody of Revenue Officer. Sec. 71. Whoever shall dispossess or rescue, or attempt to dispos- sess or rescue, any property taken or detained by any officer or other Criminal Code 713 person under the authority of any revenue law of the United States, or shall aid or assist therein, shall be fined not more than three hun- dred dollars and imprisoned not more than one year. Forging or Altering Ship's Papers or Custom-House Documents. Sec. 72. Whoever shall falsely make, forge, counterfeit, or alter any instrument in imitation of, or purporting to be, an abstract or official copy or certificate of the recording, registry, or enrollment of any vessel,' in the office of any collector of the customs, or a license to any vessel for carrying on the coasting trade or fisheries of the United States, or a certificate of ownership, pass, passport, sea letter,^ or clearance, granted for any vessel, under the authority of the United States, or a permit, debenture, or other official document granted by any collector or other officer of the customs by virtue of his office; or whoever shall utter, publish, or pass, or attempt to utter, publish, or pass, as true, any such false, forged, counterfeited, or falsely altered instrument, abstract, official copy, certificate, license, pass, passport, sea letter, clearance, permit, debenture, or other official document herein specified, knowing the same to be false, forged, counterfeited, or falsely altered, with an intent to defraud, shall be fined not more than one"^ thousand dollars and imprisoned not more than three years. Forging Military Bounty-Land Warrant, Etc. Sec. 7Z. Whoever shall falsely make, alter, forge, or counterfeit any military bounty-land warrant, or military bounty-land warrant certificate, issued or purporting to have been issued by the Commis- sioner of Pensions under any law of Congress, or any certificate or duplicate certificate of location of any military bounty-land warrant, or militarv bounty-land warrant certificate upon any of the lands of the United States, or any certificate or duplicate certificate of the pur- chase of any of the lands of the United States, or any receipt or duplicate receipt for the purchase money of any of the lands of the United States, issued or purporting to have been issued by the register and receiver at any land office of the United States or by either of them : or whoever shall utter, publish, or pass as true, any such false, forged, or counterfeited military bounty-land warrant, military bounty- land warrant certificate, certificate or duplicate certificate of location, certificate or duplicate certificate of purchase, receipt or duplicate re- ceipt for the purchase money of any of the lands of the United States, knowing the same to be false, forged, or counterfeited, shall be impris- oned not more than ten years. Forging, Etc., Certificate of Citizenship. Sec. 74. Wlioever shall falsely make, forge, or counterfeit, or cause or procure- to be falsely made, forged, or counterfeited, or shall knowingly aid or assist in falsely making, forging, or counterfeiting any certificate of citizenship, with intent to use the same, or with the intent that the same may be used by some other person, shall be fined 714 Important Federal Laws not more than ten thousand dollars, or imprisoned not more than ten years, or both. Engraving, Etc., Plate for Printing, or Photographing, Selling, or Bringing Into United States, Etc., Certificate of Citizenship, Etc. Sec. 75. Whoever shall engrave, or cause or procure to be en- graved, or assist in engraving, any plate in the likeness of any plate designed for the printing of a certificate of citizenship ; or whoever shall sell any such plate, or shall bring into the United States from any foreign place any such plate, except under the direction of the Secre- tary of Commerce and Labor or other proper officer ; or whoever shall have in his control, custody, or possession any metallic plate engraved after the similitude of any plate from which any such certificate has been printed, with intent to use or to suffer such plate to be used in forging or counterfeiting any such certificate or any part thereof ; or whoever shall print, photograph, or in any manner cause to be printed, photographed, made, or executed, any print or impression in the likeness of any such certificate, or any part thereof ; or whoever shall sell any such certificate, or shall bring the same into the United States from any foreign place, except by direction of some proper officer of the United States ; or whoever shall have in his possession a distinctive paper which has been adopted by the proper officer of the United States for the printing of such certificate, with intent unlaw- fully to use the same, shall be fined not more than ten thousand dol- lars, or imprisoned not more than ten years, or both. False Personation, Etc., in Procuring Naturalization. Sec. 76. Whoever, when applying to be admitted a citizen, or when appearing as a witness for any such person, shall knowingly per- sonate any person other than himself, or shall falsely appear in the name of a deceased person, or in an assumed or fictitious name ; or whoever shall falsely make, forge, or counterfeit any oath, notice, affi- davit, certificate, order, record, signature, or other instrument, paper, or proceeding required or authorized by any law relating to or providing for the naturalization of aliens; or whoever shall utter, sell, dispose of, or shall use as true or genuine, for any unlawful purpose, any false, forged, antedated, or counterfeit oath, notice, certificate, order, record, signature, instrument, paper, or proceeding above specified ; or who- ever shall sell or dispose of to any person other than the person for whom it was originally issued any certificate of citizenship or certifi- cate showing any person to be admitted a citizen, shall be fined not more than one thousand dollars, or imprisoned not more than five years, or both. Using False Certificate of Citizenship, or Denying Citizenship, Etc. Sec. 77 . Whoever shall use or attempt to use, or shall aid, assist, Criminal Code 715 or participate in the use of any certificate of citizenship, knowing the same to be forged, counterfeit, or antedated, or knowing the same to have been procured by fraud or otherwise unlawfully obtained; or who- ever, without lawful excuse, shall knowingly possess any false, forged, antedated, or counterfeit certificate of citizenship purporting to have been issued under any law of the United States relating to naturali- zation, knowing such certificate to be false, forged, antedated, or counterfeit, with the intent unlawfully to use the same ; or whoever shall obtain, accept, or receive any certificate of citizenship, knowing the same to have been procured by fraud or by the use or means of any false name or statement given or made with the intent to procure, or to aid in procuring, the issuance of such certificate, or knowing the same to have been fraudulently altered or antedated ; or whoever, without lawful excuse, shall have in his possession any blank certificate of citizenship provided by the Bureau of Immigration and Naturalization with the intent unlawfully to use the same; or whoever, after having been admitted to be a citizen, shall, on oath or by affidavit, knowingly deny that he has been so admitted, with the intent to evade or avoid any duty or liability imposed or required by law, shall be fined not more than one thousand dollars, or imprisoned not more than five years, or both. Using False Certificate, Etc., as Evidence of Right to Vote, Etc. Sec. 78. Whoever, shall in any manner use, for the purpose of registering as a voter, or as evidence of a right to vote, or otherwise unlawfully, any order, certificate of citizenship, or certificate, judg- ment, or exemplification, showing any person to be admitted to be a citizen, whether heretofore or hereafter issued or made, knowing that such order, certificate, judgment, or exemplification has been unlaw- fully issued or made; or whoever shall unlawfully use, or attempt to use, any such order or certificate, issued to or in the name of any other person, or in a fictitious name, or the name of a deceased person, shall be fined not more than one thousand dollars, or imprisoned not more than five years, or both. Falsely Claiming Citizenship. Sec. 79. Whoever shall knowingly use any certificate of natural- ization heretofore or which hereafter may be granted by any court, which has been or may be procured through fraud or by false evi- dence, or which has been or may hereafter be issued by the clerk or any other officer of the court without any appearance and hearing of the applicant in court and without lawful authority; or whoever, for any fraudulent purpose whatever, shall falsely represent himself to be a citizen of the United States without having been duly admitted to citizenship, shall be fined not more than one thousand dollars, or imprisoned not more than two years, or both. 716 Important Federal Laws Taking False Oath in Naturalization. Sec. 80. Whoever, in any proceeding under or by virtue of any law relating to the naturalization of aliens, shall knowingly swear falsely in any case where an oath is made or affidavit taken, shall be fined not more than one thousand dollars and imprisoned not more than five years. Provisions Applicable to All Courts of Naturalization. Sec. 81. The provisions of the five sections last preceding shall apply to all proceedings had or taken, or attempted to be had or taken, before any court in which any proceeding for naturalization may be commenced or attempted to be commenced, and whether such court was vested by law with jurisdiction in naturalization proceedings or not. Shanghaiing, and Falsely Inducing Persons Intoxicated to Go on Vessel Prohibited. Sec. 82. Whoever, with intent that any person shall perform ser- vice or labor of any kind on board of any vessel engaged in trade and commerce among the several States or with foreign nations, or on board of any vessel of the United States engaged in navigating the high seas or any navigable water of the United States, shall procure or induce, or attempt to procure or induce, another, by force or threats or by representations which he knows or believes to be untrue, or while the person so procured or induced is intoxicated or under the influence of any drug, to go on board of any such vessel, or to sign or in any wise enter into any agreement to go on board of any such vessel to perform service or labor thereon ; or whoever shall knowingly detain on board of any such vessel any person so procured or induced to go on board thereof, or to enter into any agreement to go on board thereof, by any means herein defined ; or whoever shall knowingly aid or abet in the doing of any of the things herein made unlawful, shall be fined not more than one thousand dollars, or imprisoned not more than one year, or both. Corporations, Etc., Not to Contribute Money for Political Elections, Etc. Sec. 83. It shall be unlawful for any national bank, or any cor- poration organized by authority of any law of Congress, to make a money contribution in connection with any election to any political office. It shall also be unlawful for any corporation whatever to make a money contribution in connection with any election at which Presi- dential and Vice-Presidential electors or a Representative in Congress is to be voted for, or any election by any State Legislature of a United States Senator. Every corporation which shall make any contribu- tion in violation of the foregoing provisions shall be fined not more than five thousand dollars ; and every officer or director of any cor- poration who shall consent to any contribution by the corporation in Criminal Code 717 violation of the foregoing provisions shall be fined not more than one thousand dollars, or imprisoned not more than one year, or both. Hunting Birds, or Taking Their Eggs From Breeding Grounds Pro- hibited. Sec. 84. Whoever shall hunt, trap, capture, willfully disturb, or kill any bird of any kind whatever, or take the eggs of any such bird, on any lands of the United States which have been set apart or re- served as breeding grounds for birds, by any law, proclamation, or Executive order, except under such rules and regulations as the Sec- retary of Agriculture may, from time to time, prescribe, shall be fined not more than five hundred dollars, or imprisoned not more than six months, or both. CHAPTER FIVE. Offenses Relating to Official Duties. Officers, Etc., of the United States Guilty of Extortion. Sec. 85. Every ofHcer, clerk, agent, or employee of the United States, and every person representing himself to be or assuming to act as such officer, clerk, agent, or employee, who, under color of his office, clerkship, agency, or employment, or under color of his pretended or assumed office, clerkship, agency, or employment, is guilty of extor- tion, and every person who shall attempt any act which if performed wlould make him guilty of extortion, shall be fined not more than five hundred dollars, or imprisoned not more than one year, or both. Receipting for Larger Sums Than are Paid, Sec. 86. Whoever, being an officer, clerk, agent, employee, or other person charged with the payment of any appropriation made by Congress, shall pay to any clerk or other employee of the United States a sum less than that provided by law, and require such employee to receipt or give a voucher for an amount greater than that actually paid to and received by him, is guilty of embezzlement, and shall be fined in double the amount so withheld from any employee of the Government and imprisoned not more than two years. Disbursing Officer Unlawfully Converting, Etc., Public Money. Sec. 87. Whoever, being a disbursing officer of the United States, or a person acting as such, shall in any manner convert to his own use, or loan with or without interest, or deposit in any place or in any manner, except as authorized by law, any public money intrusted to him ; or shall, for any purpose not prescribed by law, withdraw from the Treasurer or any assistant treasurer, or any authorized depositary, or transfer, or apply, any portion of the public money intrusted to him, shall be deemed guilty of an embezzlement of the money so converted, loaned, deposited, withdrawn, transferred, or applied, and shall be fined not more than the amount embezzled, or imprisoned not more than ten years, or both. 718 Important Federal Laws Failure of Treasurer to Safely Keep Public Moneys. Sec. 88. If the Treasurer of the United States or any assistant treasurer, or any public depositary, fails safely to keep all moneys deposited by any disbursing officer or disbursing agent, as well as all moneys deposited by any receiver, collector, or other person having money of the United States, he shall be deemed guilty of embezzle- ment of the moneys not so safely kept, and shall be fined in a sum equal to the amount of money so embezzled and imprisoned not more than ten years. Custodians of Public Money Failing to Safely Keep, Etc. Sec. 89. Every officer or other person charged by any act of Con- gress with the safe-keeping of the public moneys, who shall loan, use, or convert to his own use, or shall deposit in any bank or exchange for other funds, except as specially allowed by law, any portion of the pul)lic moneys intrusted to him for safe-keeping, shall be guilty of embezzlement of the money so loaned, used, converted, deposited, or exchanged, and shall be fined in a sum equal to the amount of money so embezzled and imprisoned not more than ten years. Failure of Officer to Render Accounts, Etc. Sec. 90. Every officer or agent of the United States who, having received public money which he is not authorized to retain as salary, pay, or emolument, fails to render his accounts for the same as pro- vided by law shall be deemed guilty of embezzlement, and shall be fined in a sum equal to the amount of money embezzled and impris- oned not more than ten years. Failure to Deposit as Required. Sec. 91. Whoever, having money of the United States in his pos- session or under his control, shall fail to deposit it with the Treasurer, or some assistant treasurer, or some public depositary of the United States, when required so to do by the Secretary of the Treasury, or the head of any other proper department, or by the accounting officers of the Treasury, shall be deemed guilty of embezzlement there- of, and shall be fined in a sum equal to the amount of money em- bezzled and imprisoned not more than ten years. Provisions of the Five Preceding Sections, How Applied. Sec. 92. The provisions of the five preceding sections shall be construed to apply to all persons charged with the safe-keeping, trans- fer, or disbursement of the public money, whether such persons be indicted as receivers or depositaries of the same. Record Evidence of Embezzlement. Sec. 93. Upon the trial of any indictment against any person for embezzling public money under any provision of the six preceding sections, it shall be sufficient evidence, prima facie, for the purpose of showing a balance against such person, to produce a transcript from Criminal Code 719 the books and proceedings of the Treasury, as required in civil cases, under the provisions for the settlement of accounts between the United States and receivers of public money. Prima Facie Evidence. Sec. 94. The refusal of any person, whether in or out of office, charg-ed with the safe-keeping, transfer, or disbursement of the public money to pay any draft, order, or warrant, drawn upon him by the proper accounting officer of the Treasury, for any public money in his hands belonging to the United States, no matter in what capacity the same may have been received, or may be held, or to transfer or dis- burse any such money, promptly, upon the legal requirement of any authorized officer, shall be deemed, upon the trial of any indictment against such person for embezzlement, prima facie evidence of such embezzlement. Evidence of Conversion. Sec. 95. If any officer charged with the disbursement of the public moneys accepts, receives, or transmits to the Treasury Department to be allowed in his favor any receipt or voucher from a creditor of the United States without having paid to such creditor in such funds as the officer received for disbursement, or in such funds as he may be author- ized by law to take in exchange, the full amount specified in such receipt or voucher, every such act is an act of conversion by such officer to his own use of the amount specified in such receipt or voucher. Banker, Etc., Receiving Deposit From Disbursing OfBcer. Sec. 96. Every banker, broker, or other person not an authorized depositary of public moneys, who shall knowingly receive from any disbursing officer, or collector of internal revenue, or other agent of the United States, any public money on deposit, or by way of loan or accommodation, with or without interest, or otherwise than in pay- ment of a debt against the United States, or shall use, transfer, con- vert, appropriate, or apply any portion of the public money for any purpose not prescribed by law ; and every president, cashier, teller, director, or other officer of any bank or banking association who shall violate any provision of this section is guilty of embezzlement of the public money so deposited, loaned, transferred, used, converted, appro- priated, or applied, and shall be fined not more than the amount embez- zled, or imprisoned not more than ten years, or both. Embezzlement by Internal-Revenue Officers, Etc. Sec. 97. Any officer connected with, or employed in, the Internal Revenue Service of the United States, and any assistant of such officer, who shall embezzle or wrongfully convert to his own use any money or other property of the United States, and any officer of the United States, or any assistant of such officer, who shall embezzle or wrong- fully convert to his own use any money or property which may have 720 Important Federal Laws come into his possession or under his control in the execution of such office or employment, or under color or claim of authority as such officer or assistant, whether the same shall be the money or property of the United States or of some other person or party, shall, where the offense is not otherwise punishable by some statute of the United States, be fined not more than the value of the money and property thus embezzled or converted, or imprisoned not more than ten years, or both. Officer Contracting Beyond Specific Appropriation. Sec. 98. Whoever, being an officer of the United States, shall knowingly contract for the erection, repair, or furnishing of any public building, or for any public improvement, to pay a larger amount than the specific sum appropriated for such purpose, shall be fined not more than two thousand dollars and imprisoned not more than two years. Officer of United States Court Failing to Deposit Moneys, Etc. Sec. 99. Whoever, being a clerk or other officer of a court of the United States, shall fail forthwith to deposit any money belonging in the registry of the court, or hereafter paid into court or received by the officers thereof, with the Treasurer, assistant treasurer, or a des- ignated depositary of the United States, in the name and to the credit of such court, or shall retain or convert to his own use or to the use of another any such money, is guilty of embezzlement, and shall be fined not more than the amount embezzled, or imprisoned not more than ten years, or both ; but nothing herein shall be held to prevent the delivery of any such money upon security, according to agreement of parties, under the direction of the court. Receiving Loan or Deposit From Officer of Court. Sec. 100. Whoever shall knowingly receive, from a clerk or other officer of a court of the United States, as a deposit, loan, or otherwise, any money belonging in the registry of such court, is guilty of embezzlement, and shall be punished as prescribed in the preceding section. Failure to Make Returns or Reports. Sec. 101. Every officer who neglects or refuses to make any return or report which he is required to make at stated times by any act of Congress or regulation of the Department of the Treasury, other than his accounts, within the time prescribed by such act or regulation, shall be fined not more than one thousand dollars. Aiding in Trading in Obscene Literature, Etc. Sec. 102. Whoever, being an officer, agent, or employee of the Government of the United States shall knowingly aid or abet any person engaged in violating any provision of law prohibiting, importing, adver- tising, dealing in, exhibiting, or send or receiving by mail, obscene or indecent publications, or representations, or means for preventing conception or producing abortion, or other article of indecent or im- Criminal Code 721 moral use or tendency, shall be fined not more than five thousand dol- lars, or hnprisoned not more than ten years, or both. Collecting and Disbursing Officers Forbidden to Trade in Public Funds, Etc. Sec. 103. Whoever, being an officer of the United States con- cerned in the collection or the disbursement of the revenues thereof, shall carry on any trade or business in the funds or debts of the United States, or of any State, or in any public property of either, shall be fined not more than three thousand dollars, or imprisoned not more than one year, or both, and be removed from office, and thereafter be incapable of holding any office under the United States. Certain Officers Forbidden to Purchase, Etc., Witness, Etc., Fees. Sec. 104. Whoever, being a judge, clerk, or deputy clerk of any court of the United States, or of any Territory thereof, or a United States district attorney, assistant attorney, marshal, deputy marshal, commissioner, or other person holding any office or employment, or position of trust or profit under the Government of the United States shall, either directly or indirectly, purchase at less than the full face value thereof, any claim against the United States for the fee, mileage, or expenses of any witness, juror, deputy marshal, or any other officer of the court whatsoever, shall be fined not more than one thousand dollars. Falsely Certifying, Etc., as to Record of Deeds. Sec. 105. Whoever, being an officer or other person authorized by any law of the United States to record a conveyance of real property or any other instrument which by such law may be recorded, shall know- ingly certify falsely that such conveyance or instrument has or has not been recorded, shall be fined not more than one thousand dollars, or imprisoned not more than seven years, or both. Other False Certificates. Sec. 106. Whoever, being a public officer or other person author- ized by any law of the United States to make or give a certificate or other writing, shall knowingly make and deliver as true such a certifi- cate or writing, containing any statement which he knows to be false, in a case where the punishment thereof is not elsewhere expressly pro- vided by law, shall be fined not more than five hundred dollars, or imprisoned not more than one year, or both. Inspector of Steamboats Receiving Illegal Fees. Sec. 107. Every inspector of steamboats who, upon any pretense, receives any fee or reward for his services, except what is allowed to him by law, shall forfeit his office, and be fined not more than five hundred dollars, or imprisoned not more than six months, or both. Pension Agent Taking Fee, Etc. Sec. 108. Every pension agent, or other person employed or ap- (46) 722 Important Federal Laws pointed by him, who takes, receives, or demands any fee or reward from any pensioner for any service in connection with the payment of his pension, shall be fined not more than five hundred dollars. Officer Not to be Interested in Claims Against United States. Sec. 109. Whoever, being an officer of the United States, or_ a person holding any place of trust or profit, or discharging any official function under, or in connection with, any Executive Department of the Government of the United States, or under the Senate or House of Representatives of the United States, shall act as an agent or attorney for prosecuting any claim against the United States, or in any manner, or by any means, otherwise than in discharge of his proper official duties, shall aid or assist in the prosecution or support of any such claim, or receive any gratuity, or any share of or interest in any claim from any claimant against the United States, with intent to aid or assist, or in consideration of having aided or assisted, in the prosecution of such claim, shall be fined not more than five thousand dollars, or im- prisoned not more than one year, or both. Member of Congress, Etc., Soliciting or Accepting Bribe. Sec. 110. Whoever, being elected or appointed a ^lember of or Delegate to Congress, or a Resident Commissioner shall, after his election or appointment, and either before or after he has qualified, and during his continuance in office, directly or indirectly, ask, accept, receive, or agree to receive, any money, property, or other valuable consideration, or any promise, contract, undertaking, obligation, gra- tuity, or security for the payment of money or for the delivery or conveyance of anything of value to him or to any person with his con- sent, connivance, or concurrence, for his attention to. or services, or with the intent to have his action, vote, or decision influenced on any question, matter, cause, or proceeding, which may at any time be pend- ing in either House of Congress or before any committee thereof, or which by law or under the Constitution may be brought before him in his official capacity, or in his place as such Member, Delegate, or Resident Commissioner, shall be fined not more than three times the amount asked, accepted, or received, and imprisoned not more than three years ; and shall, moreover, forfeit his office or place, and there- after be forever disqualified from holding any office of honor, trust, or profit under the Government of the United States. Offering, Etc., Member of Congress Bribe, Etc. Sec. 111. Whoever shall promise, offer, or give, or cause to be promised, offered, or given, any money or other thing of value, or shall make or tender any contract, undertaking, obligation, gratuity, or security for the payment of money or for the delivery or convey- ance of anything of value, to any Member of either House of Congress, or Delegate to Congress, or Resident Commissioner, after his election Criminal Code 723 or appointment and either before or after he has quaHfied, and during his continuance in office, or to any person with his consent, conniv- ance, or concurrence, with intent to influence his action, vote, or deci- sion, on any question, matter, cause, or proceeding which may at any time be pending in either House of Congress, or before any committee thereof, or which by law or under the Constitution may be brought before him in his official capacity or in his place as such Member, Dele- gate, or Resident Commissioner, shall be fined not more than three times the amount of money or value of the thing so promised, offered, given, made, or tendered, and imprisoned not more than three years. Member of Congress Taking Consideration for Procuring Contracts, Offices, Etc.; Offering Member Consideration, Etc. Sec. 112. Whoever, being elected or appointed a Member of or Delegate to Congress, or a Resident Commissioner, shall, after his election or appointment and either before or after he has qualified and during his continuance in office, or being an officer or agent of the United States, shall directly or indirectly take, receive, or agree to re- ceive, from any person, any money, property, or other valuable consid- eration Avhatever, for procuring, or aiding to procure, any contract, appointive office, or place from the United States or from any officer or department thereof, for any person whatever, or for giving away such contract,^ appointive office, or place to any person whomsoever ; or whoever, directly or indirectly, shall offer, or agree to give, or shall give, or bestow, any money, property, or other valuable consideration whatever, for the procuring, or aiding to procure, any such contract, appointive office, or place, shall be fined not more than ten thousand dollars and imprisoned not more than two years ; and shall, moreover, be disqualified from holding any office of honor, profit, or trust under the Government of the United States. Any such contract or agree- ment may, at the option of the President, be declared void. Member of Congress Taking Compensation in Matters to Which United States is a Party. Sec. 113. Whoever, being elected or appointed a Senator, Mem- ber of_ or Delegate to Congress, or a Resident Commissioner, shall after his election or appointment and either before or after he has qual- ified, and during his continuance in office, or being the head of a depart- ment, or other officer or clerk in the employ of the United States, shall, directly or indirectly, receive, or agree to receive, any compen- sation whatever for any services rendered or to be rendered to any person, either by himself or another, in relation to any proceeding, contract, claim, controversy, charge, accusation, arrest, or other mat- ter or thing in which the United States is a party or directlv or indi- rectly interested, before any department, court-martial, bureau, officer, or any civil, military, or naval commission whatever, shall be fined 724 Important Federal Laws not more than ten thousand dollars and imprisoned not more than two years; and shall, moreover, thereafter be incapable of holding any office of honor, trust, or profit under the Government of the United States. Member of Congress Not to be Interested in Contract. Sec. 114. Whoever, being elected or appointed a Member of or Delegate to Congress, or a Resident Commissioner, shall, after his elec- tion or appointment and either before or after he has qualified, and dur- ing his continuance in office, directly or indirectly, himself, or by any other person in trust for him, or for his use or benefit, or on his account, undertake, execute, hold, or enjoy, in whole or in part, any contract or agreement, made or entered into in behalf of the United States by any officer or person authorized to make contracts on its behalf, shall be fined not more than three thousand dollars. All contracts or agree- ments made in violation of this section shall be void ; and whenever any sum of money is advanced by the United States, in consideration of any such contract or agreement, it shall forthwith be repaid ; and in case of failure or refusal to repay the same when demanded by the proper officer of the Department under whose authority such contract or agreement shall have been made or entered into, suit shall at once be brought against the person so failing or refusing and his sureties, for the recovery of the money so advanced. Officer Making Contract With Member of Congress. Sec. 115. Whoever, being an officer of the United States, shall on behalf of the United States, directly or indirectly make or enter into any contract, bargain, or agreement, in writing or otherwise, with any Member of or Delegate to Congress, or any Resident Commis- sioner, after his election or appointment as such Member. Delegate, or Resident Commissioner, and either before or after he has qualified, and during his continuance in office, shall be fined not more than three thousand dollars. Contracts to Which Two Preceding Sections do Not Apply. Sec. 116. Nothing contained in the two preceding sections shall extend, or be construed to extend, to any contract or agreement made or entered into, or accepted, by any incorporated company, where such contract or agreement is made for the general benefit of such incor- poration or company ; nor to the purchase or sale of bills of exchange or other property by any Member of or Delegate to Congress, or Resi- dent Commissioner, where the same are ready for delivery, and pay- ment therefor is made, at the time of making or entering into the con- tract or agreement. United States Officer Accepting Bribe. Sec. 117. Whoever, being an officer of the United States, or a person acting for or on behalf of the United States, in any official capacity, under or by virtue of the authority of any department or office Criminal Code 725 of the Government thereof ; or whoever, being an officer or person act ing for or on behalf of either House of Congress, or of any committee of either House, or of both Houses thereof, shall ask, accept, or receive any monev, or any contract, promise, undertaking, obligation, gratuity, or security for the payment of money, or for the delivery or convey- ance of anything of value, with intent to have his decision or action on any question, matter, cause, or proceeding which may at any time be pending, or which may by law be brought before him in his official capacitv. or in his place of trust or profit, influenced thereby, shall be fined not more than three times the amount of money or value of the thing so asked, accepted, or received, and imprisoned not more than three years; and shall, moreover, forfeit his office or place and there- after be forever disqualified from holding any office of honor, trust, or profit under the Government of the United States. Political Contributions Not to be Solicited by Certain Officers. Sec. 118. No Senator or Representative in. or Delegate or Resi- dent Commissioner to Congress, or Senator, Representative. Delegate, or Resident Commissioner elect, or officer or employee of either House of Congress, and no executive, judicial, military, or naval officer of the United States, and no clerk or employee of any department, branch, or bureau of the executive, judicial, or military or naval service of the United States, shall, directly or indirectly, solicit or receive, or be in any manner concerned in soliciting or receiving, any assessment, sub- scription, or contribution for any political purpose whatever, from any officer, clerk, or emplovee of the United States, or any department, branch, or bureau thereof, or from any person receiving any salary or compensation from moneys derived from the Treasury of the United States. Political Contributions Not to be Received in Public Offices. Sec. 119. No person shall, in any room or building occupied in the discharge of official duties by any officer or employee of the United States mentioned in the preceding section, or in any navy-yard. fort. or arsenal, solicit in any manner whatever or receive any contribution of money or other thing of value for any political purpose whatever. Immunity From Official Proscription, Etc. Sec. 120. No officer or employee of the United States mentioned in section one hundred and eighteen, shall discharge, or promote, or degrade, or in any manner change the official rank or compensation of any other officer or employee, or promise or threaten so to do, for giving or Avithholding or neglecting to make any contribution of money or other valuable thing for any political purpose. Giving Money, Etc., to Officials for Political Purposes Prohibited. Sec. 121. No officer, clerk, or other person in the service of the United States shall, directly or indirectly, give or hand over to any 726 Important Federal Laws other officer, clerk, or person in the service of the United States, or to any Senator or Member of or Delegate to Congress, or Resident Commissioner, any money or other valuable thing on account of or to be applied to the promotion of any political object whatever. Penalty for Violating Provisions of Four Preceding Sections. Sec. 122. Whoever shall violate any provision of the four preced- ing sections shall be fined not more than five thousand dollars, or im- prisoned not more than three years, or both. Government Officer, Etc., Giving Out Advance Information Respect- ing Crop Reports. Sec. 123. Whoever, being an officer or employee of the United States or a person acting for or on behalf of the United States in any capacity under or by virtue of the authority of any department or ofiice thereof, and while holding such office, employment, or position shall, by virtue of the office, employment, or position held by him, become possessed of any information which might exert an influence upon 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 the Department or office required to be withheld from publication until a fixed time, and shall willfully impart, directly or indirectly, such information, or any part thereof, to any person not entitled under the law or the rules of the Department or office to receive the same ; or shall, before such information is made public through regular official channels, directly or indirectly speculate in any such product respecting which he has thus become possessed of such information, by buying or selling the same in any quantity, shall be fined not more than ten thousand dollars, or imprisoned not more than ten years, or both: Provided, That no person shall be deemed guilty of a violation of any such rule, unless prior to such alleged violation he shall have had actual knowledge thereof. ^Government Officer, Etc., Knowingly Compiling or Issuing False Statistics Respecting Crops. Sec. 124. Whoever, being an officer or employee of the United States, and whose duties require the compilation or report of statistics or information relative to the products of the soil, shall knowingly compile for issuance, or issue, any false statistics or information as a report of the United States, shall be fined not more than five thousand dollars, or imprisoned not more than five years, or both. CHAPTER VI. Offenses Against Public Justice. Perjury. Sec. 125. Whoever, having taken an oath before a competent tri- bunal, officer, or person, in any case in which a law of the United Criminal Code 727 States authorizes an oath to be administered, that he will testify, declare, depose, or certify truly, or that any written testimony, declara- tion, deposition, or certificate by him subscribed, is true, shall will- fully and contrary to such state or subscribe any material matter which he does not believe to be true, is guilty of perjury and shall be fined not more than two thousand dollars and imprisoned not more than five years. Subornation of Perjury. Sec. 126. Whoever shall procure another to commit any perjury is guilty of subornation of perjury, and punishable as in the preced- ing section prescribed. Stealing or Altering Process ; Procuring False Bail, Etc. Sec. 127. Whoever shall feloniously steal, take away, alter, fal- sify, or otherwise avoid any record, writ, process, or other proceeding, in any court of the United States, by means whereof any judgment is reversed, made void, or does not take efifect ; or whoever shall acknowl- edge, or procure to be acknowledged, in any such court, any recogni- zance, bail, or judgment, in the name of any other person not privy or consenting to the same, shall be fined not more than five thousand dol- lars, or imprisoned not more than seven years, or both ; but this pro- vision shall not extend to the acknowledgment of any judgment by an attorney, duly admitted, for any person against whom such judgment is had or given. Destroying, Etc., Public Records. Sec. 128. Whoever shall willfully and unlawfully conceal, remove, mutilate, obliterate, or destrov, or attempt to conceal, remove, mutilate, obliterate, or destroy, or, with intent to conceal, remove, mutilate, oblit- erate, destroy, or steal, shall take and carry away any record, proceed- ing, map, book, paper, document, or other thing, filed or deposited with any clerk or officer of any court of the United States, or in any public office, or with any judicial or public officer of the United States, shall be fined not more than two thousand dollars, or imprisoned not more than three years, or both. Destroying Records by Officer in Charge. Sec. 129. Whoever, having the custody of anv record, proceeding, map, book, document, paper, or other thing specified in the preceding section, shall willfully and unlawfully conceal, remove, mutilate, oblit- erate, falsify, or destroy any such record, proceeding, map, book, docu- ment, paper, or thing, shall be fined not more than two thousand dol- lars, or imprisoned not more than three years, or both ; and shall more- over forfeit his office and be forever afterward disqualified from hold- ing any office under the Government of the United States. Forging Signature of Judge, Etc. Sec. 130. Whoever shall forge the signature of any judge, reg- ister, or other officer of any court of the United States, or of any Ter- 728 Important Federal Laws ritory thereof, or shall forge or counterfeit the seal of any such court, or shall knowingly concur in using any such forged or counterfeit sig- nature or seal, for the purpose of authenticating any proceeding or document, or shall tender in evidence any such proceeding or document with a false or counterfeit signature of any such judge, register, or other officer, or a false or counterfeit seal of the court, subscribed or attached thereto, knowing such signature or seal to be false or counter- feit, shall be fined not more than five thousand dollars and imprisoned not more than five years. Bribery of a Judge or Judicial Officer. Sec. 131. Whoever, directly or indirectly, shall give or ofiter, or cause to be given or offered, any money, property, or value of any kind, or any promise or agreement therefor, or any other bribe, to any judge, judicial officer, or other person authorized by any law of the United States to hear or determine any question, matter, cause, proceeding, or controversy, with intent to influence his action, vote, opinion, or de- cision thereon, or because of any such action, vote, opinion, or deci- sion, shall be fined not more than twenty thousand dollars, or impris- oned not more than fifteen years, or both; and shall forever be dis- qualified to hold any office of honor, trust, or profit under the United States. Judge or Judicial Officer Accepting a Bribe, Etc. Sec. 132. Whoever, being a judge of the United States, shall in any wise accept or receive any sum of money, or other bribe, present, or reward, or any promise, contract, obligation, gift, or security for the payment of money, or for the delivery or conveyance of anything of value, with the intent to be influenced thereby in any opinion, judg- ment, or decree in any suit, controversy, matter, or cause depending before him, or because of any such opinion, ruling, decision, judgment, or decree, shall be fined not more than twenty thousand dollars, or im- prisoned not more than fifteen years, or both; and shall be forever dis- qualified to hold any office of honor, trust, or profit under the United States. Juror, Referee, Master, Etc., or Judicial Officer, Etc., Accepting Bribe. Sec. 133. Whoever, being a juror, referee, arbitrator, appraiser, assessor, auditor, master, receiver. United States commissioner, or other person authorized by any law of the United States to hear or determine any question, matter, cause, controversy, or proceeding, shall ask, re- ceive, or agree to receive, any money, property, or value of any kind, or any promise or agreement therefor, upon any agreement or under- standing that his vote, opinion, action, judgment or decision shall be influenced thereby, or because of any such vote, opinion, action, judg- ment, or decision, shall be fined not more than two thousand dollars, or imprisoned not more than two years, or both. Criminal Code 729 Witness Accepting Bribe. Sec. 134. Whoever, being, or about to be, a witness upon a trial, hearing, or other proceeding, before any court or any officer author- ized by the laws of the United States to hear evidence or take testi- mony, shall receive, or agree or offer to receive, a bribe, upon any agreement or understanding that his testimony shall be influenced thereby, or that he will absent himself from the trial, hearing, or other proceeding, or because of such testimony, or such absence, shall be fined not more than two thousand dollars, or imprisoned not more than two years, or both. Intimidation or Corruption of Witness, or Grand or Petit Juror, or Officer. Sec. 135. Whoever corruptly, or by threats or force, or by any threatening letter or communication, shall endeavor to influence, intim- idate, or impede any witness, in any court of the United States or be- fore any United States commissioner or officer acting as such commis- sioner, or any grand or petit juror, or officer in or of any court of the United States, or officer who may be serving at any examination or other proceeding before any United States commissioner or officer act- ing as such commissioner, in the discharge of his duty, or who corruptly or by threats or force, or by any threatening letter or threatening com- munication, shall influence, obstruct, or impede, or endeavor to influence, obstruct, or impede, the due administration of justice therein, shall be fined not more than one thousand dollars, or imprisoned not more than one year, or both. Conspiring to Intimidate Party, Witness, or Juror. Sec. 136. If two or more persons conspire to deter by force, in- timidation, or threat, any party or witness in any court of the United States, or in any examination before a United States commissioner or officer acting as such commissioner, from attending such court or examination, or from testifying to any matter pending therein, freely, fully, and truthfully, or to injure such party or witness in his person or property on account of his having so attended or testified, or to influ- ence the verdict, presentment, or indictment of any grand or petit juror in any such court, or to injure such juror in his person or property on account of any verdict, presentment, or indictment lawfully assented to by him, or on account of his being or having been such juror, each of such persons shall be fined not more than five thousand dollars, or im- prisoned not more than six years, or both. Attempt to Influence Juror. Sec. 137. Whoever shall attempt to influence the action or deci- ion of any grand or petit juror of any court of the United States upon any issue or matter pending before such juror, or before the jury of wliich he is a member, or pertaining to his duties, by writing or sending to him any letter or any communication, in print or writing, in relation 730 Important Federal Laws to such issue or matter, shall be fined not more than one thousand dol- lars, or imprisoned not more than six months, or both. Allowing Prisoner to Escape, Sec. 138. Whenever any marshal, deputy marshal, ministerial officer, or other person has in his custody any prisoner by virtue of process issued under the laws of the United States by any court, judge, or commissioner, and such marshal, deputy marshal, ministerial officer, or other person voluntarily suffers such prisoner to escape, he shall be fined not more than two thousand dollars, or imprisoned not more than two years, or both. Application of Preceding Section. Sec. 139. The preceding section shall be construed to apply not only to cases in which the prisoner who escaped was charged or found guilty of an offense against the laws of the United States, and to cases in which the prisoner may be in custody charged with ofifenses against any foreign government with which the United States have treaties of extradition, but also to cases in which the prisoner may be held in custody for removal to or from the Philippine Islands as provided by law. Obstructing Process or Assaulting Officer. Sec. 140. Whoever shall knowingly and willfully obstruct, resist, or oppose any officer of the United States, or other person duly author- ized, in serving, or attempting to serve or execute, any mesne process or warrant, or any rule or order, or any other legal or judicial writ or process of any court of the United States, or United States commis- sioner, or shall assault, beat, or wound any officer or other person duly authorized, knowing him to be such officer, or other person so duly authorized, in serving or executing any such writ, rule, order, process, warrant, or other legal or judicial writ or process, shall be fined not more than three hundred dollars and imprisoned not more than one year. Rescuing, Etc., Prisoner; Concealing, Etc., Person for Whom War- rant has Issued. Sec. 141. Whoever shall rescue or attempt to rescue, from the custody of any officer or person lawfully assisting him, any person ar- rested upon a warrant or other process issued under the provisions of any law of the United States, or shall, directly or indirectly, aid, abet, or assist any person so arrested to escape from the custody of such officer or other person, or shall harbor or conceal any person for whose arrest a warrant or process has been so issued, so as to prevent his dis- covery and arrest, after notice or knowledge of the fact that a warrant or process has been issued for the apprehension of such person, shall be fined not more than one thousand dollars, or imprisoned not more than six months, or both. Criminal Code 731 Rescue at Execution. Sec. 142. Whoever, by force, shall set at liberty or rescue any person found guilty in any court of the United States of any capital crime, while going to execution or during execution, shall be fined not more than twenty-five thousand dollars and imprisoned not more than twenty-five years. Rescue of Prisoner. Sec. 143. Whoever, by force, shall set at liberty "or rescue any person who, before conviction, stands committed for any capital crime ; or whoever, by force, shall set at liberty or rescue any person com- luitted for or convicted of any offense other than capital, shall be fined not more than five hundred dollars and imprisoned not more than one year. Rescue of Body of Executed Offender. Sec. 144. Whoever, by force, shall rescue or attempt to rescue, from the custody of any marshal or his ofificers, the dead body of an executed offender, while it is being conveyed to a place of dissection, as provided by section three hundred and thirty-one thereof, or by force shall rescue or attempt to rescue such body from the place where it has been deposited for dissection in pursuance of that section, shall be fined not more than one hundred dollars, or imprisoned not more than one year, or both. Extortion by Internal-Revenue Informers. Sec. 145. Whoever shall, under a threat of informing, or as a consideration for not informing, against any violation of any law of the United States, demand or receive any money or other valuable thing, shall be fined not more than two thousand dollars, or imprisoned not more than one year, or both. Misprision of Felony. Sec. 146. Whoever, having knowledge of the actual commission of the crime of m.urder or other felony cognizable by the courts of the United States, conceals and does not as soon as may be disclose and make known the same to some one of the judges or other persons in civil or military authority under the United States, shall be fined not more than five hundred dollars, or imprisoned not more than three years, or both. CHAPTER VII. Offenses Against the Currency, Coinage, Etc. "Obligation or Other Security of the United States" Defined. Sec. 147. The words "obligation or other security of the United States" shall be held to mean all bonds, certificates of indebtedness, national bank currency, coupons, United States notes, Treasury notes, gold certificates, silver certificates, fractional notes, certificates of deposit, bills, checks, or drafts for money, drawn by or upon authorized 732 Important Federal Laws officers of the United States, stamps and other representatives of vakie, of whatever denomination, which have been or may be issued under any act of Congress. Forging or Counterfeiting United States Securities. Sec. 148. Whoever, with intent to defraud, shall falsely make, forge, counterfeit, or alter any obligation or other security of the United States shall be fined not more than five thousand dollars and imprisoned not more than fifteen years. Counterfeiting National-Bank Notes. Sec. 149. Whoever shall falsely make, forge, or counterfeit, or cause or procure to be made, forged, or counterfeited, or shall willingly aid or assist in falsely making, forging, or counterfeiting, any note in imitation of, or purporting to be in imitation of, the circulating notes issued by any banking association now or hereafter authorized and acting under the laws of the United States ; or whoever shall pass, utter, or publish, or attempt to pass, utter, or publish, any false, forged, or counterfeited note, purporting to be issued by any such association doing a banking business, knowing the same to be falsely made, forged, or counterfeited ; or whoever shall falsely alter, or cause or procure to be falsely altered, or shall willingly aid or assist in falsely altering, any such circulating notes, or shall pass, utter, or publish, or attempt to pass, utter, or publish as true, any falsely altered or spurious circulating note issued, or purporting to have been issued, by any such banking association, knowing the same to be falsely altered or spurious, shall be fined not more than one thousand dollars and imprisoned not more than fifteen years. Using Plates to Print Notes Without Authority, Etc. Sec. 150. Whoever, having control, custody, or possession of any plate, stone, or other thing, or any part thereof, from which has been printed, or which may be prepared by direction of the Secretary of the Treasurv for the purpose of printing, any obligation or other security of the United States, shall use such plate, stone, or other thing, or any part thereof, or knowingly sufifer the same to be used for the purpose of printing any such or similar obligation or other security, or any part thereof, except as may be printed for the use of the United States by order of the proper officer thereof ; or whoever, by any way, art. or means shall make or execute, or cause or procure to be made or ex- ecuted, or shall assist in making or executing any plate, stone, or other thing in the likeness of any plate designated for the printing of such obligation or other security ; or whoever shall sell any such plate, stone, or other thing, or bring into the United States or any place subject to the jurisdiction thereof, from any foreign place, any such plate, stone, or other thing, except under the direction of the Secretary of the Treas- ury or other proper officer, or with any other intent, in either case, than that such plate, stone, or other thing be used for the printing of the obli- Criminal Code 7Z2) gations or other securities of the United States; or whoever shall have in his control, custody, or possession any plate, stone, or other thing in any manner made after or in the similitude of any plate, stone, or other thing, from which any such obligation or other security has been printed, with intent to use such plate, stone, or other thing, or to suffer the same to be used in forging or counterfeiting any such obligation or other security, or any part thereof ; or whoever shall have in his pos- session or custody, except under authority from the Secretary of the Treasury or other proper officer, any obligation or other security made or executed, in whole or in part, after the similitude of any obligation or other security issued under the authority of the United States, with intent to sell or otherwise use the same ; or whoever shall print, photo- graph, or in any other manner make or execute, or cause to be printed, photographed, made, or executed, or shall aid in printing, photograph- ing, making, or executing any engraving, photograph, print, or im- pression in the likeness of any such obligation or other security, or any part thereof, or shall sell any such engraving, photograph, print, or impression, except to the United States, or shall bring into the United States or any place subject to the jurisdiction thereof, from any foreign place any such engraving, photograph, print, or impression, except by direction of some proper officer of the United States ; or whoever shall have or retain in his control or possession, after a distinctive paper has been adopted by the Secretary of the Treasury for the obligations and other securities of the United States, any similar paper adapted to the making of any such obligation or other security, except under the au- thority of the Secretary of the Treasury or some other proper officer of the United States, shall be fined not more than five thousand dollars, or imprisoned not more than fifteen years, or both. Passing, Selling, Concealing, Etc., Forged Obligations. Sfx. 151. Whoever, with intent to defraud, shall pass, utter, pub- lish, or sell, or attempt to pass, utter, publish, or sell, or shall bring into the United States or any place subject to the jurisdiction thereof, with intent to pass, publish, utter, or sell, or shall keep in possession or conceal with like intent, any falsely made, forged, counterfeited, or altered oblisration or other securitv of the United States, shall be fined not more than five thousand dollars and imprisoned not more than fifteen years. Taking Impressions of Tools, Implements, Etc. Sec. 152. Whoever, without authority from the United States, shall take, procure, or make, upon lead, foil, wax. plaster, paper, or any other substance or material, an impression, stamp, or imprint of, from, or by the use of any bedplate, bedpiece, die, roll, plate, seal, type, or other tool, implement, instrument, or thing used or fitted or intended to be used in printing, stamping, or impressing, or in making other tools, implements, instruments, or things to be used or fitted or intended 734 Important Federal Laws to be used in printing, stamping, or impressing any kind or description of obligation or other security of the United States now authorized or hereafter to be authorized by the United States, or circulating note or evidence of debt of any banking association under the laws thereof, shall be fined not more than five thousand dollars, or imprisoned not more than ten years, or both. Having in Possession Unlawfully Such Impressions. Sec. 153. Whoever, with intent to defraud, shall have in his pos- session, keeping, custody, or control, without authority from the United States, any imprint, stamp, or impression, taken or made upon any sub- stance or material whatsoever, of any tool, implement, instrument, or thing, used, or fitted or intended to be used, for any of the purposes mentioned in the preceding section ; or whoever, with intent to defraud, shall sell, give, or deliver any such imprint, stamp, or impression to any other person, shall be fined not more than five thousand dollars, or imprisoned not more than ten years, or both. Buying, Selling, or Dealing in Forged Bonds, Notes, Etc. Sec. 154. Whoever shall buy, sell, exchange, transfer, receive, or deliver, any false, forged, counterfeited, or altered obligation or other security of the United States, or circulating note of any banking asso- ciation organized or acting under the laws thereof, which has been or may hereafter be issued by virtue of any act of Congress, with the intent that the same be passed, published, or used as true and genuine, shall be fined not more than five thousand dollars, or imprisoned not more than ten years, or both. Secreting or Removing Tools or Material Used for Printing Bonds, Notes, Stamps, Etc. Sec. 155. Whoever, without authority from the United States, shall secrete within, embezzle, or take and carry away from any build- ing, room, office, apartment, vault, safe, or other place where the same is kept, used, employed, placed, lodged, or deposited by authority of the United States, any bedpiece, bedplate, roll, plate, die, seal, type, or other tool, implement, or thing used or fitted to be used in stamp- ing or printing, or in making some other tool or implement used or fitted to be used in stamping or printing, any kind or description of bond, bill, note, certificate, coupon, postage stamp, revenue stamp, fractional currency note or other paper, instrument, obligation, device, or document, now or hereafter authorized by law to be printed, stamped, sealed, prepared, issued, uttered, or put in circulation on behalf of the United States ; or whoever, without such authority, shall so secrete, embezzle, or take and carry away any paper, parchment, or other mate- rial prepared and intended to be used in the making of any svtch pa- pers, instruments, obligations, devices, or documents ; or whoever, without such authority, shall so secrete, embezzle, or take and carry Criminal Code 735 away ai\v paper, parchment, or other material printed or stamped, in whole or part, and intended to be prepared, issued, or put in circulation on behalf of the United States as one of the papers, instruments, or obligations hereinbefore named, or printed or stamped, in whole or part, in the similitude of any such paper, instrument, or obligation, whether intended to issue or put the same in circulation or not, shall be fined not more than five thousand dollars, or imprisoned not more than ten years, or both. Counterfeiting Notes, Bonds, Etc., of Foreign Governments. Sec. 156. Whoever, within the United States or any place sub- ject to the jurisdiction thereof, with intent to defraud, shall falsely make, alter, forge, or counterfeit any bond, certificate, obligation, or other security in imitation of, or purporting to be an imitation of, any bond, certificate, obligation, or other security of any foreign govern- ment, issued or put forth under the authority of such foreign govern- ment, or any treasury note, bill, or promise to pav issued by such foreign government, and intended to circulate as money, either by law, order, or decree of such foreign government ; or whoever shall cause or procure to be so falsely made, altered, forged, or counterfeited, or shall knowingly aid or assist in making, altering, forging, or counter- feiting, any such bond, certificate, obligation, or other security, or any such treasury note, bill, or promise to pay, intended as aforesaid to circulate as money, shall be fined not more than five thousand dollars and imprisoned not more than five years. Passing Such Forged Notes, Bonds, Etc. Sec. 157. Whoever, within the United States or any place subject to the jurisdiction thereof, knowingly and with intent to defraud, shall utter, pass, or put ofif, in payment or negotiation, any false, forged, or counterfeited bond, certificate, obligation, security, treasury note, bill, or promise to pay, mentioned in the section last preceding, whether the same was made, altered, forged, or counterfeited within the United States or not, shall be fined not more than three thousand dollars and imprisoned not more than three years. Counterfeiting Notes on Foreign Banks. Sec. 158. Whoever, within the United States or anv place sub- ject to the jurisdiction thereof, with intent to defraud, shall falsely make, alter, forge or counterfeit, or cause or procure to be so falsely made, altered, forged, or counterfeited, or shall knowingly aid and assist in the false making, altering, forging, or counterfeiting of any bank note or bill issued by a bank or corporation of any foreign coun- try, and intended by the law or usage of such foreign country to cir- culate as money, such bank or corporation being authorized by the laws of such country, shall be fined not more than two thousand dollars and imprisoned not more than two years. yZ^) Important Federal Laws Passing Such Counterfeit Bank Notes. Sec. 159. Whoever, within the United States or any place subject to the jurisdiction thereof, shall utter, pass, put ofif, or tender in pay- ment, with intent to defraud, any such false, forged, altered, or coun- terfeited bank note or bill, as mentioned in the preceding section, know- ing the same to be so false, forged, altered, and [or] counterfeited, whether the same was made, forged, altered, or counterfeited within the United States or not, shall be fined not more than one thousand dollars and imprisoned not more than one year. Having in Possession Such Forged Notes, Bonds, Etc. Sec. 160. Whoever, within the United States or any place subject to the jurisdiction thereof, shall have in his possession any false, forged, or counterfeit bond, certificate, obligation, security, Treasury note, bill, promise to pay, bank note, or bill issued by a bank or corpo- ration of any foreign country, with intent to utter, pass, or put off the same, or to deliver the same to any other person with intent that the same may thereafter be uttered, passed, or put off as true, or shall knowingly deliver the same to any other person with such intent, shall be fined not more than one thousand dollars and imprisoned not more than one year. Having Unlawfully in Possession or Using Plates for Such Notes, Bonds, Etc. Sec. 161. Whoever, within the United States or any place subject to the jurisdiction thereof, except by lawful authority, shall have con- trol, custody, or possession of any plate, stone, or other thing, or any part thereof, from which has been printed or may be printed any coun- terfeit note, bond, obligation, or other security, in whole or in part, of any foreign government, bank, or corporation, or shall use such plate, stone, or other thing, or knowingly permit or suffer the same to be used in counterfeiting such foreign obligations, or any part thereof ; or who- ever shall make or engrave, or cause or procure to be made or engraved, or shall assist in making or engraving, any plate, stone, or other thing, in the likeness or similitude of any plate, stone, or other thing desig- nated for the printing of the genuine issues of the obligations of any foreign government, bank, or corporation ; or whoever shall print, pho- tograph, or in any other manner make, execute, or sell, or cause to be printed, photographed, made, executed, or sold, or shall aid in printing, photographing, making, executing, or selling, any engraving, photo- graph, print, or impression in the likeness of any genuine note, bond, obligation, or other security, or any part thereof, of any foreign gov- ernment, bank, or corporation ; or whoever shall bring into the United States or any place subject to the jurisdiction thereof, any counterfeit plate, stone, or other thing, or engraving, photograph, print, or other impressions of the notes, bonds, obligations, or other securities of any Criminal Code 7^7 foreign government, bank, or corporation, shall be fined not more than five thousand dollars, or imprisoned not more than five years, or both. Connecting Parts of Different Instruments. Sec. 162. Whoever shall so place or connect together different parts of two or more notes, bills, or other genuine instruments issued under the authority of the United States, or by any foreign govern- ment, or corporation, as to produce one instrument, with intent to de- fraud, shall be deemed guilty of forgery in the same manner as if the parts so put together were falsely made or forged, and shall be fined not more than one thousand dollars, or imprisoned not more than five years, or both. Counterfeiting Gold or Silver Coins or Bars. Sec. 163. Whoever shall falsely make, forge, or counterfeit, or cause or procure to be falsely made, forged, or counterfeited, or shall willingly aid or assist in falsely making, forging, or counterfeiting any coin or bars in resemblance or similitude of the gold or silver coins or bars which have been, or hereafter may be, coined or stamped at the mints and assay offices of the United States, or in resemblance or sim- ilitude of any foreign gold or silver coin which by law is, or hereafter may be, current in the United States, or are in actual use and circula- tion as money within the United States ; or whoever shall pass, utter, publish, or sell, or attempt to pass, utter, publish, or sell, or bring into the United States or any place subject to the jurisdiction thereof, from any foreign place, knowing the same to be false, forged, or counterfeit, with intent to defraud any body politic or corporate, or any person or persons whomsoever, or shall have in his possession any such false, forged, or counterfeited, coin or bars, knowing them to be false, forged, or counterfeited, with intent to defraud any body politic or corporate, or any person or persons whomsoever, shall be fined not more than five thousand dollars and imprisoned not more than ten years. Counterfeiting Minor Coins. Sec. 164. Whoever shall falsely make, forge, or counterfeit, or cause or procure to be falsely made, forged, or counterfeited, or shall willingly aid or assist in falsely making, forging, or counterfeiting any coin in the resemblance or similitude of any of the minor coins which have been, or hereafter may be, coined at the mints of the United States; or whoever shall pass, utter, publish, or sell, or bring into the United States or any place subject to the jurisdiction thereof, from any foreign place, or have in his possession any such false, forged, or counterfeited coin, with intent to defraud any person whomsoever, shall be fined not more than one thousand dollars and imprisoned not more than three years. (47) 738 Important Federal Laws Falsifying, Mutilating, or Lightening Coinage. Sec. 165. Whoever, fraudulently, by any art, way, or means, shall deface, mutilate, impair, diminish, falsify, scale, or lighten, or cause or procure to be fraudulently defaced, mutilated, impaired, dimin- ished, falsified, scaled, or lightened, or willingly aid or assist in fraud- ulently defacing, mutilating, impairing, diminishing, falsifying, scaling, or lightening, the gold or silver coins which have been, or which may hereafter be, coined at the mints of the United States, or any foreign gold or silver coins which are by law made current or are in actual use or circulation as money within the United States or in any place subject to the jurisdiction thereof ; or whoever shall pass, utter, publish, or sell, or attempt to pass, utter, publish, or sell, or bring into the United States or any place subject to the jurisdiction thereof, from anv foreign place, knowing the same to be defaced, mutilated, impaired, diminished, falsified, scaled, or lightened, with intent to defraud any person whom- soever or shall have in his possession any such defaced, mutilated, im- paired, diminished, falsified, scaled, or lightened coin, knowing the same to be defaced, mutilated, impaired, diminished, falsified, scaled or light- ened with intent to defraud any person whomsoever, shall be fined not more than two thousand dollars and imprisoned not more than five years. Debasement of Coinage by Officers of the Mint. Sec. 166. If any of the gold or silver coins struck or coined at any of the mints of the United States shall be debased, or made worse as to the proportion of fine gold or fine silver therein contained, or shall be of less weight or value than the same ought to be, pursuant to law, or if any of the scales or weights used at any of the mints or assay offices of the United States shall be defaced, altered, increased, or diminished through the fault or connivance of any officer or person employed at the said mints or assay ofiices, with a fraudulent intent ; or if any such officer or person shall embezzle any of the metals at any time committed to his charge for the purpose of being coined, or any of the coins struck or coined at the said mints, or any medals, coins, or other moneys of said mints or assay offices at any time committed to his charge, or of which he may have assumed the charge, every such officer or person who commits any of the said ofifenses shall be fined not more than ten thousand dollars and imprisoned not more than ten years. Making or Uttering Coins in Resemblance of Money. Sec. 167. Whoever, except as authorized by law, shall make or cause to be made, or shall utter or pass, or attempt to utter or pass, any coins of gold or silver or other metal, or alloys of metals, intended for the use and purpose of current money, whether in the resemblance of coins of the United States or of foreign countries, or of original design, Criminal Code 739 shall be fined not more than three thousand dollars, or imprisoned not more than five years, or both. Making or Issuing Devices of Minor Coins. Sec. 168. Whoever, not lawfully authorized, shall make, issue, or pass, or cause to be made, issued, or passed, any coin, card, token, or device in metal, or its compounds, which may be intended to be used as money for any one-cent, two-cent, three-cent, or five-cent piece, now or hereafter authorized by law, or for coins of equal value, shall be fined not more than one thousand dollars and imprisoned not more than five years. Counterfeiting, Etc., Dies for Coins of United States. Sec. 169. Whoever, without lawful authority, shall make, or cause or procure to be made, or shall willingly aid or assist in making, any die, hub, or mold, or any part thereof, either of steel or plaster, or any other substance whatsoever, in the likeness or similitude, as to the design or the inscription thereon, of any die, hub, or mold designated for the coining or making of any of the genuine gold, silver, nickel, bronze, copper, or other coins of the United States, that have been or hereafter may be coined at the mints of the United States ; or whoever, without lawful authority, shall have in his possession any such die, hub, or mold, or any part thereof, or shall permit the same to be used for or in aid of the counterfeiting of any of the coins of the United States hereinbefore mentioned,, shall be fined not more than five thousand dol- lars and imprisoned not more than ten years. Counterfeiting, Etc., Dies for Foreign Coins. Sec. 170. W^hoever, within the United States or any place subject to the jurisdiction thereof, without lawful authority, shall make, or cause or procure to be made, or shall willingly aid or assist in making any die, hub, or mold, or any part thereof, either of steel or plaster, or of any other substance whatsoever, in the likeness or similitude, as to the design or the inscription thereon, of any die, hub, or mold desig- nated for the coining of the genuine coin of any foreign government ; or whoever, without lawful authority, shall have in his possession any such die, hub, or mold, or any part thereof, or shall conceal, or know- ingly sufifer the same to be used for the counterfeiting of any foreign coin, shall be fined not more than two thousand dollars, or imprisoned not more than five years, or both. Making, Importing, or Having in Possession Tokens, Prints, Etc., Similar to United States or Foreign Coins. Sec. 171. Whoever, within the United States or any place sub- ject to the jurisdiction thereof, shall make, or cause or procure to be made, or shall bring therein, from any foreign country, or shall have in possession with intent to sell, give away, or in any other manner use the same, any business or professional card, notice, placard, token. 740 Important Federal Laws device, print, or impression, or any other thing whatsoever, in the likeness or similitude as to design, color, or the inscription thereon, of any of the coins of the United States or of any foreign country that have been or hereafter may be used as money, either under the author- ity of the United States or under the authority of any foreign govern- ment, shall be fined not more than one hundred dollars. But nothing in this section shall be construed to forbid or prevent the printing and publishing of illustrations of coins and medals, or the making of the necessary plates for the same, to be used in illustrating numismatic and historical books and journals and school arithmetics and the circu- lars of legitimate publishers and dealers in the same. (As amended February 15, 1912.) Counterfeit Obligations, Securities, Coins or Material for Counter- feiting to be Forfeited. Sec. 172. All counterfeits of any obligation or other security of the United States or of any foreign government, or counterfeits of any of the coins of the United States or of any foreign government, and all material or apparatus fitted or intended to be Ubcd, or that shall have been used, in the making of any of such counterfeit obligation or other security or coins hereinbefore mentioned, that shall be found in the possession of any person without authority from the Secretary of the Treasury or other proper officer to have the same, shall be taken pos- session of by any authorized agent of the Treasury Department and forfeited to the United States, and disposed of in any manner the Sec- retary of the Treasury may direct. Whoever having the custody or control of any such counterfeits, material, or apparatus shall fail or refuse to surrender possession thereof upon request by any such author- ized agent of the Treasury Department, shall be fined not more than one hundred dollars, or imprisoned not more than one year, or both. Issue of Search Warrants in Certain Cases for Suspected Counterfeit Obligations, Securities, or Coin, or Material for Counterfeiting; Forfeiture. Sec. 173. The several judges of courts established under the laws of the United States and United States commissioners may, upon proper oath or affirmation, within their respective jurisdictions, issue a search warrant authorizing any marshal of the United States, or any other person specially mentioned in such warrant, to enter any house, store, building, boat, or other place named in such warrant, in which there shall appear probable cause for believing that the manufacture of counterfeit money, or the concealment of counterfeit money, or the man- ufacture or concealment of counterfeit obligations or coins of the United States or of anv foreign government, or the manufacture or concealment of dies, hubs, molds, plates, or other things fitted or intended to be used for the manufacture of counterfeit money, coins, or obligations of the United States or of any foreign government, or of any bank doing busi- ness under the authority of the United States or of any State or Terri- Criminal Code 741 tory thereof, or of any bank doing- business under the authority of any foreign government, or of any political division of any foreign govern- ment, is being carried on or practiced, and there search for any such counterfeit money, coins, dies, hubs, molds, plates, and other things, and for any such obligations, and if any such be found, to seize and secure the same and to make return thereof to the proper authority; and all such counterfeit money, coins, dies, hubs, molds, plates, and other things, and all such counterfeit obligations so seized shall be for- feited to the United States. Circulating Bills of Expired Corporations. Sec. 174. In all cases where the charter of any corporation which has been or may be created by act of Congress has expired or may hereafter expire^ if any director, officer, or agent of the corporation, or any trustee thereof, or any agent of such trustee, or any person having in his possession or under his control the property of the cor- poration for the purpose of paying or redeeming its notes^ and obliga- tions, shall knowingly -issue, reissue, or utter as money, or in any other way knowingly put in circulation any bill, note, check, draft, or other security purporting to have been made by any such corporation whose charter has expired, or by any officer thereof, or purporting to have been made under authority derived therefrom, or if any person shall knowingly aid in any such act, he shall be fined not more than ten thousand dollars, or imprisoned not more than five years, or both. But nothing herein shall be construed to make it unlawful for any person, not being such director, officer, or agent of the corporation, or any trustee thereof, or any agent of such trustee, or any person having in his possession or under his control the property of the corporation for the purpose hereinbefore set forth, who has received or may hereafter receive such bill, note, check, draft, or other security, bona fide and in the ordinary transactions of business, to utter as money or otherwise circulate the same. Imitating National Banking Notes With Printed Advertisements Thereon. Sec. 175. It shall not be lawful to design, engrave, print, or in any manner make or execute, or to utter, issue, distribute, circulate, or use any business or professional card, notice, placard, circular, handbill, or advertisement in the likeness or similitude of any circulating note or other obligation or security of any banking association organized or acting under the laws of the United States which has been or may be issued under any act of Congress, or to write, print, or otherwise impress upon any such note, obligation, or security, any business or professional card, notice or advertisement, or any notice or advertise- ment of any matter or thing whatever. Whoever shall violate any pro- vision of this section shall be fined not more than one hundred dol- lars, or imprisoned not more than six months, or both. 742 Important Federal Laws Mutilating or Defacing National Bank-Note. Sec. 176. Whoever shall mutilate, cut, deface, disfigure, or per- forate with holes, or unite or cement together, or do any other thing to any bank bill, draft, note, or other evidence of debt, issued by any national banking association, or shall cause or procure the same to be done, with intent to render such bank bill, draft, note, or other evidence of debt unfit to be reissued by said association, shall be fined not more than one hundred dollars, or imprisoned not more more than six months, or both. Imitating United States Securities or Printing Business Cards on Them. Sec. 177. It shall not be lawful to design, engrave, print, or in any manner make or execute, or to utter, issue, distribute, circulate, or use, any business or professional card, notice, placard, circular, hand- bill, or advertisement, in the likeness or similitude of any bond, cer- tificate of indebtedness, certificate of deposit, coupon. United States note, Treasury note, gold certificate, silver certificate, fractional note, or other obligation or security of the United States which has been or may be issued under or authorized by any act of Congress heretofore passed or which may hereafter be passed; or to write, print, or other- wise impress upon any such instrument, obligation, or security, any business or professional card, notice, or advertisement, or any notice or advertisement of any matter or thing whatever. Whoever shall violate any provision of this section shall be fined not more than five hundred dollars. Notes of Less Than One Dollar not to be Issued. Sec. 178. No person shall make, issue, circulate, or pay out any note, check, memorandum, token, or other obligation for a less sum than one dollar, intended to circulate as money or to be received or used in lieu of lawful money of the United States ; and every person so offending shall be fined not more than five hundred dollars, or im- prisoned not more than six months, or both. CHAPTER VIII. Offenses Against the Postal Service. Conducting Post-Office Without Authority. Sec. 179. Whoever, without authority from the Postmaster-Gen- eral, shall set up or profess to keep any office or place of business bear- ing the sign, name, or title of post-office, shall be fined not more than five hundred dollars. Illegal Carrying. Sec. 180. Whoever, being concerned in carrying the mail, shall collect, receive, or carry any letter or packet, or cause or procure the Criminal Code 743 same to be done, contrary to law, shall be fined not more than fifty dollars, or imprisoned not more than thirty days, or both. Conveyance of Mail by Private Express Forbidden. Sec. 181. Whoever shall establish any private express for the con- veyance of letters or packets, or in any manner cause or provide for the conveyance of the same by regular trips or at stated periods over any post route which is or may be established by law, or from any city, town, or place, to any other city, town or place, between which the mail is regularly carried, or whoever shall aid or assist therein shall be fined not more than five hundred dollars, or imprisoned not more than six months, or both : Provided, That nothing contained _ in this section shall be construed as prohibiting any person from receiving and delivering to the nearest post-office, postal car, or other author- ized depository for mail matter, any mail matter properly stamped. Transporting Persons Unlawfully Conveying Mail. Sec. 182. Whoever, being the owner, driver, conductor, master or other person having charge of any stagecoach, railway car, steam- boat, or other vehicle or vessel, shall knowingly convey or knowingly permit the conveyance of any person acting or employed as a private express for the conveyance of letters or packets, and actually in pos- session of the same for the purpose of conveying them, contrary to law, shall be fined not more than one hundred and fifty dollars. Sending Letters by Private Express. Sec. 183. Whoever shall transmit by private express or other unlawful means, or deliver to any agent thereof, or deposit or cause to be deposited at any appointed place, for the purpose of being so trans- mitted, any letter or packet, shall be fined not more than fifty dollars. Conveying Letters Over Post Routes. Sec. 184. Whoever, being the owner, driver, conductor, master, or other person having charge of any stagecoach, railway car, steam- boat, or conveyance of any kind which regularly performs trips at stated periods on any post route, or from any city, town, or place to any other city, town, or place between which the mail is regularly carried, and which shall carry, otherwise than in the mail any letters or packets, except such as relate to some part of the cargo of such steamboat or other vessel, to the current business of the carrier, or to some article carried at the same time by the same stagecoach, railway car, or other vehicle, except as otherwise provided by law, shall be fined not more than fifty dollars. Carrying Letters Out of the Mail on Board Vessel. Sec. 185. Whoever shall carry any letter or packet on board any vessel which carries the mail, otherwise than in such mail, except as otherwise provided by law, shall be fined not more than fifty dollars, or imprisoned not more than one month, or both. 744 Important Federal Laws When Conveying of Letters by Private Persons is Lawful. Sec. 186. Nothing in this chapter shall be construed to prohibit the conveyance or transmission of letters or packets by private hands without compensation, or by special messenger employed for the par- ticular occasion only. Wearing Uniform of Carrier Without Authority, Sec. 187. Whoever, not being connected with the letter-carrier branch of the postal service, shall wear the uniform or badge which may be prescribed by the Postmaster-General, to be worn by letter carriers, shall be fined not more than one hundred dollars, or impris- oned not more than six months, or both. Vehicles, Etc., Claiming to be Mail Carriers. Sec. 188. It shall be unlawful to paint, print, or in any manner to place upon or attach to any steamboat or other vessel, or any car, stagecoach, vehicle, or other conveyance, not actually used in carrying the mail, the words "United States Mail," or any words, letters, or characters of like import ; or to give notice, by publishing in any news- paper or otherwise, that any steamboat or other vessel, or any car, stagecoach, vehicle, or other conveyance, is used in carrying the mail, when the same is not actually so used ; and every person who shall vio- late, and every owner, receiver, lessee, or managing operator thereof, who shall cause, suffer, or permit the violation of any provision of this section, shall be liable, and shall be fined not more than one thousand dollars, or imprisoned not more than two years, or both. Injuring Mail Bags, Etc. Sec. 189. Whoever shall tear, cut, or otherwise injure any mail bag, pouch, or other thing used or designed for use in the convey- ance of the mail, or shall draw or break any staple or loosen any part of any lock, chain, or strap attached thereto, with intent to rob or steal any such mail, or to render the same insecure, shall be fined not more than five hundred dollars, or imprisoned not mjore than three years, or both. Stealing Post-Office Property. Sec. 190. Whoever shall steal, purloin, or embezzle any mail bag or other property in use by or belonging to the Post-Office Depart- ment, or shall appropriate any such property to his own or any other than its proper use, or shall convey away any such property to the hindrance or detriment of the public service, shall be fined not more than two hundred dollars, or imprisoned not more than three years, or both. Stealing or Forging Mail Locks or Keys. Sec. 191. Whoever shall steal, purloin, embezzle, or obtain by any false pretense, or shall aid or assist in stealing, purloining, embez- zling, or obtaining by any false pretense, any key suited to any lock Criminal Code 745 adopted by the Post-Office Department and in use on any of the mails or bags thereof, or any key to any lock box, lock drawer, or other authorized receptacle for the deposit or delivery of mail matter; or whoever shall knowingly and unlawfully make, forge, or counterfeit, or cause to be unlawfully made, forged, or counterfeited, any such key, or shall have in his possession any such mail lock or key with the intent unlawfully or improperly to use, sell, or otherwise dispose of the same, or to cause the same to be unlawfully or improperly used, sold, or otherwise disposed of ; or whoever, being engaged as a contractor or otherwise in the manufacture of any such mail lock or key, shall deliver or cause to be delivered, any finished or unfinished lock or key used or designed for use by the Department, or the interior part of any such lock, to any person not duly authorized under the hand of the Postmaster-General and the seal of the Post-Office Department, to receive the same, unless the person receiving it is the contractor for furnishing the same or engaged in the manufacture thereof in the manner authorized by the contract, or the agent of such manufacturer, shall be fined not more than five hundred dollars and imprisoned not more than ten years. Breaking Into and Entering Post-OfBce. Sec. 192. Whoever shall forcibly break into or attempt to break into any post-office, or any building used in whole or in part as a post:^ office, with intent to commit in such post-office, or building, or part thereof, so used, any larceny or other depredation, shall be fined not more than one thousand dollars and imprisoned not more than five years. Unlawfully Entering Postal Car, Etc. Sec. 193. Whoever, by violence, shall enter a post-office car, or any apartment in any car, steamboat, or vessel, assigned to the use of the Mail Service, or shall willfully or maliciously assault or interfere with any postal clerk in the discharge of his duties in connection with such car, steamboat, vessel, or apartment thereof, or shall willfullv aid or assist therein, shall be fined not more than one thousand dollars, or imprisoned not more than three years, or both. Stealing, Secreting, Embezzling, Etc., Mail Matter or Contents. Sec. 194. Whoever shall steal, take, or abstract, or by fraud or deception obtain, from or out of any mail, post-office, or station thereof, or other authorized depository for mail matter, or from a letter or mail carrier, any letter, postal card, package, bag, or mail, or shall abstract or remove from any such letter, package, bag, or mail, any article or thing contained therein, or shall secrete, embezzle, or destroy any such letter, postal card, package, bag, or mail, or any article or thing contained therein ; or whoever shall buy, receive, or conceal, or aid in buying, receiving, or concealing, or shall unlawfully have in his possession, any letter, postal card, package, bag, or mail, or any article 746 Important Federal Laws or thing contained therein, which has been so stolen, taken, embezzled, or abstracted, as herein described, knowing the same to have been so stolen, taken, embezzled, or abstracted ; or whoever shall take any letter, postal card, or package, out of any post-office or station thereof, or out of any authorized depository for mail matter, or from any letter or mail carrier, or which has been in any post-office or station thereof, or other authorized depository, or in the custody of any letter or mail carrier, before it has been delivered to the person to whom it was directed, with a design to obstruct the correspondence, or to pry into the business or secrets of another, or shall open, secrete, embezzle, or destroy the same, shall be fined not more than two thousand dollars, or imprisoned not more than five years, or both. Postmaster or Employee of Postal Service Detaining, Destroying, or Embezzling Letter, Etc. Sec. 195. Whoever, being a postmaster or other person employed in any department of the postal service, shall unlawfully detain, delay, or open any letter, postal card, package, bag, or mail intrusted to him or which shall come into his possession, and which was intended to be conveyed by mail, or carried or delivered by any carrier, messenger, agent, or other person employed in any department of the postal service, or forwarded through or delivered from any post-office or station thereof established by authority of the Postmaster-iGeneral ; or shall secrete, embezzle, or destroy any such letter, postal card, pack- age, bag, or mail ; or shall steal, abstract, or remove from any such letter, package, bag, or mail, any article or thing contained therein, shall be fined not more than five hundred dollars, or imprisoned not more than five years, or both. Postmaster, Etc., Detaining or Destroying Newspapers. Sec. 196. Whoever, being a postmaster or other person employed in any department of the postal service, shall improperly detain, delay, embezzle, or destroy any newspaper, or permit any other person to detain, delay, embezzle, or destroy the same, or open, or permit any other person to open, any mail or package of newspapers not directed to the office where he is employed ; or whoever shall open, embezzle, or destroy any mail or package of newspapers not being directed to him, and he not being authorized to open or receive the same ; or whoever shall take or steal any mail or package of newspapers from any post-office or from any person having custody thereof, shall be fined not more than one hundred dollars, or imprisoned not more than one year, or both. Assaulting Mail Carrier With Intent to Rob, and Robbing Mail. Sec. 197. Whoever shall assault any person having lawful charge, control, or custody of any mail matter, with intent to rob, steal, or purloin such mail matter or any part thereof, or shall rob any such person of such mail or any part thereof, shall, for a first offense, be Criminal Code 747 imprisoned not more than ten years ; and if in effecting or attempting to effect such robbery, he shall wound the person having the custody of the mail, or put his life in jeopardy by the use of a dangerous weapon, or for a subsequent offense, shall be imprisoned twenty-five years. Injuring Letter Boxes or Mail Matter; Assaulting Carrier, Etc. Sec. 198. Whoever shall willfully injure, tear down, or destroy any letter box, pillar box, lock box, lock drawer, or other receptacle established or approved by the Postmaster-General for the safe deposit of matter for the miail or for delivery, or any lock or similar device belonging or attached thereto, or any letter box or other receptacle des- ignated or approved by the Postmaster-General for the receipt or deliv- ery of mail matter on any rural free delivery route, star route, or other mail route, or shall break open the same ; or shall willfully injure, de- face, or destroy any mail matter deposited in any letter box, pillar box, lock box, lock drawer, or other receptacle established or approved by the Postmaster-General for the safe deposit of matter for the mail or for delivery ; or shall willfully take or steal such matter from or out of any such letter box, pillar box, lock box, lock drawer, or other recep- tacle, or shall willfully and maliciously assault any letter or mail car- rier, knowing him to be such, while engaged on his route in the dis- charge of his duty as such carrier, or shall willfully aid or assist in any offense defined in this section, shall be fined not more than one thou- sand dollars, or imprisoned not more than three years, or both. Deserting the Mail. Sec. 199. Whoever, having taken charge of any mail, shall volun- tarily quit or desert the same before he has delivered it into the post- ofiice at the termination of the route, or to some known mail carrier, messenger, agent, or other employee in the postal service authorized to receive the same, shall be fined not more than five hundred dollars, or imprisoned not more than one year, or both. Delivery of Letters by Master of Vessel. Sec. 200. The master or other person having charge or control of any steamboat or other vessel passing between ports or places in the United States, arriving at any such port or place where there is a post-office, shall deliver to the postmaster or at the post-office within three hours after his arrival, if in the daytime, and if at night, within two hours after the next sunrise, all letters and packages brought by him or within his power or control and not relating to the cargo, addressed to or destined for such port or place, for which he shall receive from the postmaster two cents for each letter or package so delivered, unless the same is carried under a contract for carrying the mail ; and for every failure so to deliver such letters or packages, the master or other person having charge or control of such steamboat or other vessel, shall be fined not more than one hundred and fifty dollars. 748 Important Federal Laws Obstructing the Mail. Sec. 201. Whoever shall knowingly and willfully obstruct or retard the passage of the mail, or any carriage, horse, driver, or carrier, or car, steamboat, or other conveyance or vessel carrying the same, shall be fined not more than one hundred dollars, or imprisoned not more than six months, or both. Ferryman Delaying the Mail. Sec. 202. Whoever, being a ferryman, shall delay the passage of the mail by willful neglect or refusal to transport the same across any ferry, shall be fined not more than one hundred dollars. Letters Carried in a Foreign Vessel to be Deposited in a Post-Office. Sec. 203. All letters or other mailable matter conveyed to or from any part of the United States by any foreign vessel, except such sealed letters relating to such vessel or any part of the cargo thereof as may be directed to the owners or consignees of the vessel, shall be subject to postage charge, whether addressed to any person in the United States or elsewhere, provided they are conveyed by the packet or other ship of a foreign country imposing postage on letters or other mailable matter conveyed to or from such country by any vessel of the United States ; and such letters or other mailable matter carried in foreign vessels, except such sealed letters relating to the vessel or any part of the cargo thereof as may be directed to the owners or con- signees, shall be delivered into the United States postoffice by the master or other person having charge or control of such vessel when arriving, and be taken from the United States postofhce when depart- ing, and the postage justly chargeable by law paid thereon ; and for refusing or failing to do so, or for conveying such letters or other mailable matter, or any letters or other mailable matter, intended to be conveyed in any vessel of such foreign country, over or across the United States, or any portion thereof, the party offending shall be fined not more than one thousand dollars. Vessels to Deliver Letters at Post-Office; Oath. Sec. 204. No vessel arriving within a port or collection district of the United States shall be allowed to make entry or break bulk until all letters on board are delivered to the nearest postoffice, and the mas- ter or other person having charge or control thereof has signed and sworn to the following declaration before the collector or other proper customs officer: I, A. B., master , of the , arriving from , and now lying in the port of , do solemnly swear (or affirm) that I have to the best of my knowledge and belief delivered to the post- office at every letter and every bag, packet, or parcel of letters which was on board the said vessel during her last voyage, or which were in my possession or under my power or control. And any master or other person having charge or control of such Criminal Code 749 vessel who shall break bulk before he has delivered such letters shall be fined not more than one hundred dollars. Using, Selling, Etc., Canceled Stamps ; Removing Cancellation Marks From Stamps, Etc. Sec. 205. Whoever shall use or attempt to use in payment of post- age, any canceled postage stamp, whether the same has been used or not ; or shall remove, attempt to remove, or assist in removing, the cancel- ing or defacing marks from any postage stamp, or the superscription from any stamped envelope, or postal card, that has once been used in payment of postage, with the intent to use the same for a like pur- pose, or to sell or offer to sell the same, or shall knowingly have in possession any such postage stamp, stamped envelope, or postal card, with intent to use the same, or shall knowingly sell or offer to sell any such postage stamp, stamped envelope, or postal card, or use or attempt to use the same in payment of postage ; or whoever unlawfully and willfully shall remove from any mail matter any stamp attached thereto in payment of postage ; or shall knowingly use or cause to be used in payment of postage, any postage stamp, postal card, or stamped envelope, issued in pursuance of law, which has already been used for a like purpose ; shall, if he be a person employed in the postal service, be fined not more than five hundred dollars, or imprisoned not more than three years, or both ; and if he be a person not employed in the postal service, shall be fined not more than five hundred dollars, or imprisoned not more than one year, or both. False Returns to Increase Compensation. Sec. 206. Whoever, being a postmaster or other person employed in any branch of the postal service, shall make, or assist in making, or cause to be made, a false return, statement, or account to any officer of the United States, or shall make, assist in making, or cause to be made, a false entry in any record, book, or account, required by law or the rules or regulations of the Postoffice Department to be kept in respect of the business or operations of any postofiice or other branch of the postal service, for the purpose of fraudulently increasing his com- pensation or the compensation of the postmaster or any employee in a postofiice ; or whoever, being a postmaster or other person employed in any postofiice or station thereof, shall induce, or attempt to induce, for the purpose of increasing the emoluments or compensation of his office, any person to deposit mail matter in, or forward in any manner for mailing at, the office where such postmaster or other person is em- ployed, knowing such matter to be properly mailable at another post- office, shall be fined not more than five hundred dollars, or imprisoned not more than two years, or both. Collection of Unlav^^ful Postage Forbidden. Sec. 207. Whoever, being a postmaster or other person authorized to receive the postage of mail matter, shall fraudulently demand or 750 Important Federal Laws receive any rate of postage or gratuity or reward other than is pro- vided by law for the postage of such mail matter, shall be fined not more than one hundred dollars, or imprisoned not more than six months, or both. Unlawful Pledging or Sale of Stamps. Sec. 208. Whoever, being a postmaster or other person employed in any branch of the postal service, and being intrusted with the sale or custody of postage stamps, stamped envelopes, or postal cards, shall use or dispose of them in the payment of debts, or in the purchase of merchandise or other salable articles, or pledge or hypothecate the same, or sell or dispose of them except for cash ; or sell or dispose of postage stamps or postal cards for any larger or less sum than the values indicated on their faces ; or sell or dispose of stamped envelopes for a larger or less sum than is charged therefor by the Postoffice Department for like quantities ; or sell or dispose of, or cause to be sold or disposed of, postage stamps, stamped envelopes, or postal cards at any point or place outside of the delivery of the office where such postmaster or other person is employed ; or induce or attempt to induce, for the purpose of increasing the emoluments or compensation of such postmaster, or the emoluments or compensation of any other person employed in such postoffice or any station thereof, or the allowances or facilities provided therefor, any person to purchase at such postoffice or any station thereof, or from any employee of such postoffice, postage stamps, stamped envelopes, or postal cards ; or sell or dispose of post- age stamps, stamped envelopes, or postal cards, otherwise than as pro- vided by law or the regulations of the Postoffice Department, shall be fined not more than five hundred dollars, or imprisoned not more than one year, or both. Failure to Account for Postage and to Cancel Stamps, Etc., by Officials. Sec. 209. Whoever, being a postmaster or other person engaged in the postal service, shall collect and fail to account for the postage due upon any article of mail matter which he may deliver, without having previously affixed and canceled the special stamp provided by law, or shall fail to affix such stamp, shall be fined not more than fifty dollars. Issuing Money Order Without Payment. Sec. 210. Whoever, being a postmaster or other person employed in any branch of the postal service, shall issue a money order without having previously received the money therefor, shall be fined not more than five hundred dollars. Obscene, Etc., Matter Nonmailable. Sec. 211. Every obscene, lewd, or lascivious, and every filthy, book, pamphlet, picture, paper, letter, writing, print, or other publication of Criminal Code 751 an indecent character, and every article or thing designed, adapted, or intended for preventing conception or producing abortion, or for any indecent or immoral use ; and every article, instrument, substance, drug, medicine, or thing which is advertised or described in a manner cal- culated to lead another to use or apply it for preventing conception or producing abortion, or for any indecent or immoral purpose; and every A\Titten or printed card, letter, circular, book, pamphlet, advertisement, or notice of any kind giving information directly or indirectly, where, or how, or from whom, or by what mans any of the hereinbefore-men- tioned matters, articles, or things may be obtained or made, or where or by whom any act or operation of any kind for the procuring or producing of abortion will be done or performed, or how or by what means conception may be prevented or abortion produced, whether sealed or unsealed : and every letter, packet, or package, or other mail matter containing any filthy, vile, or indecent thing, device, or substance ; and every paper, writing, advertisement, or representation that any arti- cle, instrument, substance, drug, medicine, or thing may, or can be, used or applied for preventing conception or producing abortion, or for any indecent or immoral purpose ; and every description calculated to induce or incite a person to so use or apply any such article, instrument, sub- stance, drug, medicine, or thing, is hereby declared to be non-mailable matter and shall not be conveyed in the mails or delivered from anv postoffice or by any letter carrier. Whoever shall knowingly deposit, or cause to be deposited for mailing or delivery, anything declared by this section to be non-mailable. or shall knowingly take, or cause the same to be taken, from the mails for the purpose of circulating or disposing thereof, or of aiding in the circulation or disposition thereof, shall be fined not more than five thousand dollars, or imprisoned not more than five years, or both. Libelous and Indecent Envelopes and Wrappers. Sec. 212. All matter otherwise mailable by law. upon the envelope or outside cover or wrapper of which, or any postal card upon which, any delineations, epithets, terms, or language of an indecent, lewd, lascivious, obscene, libelous, scurrilous, defamatory, or threatening char- acter, or calculated by the terms or manner or style of display and obviously intended to reflect injuriously upon the character or conduct of another, may be written or printed or otherwise impressed or appar- ent, are hereby declared non-mailable matter, and shall not be conveyed in the mails nor delivered from any postoffice nor by any letter carrier, and shall be withdrawn from the mails under such regulations as the Postmaster-General shall prescribe. Whoever shall knowingly deposit or cause to be deposited, for mailing or delivery, anything declared by this section to be non-mailable matter, or shall knowingly take the same or cause the same to be taken from the mails for the purpose of circulating or disposing of or aiding in the circulation or disposition of the same. 752 Important Federal Laws shall be fined not more than five thousand dollars, or imprisoned not more than five years, or both. Lottery, Gift Enterprise, Etc., Circulars, Etc., Not Mailable. Sec. 213. No letter, package, postal card, or circular concerning any lottery, gift enterprise, or similar scheme offering prizes dependent in whole or in part upon lot or chance ; and no lottery ticket or part thereof, or paper, certificate, or instrument purporting to be or to repre- sent a ticket, chance, share, or interest in or dependent upon the event of a lottery, gift enterprise, or similar scheme offering prizes dependent in whole or in part upon lot or chance ; and no check, draft, bill, money, postal note, or money order, for the purchase of any ticket or part thereof, or of any share or chance in any such lottery, gift enterprise, or scheme ; and no newspaper, circular, pamphlet, or publication of any kind containing any advertisement of any lottery, gift enterprise, or scheme of any kind offering prizes dependent in whole or in part upon lot or chance, or containing any list of the prizes drawn or awarded by means of any such lottery, gift enterprise, or schemes, whether said list contains any part or all of such prizes, shall be deposited in or carried by the mails of the United States, or be delivered by any postmaster or letter carrier. Whoever shall knowingly deposit or cause to be deposited, or shall knowingly send or cause to be sent, anything to be conveyed or delivered by mail in violation of the provisions of this section, or shall knowingly deHver or cause to be delivered by mail anything herein for- bidden to be carried by mail, shall be fined not more than one thousand dollars, or imprisoned not more than two years, or both ; and for any subsequent offense shall be imprisoned not more than five years. Any person violating any provision of this section may be tried and punished either in the district in which the unlawful matter or publication was mailed, or to which it was carried, by mail for delivery according to the direction thereon, or in which it was caused to be delivered by mail to the person to whom it was addressed. Postmasters not to be Lottery Agents. Sec. 214. Whoever, being a postmaster or other person employed in the postal service, shall act as agent for any lottery office, or under color of purchase or otherwise, vend lottery tickets, or shall knowingly send by mail or deliver any letter, package, postal card, circular, or pamphlet advertising any lottery, gift enterprise, or similar scheme, offering prizes dependent in whole or in part upon lot or chance, or any ticket, certificate, or instrument representing any chance, share, or interest in or dependent upon the event of any lottery, gift enterprise, or similar scheme off"ering prizes dependent in whole or in part upon lot or chance, or any list of the prizes awarded by means of any such scheme, shall be fined not more than one hundred dollars, or imprisoned not more than one year, or both. Criminal Code 753 Use of Mails to Promote Frauds. Sec. 215. Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, or to sell, dispose of, loan, exchange, alter, give away, distribute, supply, or furnish or procure for unlawful use any counterfeit or spurious coin, bank note, paper money, or any obligation or security of the United States, or of any State, Territory, municipality, company, cor- poration, or person, or anything represented to be or intimated or held out to be such counterfeit or spurious article, or any scheme or artifice to obtain money by or through correspondence, by what is commonly called the "saw-dust swindle," or "counterfeit-money fraud," or by deal- ing or pretending to deal in what is commonly called "green articles," "green coin," "green goods," "bills," "paper goods," "spurious Treasury notes," "United States goods," "green cigars," or any other names or terms intended to be understood as relating to such counterfeit or spurious articles, shall, for the purpose of executing such scheme or artifice or attempting so to do, place, or cause to be placed, any letter, postal card, package, writing, circular, pamphlet, or advertisement, whether addressed to any person residing within or outside the United States, in any postofiice, or station thereof, or street or other letter box of the United States, or authorized deoository for mail matter, to be sent or delivered by the postofiice establishment of the United States, or shall take or receive any such therefrom, whether mailed within or with- out the United States, or shall knowingly cause to be delivered by mail according to the direction thereon, or at the place at w'hich it is directed to be delivered by the person to whom it is addressed, any such letter, postal card, package, writing, circular, pamphlet, or advertisement, shall be fined not more than one thousand dollars, or imprisoned not more than five years, or both. Fraudulently Assuming Fictitious Address. Sec. 216. Whoever, for the purpose of conducting, promoting, or carrying on, in any manner, by means of the postofiice establishment of the United States, any scheme or device mentioned in the section last preceding, or any other unlawful business whatsoever, shall use or as- sume, or request to be addressed by, any fictitious, false, or assumed title, name, or address, or name other than his own proper name, or shall take or receive from any postofiice of the United States, or sta- tion thereof, or any other authorized depository of mail matter, any letter, postal card, package, or other mail matter addressed to any such fictitious, false, or assumed title, name or address, or name other than his own proper name, shall be punished as provided in the section last preceding. Poisons and Explosives Nonmailable. Sec. 217. All kinds of poison, and all articles and compositions con- (48) 754 Important Federal Laws taining poison, and all poisonous animals, insects, and reptiles, and ex- plosives of all kinds, and inflammable materials, and infernal machines, and mechanical, chemical, or other devices or compositions which may ignite or explode, and all disease germs or scabs, and all other natural or artificial articles, compositions, or materials of whatever kind which may kill, or in anywise hurt, harm, or injure another, or damage, deface, or otherwise injure the mails or other property, whether sealed as first- class matter or not, are hereby declared to be non-mailable matter, and shall not be conveyed in the mails or delivered from any postoffice or station thereof, nor by any letter carrier ; but the Postmaster-General may permit the transmission in the mails, under such rules and regula- tions as he shall prescribe as to preparation and packing, of any articles hereinbefore described which are not outwardly or of their own force dangerous or injurious to life, health, or property : Provided, That all spirituous, vinous, malted, fermented, or other intoxicating liquors of any kind, are hereby declared to be non-mailable and shall not be deposited in or carried through the mails. Whoever shall knowingly deposit or cause to be deposited for mailing or delivery, or shall knowingly cause to be delivered by mail according to the directions thereon, or at any place at which it is directed to be delivered by the person to whom it is addressed, anything declared by this section to be non-mailable, unless in accordance with the rules and regulations hereby authorized to be pre- scribed by the Postmaster-General, shall be fined not more than one thousand dollars, or imprisoned not more than two years, or both ; and whoever shall knowingly deposit or cause to be deposited for mailing or delivery, or shall knowingly cause to be delivered by mail according to the direction thereon, or at any place to which it is directed to be deliv- ered by the person to whom it is addressed, anything declared by this section to be non-mailable, whether transmitted in accordance with the rules and regulations authorized to be prescribed by the Postmaster- General or not, with the design, intent, or purpose to kill, or in anywise hurt, harm, or injure another or damage, deface, or otherwise injure the mails or other property, shall be fined not more than five thousand dollars, or imprisoned not more than ten years, or both. Counterfeiting Money Orders. Sec. 218. Whoever, with intent to defraud, shall falsely make, forge, counterfeit, engrave, or print, or cause or procure to be falsely made, forged, counterfeited, engraved, or printed, or shall willingly aid or assist in falsely making, forging, counterfeiting, engraving, or print- ing, any order in imitation of or purporting to be a money order issued by the Postoffice Department, or by any postmaster or agent thereof ; or whoever shall forge or counterfeit the signature of any postmaster, assistant postmaster, chief clerk, or clerk, upon or to any money order, or postal note, or blank therefor provided or issued by or under the direction of the Postoffice Department of the United States, or of any foreign country, and payable in the United States, or any material signa- Criminal Code 755 ture or indorsement thereon, or any material signature to any receipt or certificate of identification thereon; or shall falsely alter, or cause or procure to be falsely altered in any material respect, or knowingly aid or assist in falsely so altering any such money order or postal note ; or shall, with intent to defraud, pass, utter, or publish any such forged or altered money order or postal note, knowing any material signature or indorsement thereon to be false, forged, or counterfeited, or any mate- rial alteration therein to have been falsely made; or shall issue any money order or postal note without having previously received or paid the full amount of money payable therefor, with the purpose of fraudu- lently obtaining or receiving or fraudulently enabling any other person, either directly or indirectly, to obtain or receive from the United States or any officer, employee, or agent thereof, any sum of money whatever; or shall, with intent to defraud the United States, or any person, transmit or present to, or cause or procure to be transmitted or presented to, any officer or employee or at any office of the government of the United States, any money order or postal note, knowing the same to contain any forged or counterfeited signature to the same, or to any material indorse- ment, receipt, or certificate thereon, or material alteration therein unlaw'- fully made, or to have been unlawfully issued without previous pay- ment of the amount required to be paid upon such issue, shall be fined not more than five thousand dollars, or imprisoned not more than five years, or both. Counterfeiting Postage Stamps. Sec. 219. Whoever shall forge or counterfeit any postage stam,p, or any stamp printed upon any stamped envelope, or postal card, or any die, plate, or engraving therefor; or shall make or print, or knowingly use or sell, or have in possession with intent to use or sell, any such forged or counterfeited postage stamp, stamped envelope, postal card, die, plate, or engraving ; or shall make, or knowingly use or sell, or have in possession with intent to use or sell, any paper bearing the water- mark of any stamped envelope, or postal card, or any fraudulent imita- tion thereof ; or shall make or print, or authorize or procure to be made or printed, any postage stamp, stamped envelope, or postal card, of the kind authorized and provided by the Postoffice Department, without the special authority and direction of said Department ; or shall, after such postage stamp, stamped envelope, or postal card has been printed, with intent to defraud, deliver the same to any person not authorized by an instrument in writing, duly executed under the hand of the Postmaster- General and the seal of the Postoffice Department, to receive it, shall be fined not more than five hundred dollars, or imprisoned not more than five years, or both. Counterfeiting, Etc., Foreign Stamps. Sec. 220. Whoever shall forge, or counterfeit, or knowingly utter or use any forged or counterfeited postage stamp of any foreign gov- 756 Important Federal Laws ernment, shall be fined not more than five hundred dollars, or impris- oned not more than five years, or both. Inclosing Higher-Class in Lower-Class Matter. Sec. 221. Matter of the second, third, or fourth class containing any writing or printing in addition to the original matter, other than as authorized by law, shall not be admitted to the mails, nor delivered, except upon payment of postage for matter of the first class, deduct- ing therefrom any amount which may have been prepaid by stamps affixed, unless by direction of the Postmaster-General such postage shall be remitted. Whoever shall knowingly conceal or inclose any matter of a higher class in that of a lower class, and deposit or cause the same to be deposited for conveyance by mail, at a less rate than would be charged for such higher class matter, shall be fined not more than one hundred dollars. Postmaster Illegally Approving Bond, Etc. Sec. 222. Whoever, being a postmaster, shall affix his signature to the approval of any bond of a bidder, or to the certificate of sufficiency of sureties in any contract, before the said bond or contract is signed by the bidder or contractor and his sureties, or shall knowingly, or with- out the exercise of due diligence, approve any bond of a bidder with insufficient sureties, or shall knowingly make any false or fraudulent certificate, shall be forthwith dismissed from office and be thereafter disqualified from holding the office of postmaster ; and shall also be fined not more than five thousand dollars, or imprisoned not more tlian one year, or both. False Evidence as to Second-Class Mail Matter. Sec. 223. Whoever shall submit or cause to be submitted to any postmaster or to the Postoffice Department or any officer of the postal service, anv false evidence relative to any publication for the purpose of securing the admission thereof at the second-class rate, for transporta- tion in the mails, shall be fined not more than five hundred dollars. Inducing or Prosecuting False Claims. Sec. 224. Whoever shall make, allege, or present, or cause to be made, alleged, or presented, or assist, aid, or abet in making, alleging, or presenting, anv claim or application for indemnity for the loss of any registered letter, parcel, package, or other article or matter, or the contents thereof, knowing such claim or application to be false, fictitious, or fraudulent ; or whoever for the purpose of obtaining or aiding to obtain the payment or approval of any such claim or application, shall make or use, or cause to be made or used, any false statement, certifi- cate, affidavit, or deposition ; or whoever shall knowingly and willfully misrepresent, or misstate, or, for the purpose aforesaid shall knowingly and willfully conceal any material fact or circumstance in respect of any such claim or application for indemnity, shall be fined not more than five hundred dollars, or imprisoned not more than one year, or both. Criminal Code 757 Misappropriation of Postal Funds or Property. Sec. 225. Whoever, being a postmaster or other person employed in or connected with any branch of the postal service, shall loan, use, pledge, hypothecate, or convert to his own use, or shall deposit in any bank, or exchange for other funds or property, except as authorized by law, any money or property coming into his hands or under his con- trol in any manner whatever, in the execution or under color of his ofifice, employment, or service, whether the same shall be the money or property of the United States or not ; or shall fail or refuse to remit to or deposit in the Treasury of the United States or in a designated depository, or to account for or turn over to the proper officer or agent, any such money or property, when required so to do by law or the regulations of the Postoffice Department, or upon demand or order of the Postmaster-General, either directly or through a duly authorized officer or agent, shall be deemed guilty of embezzlement; and every such person, as well as every other person advising or knowingly participat- ing therein, shall be fined in a sum equal to the amount or value of the money or property embezzled, or imprisoned not more than ten years, or both. Any failure to produce or to pay over any such money or property, when required so to do as above provided, shall be taken to be prima facie evidence of such embezzlement ; and upon the trial of any indictment against any person for such embezzlement, it shall be prima facie evidence of a balance against him to produce a transcript from the account books of the Auditor for the Postoffice Department. But nothing herein shall be construed to prohibit any postmaster deposit- ing, under the direction of the Postmaster-General, in a national bank designated by the Secretary of the Treasury for that purpose, to his own credit as postmaster, any funds in his charge, nor prevent his nego- tiating drafts or other evidences of debt through such bank, or through United States disbursing officers, or otherwise, when instructed or re- quired so to do by the Postmaster-General, for the purpose of remitting surplus funds from one postoffice to another. Employees not to Become Interested in Contracts. Sec. 226. Whoever, being a person employed in the postal service shall become interested in any contract for carrying the mail, or act as agent, with or without compensation, for any contractor or person offering to become a contractor in any business before the Department, shall be immediately dismissed from office, and shall be fined not more than five thousand dollars, or imprisoned not more than one year, or both. Fraudulent Use of Official Envelopes. Sec. 227. Whoever shall make use of any official envelope, label, or indorsement authorized by law, to avoid the payment of postage or registry fee on his private letter, packet, package, or other matter in the mail, shall be fined not more than three hundred dollars. 758 Important Federal Laws Fraudulent Increase of Weight of Mail. Sec. 228. Whoever shall place or cause to be placed any matter in the mails during the regular weighing period, for the purpose of increas- ing the weight of the mail with intent to cause an increase in the com- pensation of the railroad mail carrier over whose route such mail may- pass, shall be fined not more than twenty thousand dollars, or imprisoned not more than five years, or both. Offenses Against Foreign Mail in Transit. Sec. 229. Every foreign mail shall, while being transported across the territory of the United States, under authority of law, be taken and deemed to be a mail of the United States so far as to make any violation thereof, or depredation thereon, or offense in respect thereto, or any part thereof, an offense of the same grade, and punishable in the same manner and to the same extent as though the mail was a mail of the United States; and in any indictment or information for any such offense, the mail, or any part thereof, may be alleged to be, .and on the trial of any such indictment or information it shall be deemed and held to be, a mail or part of a mail of the United States. Omission to take Oath. Sec. 230. Every person employed in the postal service shall be sub- ject to all penalties and forfeitures for the violation of the laws relating to such service, whether he has taken the oath of office or not. Definitions. Sec. 231. The words "postal service," wherever used in this chap- ter, shall be held and deemed to include the "PostofiEice Department." CHAPTER IX. Offenses Against Foreign and Interstate Commerce. Dynamite, Etc., Not to Be Carried on Vessels or Vehicles Carrying Passengers for Hire. Sec. 232. It shall be unlawful to transport, carry, or convey, any dynamite, gunpowder, or other explosive, between a place in a foreign country and a place within or subject to the jurisdiction of the United States, or between a place in any State, Territory, or District of the United States, or place noncontiguous to but subject to the jurisdiction thereof, and a place in any other State, Territory, or District of the United States, or place noncontiguous to but subject to the jurisdiction thereof, on any vessel or vehicle of any description operated by a com- mon carrier, which vessel or vehicle is carrying passengers for hire : Provided, That it shall be lawful to transport on any such vessel or vehicle small arms ammunition in any quantity, and such fuses, tor- pedoes, rockets, or other signal devices, as may be essential to promote safety in operation, and properly packed and marked samples of explo- sives for laboratory examination, not exceeding a net weight of one- Criminal Code 759 half pound each, and not exceeding twenty samples at one time in a single vessel or vehicle ; but such samples shall not be carried in that part of a vessel or vehicle which is intended for the transportation of passengers for hire : Provided further, That nothing in this section shall be construed to prevent the transportation of military or naval forces with their accompanying munitions of war on passenger equipment ves- sels or vehicles. Interstate Commerce Commission to Make Regulations for Transpor- tation of Explosives. Sec. 233. The Interstate Commerce Commission shall formulate regulations for the safe transportation of explosives, which shall be binding upon all common carriers engaged in interstate or foreign com- merce which transport explosives by land. Said commission, of its own motion, or upon application made by any interested party, may make changes or modifications in such regulations, made desirable by new information or altered conditions. Such regulations shall be in accord with the liest known practicable means for securing safety in transit, covering the packing, marking, loading, handling while in transit,^ and the precautions necessary to determine whether the material when offered is in proper condition to transport. Such regulations, as well as all changes or modifications thereof, shall take effect ninety days after their formulation and publication by said commission and shall be in effect until reversed, set aside, or modified. Liquid Nitroglycerin, Etc., Not to Be Carried on Certain Vessels and Vehicles. Sec. 234. It shall be unlawful to transport, carry, or convey, liquid nitroglycerin, fulminate in bulk in dry condition, or other like explosive, between a place in a foreign country and a place within or subject to the jurisdiction of the United States, or between a place in one State, Territory, or District of the United States, or place non- contiguous to but subject to the jurisdiction thereof, and a place in any other State, Territory, or District of the United States, or place noncontiguous to but subject to the jurisdiction thereof, on any vessel or vehicle of any description operated by a common carrier in the trans- portation of passenger or articles of commerce by land or water. Marking of Packages of Explosives; Deceptive Marking. Sec. 235. Every package containing explosives or other dangerous articles when presented to a common carrier for shipment shall have plainly marked on the outside thereof the contents thereof ; and it shall be unlawful for any person to deliver, or cause to be delivered, to any common carrier engaged in interstate or foreign commerce by land or water, for interstate or foreign transportation, or to carry upon any vessel or vehicle engaged in interstate or foreign transportation, any explosive, or other dangerous article, under any false or deceptive mark- ing, description, invoice, shipping order, or other declaration, or without 760 Important Federal Laws informing the agent of such carrier of the true character thereof, at or before the time such deUvery or carriage is made. Whoever shall knowingly violate, or cause to be violated, any provision of this section, or of the three sections last preceding, or any regulation made by the Interstate Commerce Commission in pursuance thereof, shall be fined not more than two thousand dollars, or imprisoned not more than eight- een months, or both. Death or Bodily Injury Caused by Such Transportation. Sec. 236. When the death or bodily injury of any person is caused by the explosion of any article named in the four sections last pre- ceding, while the same is being placed upon any vessel or vehicle to be transported in violation thereof, or while the same is being so trans- ported, or while the same is being removed from such vessel or vehicle, the person knowingly placing, or aiding or permitting the placing, of such articles upon any such vessel or vehicle, to be so transported, shall be imprisoned not more than ten years. Importation and Transportation of Lottery Tickets, Etc. Sec. 237. Whoever shall bring or cause to be brought into the United States or any place subject to the jurisdiction thereof, from any foreign country, for the purpose of disposing of the same, any paper, certificate, or instrument purporting to be or to represent a ticket, chance, share, or interest in or dependent upon the event of a lottery, gift enterprise, or similar scheme, ofi^ering prizes dependent in wliole or in part upon lot or chance, or any advertisement of, or list of the prizes drawn or awarded by means of, any such lottery, gift enterprise, or similar scheme ; or shall therein knowingly deposit or cause to be deposited with any express company or common carrier for car- riage, or shall carry, from one State, Territory, or District of the United States, or place noncontiguous to but subject to the jurisdiction thereof, to any other State, Territory, or District of the United States, or place noncontiguous to but subject to the jurisdiction thereof, or from any place in or subject to the jurisdiction of the United States through a foreign country to any place in or subject to the jurisdiction thereof, or from any place in or subject to the jurisdiction of the United States to a foreign country, any paper, certificate, or instrument purporting to be or to represent a ticket, chance, share, or interest in or dependent upon the event of any such lottery, gift enterprise, or similar scheme, or any advertisement of, or list of the prizes drawn, or award by means of, any such lottery, gift enterprise, or similar scheme, or shall knowingly take or receive, or cause to be taken or received, any such paper, certifi- cate, instrument, advertisement, or list so brought, deposited, or trans- ported, shall, for the first ofifense. be fined not more than one thousand dollars, or imprisoned not more than two years, or both ; and for any subsequent offense shall be imprisoned not m.ore than two years. Criminal Code 761 Interstate Shipment of Intoxicating Liquors ; Delivery of to be Made Only to Bona Fide Consignee. Sec. 238. Any officer, agent, or employee of any railroad company, express company, or other common carrier, who shall knowingly de- liver or cause to be delivered to any person other than the person to whom it has been consigned, unless upon the written order in each instance of the bona fide consignee, or to any fictitious person, or to any person under a fictitious name, any spirituous, vinous, malted, fer- mented, or other intoxicating liquor of any kind which has been shipped from one State, Territory, or District of the United States, or place non- contiguous to but subject to the jurisdiction thereof, into any other State, Territory, or District of the United States, or place noncontiguous to but subject to the jurisdiction thereof, or from any foreign country into any State, Territory, or District of the United States, or place noncontiguous to but subject to the jurisdiction thereof, shall be fined not more than five thousand dollars, or imprisoned not more than two years, or both. Common Carrier, Etc., Not to Collect Purchase Price of Interstate Shipment of Intoxicating Liquors. Sec. 239. Any railroad company, express company, or other com- mon carrier, or any other person who, in connection with the trans- portation of any spirituous, vinous, malted, fermented, or other intoxi- cating liquor of any kind, from one State, Territory, or District of the United States, or place noncontiguous to but subject to the jurisdiction thereof, into any other State, Territory, or District of the United States, or place noncontiguous to but subject to the jurisdiction thereof, or from any foreign country into any State, Territory, or District of the United States, or place noncontiguous to but subject to the jurisdiction thereof, shall collect the purchase price or any part thereof before, on, or after delivery, from the consignee, or from any other person, or shall in any manner act as the agent of the buyer or seller of any such liquor, for the purpose of buying or selling or completing the sale thereof, saving only in the actual transportation and delivery of the same, shall be fined not more than five thousand dollars. Packages Containing Intoxicating Liquors Shipped in Interstate Com- merce to be Marked as Such. Sec. 240. Whoever shall knowingly ship or cause to be shipped from one State, Territory, or District of the United States, or place noncontiguous to but subject to the jurisdiction thereof, into any other State, Territory, or District of the United States, or place noncontiguous to but subject to the jurisdiction thereof, or from any foreign country into any State, Territory, or District of the United States, or place noncon- tiguous to but subject to the jurisdiction thereof, any package of or pack- age containing any spirituous, vinous, malted, fermented, or other intoxi- cating liquor of any kind, unless such package be so labeled on the outside 762 Important Federal Laws cover as to plainly show the name of the consignee, the nature of its con- tents, and the quantity contained therein, shall be fined not more than five thousand dollars ; and such liquor shall be forfeited to the United States, and may be seized and condemned by like proceedings as those provided by law for the seizure and forfeiture of property imported into the United States contrary to law. Importation of Certain Wild Animals, Birds, and Reptiles Forbidden. Sec. 241. The importation into the United States, or any Territory or District thereof, of the mongoose, the so-called "flying foxes" or fruit bats, the English sparrow, the starling, and such other birds and animals as the Secretary of Agriculture may from time to time declare to be injurious to the interests of agriculture or horticulture, is hereby prohibited ; and all such birds and animals shall, upon arrival at any port of the United States, be destroyed or returned at the expense of the owner. No person shall import into the United States or into any Territory or District thereof, any foreign wild animal or bird, except under special permit from the Secretary of Agriculture : Provided, That nothing in this section shall restrict the importation of natural his- tory specimens for museums or scientific collections, or of certain cage birds, such as domesticated canaries, parrots, or such other birds as the Secretary of Agriculture may designate. The Secretary of the Treasury is hereby authorized to make regulations for carrying into effect the provisions of this section. Transportation of Prohibited Animals. Sec. 242. It shall be unlawful for any person to deliver to any common carrier for transportation, or for any common carrier to trans- port from any State, Territory, or District of the United States, to any other State, Territory, or District thereof, any foreign animals or birds, the importation of which is prohibited, or the dead bodies or parts there- of of any wild animals or birds, where such animals or birds have been killed or shipped in violation of the laws of the State, Territor)', or District in which the same were killed, or from which they were shipped : Provided, That nothing herein shall prevent the transportation of any dead birds or animals killed during the season when the same may be lawfully captured, and the export of which is not prohibited by law in the State, Territory, or District in which the same are captured or killed: Provided further. That nothing herein shall prevent the importa- tion, transportation, or sale of birds or bird plumage manufactured from the feathers of barnyard fowls. Marking of Packages. Sec. 243. All packages containing the dead bodies, or the plumage, or parts thereof, of game animals, or game or other wild birds, when shipped in interstate or foreign commerce, shall be plainly and clearly marked, so that the name and address of the shipper, and the nature of the contents may be readily ascertained on ah inspection of the outside of such package. Criminal Code 763 Penalty for Violation of Preceding Sections. Sec. 244. For each evasion or violation of an}^ provision of the three sections last preceding, the shipper shall be fined not more than two hundred dollars ; the consignee knowingly receiving such articles so shipped and transported in violation of said sections shall be fined not more than two hundred dollars ; and the carrier knowingly carrying or transporting the same in violation of said sections shall be fined not more than two hundred dollars. Depositing Obscene Books, Etc., With Common Carrier. Sec. 245. Whoever shall bring or cause to be brought into the United States or any place subject to the jurisdiction thereof, from any foreign country, or shall therein knowingly deposit or cause to be depos- ited with any express company or other common carrier, for carriage from one State, Territory, or District of the United States, or place noncontiguous to but subject to the jurisdiction thereof, to any other State, Territory, or District of the United States, or place noncon- tiguous to but subject to the jurisdiction thereof, or from any place in or subject to the jurisdiction of the United States through a foreign country to any place in or subject to the jurisdiction thereof, or from any place in or subject to the jurisdiction of the United States to a foreign country, any obscene, lewd, or lascivious, or any filthy book, pamphlet, picture, paper, letter, writing, print, or other matter of inde- cent character, or any drug, medicine, article, or thing designed, adapted, or intended for preventing conception, or producing abortion, or for any indecent or immoral use, or any written or printed card, letter, circular, book, pamphlet, advertisement, or notice of any kind giving information, directly or indirectly, where, how, or of whom, or by what means any of the hereinbefore-mentioned articles, matters, or things may be obtained or made ; or whoever shall knowingly take or cause to be taken from such express company or other common carrier any matter or thing the depositing of which for carriage is herein made unlawful, shall be fined not more than five thousand dollars, or imprisoned not more than five years, or both. LARCENY IN INTERSTATE COMMERCE. Act of February 13, 191.3. An Act to punish the unlawful breaking of seals of railroad cars containing interstate or foreign shipments, the unlawful entering of such cars, the stealing of freight and express packages or baggage or articles in process of transportation in interstate shipment, and the felonious asportation of such freight or express packages or baggage or articles therefrom into another district of the United States, and the felonious possession or recep- tion of the same. Larceny in Interstate Commerce Made Punishable. Section 1. That whoever shall unlawfully break the seal of any railroad car containing interstate or foreign shipments of freight or 764 Important Federal Laws express, or shall enter any such car with intent, in either case, to commit larceny therein; or whoever shall steal or unlawfully take, carry away, or conceal, or by fraud or deception obtain from any railroad car, station house, platform, depot, steamboat, vessel, or wharf, with intent to convert to his own use any goods or chattels moving as, or which are a part of or which constitute, an interstate or foreign shipment of freight or express, or shall buy, or receive, or have in his possession any such goods or chattels, knowing the same to have been stolen ; or whoever shall steal or shall unlawfully take, carry away, or by fraud or deception obtain, with intent to convert to his own use, any baggage which shall have come into the possession- of any common carrier for transportation from one State or Territory or the District of Columbia to another State or Territory or the District of Columbia, or to a foreign country, or from a foreign country to any State or Territory or the District of Columbia, or shall break into, steal, take, carry away, or conceal any of the con- tents of such baggage, or shall buy, receive, or have in his possession any such baggage or any article therefrom of whatsoever nature, knowing the same to have been stolen, shall in each case be fined not more than five thousand dollars or imprisoned not more than ten years, or both, and prosecutions therefor may be instituted in any district wherein the crime shall have been committed. The carrying or transporting of any such freight, express, baggage, goods, or chattels from one State or Territory or the District of Columbia into another State or Territory or the District of Columbia, knowing the same to have been stolen, shall constitute a separate offense and subject the offender to the penalties above described for unlawful taking, and prosecutions therefor may be instituted in any district into which such freight, express, baggage, goods, or chattels shall have been removed or into which they shall have been brought by such offender. Sec. 2. That nothing in this Act shall be held to take away or impair the jurisdiction of the courts of the several States under the laws thereof ; and a judgment of conviction or accjuittal on the merits under the laws of any State shall be a bar to any prosecution hereunder for the same act or acts. CHAPTER X. The Slave Trade and Peonage. Confining or Detaining Slaves on Board Vessel. Sec. 246. Whoever, being of the crew or ship's company of any foreign vessel engaged in the slave trade, or being of the crew or ship's company of any vessel owned wholly or in part, or navigated for or in behalf of any citizen of the United States, forcibly confines or detains on board such vessel any person as a slave, or, on board such vessel, offers or attempts to sell as a slave any such person, or on the high seas, or anywhere on tide water, transfers or delivers to any other vessel any such person with intent to make such person a slave, or Criminal Code 765 lands or delivers on shore from on board such vessel any person with intent to make sale of, or having previously sold such person as a slave, is a pirate, and shall be imprisoned for Hfe. Seizing Slaves on Foreign Shore. Sec. 247. Whoever, being of the crew or ship's company of any foreign vessel engaged in the slave trade, or being of the crew or ship's company of any vessel owned in whole or part, or navigated for, or in behalf of. any citizen of the United States, lands from such vessel, and on any foreign shore, seizes any person with intent to make such person a slave, or decoys, or forcibly brings, or carries or receives such person on board such vessel, with like intent, is a pirate, and shall be imprisoned for life. Bringing Slaves into the United States. Sec. 248. Whoever brings within the jurisdiction of the United States, in any manner whatsoever, any person from any foreign king- dom or country, or from sea, or holds, sells, or otherwise disposes of, any person so brought in, as a slave, or to be held to service or labor, shall be fined not more than ten thousand dollars, one-half to the use of the United States and the other half to the use of the party who prosecutes the indictment to effect; and, moreover, shall be imprisoned not more than seven years. Equipping Vessels for Slave Trade. Sec. 249. Whoever builds, fits out, equips, loads, or otherwise pre- pares, or sends away, either as master, factor, or owner, any vessel, in any port or place within the jurisdiction of the United States, or causes such vessel to sail from any port or place whatsoever, within such jurisdiction, for the purpose of procuring any person from any foreign kingdom or country to be transported to any port or place whatsoever, to be held, sold, or otherwise disposed of as a slave, or held to service or labor, shall be fined not more than five thousand dollars, one-half to the use of the United States and the other half to the use of the person prosecuting the indictment to effect; and shall, moreover, be imprisoned not more than seven years. Transporting Persons to Be Held as Slaves. Sec. 250. Whoever, within the jurisdiction of the United States, takes on board, receives, or transports from any foreign kingdom or country, or from sea, any person in any vessel, for the purpose of holding, selling, or otherwise disposing of such person as a slave, or to be held to service or labor, shall be punished as prescribed in the section last preceding. Hovering on Coast With Slaves on Board. Sec. 251. Whoever, being the captain, master, or commander of any vessel found in any river, port, bay, harbor, or on the high seas, within the jurisdiction of the United States, or hovering on the coast 766 Important Federal Laws thereof, having on board any person, for the purpose of selling such person as a slave, or with intent to land such person for any such pur- pose, shall be fined not more than ten thousand dollars and imprisoned not more than four years. Serving in Vessels Engaged in Slave Trade. Sec. 252. Whoever, being a citizen of the United States, or other person residing therein, voluntarily serves on board of any vessel em- ployed or made use of in the transportation of slaves from any for- eign country or place to another, shall be fined not more than two thou- sand dollars and imprisoned not more than two years. Receiving or Carrying Away Any Person to be Sold or Held as a Slave. Sec. 253. Whoever, being the master or owner or person having charge of any vessel, receives on board any other person, with the knowledge or intent that such person is to be carried from any place subject to the jurisdiction of the United States to any other place, to be held or sold as a slave, or carries away from any place subject to the jurisdiction of the United States any such person, with the intent that he may be so held or sold as a slave, shall be fined not more than five thousand dollars, or imprisoned not more than five years, or both. Equipping, Etc., Vessel for Slave Trade. Sec. 254. No person shall, for himself or for another, as master, factor, or owner, build, fit, equip, load, or otherwise prepare any ves- sel in any port or place within the jurisdiction of the United States, or cause any vessel to sail from any port or place within the jurisdic- tion of the United States for the purpose of procuring any person from any foreign kingdom, place, or country to be transported to any port or place whatsoever, to be held, sold, or otherwise disposed of, as a slave, or to be held to service or labor ; and every vessel so built, fitted out, equipped, laden, or otherwise prepared, with her tackle, apparel, furniture, and lading, shall be forfeited; one moiety to the use of the United States and the other to the use of the person who sues for the forfeiture and prosecutes the same to effect. Penalty on Persons Building, Equipping, Etc. Sec. 255. Whoever so builds, fits out, equips, loads, or otherwise prepares or sends away any vessel, knowing or intending that the same shall be employed in such trade or business, contrary to the provisions of the section last preceding, or in any way aids or abets therein, shall, besides the forfeiture of the vessel, pay the sum of two thousand dol- lars ; one moiety thereof to the use of the United States and the other moiety thereof to the use of the person who sues for and prosecutes the same to effect. Forfeiture of Vessel Transporting Slaves. Sec. 256. Every vessel employed in carrying on the slave trade or on which is received or transported any person from any foreign king- Criminal Code 767 dom or country, or from sea, for the purpose of holding, selling, or otherwise disposing of such person as a slave, or of holding such person tb service or labor, shall, together with her tackle, apparel, furniture, and the goods and effects which may be found on board, or which may have been imported thereon in the same voyage, be forfeited ; one moiety to the use of the United States and the other to the use of the person who sues for and prosecutes the forfeiture to effect. Receiving Persons on Board to be Sold as Slaves. Sec. 257. Whoever, being a citizen of the United States, takes on board, receives, or transports any person for the purpose of selling such person as a slave shall, in addition to the forfeiture of the ves- sel, pay for each person so received on board or transported the sum of two hundred dollars, to be recovered in any court of the United States ; the one moiety thereof to the use of the United States and the other moiety to the use of the person who sues for and prosecutes the same to effect. Vessels Found Hovering On Coast. Sec. 258. Every vessel w^hich is found in any river, port, bay, or harbor, or on the high seas, within the jurisdiction of the United States, or hovering on the coast thereof, and having on board any per- son, with intent to sell such person as a slave, or with intent to land the same for that purpose, either in the United States or elsewhere, shall, together with her tackle, apparel, furniture, and the goods or effects on board of her, be forfeited to the United States. Forfeiture of Interest in Vessels Transporting Slaves. Sec. 259. It shall be unlawful for any citizen of the United States, or other person residing therein, or under the jurisdiction thereof, directly or indirectly to hold or have any right or property in any ves- sel employed or made use of in the transportation or carrying of slaves from one foreign country or place to another, and any such right or property shall be forfeited, and may be libeled and condemned for the use of the person suing for the same. Whoever shall violate the pro- hibition of this section shall also forfeit and pay a sum of money equal to double the value of his right or property in such vessel ; and shall also forfeit a sum of money equal to double the value of the interest he had in the slaves which at any time may be transported or carried in such vessels. Seizure of Vessels Engaged in the Slave Trade. Sec. 260. The President is authorized, when he deems it expedient, to man and employ any of the armed vessels of the United States to cruise wherever he may judge attempts are making to carry on the slave trade, by citizens or residents of the United States, in contra- vention of laws prohibitory of the same ; and, in such case, he shall instruct the commanders of such armed vessels to seize, take, and bring into any port of the United States, to be proceeded against according 768 Important Federal Laws to law, all American vessels, wheresoever found, which may have on board, or which may be intended for the purpose of taking on board, or of transporting, or may have transported any person, in violation of the provisions of any Act of Congress prohibiting the traffic in slaves. Proceeds of Condemned Vessels, How Distributed. Sec. 261. The proceeds of all vessels, their tackle, apparel, and furniture, and the goods and effects on board of them, which are so seized, prosecuted, and condemned, shall be paid into the Treasury of the United States. Disposal, of Persons Found on Board Seized Vessel. Sec. 262. The officers of the vessel making such seizure shall safely keep every person found on board of any vessel so seized, taken, or brought into port for condemnation, and shall deliver every such per- son to the marshal of the district into which he may be brought, if into a port of the United States, or if elsewhere, to such person as may be lawfully appointed by the President, in the manner directed by law, transmitting to the President, as soon as may be after such delivery, a descriptive list of such persons, in order that he may give directions for the disposal of them. Apprehension of Ofifiicers and Crew. Sec. 263. The commanders of such commissioned vessels shall cause to be apprehended and taken into custody every person found on board of such offending vessel so seized and taken, being of the officers or crew thereof, and him convey, as soon as conveniently may be, to the civil authority of the United States, to be proceeded against in due course of law. Removal of Persons Delivered From Seized Vessels. Sec. 264. The President is authorized to make such regulations and arrangements as he may deem expedient for the safe keeping, support, and removal beyond the limits of the United States of all such persons as may be so delivered and brought within its jurisdiction. To What Port Captured Vessels Sent. Sec. 265. It shall be the duty of the commander of any armed vessel of the United States, whenever he makes any capture under the preceding provisions, to bring the vessel and her cargo, for adjudication, into some port of the State, Territory, or District to which such vessel so captured may belong, if he can ascertain the same ; if not, then into any convenient port of the United States. When Owners of Foreign Vessels Shall Give Bond. Sec. 266. Every owner, master, or factor of any foreign vessel clearing from any port within the jurisdiction of the United States, and suspected to be intended for the slave trade, and the suspicion being declared to the officer of the customs by any citizen, on oath, and such information being to the satisfaction of the officer, shall first give bond, Criminal Code 769 with sufficient sureties, to the Treasurer of the United States that none of the natives of any other foreign country or place shall be taken on board such vessel to be transported or sold as slaves in any other foreign port or place whatever, within nine months thereafter. Instructions to Commanders of Armed Vessels. Sec. 267. The President is authorized to issue instructions to the commanders of the armed vessels of the United States, directing them, whenever it is practicable, and under such rules and regulations as he may prescribe, to proceed directly to the country from which they were taken, and there hand over to the agent of the United States all such persons, delivered from on board vessels seized in the prosecution of the slave trade ; and they shall afterward bring the captured vessels and persons engaged in prosecuting such trade to the United States for trial and adjudication. Kidnaping. Sec. 268. Whoever kidnaps or carries away any other person, with the intent that such other person be sold into involuntary servitude, or held as a slave ; or who entices, persuades, or induces any other person to go on board any vessel or to any other place with the intent that he may be made or held as a slave, or sent out of the country to be so made or held ; or who in any way knowingly aids in causing any other person to be held, sold, or carried away to be held or sold as a slave, shall be fined not more than five thousand dollars, or imprisoned not more than five years, or both. Holding or Returning Person to Peonage. Sec. 269. Whoever holds, arrests, returns, or causes to be held, arrested, or returned, or in any manner aids in the arrest or return of any person to a condition of peonage, shall be fined not more than five thousand dollars, or imprisoned not more than five years, or both. Obstructinpf Execution of Above. Sec. 270. Whoever obstructs, or attempts to obstruct, or in any way interferes with or prevents the enforcement of the section last preceding, shall be liable to the penalties therein prescribed. Bringing Kidnaped Persons into the United States. Sec. 271. Whoever shall knowingly and willfully bring into the United States or any place subject to the jurisdiction thereof, any person inveigled or forcibly kidnaped in any other country, with intent to hold such person so inveigled or kidnaped in confinement or to any involuntary servitude; or whoever shall knowingly and willfully sell, or cause to be sold, into any condition of involuntary servitude, any other person for any term whatever ; or whoever shall knowingly and will- full v hold to involuntary servitude any person so brought or sold, shall be fined not more than five thousand dollars and imprisoned not more than five years. (49) 770 Important Federal Laws CHAPTER XL Offenses Within the Admiralty and Maritime and the Terri- torial Jurisdiction of the United States. Maritime and Territorial Jurisdiction Prescribed. Sec. 272. The crimes and offenses defined in this chapter shall be punished as herein prescribed : First. W^hen committed upon the high seas, or on any other waters within the admiralty and maritime jurisdiction of the United States and out of the jurisdiction of any particular State, or when com- mitted within the admiralty and maritime jurisdiction of the United States and out of the jurisdiction of any particular State on board any vessel belonging in whole or in part to the United States or any citizen thereof, or to any corporation created by or under the laws of the United States, or of any State, Territory, or District thereof. Second. When committed upon any vessel registered, licensed, or enrolled under the laws of the United States, and being on a voyage upon the waters of any of the Great Lakes, namely: Lake Superior, Lake ^lichigan, Lake Huron, Lake Saint Clair, Lake Erie, Lake Ontario, or any of the waters connecting any of said lakes, or upon the River Saint Lawrence where the same constitutes the International boundary line. Third. When committed within or on any lands reserved or ac- quired for the exclusive use of the United States, and under the exclu- sive jurisdiction thereof, or any place purchased or otherwise acquired by the United States by consent of the Legislature of the State in which the same shall be, for the erection of a fort, magazine, arsenal, dock- yard, or other needful building. Fourth. On any island, rock, or key, containing deposits of guano, which may, at the discretion of the President, be considered as apper- taining to the United States. Murder. Sec. 273. Murder is the unlawful killing of a human being with malice aforethought. Every murder perpetrated by poison, lying in wait, or any other kind of willful, deliberate, malicious, and premedi- tated killing; or committed in the perpetration of, or attempt to per- petrate, any arson, rape, burglary, or robbery ; or perpetrated from a premeditated design unlawfully and maliciously to effect the death of any human being other than him who is killed, is murder in the first degree. Any other murder is murder is the second degree. Manslaughter. Sec. 274. Manslaughter is the unlawful killing of a human being without malice. It is of two kinds : First. Voluntary — upon a sudden quarrel or heat of passion. Second. Involuntary — in the commission of an unlawful act not Criminal Code 771 amounting to a felony, or in the commission of a lawful act which might produce death, in an unlawful manner, or without due caution and circumspection. Punishment for Murder ; for Manslaughter. Sec. 275. Every person guilty of murder in the first degree shall suffer death. Every person guilty of murder in the second degree shall be imprisoned not less than ten years and may be imprisoned for life. Every person guilty of voluntary manslaughter shall be impris- oned not more than ten years. Every person guilty of involuntary manslaughter shall be imprisoned not more than three years, or fined not exceeding one thousand dollars, or both. Assault With Intent to Commit Murder, Rape, Robbery, Etc. Sec. 276. Whoever shall assault another with intent to commit murder, or rape, shall be imprisoned not more than twenty years. Whoever shall assault another with intent to commit any felony, except murder, or rape, shall be fined not more than three thousand dollars, or imprisoned not more than ten years, or both. Whoever, with intent to do bodily harm, and without just cause or excuse, shall assault another with a dangerous weapon, instrument, or other thing, shall be fined not more than one thousand dollars, or imprisoned not more than five years, or both. Whoever shall unlawfully strike, beat, or wound another, shall be fined not more than five hundred dollars, or imprisoned not more than six months, or both. Whoever shall unlawfully assault another, shall be fined not more than three hundred dollars, or imprisoned not more than three months, or both. Attempt to Commit Murder or Manslaughter. Sec. 277. Whoever shall attempt to commit murder or man- slaughter, except as provided in the preceding section, shall be fined not more than one thousand dollars and imprisoned not more than three years. Rape. Sec. 278. Whoever shall commit the crime of rape shall suffer death. Having Carnal Knowledge of 'Female Under 16. Sec. 279. Whoever shall carnally and unlawfully know any female under the age of sixteen years, or shall be accessory to such carnal and unlawful knowledge before the fact, shall, for a first offense, be imprisoned not more than fifteen years, and for a subsequent offense be imprisoned not more than thirty years. Seduction of Female Passenger on Vessel. Sec. 280. Every master, officer, seaman, or other person employed on board of any American vessel who, during the vovage, under prom- ise of marriage, or by threats, or the exercise of authority, or solicita- tion, or the making of gifts or presents, seduces and has illicit con- 772 . Important Federal Laws nection with any female passenger, shall be fined not more than one thousand dollars, or imprisoned not more than one year, or both ; but subsequent intermarriage of the parties may be pleaded in bar of conviction. Payment of Fine to Female Seduced; Evidence Required; Limita- tation on Indictment. Sec. 281. When a person is convicted of a violation of the section last preceding, the court may, in its discretion, direct that the amount of the fine, when paid, be paid for the use of the female seduced, or her child, if she have any ; but no conviction shall be had on the testi- mony of the female seduced, without other evidence, nor unless the indictment is found within one year after the arrival of the vessel on which the ofifense was committed at the port of its destination. Punishment for Loss of Life by Misconduct of Officers, Owners, Charterers, Inspectors, Etc., of Vessels. Sec. 282. Every captain, engineer, pilot, or other person employed on any steamboat or vessel, by whose misconduct, negligence, or inat- tention to his duties on such vessel the life of any person is destroyed, and every owner, charterer, inspector, or other public officer, through whose fraud, neglect, connivance, misconduct, or violation of law the life of any person is destroyed, shall be fined not more than ten thousand dollars, or imprisoned not more than ten years, or both; Provided, That when the owner or charterer of any steamboat or ves- sel, shall be a corporation, any executive officer of such corporation, for the time being actually charged with the control and management of the operation, equipment, or navigation of such steamboat or ves- sel, who has knowingly and willfully caused or allowed such fraud, neglect, connivance, misconduct, or violation of law, by which the life of any person is destroyed, shall be fined not more than ten thousand dollars, or imprisoned not more than ten years, or both. Maiming. Sec. 283. Whoever, with intent to maim or disfigure, shall cut, bite, or slit, the nose, ear, or lip, or cut out or disable the tongue, or put out or destroy an eye. or cut off or disable a limb or any mem- ber of another person ; or whoever, with like intent, shall throw or pour upon another person, any scalding hot water, vitriol, or other corrosive acid, or caustic substance whatever, shall be fined not more than one thousand dollars, or imprisoned not more than seven years, or both. Robbery. Sec. 284. Whoever, by force and violence, or by putting in fear, shall feloniously take from the person or presence of another anything of value, shall be imprisoned not more than fifteen years. Criminal Code 773 Arson of Dwelling House. Sec. 285. Whoever shall willfully and maliciously set fire to, burn, or attempt to burn, or by means of a dangerous explosive destroy or attempt to destroy, any dwelling house, or any store, barn, stable, or other building, parcel of a dwelling house, shall be imprisoned not more than twenty years. Arson of Arsenal, Etc. ; Other Buildings, Etc. Sec. 286. Whoever shall maliciously set fire to, burn, or attempt to burn, or by any means destroy or injure, or attempt to destroy or injure, any arsenal, armory, magazine, rope-walk, ship-house, ware- house, block-house, or barrack, or any store-house, barn, or stable, not parcel of a dwelling house, or any other building not mentioned in the section last preceding, or any vessel built, building, or undergoing repair, or any light-house, or beacon, or any machinery, timber, cables, rigging, or other materials or appliances for building, repairing, or fitting out vessels, or any pile of wood, boards, or other lumber, or any military, naval, or victualing stores, arms, or other munitions of war, shall be fined not more than five thousand dollars and imprisoned not more than twenty years. Larceny. Sec. 287. Whoever shall take and carry away, with intent to steal or purloin, any personal property of another, shall be punished as follows: If the property taken is of a value exceeding fifty dollars, or is taken from the person of another, by a fine of not more than ten thousand dollars, or imprisonment for not more than ten years, or both ; in all other cases, by a fine of not more than one thousand dol- lars, or by imprisonment not more than one year, or both. If the property stolen consists of any evidence of debt, or other written instrument, the amount of money due thereon, or secured to be paid thereby, and remaining unsatisfied, or which in any contingency might be collected thereon, or the value of the property the title to which is shown thereby, or the sum which might be recovered in the absence thereof, shall be deemed to be the value of the property stolen. Receiving, Etc., Stolen Goods. Sec. 288. Whoever shall buy, receive, or conceal, any money, goods, bank notes, or other thing which may be the subject of larceny, which has been feloniously taken, stolen, or embezzled, from any other person, knowing the same to have been so taken, stolen, or embezzled, shall be fined not more than one thousand dollars and imprisoned not more than three years ; and such person may be tried either before or after the conviction of the principal ofifender. Laws of States Adopted for Punishing Wrongful Acts, Etc. Sec. 289. Whoever, within the territorial limits of any State, or- ganized Territory, or District, but within or upon any of the places now 774 Important Federal Laws existing, or hereafter reserved or acquired, described in section two hundred and seventy-two of this act, shall do or omit the doing of any act or thing which is not made penal by any law of Congress, but which if committed or omitted within the jurisdiction of the State, Territory, or District in which such place is situated, by the laws thereof now in force would be penal, shall be deemed guilty of a like offense and be subject to a like punishment; and every such State, Territorial, or District law shall, for the purposes of this section, continue in force, notwithstanding any subsequent repeal or amend- ment thereof by any such State, Territory, or District. CHAPTER XII. Piracy and Other Offenses Upon the High Seas. Piracy Under The Law of Nations. Sec. 290. Whoever, on the high seas, commits the crime of piracy as defined by the law of nations, and is afterwards brought into or found in the United States, shall be imprisoned for life. Mai-Treatment of Crew by Officers of Vessel. Sec. 29L Whoever, being the master or officer of a vessel of the United States, on the high seas, or on any other waters within the admiralty and maritime jurisdiction of the United States, beats, wounds, or without justifiable cause, imprisons any of the crew of such vessel, or withholds from them suitable food and nourishment, or inflicts upon them any cruel and unusual punishment, shall be fined not more than one thousand dollars, or imprisoned not more than five years, or both. Nothing herein contained shall be construed to repeal or modify section forty-six hundred and eleven of the Revised Statutes. Inciting Revolt or Mutiny on Shipboard. Sec. 292. Whoever, being of the crew of a vessel of the United States, on the high seas, or on any other waters within the admiralty and maritime jurisdiction of the United States, endeavors to make a revolt or mutiny on board such vessel, or combines, conspires, or con- federates with any other person on board to make such revolt or mutiny, or solicits, incites, or stirs up any other of the crew to disobey or resist the lawful orders of the master or other officer of such ves- sel, or to refuse or neglect their proper duty on board thereof, or to betray their proper trust, or assembles with others in a tumultous and mutinous manner, or makes a riot on board thereof, or unlawfully confines the master or other commanding officer thereof, shall be fined not more than one thousand dollars, or imprisoned not more than five years, or both. Revolt and Mutiny on Shipboard. Sec. 293. Whoever, being of the crew of a vessel of the United States, on the high seas, or on any other waters within the admiralty Criminal Code 775 and maritime jurisdiction of the United States, unlawfully and with force, or by fraud, or intimidation, usurps the command of such vessel from the master or other lawful officer in command thereof, or deprives him of authority and command on board, or resists or prevents him in the free and lawful exercise thereof, or transfers such authority and command to another not lawfully entitled thereto, is guilty of a revolt and mutiny, and shall be fined not more than two thousand dollars and imprisoned not more than ten years. Seaman Laying Violent Hands on His Commander. Sec. 294. Whoever, being a seaman, lays violent hands upon his commander, thereby to hinder and prevent his fighting in defense of his vessel or the goods intrusted to him, is a pirate, and shall be imprisoned for life. Abandonment of Mariners in Foreign Ports. Sec. 295. Whoever, being master or commander of a vessel of the United States, while aboard, maliciously and without justifiable cause, forces any officer or mariner of such vessel on shore, in order to leave him behind in any foreign port or place, or refuses to bring home again all such officers and mariners of such vessel whom he carried out with him, as are in a condition to return and willing to return, when he is ready to proceed on his homeward voyage, shall be fined not more than five hundred dollars, or imprisoned not more than six months, or both. Conspiracy to Cast Away Vessel. Sec. 296. Whoever, on the high seas, or within the United States, willfully and corruptly conspires, combines, and confederates^ with any other person, such other person being either within or without the United States, to cast away or otherwise destroy any vessel, with intent to injure any person that may have underwritten or may thereafter underwrite any policy of insurance thereon or on goods on board thereof, or with intent to injure any person that has lent or advanced, or may lend or advance, any money on such vessel on bottomry or respondentia; or whoever, within the United States, builds, or fits out, or aids in building or fitting out, any vessel with intent that the same be cast away or destroyed, witn the intent hereinbefore mentioned, shall be fined not more than ten thousand dollars and imprisoned not more than ten years. Plundering Vessels in Distress, Etc. Sec. 297. Whoever plunders, steals, or destroys any money, goods, merchandise, or other effects, from or belonging to any vessel in dis- tress, or wrecked, lost, stranded, or cast away, upon the sea, or upon any reef,' shoal, bank, or rocks of the sea, or in any other place within the admiralty and maritime jurisdiction of the United States, shall be fined not more than five thousand dollars and imprisoned not more 77(i Important Federal Laws than ten years ; and whoever wullfuUy obstructs the escape of any per- son endeavoring to save his Hf e from such vessel, or the wreck thereof ; or whoever holds out or shows any false light, or extinguishes any true light, with intent to bring any vessel sailing upon the sea into danger, or distress, or shipwreck, shall be imprisoned not less than ten years and may be imprisoned for life. Attacking Vessel With Intent to Plunder. Sec. 298. Whoever, upon the high seas or on any other waters within the admiralty and maritime jurisdiction of the United States, by surprise or by open force, maliciously attacks or sets upon any vessel belonging to another, with an intent unlawfully to plunder the same, or to despoil any owner thereof of any moneys, goods, or merr chandise laden on board thereof, shall be fined not more than five thousand dollars and imprisoned not more than ten years. Breaking and Entering Vessel, Etc. Sec. 299. Whoever, upon the high seas or on any other waters within the admiralty and maritime jurisdiction of the United States, and out of the jurisdiction of any particular State, breaks or enters any vessel, with intent to commit any felony, or maliciously cuts, spoils, or destroys any cordage, cable, buoys, buoy rope, head fast, or other fast fixed to the anchor' or moorings belonging to any vessel, shall be fined not more than one thousand dollars and imprisoned not more than five years. Owner Destroying Vessel at Sea. Sec. 300. Whoever, upon the high seas or on any other waters within the admiralty and maritime jurisdiction of the United States, willfully and corruptly casts away or otherwise destroys anv vessel, of which he is owner, in whole or in part, with intent to prejudice any person that may underwrite any policy of insurance thereon, or anv merchant that may have goods thereon, or any other ovv-ner of such vessel, shall be imprisoned for life or for any term of years. Other Persons Destroying or Attempting to Destroy Vessel at Sea. Sec. 301. Whoever, not being an owner, upon the high seas or on any other waters within the admiralty and maritime jurisdiction of the United States, willfully and corruptly casts away or otherwise destroys any vessel of the United States to which he belongs, or, will- fully, with intent to destroy the same, sets fire to any such vessel, or otherwise attempts the destruction thereof, shall be imprisoned not more than ten years. Robbery on Shore by Crew of Piratical Vessel. Sec. 302. Whoever, being engaged in any piratical cruise, or en- terprise, or being of the crew of any piratical vessel, lands from such vessel, and on shore commits robbery, is a pirate, and shall be impris- oned for life. Criminal Code ly^ Arming Vessel to Cruise Against Citizens of the United States. Sec. 303. Whoever, being a citizen of the United States, without the Hmits thereof, fits out and arms, or attempts to fit out and arm, or procures to be fitted out and armed, or knowingly aids or is concerned in furnishing, fitting out. or arming, any private vessel of war or pri- vateer, with'intent that such vessel shall be employed to cruise or com- mit hostilities upon the citizens of the United States, or their property, or whoever takes the command of or enters on board of any such vessel, for such intent, or wdio purchases any interest in any such vessel with a view to share in the profits thereof, shall be fined not more than ten thousand dollars and imprisoned not more than ten years. The trial for such oft'ense. if committed without the limits of the United States. shall be in the district in which the offender shall be apprehended or first brought. Piracy Under Color of a Foreign Commission. Sec. 304. Whoever, being a citizen of the United States, commits any murder or robbery, or any act of hostijity against the United States, or against any citizen thereof, on the high seas, under color of any commission from any foreign prince, or state, or on pretense of authority from any person, is, notwithstanding the pretense of such authority, a pirate, and shall be Imprisoned for life. Piracy by Subjects or Citizens of a Foreign State. Sec. 305. Whoever, being a citizen or subject of any foreign state, is found and taken on the sea making war upon the United States, or cruising against the vessels and property thereof, or of the citizens of the same, contrary to the provisions of any treaty existing between the United States and the state of which the offender is a citizen or subject, when by such treaty such acts are declared to be piracy, is guilty of piracy, and shall be imprisoned for Hfe. Running Away With or Yielding Up Vessel or Cargo. Sec. 306. Whoever, being a captain or other officer or mariner of a vessel upon the high seas or on any other waters within the admiralty and maritime jurisdiction of the United States, piratically or feloni- ously runs away with such vessel, or with any goods or merchandise thereof, to the value of fifty dollars, or wdio yields up such vessel vol- untarily to any pirate, shall be fined not more than ten thousand dol- lars, or imprisoned not more than ten years, or both. Confederating, Etc., With Pirates. Sec. 307. Whoever attempts or endeavors to corrupt any com- mander, master, officer, or mariner to yield up or to run away with any vessel, or with any goods, wares, or merchandise, or to turn pirate, or to go over to or confederate with pirates, or in any wise to trade with any pirate, knowing him to be such, or furnishes such pirate with any ammunition, stores, or provisions of any kind, or fits out any vessel 778 Importaxt Federal Laws knowingly and, with a design to trade with, supply, or correspond with any pirate or robber upon the seas ; or whoever consults, combines, confederates, or corresponds with any pirate or robber upon the seas, knowing him to be guilty of any piracy or robbery ; or whoever, being a seaman, confines the master of any vessel, shall be fined not more than one thousand dollars and imprisoned not more than three years. Sale of Arms and Intoxicants Forbidden in the Pacific Islands. Sec. 308. Whoever, being subject to the authority of the United States, shall give, sell, or otherwise supply any arms, ammunition, explosive substance, intoxicating liquor, or opium to any aboriginal native of any of the Pacific islands lying within the twentieth parallel of north latitude and the fortieth parallel of south latitude, and the one hundred and twentieth meridian of longitude west and one hundred and twentieth meridian of longitude east of Greenwich, not being in the possession or under the protection of any civilized power, shall be fined not more than fifty dollars, or imprisoned not more than three months, or both. In addition to such punishment, all articles of a similar nature to those in respect to which an oft'ense has been com- mitted, found in the possession of the offender, may be declared for- feited. If it shall appear to the court that such opium, wine, or spirits have been given bona-fide for medical purposes, it shall be lawful for the court to dismiss the charge. Offenses Under Preceding Section Deemed on High Seas. Sec. 309. All oft'enses against the provisions of the section last preceding, committed on any of said islands or on the waters, rocks, or keys adjacent thereto, shall be deemed committed on the high seas on board a merchant ship or vessel belonging to the United States, and the courts of the United States shall have jurisdiction accordingly. "Vessels of the United States" Defined. Sec. 310. The words ''vessel of the United States," wherever they occur in this chapter, shall be construed to mean a vessel belonging in whole or in part to the United States, or any citizen thereof, or any corporation created by or under the laws of the United States, or of any State, Territory, or District thereof. CHAPTER XIII. Certain Offenses in the Territories. Places Within Which Sections of This Chapter Shall Apply. Sec. 311. Except as otherwise expressly provided, the offenses defined in this chapter shall be punished as hereinafter provided, when committed within any Territory or District, or within or upon any place within the exclusive jurisdiction of the United States. Criminal Code 779 Circulation of Obscene Literature; Promoting Abortion, How Pun- ished. Sec. 312. Whoever shall sell, lend, give away, or in any manner exhibit, or offer to sell, lend, give away, or in any manner exhibit, or shall otherwise publish or offer to publish in any manner, or shall have in his possession for any such purpose, any obscene book, pamphlet, paper, writing, advertisement, circular, print, picture, drawing, or other representation, figure, or image on or of paper or other material, or any cast, instrument, or other article of an immoral nature, or any drug or medicine, or any article whatever, for the prevention of concep- tion, or for causing unlawful abortion, or shall advertise the same for sale, or shall write or print, or cause to be written or printed, any card, circular, book, pamphlet, advertisement, or notice of any kind, stating when, where, how, or of whom, or by what means, any of the articles above mentioned can be purchased or obtained, or shall manufacture, draw, or print, or in any wise make any of such articles, shall be fined not more than two thousand dollars, or imprisoned not more than five years, or both. Polygamy. Sec. 313. Every person who has a husband or wife living, who marries another, whether married or single, and any man who simul- taneously, or on the same day, marries more than one woman, is guilty of polygamy, and shall be fined not more than five hundred dollars and imprisoned not more than five years. But this section shall not extend to any person by reason of any former marriage whose husband or wife by such marriage shall have been absent for five successive years, and is not known to such person to be living, and is believed by such person to be dead, nor to any person by reason of any former marriage which shall have been dissolved by a valid decree of a competent court, nor to any person by reason of any former marriage which shall have been pronounced void by a valid decree of a competent court, on the ground of nullity of the marriage contract. Unlawful Cohabitation. Sec. 314. If any male person cohabits with more than one woman, he shall be fined not more than three hundred dollars, or imprisoned not more than six months, or both. Joinder of Counts. Sec. 315. Counts for any or all of the offenses named in the two sections last preceding may be joined in the same information or indictment. Adultery. Sec. 316. Whoever shall commit adultery shall be imprisoned not more than three years ; and when the act is committed between a mar- ried woman and a man who is unmarried, both parties to such act shall be deemed guilty of adultery ; and when such act is committed 780 Important Federal Laws between a married man and a woman who is unmarried, the man shall be deemed guilty of adultery. Incest. Sec. 317. Whoever, being related to another person within and not including the fourth degree of consanguinity computed according to the rules of the civil law. shall marry or cohabit with, or have sexual intercourse with such other so related person, knowing her or him to be within said degree of relationship, shall be deemed guilty of incest, and shall be imprisoned not more than fifteen years. Fornication. Sec. 318. If any unmarried man or woman commits fornication, each shall be fined not more than one hundred dollars, or imprisoned not more than six months. Certificates of Marria8:e ; Penalty for Failure to Record. Sec. 319. Every ceremony of marriage, or in the nature of a mar- riage ceremony of any kind, whether either or both or more of the parties to such ceremony be lawfully competent to be the subjects of such marriage or ceremony or not, shall be certified by a certificate stating the fact and nature of such ceremony, the full name of each of the parties concerned, and the full name of every officer, priest, and person, by whatever style or designation called or known, in anv way taking part in the performance of such ceremony, which certificate shall be draAvn up and signed by the parties to such ceremony and by every officer, priest, and person taking part in the performance of such ceremony, and shall be by the officer, priest, or other person solemnizing such marriage or ceremony filed in the office of the probate court, or, if there be none, in the office of the court having probate powers in the county or district in which such ceremony shall take place, for record, and shall be immediately recorded, and be at all times subject to inspection as other public records. Such certificate, or the record thereof, or a duly certified copy of such record, shall be prima facie evidence of the facts required by this section to be stated therein in any proceeding, civil or criminal, in which the matter shall be drawn in question. But nothing in this section shall be held to prevent the proof of marriages, whether lawful or unlawful, by any evidence otherwise legally admissible for that purpose. Whoever shall willfully violate anv provision of this section shall be fined not more than one thousand dollars, or imprisoned not more than two vears, or both. The pro- visions of this section shall apply only within the Territories of the United States. Prize Fights, Bull Fights, Etc. Sec. 320. Whoever shall voluntarily engage in a pugilistic encoun- ter between man and man or a fight between a man and a bull or any other animal, for money or for other thing of value, or for any cham- Criminal Code 781 pionship, or upon the result of which any money or anything of value is bet or wagered, or to see which any admission fee is directly or indirectly charged, shall be imprisoned not more than five years. The provisions of this section shall apply only within the Territories of the United States and the District of Columbia. "Pugilistic Encounter" Defined. Sec. 321. By the term "pugilistic encounter," as used in the sec- tion last preceding, is meant any voluntary fight by blows by means of fists or otherwise, whether with or without gloves, between two or more men, for money or for a prize of any character, or for any other thing of value, or for any championship, or upon the result of which any money or anything of value is bet or wagered, or to see which any admission fee is directly or indirectly charged. Train Robberies in Territories, Etc, Sec. 322. Whoever shall willfully and maliciously trespass upon or enter upon any railroad train, railroad car, or railroad locomotive, with the intent to commit murder, or robbery, shall be fined not more than five thousand dollars, or imprisoned not more than twenty years, or both. Whoever shall willfully and maliciously trespass upon or enter upon any railroad train, railroad car, or railroad locomotive, with intent to commit any unlawful violence upon or against any passenger on said train, or car, or upon or against any engineer, con- ductor, fireman, brakeman, or any ofiicer or employee connected with said locomotive, train, or car, or upon or against any express messen- ger or mail agent on said train or in any car thereof, or to commit any crime or ofifense against any person or property thereon, shall be fined not more than one thousand dollars, or imprisoned not more than one year, or both. Whoever shall counsel, aid, abet, or assist in the per- petration of any of the ofifenses set forth in this section shall be deemed to be a principal therein. Upon the trial of any person charged with any offense set forth in this section, it shall not be neces- sary to set forth or prove the particular person against whom it was intended to commit the ofTense, or that it was intended to commit such offense against any particular person. CHAPTER XIV. General and Special Provisions. Punishment of Death by Hanging. Sec. 323. The manner of inflicting the punishment of death shall be by hanging. No Conviction to Work Corruption of Blood or Forfeiture of Es- tate. Sec. 324. No conviction or judgment shall work corruption of blood or any forfeiture of estate. 782 Important Federal Laws Whipping and the Pillory Abolished. Sec. 325. The punishment of whipping and of standing in the pillory shall not be inflicted. Jurisdiction of State Courts. Sec. 326. Nothing in this Title shall be held to take away or impair the jurisdiction of the courts of the several States under the laws thereof. Pardoning Power. Sec. 7)27. Whenever, by the judgment of any court or judicial officer of the United States, in any criminal proceeding, any person is sentenced to two kinds of punishment, the one pecuniary and the other corporal, the President shall have full discretionary power to pardon or remit, in whole or in part, either one of the two kinds, without, in any manner, impairing the legal validity of the other kind, or of any portion of either kind, not pardoned or remitted. Indians Committing Certain Crimes; How Punished. Sec. 328. All Indians committing against the person or property of another Indian or other person any of the following crimes, namely — murder, manslaughter, rape, assault with intent to kill, assault with a dangerous weapon, arson, burglary, and larceny, within any Territory of the United States, and either within or without an Indian reserva- tion, shall be subject therefor to the laws of such Territory relating to said crimes, and shall be tried therefor in the same courts and in the same manner and shall be subject to the same penalties as are all other persons charged with the commission of said crimes, respectively ; and the said courts are hereby given jurisdiction in all such cases. And all such Indians committing any of the above named crimes against the person or property of another Indian or other person within the bound- aries of any State of the United States, and within the limits of any Indian reservation, shall be subject to the same laws, tried in the same courts and in the same manner, and be subject to the same penalties as are all other persons committing any of the above crimes within the exclusive jurisdiction of the United States : Provided, That any Indian who shall commit the offense of rape upon any female Indian within the limits of any Indian reservation shall be imprisoned at the discretion of the court. Crimes Cor-imitted on Indian Reservations in South Dakota. Sec. 329. The circuit and district courts of the United States for the district of South Dakota shall have jurisdiction to hear, try, and determine all actions and proceedings in which any person shall be charged with the crime of murder, manslaughter, rape, assault with intent to kill, assault with a dangerous weapon, arson, burglary, or larceny, committed vv-ithin the limits of any Indian reservation in the State of South Dakota. Any person convicted of murder, manslaughter. Criminal Code 783 rape, arson, or burglary, committed within the limits of any such reservation, shall be subject to the same punishment as is imposed upon persons committing said crimes within the exclusive jurisdiction of the United States : Provided, That any Indian who shall commit the crime of rape upon any female Indian within any such reservation shall be imprisoned at the discretion of the court. Any person convicted of the crime of assault with intent to kill, assault with a dangerous weapon, or larceny, committed within the limits of any such reservation, shall be subject to the same punishment as is provided in cases of other per- sons convicted of any of said crimes under the laws of the State of South Dakota. This section is passed in pursuance of the cession of jurisdiction contained in chapter one hundred and six. Laws of South Dakota, nineteen hundred and one. Qualified Verdicts in Certain Cases. Sec. 330. In all cases where the accused is found guilty of the crime of murder in the first degree, or rape, the jury may qualify their verdict by adding thereto ''without capital punishment;" and whenever the jury shall return a verdict qualified as aforesaid, the person con- victed shall be sentenced to imprisonment for life. Body of Executed Offender May be Delivered to Surgeon for Dis- section. Sec. 331. The court before which any person is convicted of murder in the first degree, or rape, may, in its discretion, add to the judgment of death, that the body of the offender be delivered to a surgeon for dissection ; and the marshal who executes such judgment shall deliver the body, after execution, to such surgeon as the court may direct ; and such surgeon, or some person appointed by him, shall receive and take away the body at the time of execution. Who Are Principals. Sec. 332. Whoever directly commits any act constituting an of- fense defined in any law of the United States, or aids, abets, counsels, commands, induces, or procures its commission, is a principal. Punishment of Accessories. Sec. 333. Whoever, except as otherwise expressly provided by law, being an accessory after the fact to the commission of any offense defined in anv law of the United States, shall be imprisoned not exceed- ing one-half the longest term of imprisonment, or fined not exceeding one-half the largest fine prescribed for the punishment of the principal, or both, if the principal is punishable by both fine and imprisonment; or if the principal is punishable by death, then an accessory shall be imprisoned not more than ten years. Accessories to Robbery or Conspiracy. Sec. 334. Whoever, without lawful authority, receives or takes into custody any vessel, goods, or other property, feloniously taken by 784 1 M i'OKT A N T 1m:l>i:k a i , 1 . \ w s any n^Mu-r or pirate against tlu- laws (if llio United States, knowing the same to have lieen felonionsly taken, and whoever, knowing that .siieh pir;Ue or rohher has done or eonunitted any sueh piracy or roh- berv. on the land or at sea, receives, entertains, or conceals any such pirate or rol)her. is an accessory al'ter the fact to such rol)hery or piracy, and shall he imprisoned not more than ten years. Felonies and Misdemeanors. Sir. .\>5. All otTenses which may he pmiishcd hy death, or im- prisonment for a term exceeding one year, shall he deemed felonies. All other ()iTenses shall be deemed misdemeanors. Murder and Manslaughter; Place Where Crime Deemed to Have Been Committed. Skc. 33(>. In all cases of mm-der or manslaughter, the crime shall he deemed to have been commilled at the place where the injury was inllicteil. or the poison administered, or other means employed which caused the death, without regard to the place where the death occurs. Construction of Words. Skc. 3o7. Wortls used in this title in the present tense include the future as well as the present ; words used in the masculine gender include the feminine and neuter: the singlar luimber inchnles the plural, and the plural the singular: the word "person" and the word "who- ever" include a corporation as well as a natural person: writing in- cludes printing anil typewriting, and signature or subscription includes a mark when the person making the same intended it as such. The worils "this Title." wherever they occur herein, shall be construed to mean this act. Omission of Words "Hard Labor" Not to Deprive Court of Power to Impose. Skc. vV>8. The omission of the words "hard labor" from the pro- visions prescribing the punishment in the various sections of this act, shall not be construed as depriving the court of the iH>wer to impose hard labor as a jtart of the punishment, in any ease where such power now exists. Arrangement and Classification of Sections. Skc. .\>^^. The arrangement and classitication of the several sec- tions of this title have been made for the puqxise of a more convenient and orderlv arrangement of the same, and therefore no inference or presun\ption of a legislative construction is to be drawn by reason of the chapters under which any particular section is placed. Jurisdiction of Circuit and District Courts. Sec. vUO. The crimes and otTen.'^es detined in this title shall be cogui;^able in the circuit and district courts of the United States, as prescribed in .sections five hundrcil and sixty-three and six hundred and tweutv-nine of the Revised Statutes. Parole of Prisoners 785 THE PAROLE OF PRISONERS ACT. Act of June 25, 1910. An Act to parole United States prisoners, and for other purposes. Parole of Prisoners. Section 1. That every prisoner who has been or may hereafter be convicted of any offense against the United States, and is confined in execution of the judgment of such conviction in any United States pen- itentiary or prison, for a definite term or terms of over one year, or for the term of his natural hfe, whose record of conduct shows he has observed the rules of such institution, and who if sentenced for a defi- nite term has served one-third of the total of the term or terms for which he was sentenced, or, if sentenced for the term of his natural life, has served not less than fifteen years, may be released on parole as hereinafter provided. (As amended June 23, 1913.) Board of Parole. Sec. 2. That the superintendent of prisons of the Department of Justice, and the warden and physician of each United States penitentiary shall constitute a board of parole for such prison, which shall establish rules and regulations for its procedure subject to the approval of the Attorney-General. The chief clerk of such prison shall be clerk of said board of parole, and meetings shall be held at each prison as often as the regulations of such board shall provide: Provided, That in every case where a prison other than a United States penitentiary is used for the confinement of such prisoners it shall be the duty of the Attorney- General to designate the officers of said prison who, together with the superintendent of prisons, shall constitute such board for said prison. Application. Sec. 3. That if it shall appear to said board of parole from a report by the proper officers of such prison or upon application by a prisoner for release on parole, that there is a reasonable probability that such applicant will live and remain at liberty without violating the laws, and if in the opinion of the board such release is not incompatible with the welfare of society, then said board of parole may in its discretion au- thorize the release of such applicant on parole, and he shall be allowed to go on parole outside of said prison, and, in the discretion of the board, to return to his home, upon such terms and conditions, including per- sonal reports from such paroled person, as said board of parole shall prescribe, and to remain, while on parole, in the legal custody and under the control of the warden of such prison from which paroled, and until the expiration of the term or terms specified in his sentence, less such good time allowance as is or may hereafter be provided for by Act of Congress ; and the said board shall, in every parole fix the limits of the residence of the person paroled, which limits may thereafter be changed in the discretion of the board : Provided, That no release on parole shall become operative until the findings of the board of parole under the (50) 786 Important Federal Laws terms hereof shall have been approved by the Attorney-General of the United States. Arrest for Violation. Sec. 4. That if the warden of the prison or penitentiary from which said prisoner was paroled or said board of parole or any member thereof shall have reliable information that the prisoner has violated his parole, then said warden, at any time within the term or terms of the prisoner's sentence, may issue his warrant to any officer hereinafter authorized to execute the same, for the retaking of such prisoner. Officers Who May Arrest. Sec. 5. That anv officer of said prison or any federal officer au- thorized to serve criminal process within the United States, to whom such warrant shall be delivered, is authorized and required to execute such warrant by taking such prisoner and returning him to said prison within the time specified in said warrant therefor. All necessary ex- penses incurred in the administration of this Act shall be paid out of the appropriation for the prison in connection with which such expense was incurred, and such appropriation is hereby made available therefor. Hearings. Sec. 6. That at the next meeting of the board of parole held at such prison after the issuing of a warrant for the retaking of any paroled prisoner, said board of parole shall be notified thereof, and if said prisoner shall have been returned to said prison, he shall be given an opportunity to appear before said board of parole, and the said board mav then or at any time in its discretion revoke the order and terminate such parole or modify the terms and conditions thereof. If such order of parole shall be revoked and the parole so terminated, the said pris- oner shall serve the remainder of the sentence originally imposed; and the time the prisoner was out on parole shall not be taken into account to diminish the time for which he was sentenced. Parole Officer — Duties. Sec. 7. That each board of parole shall appoint a parole officer for the penitentiary over which it has jurisdiction. Subject to the direc- tion and control of such board, it shall be the duty of such officer to aid paroled prisoners in securing employment and to visit and exercise supervision over them while on parole, and such officer shall have such authority and perform such other duties as the board of parole may direct. The salary of each parole officer shall be fixed by the board of parole, but shall ' not exceed one thousand five hundred dollars per annum, which, together with his actual and necessary traveling ex- penses, when approved by such board, shall be paid out of the appro- priation for the maintenance of the penitentiary to which he is assigned, which appropriation is hereby made available for the purpose. In addi- tion to such parole officers the supervision of paroled prisoners may also Parole of Prisoners ' 787 be devolved upon the United States marshals when the board of parole may deem it necessarv. Gratuities to Paroled Prisoners. Sec. 8. That it shall be the duty of the warden of the prison to furnish to any and all paroled prisoners the usual gratuities, consisting of clothing, transportation, and five dollars in money ; the transporta- tion furnished shall be to the place to which the paroled prisoner has elected to go, with the approval of the board of parole. The warden of the prison who furnishes these gratuities is hereby authorized to charge the actual cost of the same in his accounts against the United States : Provided, however, That when any such paroled prisoner shall have received his final discharge, while he is away from such prison, he shall be entitled to no further gratuities provided for discharged prisoners under existing law. Parole Under State Laws. Sec. 9. That whenever any person has been convicted of any of- fense against the United States which is punishable by imprisonment, and has been sentenced to imprisonment and is confined therefor, in any reformatory institution of any State in accordance with section fifty-five hundred and forty-eight of the Revised Statutes, or other laws of the United States, then if such State has laws for the parole of prisoners comiuitted to such institutions by the courts of that State, such person convicted of any ofifense against the United States shall be eligible to parole on the same terms and conditions and by the same authority and subject to recommittal for violation of such parole in the same manner, as persons committed to such institutions by the courts of said State, and the laws of said State relating to the parole of prisoners and the supervision thereof in such institutions are hereby adopted and made to apply to persons committed to such institutions for offenses against the United States. The necessary cost of parole and supervision of such prisoners, to the State where such institution is located shall be paid by the United States out of the appropriation for the support of prisoners confined in state institutions, which appropriation is hereby made avail- able for the purpose. No such prisoner shall be entitled to go on parole until the Attorney-General shall have approved the order therefor: Pro- vided, That when a prisoner is committed to such institution outside of the State where he lives he may be permitted by his parole to return to his home, and in such case the supervision of such prisoner on parole shall devolve upon the marshal of the district where said prisoner lives, and in case such prisoner should violate his parole a warrant for his recommitment shall be delivered to and executed by said marshal. President's Pardoning Power Not Affected. Sec. 10. That nothing herein contained shall be construed to im- pair the power of the President of the United States to grant a pardon or commutation in any case, or in any way impair or revoke such good time allowance as is or may hereafter be provided by Act of Congress. THE FEDERAL JUDICIAL CODE. Act of March 3, 1911. An Act to codify, revise, and amend the laws relating to the judiciary. That the laws relating to the jtidiciary be, and they hereby are, codified, revised, and amended, with title, chapters, head-notes, and sections, entitled, numbered, and to read as follows : CHAPTER ONE. District Courts — Organization. Section 1. In each of the districts described in chapter five, there shall be a court called a district court, for which there shall be appointed one judge, to be called a district judge; except that in the northern district of California, the southern district of California, the northern district of Illinois, the district of Minnesota, the district of Nebraska, the district of New Jersey, the eastern district of New York, the north- ern and southern district's of Ohio, the district of Oregon, the eastern and western districts of Pennsylvania, and the western district of Wash- ington, there shall be an additional district judge in each, and in the southern district of New York, three additional district judges: Pro- vided, That there shall be one judge for the eastern and western dis- tricts of South Carolina, one judge for the eastern and middle districts of Tennessee, and one judge for the northern and southern districts of Mississippi: Provided further. That the district judge for the middle district of Alabama shall continue as heretofore to be a district judge for the northern district thereof. Every district judge shall reside in the district or one of the districts for which he is appointed, and for offending against this provision shall be deemed guilty of a high mis- demeanor. (As amended July 30, 1914.) Salary. Sec. 2. Each of the district judges shall receive a salary of six thousand dollars a year, to be paid in monthly installments. Clerk. Sec. 3. A clerk shall be appointed for each district court by the judge thereof, except in cases otherwise provided for by law. Deputies. Sec. 4. Except as otherwise specially provided by law% the clerk of the district court for each district may, with the approval of the district judge thereof appoint such number of deputy clerks as may be deemed necessary by such judge, who may be designated to reside and maintain offices at such places of holding court as the judge may deter- mine. Such deputies may be removed at the pleasure of the clerk Federal Judicial Code 789 appointing them, with the concurrence of the district judge. In case of the death of the clerk, his deputy or deputies shall, unless removed, continue in ofifice and perform the duties of the clerk, in his name, until a clerk is appointed and qualified ; and for the default or misfeasances in office of any such deputy, whether in the lifetime of the clerk or after his death, the clerk and his estate and the sureties on his official bond shall be liable ; and his executor or administrator shall have such remedy for any such default or misfeasances committed after his death as the clerk would be entitled to if the same had occurred in his life- time. Crier and Marshal. Sec. 5. The district court for each district may appoint a crier for the court ; and the marshal may appoint such number of persons, not exceeding five, as the judge may determine, to wait upon the grand and other juries, and for other necessary purposes. Records, Where Kept. Sec. 6. The records of a district court shall be kept at the place where the court is held. When it is held at more than one place in any district and the place of keeping the records is not specially pro- vided by law^ they shall be kept at either of the places of holding the court which may be designated by the district judge. Change Not to Affect Suits. Sec. 7. No action, suit, proceeding, or process in any district court shall abate or be rendered invalid by reason of any act changing the time of holding such court, but the same shall be deemed to be return- able to, pending, and triable in the terms established next after the return day thereof. Conclusion of Suit at End of Term. Sec. 8. When the trial or hearing of any cause, civil or criminal, in a district court has been commenced and is in progress before a jury or the court, it shall not be stayed or discontinued by the arrival of the time fixed by law for another session of said court ; but the court may proceed therein and bring it to a conclusion in the same manner and with the same effect as if another stated term of the court had not intervened. Equity and Admiralty Business. Sec. 9. The district courts, as courts of admiralty and as courts of equity, shall be deemed always open for the purpose of filing any pleading, of issuing and returning mesne and final process, and of making and directing all interlocutory motions, orders, rules, and other proceedings preparatory to the hearing, upon their merits, of all causes pending therein. Any district judge may, upon reasonable notice to the parties, make, direct, and award, at chambers or in the clerk's office, and in vacation as well as in term, all such process, commissions, orders, 790 Important Federal Laws rules, and other proceedings, whenever the same are not grantable of course, according to the rules and practice of the court. Adjournment for Criminal Trials. Sec. 10. District courts shall hold monthly adjournments of their regular terms, for the trial of criminal causes, when their business requires it to be done, in order to prevent undue expenses and delays in such cases. Special Terms. Sec. 11. A special term of any district court may be held at the same place where any regular term is held, or at such other place in the district as the nature of the business may require, and at such time and upon such notice as may be ordered by the district judge. Any business may be transacted at such special term which might be trans- acted at a regular term. Adjournment in Absence of Judge. Sec. 12. If the judge of any district court is unable to attend at the commencement of any regular, adjourned, or special term, or any time during such term, the court may be adjourned by the marshal, or clerk, by virtue of a written order directed to him by the judge, to the next regular term, or to any earlier day, as the order may direct. Designation of Another Judge. Sec. 13. When any district judge is prevented, by any disability, from holding any stated or appointed term of his district court, and that fact is made to appear by the certificate of the clerk, under the seal of the court, to any circuit judge of the circuit in which the district lies, or, in the absence of all the circuit judges, to the circuit justice of the circuit in which the district lies, any such circuit judge or justice may, if in his judgment the public interests so require, designate and appoint the judge of any other district in the same circuit to hold said court, and to discharge all the judicial duties of the judge so disabled, during such disability. Whenever it shall be certified by any such circuit judge or, in his absence, by the circuit justice of the circuit in which the dis- trict lies, that for any sufficient reason it is impracticable to designate and appoint a judge of another district within the circuit to perform the duties of such disabled judge, the chief justice may, if in his judgment the public interests so require, designate and appoint the judge of any district in another circuit to hold said court and to discharge all the judicial duties of the judge so disabled, during such disability. Such appointment shall be filed in the clerk's office, and entered on the min- utes of the said district court, and a certified copy thereof, under the seal of the court, shall be transmitted by the clerk to the judge so desig- nated and appointed. Designation of Judge to Relieve Business. Sec. 14. When, from the accumulation or urgency of business in any district court, the public interests require the designation and ap- Federal Judicial Code 791 pointment hereinafter provided, and the fact is made to appear, by the certificate of the clerk, under the seal of the court, to any circuit judge of the circuit in which the district lies, or, in the absence of all the circuit judges, to the circuit justice of the circuit in which the district lies, such circuit judge or justice may designate and appoint the judge of any other district in the same circuit to have and exercise within the district first named the same powers that are vested in the judge thereof. Each of the said district judges may, in case of such appointment, hold separately at the same time a district court in such district, and dis- charge all the judicial duties of the district judge therein. Temporary Judge. Sec. 15. If all the circuit judges and the circuit justice are absent from the circuit, or are unable to execute the provisions of either of the two preceding sections, or if the district judge so designated is dis- abled or neglects to hold the court and transact the business for which he is designated, the clerk of the district court shall certify the fact to the Chief Justice of the United States, who may thereupon designate and appoint in the manner aforesaid the judge of any district within such circuit or within any other circuit ; and said appointment shall be transmitted to the clerk and be acted upon by him as directed in the preceding section. New Designation, Sec. 16. Any such circuit judge, or circuit justice, or the Chief Justice, as the case may be, may from time to time, if in his judgment the public interests so require, make a new designation and appointment of any other district judge, in the manner, for the duties, and with the powers mentioned in the three preceding sections, and revoke any pre- vious designation and appointment. Senior Circuit Judge to Designate. Sec. 17. It shall be the duty of the senior circuit judge then pres- ent in the circuit, whenever in his judgment the public interest so re- quires, to designate and appoint, in the manner and with the powers provided in section fourteen, the district judge of any judicial district within his circuit to hold a district court in the place or in aid of any other district judge within the same circuit. Circuit Judge to Hold District Court. Sec. 18. Whenever it shall be certified by the senior circuit judge of the second circuit, or, in his absence, by the circuit justice of said circuit, that on account of the accumulation or urgency of business in any circuit court in said circuit it is impracticable to designate and appoint a sufficient number of district judges of other districts within said circuit to relieve such accumulation or urgency of business, the Chief Justice may, if in his judgment the public interests so require, designate and appoint the judge of anv district court in another circuit to hold a district court within the said second circuit, and to have and 792 Important Federal Laws exercise within the district to which he is so assigned the same powers that are vested in the judge thereof: Provided, That such judge so designated and appointed shall have consented, in writing, to such designation and appointment : And provided further. That the senior circuit judge of the circuit within which such judge so designated and appointed resides shall certify, in writing, that the business of the dis- trict of such judge will not suffer thereby. Such appointment shall be filed in the clerk's office and entered on the minutes of the said district court, and a certified copy thereof, under the seal of the court, shall be transmitted by the clerk to the judge so designated and appointed. Each of the said district judges may, in the case of such appointment, hold separately, at the same time, a district court in such district, and dis- charge all of the judicial duties of the district judge therein. (As amended October 3, 1913.) Authority of Designated Judge. Sec. 19. It shall be the duty of the district or circuit judge who is designated and appointed under either of the six preceding sections, to discharge all the judicial duties for which he is so appointed, during the time for which he is so appointed ; and all the acts and proceedings in the courts held by him, or by or before him, in pursuance of said provisions, shall have the same effect and validity as if done by or before the district judge of the said district. Judge Disqualified. Sec. 20. Whenever it appears that the judge of any district court is in any way concerned in interest in any suit pending therein, or has been of counsel or is a material witness for either party, or is so related to or connected with either party as to render it improper, in his opinion, for him to sit on the trial, it shall be his duty, on application by either party, to cause the fact to be entered on the records of the court ; and also an order that an authenticated copy thereof shall be forthwith cer- tified to the senior circuit judge for said circuit then present in the cir- cuit ; and thereupon such proceedings shall be had as are provided in section fourteen. Personal Bias or Prejudice of Judge. Sec. 21. Whenever a party to any action or proceeding, civil or criminal, shall make and file an affidavit that the judge before whom the action or proceeding is to be tried or heard has a personal bias or prejudice either against him or in favor of any opposite party to the suit, such judge shall proceed no further therein, but another judge shall be designated in the manner prescribed in the section last preced- ing, or chosen in the manner prescribed in section twenty-three, to hear such matter. Every such affidavit shall state the facts and the reasons for the belief that such bias or prejudice exists, and shall be filed not less than ten days before the beginning of the term of the court, or good cause shall be shown for the failure to file it within such Federal Judicial Code 793 time. No party shall be entitled in any case to file more than one such affidavit ; and no such affidavit shall be filed unless accompanied by a certificate of counsel of record that such affidavit and application are made in good faith. The same proceedings shall be had when the pre- siding judge shall file with the clerk of the court a certificate that he deems himself unable for any reason to preside with absolute impar- tiality in the pending suit or action. Continuance of Cases in Vacancies. Sec. 22. When the office of judge of any district court becomes vacant, all process, pleadings, and proceedings pending before such court shall, if necessary, be continued by the clerk thereof until such times as a judge shall be appointed, or designated to hold such court; and the judge so designated, while holding such court, shall possess the powers conferred by, and be subject to the provisions contained in, section nineteen. Division of Business. Sec. 23. In districts having more than one district judge, the judges may agree upon the division of business and assignment of cases for trial in said district ; but in case they do not so agree, the senior circuit judge of the circuit in which the district lies, shall make all nec- essary orders for the division of business and the assignment of cases for trial in said district. CHAPTER TWO. District Courts — Jurisdiction. Sec. 24. The district courts shall have original jurisdiction as fol- lows : First. Of all suits of a civil nature, at common law or in equity, brought by the United States, or by any officer thereof authorized by law to sue, or between citizens of the same State claiming lands under grants from different States ; or, where the matter in controversy ex- ceeds, exclusive of interest and costs, the sum or value of three thou- sand dollars, and (a) arises under the Constitution or laws of the United States, or treaties made, or which shall be made, under their authority, or (b) is between citizens of different States, or (c) is be- tween citizens of a State and foreign States, citizens, or subjects. No district court shall have cognizance of any suit (except upon foreign bills of exchange) to recover upon any promissory note or other chose in action in favor of any assignee, or of any subsequent holder if such instrument be payable to bearer and be not made by any corporation, unless such suit might have been prosecuted in such court to recover upon said note or other chose in action if no assignment had been made : Provided, however. That the foregoing provision as to the sum or value of the matter in controversy shall not be construed to apply to any of the cases mentioned in the succeeding paragraphs of this section. 794 Important Federal Laws Second. Of all crimes and offenses cognizable under the authority of the United States. Third. Of all civil causes of admiralty and maritime jurisdiction, saving to suitors in all cases the right of a common-law remedy where the common law is competent to give it ; of all seizures on land or waters not within admiralty and maritime jurisdiction; of all prizes brought into the United States ; and of all proceedings for the condem- nation of property taken as prize. Fourth. Of all suits arising under any law relating to the slave trade. Fifth. Of all cases arising imder any law providing for internal revenue, or from revenue from imports or tonnage, except those cases arising under any law providing revenue from imports, jurisdiction of which has been conferred upon the Court of Customs Appeals. Sixth. Of all cases arising under the postal laws. Seventh. Of all suits at law or in equity arising under the patent, the copyright, and the trade-mark laws. Eighth. Of all suits and proceedings arising imder any law regu- lating commerce, except those suits and proceedings exclusive jurisdic- tion of which has been conferred upon the Commerce Court. Ninth. Of all suits and proceedings for the enforcement of pen- alties and forfeitures mcurred under any law of the United States. Tenth; Of all suits by the assignee of any debenture for drawback of duties, issued under any law for the collection of duties, against the person to whom such debenture was originally granted, or against any indorser thereof, to recover the amount of such debenture. Eleventh. Of all suits brought by any person to recover damages for any injury to his person or property on accoimt of any act done by him, under any law of the United States, for the protection or col- lection of any of the revenues thereof, or to enforce the right of citizens of the United States to vote in the several States. Twelfth. Of all suits authorized by law to be brought by any person for the recovery of damages on account of any injury to his person or property, or of the deprivation of any right or privilege of a citizen of the United States, by any act done in furtherance of any conspiracy mentioned in section nineteen hundred and eighty, Revised Statutes. Thirteenth. Of all suits authorized by law to be brought against any person who, having knowledge that any of the wrongs mentioned in section nineteen hundred and eighty. Revised Statutes, are about to be done, and, having power to prevent or aid in preventing the same, neglects or refuses so to do, to recover damages for any such wrong- ful act. Fourteenth. Of all suits at law or in equity authorized by law to be brought by any person to redress the deprivation, under color of any law, statute, ordinance, regulation, custom, or usage, of any State, Federal Judicial Code 795 of any right, privilege, or immunity, secured by the Constitution of the United States, or of any right secured by any law of the United States providing for equal rights of citizens of the United States, or of all persons within the jurisdiction of the United States. Fifteenth. Of all suits to recover possession of any oflice, except that of elector of President or Vice President, Representative in or Dele- gate to Congress, or member of a State legislature, authorized by law to be brought, wherein it appears that the sole question touching the title to such office arises out of the denial of the right to vote to any citizen offering to vote, on account of race, color, or previous condition of servitude : Provided, That such jurisdiction shall extend only so far as to determine the rights of the parties to such office by reason of the denial of the right guaranteed by the Constitution of the United States, and secured by any law, to enforce the right of citizens of the United States to vote in all the States. Sixteenth. Of all cases commenced by the United States, or by direction of any officer thereof, against any national banking associa- tion, and cases for winding up the aft'airs of any such bank ; and of all suits brought by any banking association established in the district for which the court is held, under the provisions of title "National Banks," Revised Statutes, to enjoin the Comptroller of the Currency, or any receiver acting under his direction, as provided by said title. And all national banking associations established under the laws of the United States shall, for the purposes of all other actions by or against them, real, personal, or mixed, and all suits in equity, be deemed citizens of the States in which they are respectively located. Seventeenth. Of all suits brought by any alien for a tort only, in violation of the laws of nations or of a treaty of the United States. Eighteenth. Of all suits against consuls and vice consuls. Nineteenth. Of all matters and proceedings in bankruptcy. Twentieth. Concurrent with the Court of Claims, of all claims not exceeding ten thousand dollars founded upon the Constitution of the United States or any law of Congress, or upon any regulation of an Executive Department, or upon any contract, express or implied, with the Government of the United States, or for damages, liquidated or unliquidated, in cases not sounding in tort, in respect to which claims the party would be entitled to redress against the United States, either in a court of law, equity, or admiralty, if the United States were suable, and of all set-offs, counterclaims, claims for damages, whether liquidated or unliquidated, or other demands whatsoever on the part of the Gov- ernment of the United States against any claimant against the Govern- ment in said court: Provided, however. That nothing in this paragraph shall be construed as giving to either the district courts of the Court of Claims jurisdiction to hear and determine claims growing out of the late Civil War, and commonly known as "war claims," or to hear and determine other claims which had been rejected or reported on ad- 796 Important Federal Laws versely prior to the third day of March, eighteen hundred and eighty- seven, by any court, department, or commission authorized to hear and determine the same, or to hear and determine claims for pensions ; or as giving to the district courts jurisdiction of cases brought to recover fees, salary, or compensation for official services of officers of the United States or brought for such purpose by persons claiming as such officers or as assignees or legal representatives thereof ; but no suit pending on the twenty-seventh day of June, eighteen hundred and ninety-eight, shall abate or be afitected by this provision : And provided further, That no suit against the Government of the United States shall be allowed under this paragraph unless the same shall have been brought within six years after the right accrued for which the claim is made : Provided, That the claims of married women, first accrued during mar- riage, of persons under the age of twenty-one years, first accrued during minority, and of idiots, lunatics, insane persons, and persons beyond the seas at the time the claim accrued, entitled to the claim, shall not be barred if the suit be brought within three years after the disability has ceased; but no other disability than those enumerated shall prevent any claim from being barred, nor shall any of the said disabilities operate cumulativelv. All suits brought and tried under the provisions of this paragraph shall be tried by the court without a jury. Twenty-first. Of proceedings in equity, by writ of injunction, to restrain violations of the provisions of laws of the United States to prevent the unlawful inclosure of public lands ; and it shall be suffi- cient to give the court jurisdiction if service of original process be had in anv civil proceeding on any agent or employee having charge or control of the inclosure. Twenty-second. Of all suits and proceedings arising under any law regulating the immigration of aliens, or under the contract labor laws. Twenty-third. Of all suits and proceedings arising under any law to protect trade and commerce against restraints and monopolies. Twenty-fourth. Of all actions, suits, or proceedings involving the right of any person, in whole or in part of Indian blood or descent, to any allotment of land under any law or treaty. And the judgment or decree of any such court in favor of any claimant to an allotment of land shall have the same effect, when prop- erly certified to the Secretary of the Interior, as if such allotment had been allowed and approved by him : but this provision shall not apply to any lands now or heretofore held by either of the Five Civilized Tribes, the Osage Nation of Indians, nor to any of the lands within the Ouapaw Indian Agency: Provided, That the right of appeal shall be allowed to either party as in other cases. (As amended December 21, 1911.) Twenty-fifth. Of suits in equity brought by any tenant in common or joint tenant for the partition of lands in cases where the United Federal Judicial Code 797 States is one of such tenants in common or joint tenants, such suits to be brought in the district in which such land is situate. Chinese Exclusion Appeals. Sec. 25. The district courts shall have appellate jurisdiction of the judgments and orders of United States commissioners in cases arising under the Chinese exclusion laws. Yellowstone Park. Sec. 26. The district court for the district of Wyoming shall have jurisdiction of all felonies committed within the Yellowstone National Park and appellate jurisdiction of judgments in cases of conviction before the commissioner authorized to be appointed under section five of an Act entitled "An Act to protect the birds and animals in Yellow- stone National Park, and to punish crimes in said Park, and for other purposes," approved May seventh, eighteen hundred and ninety-four. Indian Reservations, South Dakota. Sec. 27. The district court of the United States for the district of South Dakota shall have jurisdiction to hear, try, and determine all actions and proceedings in which any person shall be charged with the crime of murder, manslaughter, rape, assault with intent to kill, arson, burglary, larceny, or assault with a dangerous weapon, committed within the limits of any Indian reservation in the State of South Dakota. CHAPTER THREE. District Courts — Removal of Causes From State Courts. Sec. 28. Any suit of a civil nature, at law or in equity, arising under the Constitution or laws of the United States, or treaties made, or which shall be made, under their authority, of which the district courts of the United States are given original jurisdiction by this title, which may now be pending or which may hereafter be brought, in any State court, may be removed by the defendant or defendants therein to the district court of the United States for the proper district. Any other suit of a civil nature, at law or in equity, of which the district courts of the United States are given jurisdiction by this title, and w^hich are now pending or which may hereafter be brought, in any State court, may be removed into the district court of the United States for the proper district by the defendant or defendants therein, being non-residents of that State. And when in any suit mentioned_ in this section there shall be a controversy which is wholly between citizens of different States, and which can be fully determined as between them, then either one or more of the defendants actually interested in such controversy may remove said suit into the district court of the United States for the proper district. And where a suit is now pending, or may hereafter be brought, in any State court, in which there is a con- troversy between a citizen of the State in which the suit is brought 798 Important Federal Laws and a citizen of another State, any defendant, being such citizen of another State, may remove such suit into the district court of the United States for the proper district, at any time before the trial there- of, when it shall be made to appear to said district court that from prejudice or local influence he will not be able to obtain justice in such State court, or in any other State court to which the said defendant may, under the laws of the State, have the right, on account of such prejudice or local influence, to remove said cause : Provided, That if it further appear that said suit can be fully and justly determined as to the other defendants in the State court, without being afl:'ected by such prejudice or local influence, and that no party to the suit will be prejudiced by a separation of the parties, said district court may direct the suit to be remanded, so far as relates to such other defendants, to the State court, to be proceeded with therein. At any time before the trial of any suit which is now pending in any district court, or may hereafter be entered therein, and which has been removed to said court from a State court on the affidavit of any party plaintifl:' that he had reason to believe and did believe that, from prejudice or local influence, he was unable to obtain justice in said State court, the district court shall, on application of the other party, examine into the truth of said affidavit and the grounds thereof, and, unless it shall appear to the satisfaction of said court that said party will not be able to obtain justice in said State court, it shall cause the same to be remanded thereto. Whenever any cause shall be removed from any State court into anv district court of the United States, and the district court shall decide that the cause was improperly removed, and order the same to be remanded to the State court from whence it came, such remand shall be immediately carried into execution, and no appeal or writ of error from the decision of the district court so remanding such cause shall be allowed: Provided, That no case arising under an Act entitled *'An Act relating to the liability of common carriers by railroad to their employees in certain cases," approved April twenty-second, nineteen hundred and eight, or any amendment thereto, and brought in any State court of competent jurisdiction shall be removed to any court of the United States: And provided further. That no suit brought in any State court of competent jurisdiction against a railroad company, or other corporation, or person, engaged in and carrying on the business of a common carrier, to recover damages for delay, loss of. or injury to property received for transpor- tation by such common carrier under section twenty of the Act to regu- late commerce, approved February fourth, eighteen hundred and eighty- seven, as amended June twenty-ninth, ninete'en hundred and six, April thirteenth, nineteen hundred and eight, February twenty-fifth, nineteen hundred and nine, and June eighteenth, nineteen hundred and ten, shall be removed tq any court of the United States where the matter in controversy does not exceed, exclusive of interest and costs, the sum or value of $3,000. Federal Judicial Code 799 Procedure for Removal. Sec. 29. Whenever any party entitled to remove any suit men- tioned in the last preceding section, except suits removable on the ground of prejudice or local influence, may desire to remove such suit from a State court to the district court of the United States, he may make and file a petition, duly verified, in such suit in such State court at the time, or any time before the defendant is required by the laws of the State or the rule of the State court in which such suit is brought to answer or plead to the declaration or complaint of the plaintiff, for the removal of such suit into the district court to be held in the district where such suit is pending, and shall make and file therewith a bond, with good and sufficient surety, for his or their entering in such district court, within thirty days from the date of filing said petition, a certified copy of the record in such suit, and for paying all costs that may be awarded by the said district court if said district court shall hold that such suit was wrongfully or improperly removed thereto, and also for their appearing and entering special bail in such suit if special bail was originally requisite therein. It shall then be the duty of the State court to accept said petition and bond and proceed no further in such suit. Written notice of said petition and bond for removal shall be given the adverse party or parties prior to filing the same. The said copy being entered within said thirty days as aforesaid in said district court of the United States, the parties so removing the said cause shall, within thirty days thereafter, plead, answer, or demur to the declara- tion or complaint in said cause, and the cause shall then proceed in the same manner as if it had been originally commenced in the said district court. Suits Under State Grants. Sec. 30. If in any action commenced in a State court the title of land be concerned, and the parties are citizens of the same State and the matter in dispute exceeds the sum or value of three thousand dollars, exclusive of interest and costs, the sum or value being made to appear, one or more of the plaintiffs or defendants, before the trial, may state to the court, and make affidavit if the court require it, that he or they claim, and shall rely upon, a right or title to the land under a grant from a State, and produce the original grant, or an exempli- fication of it, except where the loss of public records shall put it out of his or their power, and shall move that any one or more of the adverse party inform the court whether he or they claim a right or title to the land under a grant from some other State, the party or parties so required shall give such information, or otherwise not be allowed to plead such grant or give it in evidence upon the trial. If he or they inform the court that he or they do claim under such grant, any one or more of the party moving for such information may then, on peti- tion and bond, as hereinbefore mentioned in this chapter, remove the cause for trial to the district court of the United States next to be 800 ' Important Federal Laws holden in such district ; and any one of either party removing the cause shall not be allowed to plead or give evidence of any other title than that by him or them stated as aforesaid as the ground of his or their claim. Civil Rights Suits. Sec. 31. When any civil suit or criminal prosecution is com- menced in any State court, for any cause whatsoever, against any per- son who is denied or can not enforce in the judicial tribunals of the State, or in the part of the State where such suit or prosecution is pending, any right secured to him by any law providing for the equal civil rights of citizens of the United States, or of all persons within the jurisdiction of the United States, or against any officer, civil or military, or other person, for any arrest or imprisonment or other trespasses or wrongs made or committed by virtue of or under color of authority derived from any law providing for equal rights as aforesaid, or for refusing to do any act on the ground that it would be inconsistent with such law, such suit or prosecution may, upon the petition of such de- fendant, filed in said State court at anv time before the trial or final hearing of the cause, stating the facts and verified by oath, be removed for trial into the next district court to be held in the district where it is pending. Upon the filing of such petition all further proceedings in the State courts shall cease, and shall not be resumed except as here- mafter provided. But all bail and other security given in such suit or prosecution shall continue in like force and efifect as if the same had proceeded to final judgment and execution in the State court. It shall be the duty of the clerk of the State court to furnish such defendant, petitioning for a removal, copies of said process against him, and of all pleadings, depositions, testimony, and other proceedings in the case. If such copies are filed by said petitioner in the district court on the first day of its session, the cause shall proceed therein in the same manner as if it had been brought there by original process ; and if the said clerk refuses or neglects to furnish such copies, the petitioner may thereupon docket the case in the district court, and the said court shall then have jurisdiction therein, and may. upon proof of such refusal or neglect of said clerk, and upon reasonable notice to the plaintiff, require the plaintift" to file a declaration, petition, or complaint in the cause ; and, in case of his default, may order a nonsuit, and dismiss the case at the costs of the plaintiff, and such dismissal shall be a bar to any further suit touching the matter in controversy. But if, without such refusal or neglect of said clerk to furnish such copies and proof thereof, the petitioner for removal fails to file copies in the district court, as herein provided, a certificate, under the seal of the district court, stating such failure, shall be given, and upon the production thereof in said State court the cause shall proceed therein as if no petition for removal had been filed. Federal Judicial Code 801 Removal from Custody of State Courts. Sec. 32. When all the acts necessary for the removal of any suit or prosecution, as provided in the preceding section, have been per- formed, and the defendant petitioning for such removal is in actual custody on process issued by said State court, it shall be the duty of the clerk of said district court to issue a writ of habeas corpus cum causa, and of the marshal, by virtue of said writ, to take the body of the defendant into his custody, to be dealt with in said district court according to law and the orders of said court, or, in vacation, of any judge thereof; and the marshal shall fde with or deliver to the clerk of said State court a duplicate copy of said writ. Revenue Law Suits. Sec. 33. When any civil suit or criminal prosecution is com- menced in any court of a State against any officer appointed under or acting by authority of any revenue law of the United States now or hereafter enacted, or against any person acting under or by authority of any such officer, on account of any act done under color of his office or of any such law, or on account of any right, title, or authority claimed by such officer or other person under any such law ; or is com- menced against any person holding property or estate by title derived from any such officer, and affects the validity of any such revenue law ; or against any officer of the courts of the United States for or on ac- count of any act done under color of his office or in the performance of his duties as such officer, or when any civil suit or criminal prosecu- tion is commenced against any person for or on account of anything done by him while an officer of either House of Congress in the dis- charge of his official duty, in executing any order of such House, the said suit or prosecution may, at any time before the trial or final hearing thereof, be removed for trial into the district court next to be holden in the district where the same is pending, upon the petition of such defendant to said district court, and in the following manner: Said petition shall set forth the nature of the suit or prosecution and be verified by affidavit, and, together with a certificate signed by an attor- ney or counselor at law of some court of record of the State where such suit or prosecution is commenced, or of the United States, stating that, as counsel for the petitioner, he has examined the proceedings against him and carefully inquired into all the matters set forth in the petition, and that he believes them to be true, shall be presented to the said district court, if in session, or if it be not, to the clerk thereof at his office, and shall be filed in said office. The cause shall thereupon be entered on the docket of the district court, and shall proceed as a cause originally commenced in that court ; but all bail and other security given upon such suit or prosecution shall continue in like force and effect as if the same had proceeded to final judgment and execution in the State court. When the suit is commenced in the State court by summons, subpoena, petition, or any other process except capias, the clerk of the (51) 802 Important Federal Laws district court shall issue a writ of certiorari to the State court, requir- ing it to send to the district court the record and the proceedings in the cause. When it is commenced by capias or by any other similar form or proceeding by which a personal arrest is ordered, he shall issue a writ of habeas corpus cum causa, a duplicate of which shall be de- livered to the clerk of the State court, or left at his office, by the mar- shal of the district or his deputy, or by some other person duly author- ized thereto ; and thereupon it shall be the duty of the State court to stay all further proceedings in the cause, and the suit or prosecution, upon delivery of such process, or leaving the same as aforesaid, shall be held to be removed to the district court, and any further proceed- ings, trial, or judgment therein in the State court shall be void. If the defendant in the suit or prosecution be in actual custody on mesne process therein, it shall be the duty of the marshal, by virtue of the writ of habeas corpus cum causa, to take the body of the defendant into his custody, to be dealt with in the cause according to law and the order of the district court, or, in vacation, of any judge thereof ; and if, upon the removal of such suit or prosecution, it is made to appear to the district court that no copy of the record and proceedings therein in the State court can be obtained, the district court may allow and require the plaintiff to proceed de novo and to file a declaration of his cause of action, and the parties may thereupon proceed as in actions originally brought in said district court. On failure of the plaintiff so to proceed, judgment of non prosequitur may be rendered against him. with costs for the defendant. Removal by Aliens. Sec. 34. Whenever a personal action has been or shall be brought in any State court In' an alien against any citizen of a State who is, or at the time the alleged action accrued was, a civil officer of the United States, being a non-resident of that State wherein jvirisdiction is obtained by the State court, by personal service of process, such action may be removed into the district court of the United States in and for the district in which the defendant shall have been served with the process, in the same manner as now provided for the removal of an action brought in a State court by the provisions of the preceding section. Proceedings on Affidavit of Record. Sec. 35. In any case where a party is entitled to copies of the records and proceedings in any suit or prosecution in a State court, to be used in any court of the United States, if the clerk of said State court, upon demand, and the payment or tender of the legal fees, re- fuses or neglects to deliver to him certified copies of such records and proceedings, the court of the United States in which such records and proceedings are needed may, on proof by affidavit that the clerk of said State court has refused or neglected to deliver copies thereof, on de- mand as aforesaid, direct such record to be supplied by affidavit or Federal Judicial Code 803 otherwise, as the circumstances of the case may require and allow ; and thereupon such proceeding, trial, and judgment may be had in the said court of the United States, and all such processes awarded, as if certified copies of such records and proceedings had been regularly before the said court. Attachment Continued to Await Trial. Sec. 36. When any suit shall be removed from a State court to a district court of the United States, any attachment or sequestration of the goods or estate of the defendant had in such suit in the State court shall hold the goods or estate so attached or sequestered to answer the final judgment or decree in the same manner as by law they would have been held to answer final judgment or decree had it been rendered by the court in which said suit was commenced. All bonds, undertakings, or security given by either party in such suit prior to its removal shall remain valid and effectual notwithstanding said removal ; and all in- junctions, orders, and other proceedings had in such suit prior to its removal shall remain in full force and effect until dissolved or modified by the court to which such suit shall be removed. Dismissal of Suit Not Properly Brought. Sec. 7i7 . If in any suit commenced in a district court, or removed from a State court to a district court of the United States, it shall appear to the satisfaction of the said district court, at any time after such suit has been brought or removed thereto, that such suit does not really and substantially involve a dispute or controversy properly within the jurisdiction of said district court, or that the parties to said suit have been improperly or collusively made or joined, either as plaintiffs , or defendants, for the purpose of creating a case cognizable or removable under this chapter, the said district court shall proceed no further therein, but shall dismiss the suit or remand it to the court from which it was removed, as justice may require, and shall make such order as to costs as shall be just. Proceedings in Suits Removed. Sec. 38. The district court of the United States shall, in all suits removed under the provisions of this chapter, proceed therein as if the suit had been originally commenced in said district court, and the same proceedings had been taken in such suit in said district court as shall have been had therein in said State court prior to its removal. Penalty for Clerk's Failure to Furnish Record. Sec. 39. In all causes removable under this chapter, if the clerk of the State court in which any such cause shall be pending shall refuse to any one or more of the parties or persons applying to remove the same, a copy of the record therein, after tender of legal fees for such copy, said clerk so offending shall, on conviction thereof in the district court of the United States to which said action or proceeding was removed, be fined not more than one thousand dollars, or impris- 804 Important Federal Laws oned not more than one year, or both. The district court to which any cause shall be removable under this chapter shall have power to issue a writ of certiorari to said State court commanding said State court to make return of the record in any such cause removed as aforesaid, or in which any one or more of the plaintiffs or defendants have com- plied with the provisions of this chapter for the removal of the same, and enforce said writ according to law. If it shall be impossible for the parties or persons removing any cause under this chapter, or com- plying with the provisions for the removal thereof, to obtain such copy, for the reason that the clerk of said State court refuses to furnish a copy, on payment of legal fees, or for any other reason, the district court shall make an order requiring the prosecutor in any such action or proceeding to enforce forfeiture or recover penalty, as aforesaid, to file a copy of the paper or proceeding by which the same was com- menced, within such time as the court may determine; and in default thereof the court shall dismiss the said action or proceeding; but if ■said order shall be complied with, then said district court shall require the other partv to plead, and said action or proceeding shall proceed to final judgment. The said district court may make an order requiring the parties thereto to plead de novo; and the bond given, conditioned as aforesaid, shall be discharged so far as it requires copy of the record to be filed as aforesaid. iv CHAPTER FOUR. District Courts — Miscellaneous Provisions. Capital Cases. Sec. 40. The trial of offenses punishable with death shall be had in the county where the offense was committed, where that can be done without great inconvenience. Offenses on High Seas. Sec. 41. The trial of all offenses committed upon the high seas or elsewhere out of the jurisdiction of any particular State or district, shall be in the district where the offender is found, or into which he is first brought. Place of Offense. Sec. 42. When any offense against the United States is begun in one judicial district and completed in another, it shall be deemed to have been committed in either, and may be dealt with, inquired of, tried, determined, and punished in either district, in the same manner as if it had been actually and wholly committed therein. Recoveries. Sec. 43. All pecuniary penalties and forfeitures may be sued for and recovered either in the district where they accrue or in the district where the offender is found. Federal Judicial Code 805 Internal Revenue. Sec. 44. Taxes accruing under any law providing internal revenue may be sued for and recovered either in the district where the liabil- ity for such tax occurs or in the district where the delinquent resides. Seizure on High Seas. Sec. 45. Proceedings on seizures made on the high seas, for for- feiture under any law of the United States, may be prosecuted in any district into which the property so seized is brought and proceedings instituted. Proceedings on such seizures made within any district shall be prosecuted in the district where the seizure is made, except in cases where it is otherwise provided. Insurrectionary Property. Sec. 46. Proceedings for the condemnation of any property cap- tured, whether on the high seas or elsewhere out of the limits of any judicial district, or within any district, on account of its being pur- chased or acquired, sold or given, with intent to use or employ the same, or to suffer it to be used or employed, in aiding, abetting or promoting any insurrection against the Government of the United States, or knowingly so used or employed by the owner thereof, or with his consent, may be prosecuted in any district where the same may be seized, or into which it may be taken and proceedings first instituted. Forfeiture of. Sec. 47. Proceedings on seizures for forfeiture of any vessel or cargo entering any port of entry which has been closed by the Presi- dent in pursuance of law, or of goods and chattels coming from a State or section declared by proclamation of the President to be in insur- rection into other parts of the United States, or of any vessel or vehicle conveying such property, or conveying persons to or from such State or section, or of any vessel belonging, in whole or in part, to any inhab- itant of such State or section, may be prosecuted in any district into which the property so seized may be taken and proceedings instituted; and the district court thereof shall have as full jurisdiction over such proceedings as if the seizure was made in that district. Patents. Sec. 48. In suits brought for the infringement of letters patent the district courts of the United States shall have jurisdiction, in law or in equity, in the district of which the defendant is an inhabitant, or in any district in which the defendant, whether a person, partnership, or corporation, shall have committed acts of infringement and have a regular and established place of business. If such suit is brought in a district of which the defendant is not an inhabitant, but in which such defendant has a regular and established place of business, service of process, summons, or subpoena upon the defendant may be made by service upon the agent or agents engaged in conducting such business in the district in which suit is brought. 806 Important Fedeil\l Laws Comptroller of the Currency. Sec. 49. All proceedings by any national banking association to enjoin the Comptroller of the Currency, under the provisions of any law relating to national banking associations, shall be had in the district where such association is located. Several Defendants. Sec. 50. When there are several defendants in any suit at law or in equity, and one or more of them are neither inhabitants of nor found within the district in which the suit is brought, and do not voluntarily appear, the court may entertain jurisdiction, and proceed to the trial and adjudication of the suit between the parties who are properly before it; but the judgment or decree rendered therein shall not con- clude or prejudice other parties not regularly served with process nor voluntarily appearing to answer; and non-joinder of parties who are not inhabitants of nor found within the district, as aforesaid, shall not constitute matter of abatement or objection to the suit. Venue of Civil Suits. Sec. 51. Except as provided in the five succeeding sections, no person shall be arrested in one district for trial in another, in any civil action before a district court ; and, except as provided in the six suc- ceeding sections, no civil suit shall be brought in any district court against any person by any original process or proceeding in any other district than that whereof he is an inhabitant ; but where the jurisdic- tion is founded only on the fact that the action is between citizens of different States, suit shall be brought only in the district of the resi- dence of either the plaintiff or the defendant. Same. Sec. 52. When a State contains more than one district, ever^' suit not of a local nature, in the district court thereof, against a single defendant, inhabitant of such State, must be brought in the district where he resides; but if there are two or more defendants, residing in different districts of the State, it may be brought in either district, and a duplicate writ may be issued against the defendants, directed to the marshal of any other district in which any defendant resides. The clerk issuing the duplicate writ shall indorse thereon that it is a true copy of a writ sued out of the court of the proper district ; and such original and duplicate writs, when executed and returned into the office from which tbey issue, shall constitute and be proceeded on as one suit : and upon any judgment or decree rendered therein, execution may be issued, directed to the marshal of any district in the same State. District Having Several Divisions. Sec. 53. When a district contains more than one division, every suit not of a local nature against a single defendant must be brought ifn the division where he resides ; but if there are two or more defend- ants residing in dift'erent divisions of the district it may be brought Federal Judicial Code 807 in either division. All mesne and final process subject to the provisions of this section may be served and executed in any or all of the divi- sions of the district, or if the State contains more than one district, then in any of such districts, as provided in the preceding- section. All prosecutions for crimes or offenses shall be had within the division of such districts where the same were committed, unless the court, or the judge thereof, upon the application of the defendant, shall order the cause to be transferred for prosecution to another division of the dis- trict. When a transfer is ordered by the court or judge, all the papers in the case, or certified copies thereof, shall be transmitted by the clerk, under the seal of the court, to the division to which the cause is so ordered trtmsf erred ; and thereupon the cause shall be proceeded with in said division in the same manner as if the ofifense had been com- mitted therein. In all cases of the removal of suits from the courts of a State to the district court of the United States such removal shall be to the United States district court in the division in which the county is situated from which the removal is made ; and the time within which the removal shall be perfected, in so far as it refers to or is regulated by the terms of United States courts, shall be deemed to refer to the terms of the United States district court in such division. Local Suits. Sec. 54. In suits of a local nature, where the defendant resides in a different district, in the same State, from that in which the suit is brought, the plaintiff may have original and final process against him, directed to the marshal of the district in which he resides. Property in Different Districts. Sec. 55. Any suit of a local nature, at law or in equity, where the land or other subject-matter of a fixed character lies partly in one district and partly in another, within the same State, may be brought in the district court of either district; and the court in which it is brought shall have jurisdiction to hear and decide it, and to cause mesne or final process to be issued and executed, as fully as if the said subject matter were wholly within the district for which such court is constituted. Authority of Receiver in Different Districts. Sec. 56. Where in any suit in which a receiver shall be appointed the land or other property of a fixed character, the subject of the suit, lies within different States in the same judicial circuit, the receiver so appointed shall, upon giving bond as required by the court, immediately be vested with full jurisdiction and control over all the property, the subject of the suit, lying or being within such circuit; subject, however, to the disapproval of such order, within thirty days thereafter, by the circuit court of appeals for such circuit, or by a circuit judge thereof, after reasonable notice to adverse parties and an opportunity to be heard upon the motion for such disapproval; and subject, also, to the 808 Important FEeER.\L Laws filing and entering in the district court for each district of the circuit in which any portion of the property may he or be, within ten days thereafter, of a duly certified copy of the bill and of the order of ap- pointment. The disapproval of such appointment within such thirty days, or the failure to file such certified copy of the bill and order of appointment within ten days, as herein required, shall divest such re- ceiver of jurisdiction over all such property except that portion thereof lying or being within the State in which the suit is brought. In any case coming within the provisions of this section, in which a receiver shall be appointed, process may issue and be executed within any dis- trict of the circuit in the same manner and to the same extent as if the property were wholly within the same district; but orders affecting such property shall be entered of record in each district in which the property affected may lie or be. Absent Defendants. Sec. t)7 . When in any suit commenced in any district court of the United States to enforce any legal or equitable hen upon or claim to, or to remove any incumbrance or lien or cloud upon the title to real or personal property within the district where such suit is brought, one or more of the defendants therein shall not be an inhabitant of or found within the said district, or shall not voluntarily appear thereto, it shall be lawful for the court to make an order directing such absent defend- ant or defendants to appear, plead, answer, or demur by a day certain to be designated, which order shall be served on such absent defendant or defendants, if practicable, wherever found, and also upon the person or persons in possession or charge of said property, if any there be ; or where such personal service upon such absent defendant or defendants is not practicable, such order shall be published in such manner as the court may direct, not less than once a week for six consecutive weeks. In case such absent defendant shall not appear, plead, answer, or demur within the time so limited, or within some further time, to be allowed by the court, in its discretion, and upon proof of the service or publi- cation of said order and of the performance of the directions con- tained in the same, it shall be lawful for the court to entertain juris- diction, and proceed to the hearing and adjudication of such suit in the same manner as if such absent defendant had been served with process within the said district; but said adjudication shall, as regards said absent defendant or defendants without appearance, affect only the property which shall have been the subject of the suit and under the jurisdiction of the court therein, within such district ; and when a part of the said real or personal property against which such proceedings shall be taken shall be within another district, but within the same State, such suit may be brought in either district in said State : Provided, however. That any defendant or defendants not actually personally notified as above provided may, at any time within one year after final judgment in any suit mentioned in this section, enter his appearance Federal Judicial Code 809 in said suit in said district court, and thereupon the said court shall make an order setting aside the judgment therein and permitting said defendant or defendants to plead therein on payment by him or them of such costs as_ the court shall deem just ; and thereupon said suit shall be proceeded with to final judgment according to law. Transfers by Agreement. Sec. 58. Any civil cause, at law or in equity, may, on written stipulation of the parties or of their attorneys of record signed and filed with the papers in the case, in vacation or in term, and on the written order of the judge signed and filed in the case in vacation or on the order of the court duly entered of record in term, be transferred to the court of any other division of the same district, without regard to the residence of the defendants, for trial. When a cause shall be ordered to be transferred to a court in any other division, it shall be the duty of the clerk of the court from which the transfer is made to carefully transmit to the clerk of the court to which the transfer is made the entire file of papers in the cause and all documents and de- posits in his court pertaining thereto, together with a certified tran- script of the record of all orders, interlocutory decrees, or other entries in the cause ; and he shall certify, under the seal of the court, that the papers sent are all which are on file in said court belonging to the cause; for the performance of which duties said clerk so transmitting and certifying shall receive the same fees as are now allowed by law for similar services, to be taxed in the bill of costs, and regularly col- lected with the other costs in the cause; and such transcript, when so certified and received, shall henceforth constitute a part of the record of the cause in the court to which the transfer shall be made. The clerk receiving such transcript and original papers shall file the same and the case shall then proceed to final disposition as other cases of a like nature. New Districts. Sec. 59. Whenever any new district or division has been or shall be established, or any county or territory has been or shall be trans- ferred from one district or division to another district or division, pros- ecutions for crimes and ofifenses committed within such district, divi- sion, county, or territory prior to such transfer, shall be commenced and proceeded with the same as if such new district or division had not been created, or such county or territory had not been transferred, unless the court, upon the application of the defendant, shall order the cause to be removed to the new district or division for trial. Civil actions pending at the time of the creation of any such district or division, or the transfer of any such county or territory, and arising within the dis- trict or division so created or the county or territory so transferred, shall be tried in the district or division as it existed at the time of the institution of the action, or in the district or division so created, or to which the county or territory is or shall be so transferred, as may be 810 Important Federal Laws agreed upon by the parties, or as the court shall direct. The transfer of such prosecutions and actions shall be made in the manner provided in the section last preceding. Liens Not Affected. Sec. 60. The creation of a new district or division, or the transfer of any county or territory from one district or division to another district or division, shall not affect or divest any lien theretofore ac- quired in the circuit or district court by virtue of a decree, judgment, execution, attachment, seizure, or otherwise, upon property situated or being within the district or division so created, or the county or territory so transferred. To enforce any such lien, the clerk of the court in which the same is acquired, upon the request and at the cost of the party desiring the same, shall make a true and certified copy of the record thereof, which when so made and certified, and filed in the proper court of the district or division in which such property is situated or shall be. after such transfer, shall constitute the record of such lien in such court, and shall be evidence in all courts and places equally with the original thereof ; and thereafter like proceedings shall be had thereon, and with the same eft'ect, as though the cause or proceeding had been originally instituted in such court. The provisions of this section shall apply not only in all cases where a district or division is created, or a county or any terri- tory is transferred by this or any future Act, but also in all cases where a district or division has been created, or a county or any ter- ritorv has been transferred by any law heretofore enacted. Commissioners to Administer Oaths. Sec. 61. Any district judge may appoint commissioners, before whom appraisers of vessels or goods and merchandise seized for breaches of any law of the United States, may be sworn ; and such oaths, so taken, shall be as effectual as if taken before the judge in open court. Transfer of Records. Sec. 62. When any Territory is admitted as a State, and a district court is established therein, all the records of the proceedings in the several cases pending in the highest court of said Territory at the time of such admission, and all records of the proceedings in the several cases in which judgments or decrees had been rendered in said territorial court before that time, and from which writs of error could have been sued out or appeals could have been taken, or from which writs of error had been sued out or appeals had been taken and prose- cuted to the Supreme Court or to the circuit court of appeals, shall be transferred to and deposited in the district court for the said State. Enforcing Transfer. Sec. 63. It shall be the duty of the district judge, in the case pro- vided in the preceding section, to demand of the clerk, or other per- Federal Judicial Code 811 son having possession or custody of the records therein mentioned, the deHvery thereof, to be deposited in said district court ; and in case of the refusal of such clerk or person to comply with such de- mand, the said district judge shall compel the delivery of such records by attachment or otherwise, according to law. Pending Cases. Sec. 64. When any Territory is admitted as a State, and a district court is established therein, the said district court shall take cogni- zance of all cases which were pending and undetermined, in the trial courts of such territory, from the judgments or decrees to be ren- dered in which writs of error could have been sued out or appeals taken to the Supreme Court or to the circuit court of appeals, and shall proceed to hear and determine the same. Receivers to Manage Property Under State Laws. Sec. 65. Whenever in any cause pending in any court of the United States there shall be a receiver or manager in possession of any prop- erty, such receiver or manager shall manage and operate such prop- erty according to the requirements of the valid laws of the State in which such property shall be situated, in the same manner that the owner or possessor thereof would be bound to do if in possession thereof. Any receiver or manager who shall willfully violate any pro- vision of this section shall be fined not more than three thousand dol- lars, or imprisoned not more than one year, or both. Suits Against Receivers. Sec. 66. Every receiver or manager of any property appointed by any court of the United States may be sued in respect of any act or transaction of his in carrying on the business connected with such property, without the previous leave of the court in which such re- ceiver or manager was appointed ; but such suit shall be subject to the general equity jurisdiction of the court in which such manager or receiver was appointed so far as the same may be necessary to the ends of justice. Relationship Disqualification. Sec. 67. No person shall be appointed to or employed in any office or duty in any court who is related by affinity or consanguinity within the degree of first cousin to the judge of such court: Provided, That no such person at present holding a position or employment in a cir- cuit court shall be debarred from similar appointment or employment in the district court succeeding to such circuit court jurisdiction. (As amended December 21. 1911.) Clerk Not to be Receiver. Sec. 68. No clerk of a district court of the United States or his deputy shall be appointed a receiver or master in any case, except 812 Important Federal Laws where the judge of said court shall determine that special reasons exist therefor, to be assigned in the order of appointment. CHAPTER V. This chapter, including sections 69 to 115, consists of the division of the States into judicial districts, and is omitted. CHAPTER VI. Circuit Courts of Appeals Districts. Sec. 116. There shall be nine judicial circuits of the United States constituted as follows : First. The first circuit shall include the districts of Rhode Island, Massachusetts, New Hampshire, ^Nlaine, and Porto Rico. Second. The second circuit shall include the districts of Vermont, Connecticut, and New York. Third. The third circuit shall include the districts of Pennsylvania, New Jersey and Delaware. Fourth. The fourth circuit shall include the districts of Maryland, Virginia, West Virginia, North Carolina, and South Carolina. Fifth. The fifth circuit shall include the districts of Georgia, Flor- ida, Alabama, Mississippi, Louisiana, and Texas. Sixth. The sixth circuit shall include the district of Ohio, Michi- gan, Kentucky, and Tennessee. Seventh. The seventh circuit shall include the districts of Indiana, Illinois, and Wisconsin. Eighth. The eighth circuit shall include the districts of Nebraska, Minnesota, Iowa, Missouri, Kansas, Arkansas, Colorado, Wyoming, North Dakota, South Dakota, Utah, and Oklahoma. Ninth. The ninth circuit shall include the districts of California, Oregon, Nevada, Washington, Idaho, Montana, and Hawaii. (As amended January 28, 1915.) Circuit Court of Appeals. Sec. 117. There shall be in each circuit a circuit court of appeals, which shall consist of three judges, of whom two shall constitute a quorum, and which shall be a court of record, with appellate juris- diction, as hereinafter limited and established. Circuit Judges. Sec. 1 18. There shall be in the second, seventh, and eighth circuits, respectively, four circuit judges; in the fourth circuit, two circuit judges; and in each of the other circuits, three circuit judges, to be appointed by the President, by and with the advice and consent of the Senate. They shall be entitled to receive a salary at the rate of seven thou- sand dollars a year each, payable monthly. Each circuit judge shall reside within his circuit. The circuit judges in each circuit shall be judges of the circuit court of appeals in that circuit, and it shall be Federal Judicial Code 813 the duty of each circuit judge in each circuit to sit as one of the judges of the circuit court of appeals in that circuit from time to time accord- ing to law: Provided, That nothing in this section shall be construed to prevent any circuit judge holding district court or serving in the commerce court, or otherwise, as provided for and authorized in other sections of this act. (As amended January 13, 1913.) Allotment of Justices. Sec. 119. The Chief Justice and associate justices of the Supreme Court shall be allotted among the circuits by an order of the court, and a new allotment shall be made whenever it becomes necessary or convenient by reason of the alteration of any circuit, or of the new appointment of a Chief Justice or associate justice, or otherwise. If a new allotment becomes necessary at any other time than during a term, it shall be made by the Chief Justice, and shall be binding until the next term and until a new allotment by the court. Whenever, by reason of death or resignation, no justice is allotted to a circuit, the Chief Justice may, until a justice is regularly allotted thereto, tem- porarily assign a justice of another circuit to such circuit. Supreme Court Justices in Circuit Court. Sec. 120. The Chief Justice and the associate justices of the Su- preme Court assigned to each circuit, and the several district judges within each circuit, shall be 'competent to sit as judges of the circuit court of appeals within their respective circuits. In case the Chief Justice or an associate justice of the Supreme Court shall attend at any session of the circuit court of appeals, he shall preside. In the absence of such Chief Justice, or associate justice, the circuit judges in attendance upon the court shall preside in the order of the seniority of their respective commissions. In case the full court at any time shall not be made up by the attendance of the Chief Justice or the as- sociate justice, and the circuit judges, one or more district judges within the circuit shall sit in the court according to such order or provision among the district judges as either by general or particular assignment shall be designated by the court : Provided, That no judge before whom a cause or question may have been tried or heard in a district court, or existing circuit court, shall sit on the trial or hearing of such cause or question in the circuit court of appeals. Designation of Terms. Sec. 121. The words "circuit justice" and "justice of a circuit," when used in this title, shall be understood to designate the justice of the Supreme Court who is allotted to any circuit ; but the word "judge," when applied generally to any circuit, shall be understood to include such justice. Forms of Process. Sec. 122. Each of said circuit courts of appeals shall prescribe the form and style of its seal, and the form of writs and other process 814 Important Feder.\l Laws and procedure as may be conformable to the exercise of its jurisdic- tion; and shall have power to establish all rules and regulations for the conduct of the business of the court within its jurisdiction as con- ferred by law. Marshals. Sec. 123. The United States marshals in and for the several dis- tricts of said courts shall be the marshals of said circuit courts of appeals, and shall exercise the same powers and perform the same duties, under the regulations of the court, as are exercised and per- formed by the marshal of the Supreme Court of the United States, so far as the same may be applicable. Clerks. Sec. 124. Each court shall appoint a clerk, who shall exercise the same powers and perform the same duties in regard to all matters within its jurisdiction, as are exercised and jier formed by the clerk of the Supreme Court, so far as the same may be applicable. Deputy Clerks. Sec. 125. The clerk of the circuit court of appeals for each circuit may, with the approval of the court, appoint such number of deputy clerks as the court may deem necessary. Such deputies may be re- moved at the pleasure of the clerk appointing them, with the approval of the court. In case of the death of the clerk his deputy or deputies shall, unless removed by the court, continue in office and perform the duties of the clerk in his name until a clerk is appointed and has qual- ified; and for the defaults or misfeasances in office of any such dep- uty, whether in the lifetime of the clerk or after his death, the clerk and his estate and the sureties on his official bond shall be liable, and his executor or administrator shall have such remedy for such de- faults or misfeasances committed after his death as the clerk would be entitled to if the same had occurred in his lifetime. Terms. Sec. 126. A term shall be held annually by the circuit courts of appeals in the several judicial circuits at the following places, and at such times as may be fixed by said courts, respectively : In the first circuit, in Boston ; in the second circuit, in New York ; in the third circuit, in Philadelphia ; in the fourth circuit, in Richmond ; in the fifth circuit, in New Orleans, Atlanta, Forth Worth, and Montgomery; in the sixth circuit in Cincinnati ; in the seventh circuit, in Chicago ; in the eighth circuit, in Saint Louis, Denver or Cheyenne, and Saint Paul ; in the ninth circuit, in San Francisco, and each year in two other places in said circuit to be designated by the judges of said court ; and in each of the above circuits, terms may be held at such other times and in such other places as said courts, respectively, may from time to time designate : Provided, That terms shall be held in Atlanta on the first Monday in October, in Fort Worth on the first Federal Judicial Code 815 Monday in November, in Alontgomery on the third Monday in Octo- ber, in Denver or in Cheyenne on the first Monday in September, and in Saint Paul on the first Monday in May. All appeals, writs of er- ror, and other appellate proceedings which may be taken or prose- cuted from the district courts of the United States in the State of Georgia, in the State of Texas, and in the State of Alabama, to the circuit court of appeals for the fifth judicial circuit shall be heard and disposed of, respectively, by said court at the terms held in Atlanta, in Fort Worth, and in Montgomery, except that appeals or writs of error in cases of injunctions and in all other cases which, under the statutes and rules, or in the opinion of the court, are entitled to be brought to a speedy hearing may be heard and disposed of wherever said court may be sitting. All appeals, writs of errors, and other ap- pellate proceedings which may hereafter be taken or prosecuted from the district court of the United States at Beaumont, Texas, to the circuit court of appeals for the fifth circuit, shall be heard and dis- posed of by the said circuit court of appeals at the terms of court held at New Orleans: Provided, That nothing herein shall prevent the court from hearing appeals or writs of error wherever the said courts shall sit, in cases of injunctions and in all other cases which, under the statutes and the rules, or in the opinion of the court, are entitled to be brought to a speedy hearing. All appeals, writs of error, and other appellate proceedings which may be taken or prosecuted from the district courts of the United States in the States of Colorado, Utah, and Wyoming, and the supreme court of the Territory of New Alex- ico to the circuit court of appeals for the eighth judicial circuit, shall be heard and disposed of by said court at the terms held either in Denver or in Cheyenne, except that any case arising in any of said States or Territory may, by consent of all the parties, be heard and disposed of at a term of said court other than the one held in Denver or Cheyenne. Court Rooms. Sec. 127. The marshals for the several districts in which said cir- cuit courts of appeals may be held shall, under the direction of the At- torney General, and with his approval, provide such rooms in the pub- lic buildings of the United States as may be necessary for the busi- ness of said courts, and pay all incidental expenses of said court, in- cluding criers, bailififs, and messengers : Provided, That in case proper rooms can not be provided in such buildings, then the marshals, with the approval of the Attorney General, may, from time to time, lease such rooms as may be necessary for such courts. Jurisdiction. Sec. 128. The circuit courts of appeals shall exercise appellate ju- risdiction to review by appeal or writ of error final decisions in the district courts, including the United States district court for Hawaii, and the United States district court for Porto Rico, in all cases other 816 Important Federal Laws than those in which appeals and writs of error may be taken direct to the Supreme Court, as provided in section two hundred and thirty- eight, unless otherwise provided by law; and, except as provided in sections two hundred and thirty-nine and two hundred and forty, the judgments and decrees of the circuit courts of appeals shall be final in all cases in which the jurisdiction is dependent entirely upon the opposite parties to the suit or controversy being aliens and citizens of the United States, or citizens of different States; also in all cases arising under the patent laws, under the trade-mark laws, under the copyright laws, under the revenue laws, and under the criminal laws, and in admiralty cases. (As amended January 28, 1915.) Appeals in Injunction or Receiver Cases. Sec. 129. Where upon a hearing in equity in a district court, or by a judge thereof in vacation, an injunction shall be granted, con- tinued, refused, or dissolved by an interlocutory order or decree, or an application to dissolve an injunction shall be refused, or an inter- locutory order or decree shall be made appointing a receiver, an ap- peal mar be taken from such interlocutory order or decree granting, continuing, refusing, dissolving, or refusing to dissolve, an injunc- tion, or appointing a receiver, to the circuit court of appeals, notwith- standing an appeal in such case might, upon final decree under the statutes regulating the same, be taken directly to the Supreme Court: Provided, That the appeal must be taken within thirty days from the entry of such order or decree, and it shall take precedence in the ap- pellate court ; and the proceedings in other respects in the court be- low shall not be stayed unless otherwise ordered by that court, or the appellate court, or a judge thereof, during the pendency^ of such ap- peal : Provided, however. That the court below may, in its discretion, require as a condition of the appeal an additional bond. Appeals in Bankruptcy. Sec. 130. The circuit courts of appeals shall have the appellate and supervisory jurisdiction conferred upon them by the Act entitled "An Act to establish a uniform system of bankruptcy throughout the United States," approved July first, eighteen hundred and ninetj^ eight, and all laws amendatory thereof, and shall exercise the same in the manner therein prescribed. China Court. Sec. 131. The circuit court of appeals for the ninth circuit is em- powered to hear and determine writs of error and appeals from the United States court for China, as provided in the Act entitled "An Act creating a United States court for China and prescribing the ju- risdiction thereof," approved June thirtieth, nineteen hundred and six. Powers of Judges. Sec. 132. Any judge of a circuit court of appeals, in respect of cases brought or to be brought before that court, shall have the same Federal Judicial Code 817 powers and duties as to allowances of appeals and writs of error, and the conditions of such allowances, as by law belong to the justices or judges in respect of other courts of the United States, respectively. Appeals, Arizona and New Mexico Courts. Sec. 133. The circuit courts of appeals, in cases in which their judg- ments and decrees are made final by this title, shall have appellate jurisdiction, by writ of error or appeal, to review the judgments, or- ders, and decrees of the supreme courts of Arizona and New Mexico, as by this title they may have to review the judgments, orders, and decrees of the district courts ; and for that purpose said Territories shall, by orders of the Supreme Court of the United States, to be made from time to time, be assigned to particular circuits. Alaska Courts. Sec. 134. In all cases other than those in which a writ of error or appeal will lie direct to the Supreme Court of the United States as provided in section two hundred and forty-seven, in which the amount involved or the value of the subject-matter in controversy shall ex- ceed five hundred dollars, and in all criminal cases, writs of error and appeals shall lie from the district court for Alaska or from any divi- sion thereof, to the circuit court of appeals for the ninth circuit, and the judgments, orders, and decrees of said court shall be final in all such cases. But whenever such circuit court of appeals may desire the instruction of the Supreme Court of the United States upon any question or proposition of law which shall have arisen in any such case, the court may certify such question or proposition to the Su- preme Court, and thereupon the Supreme Court shall give its instruc- tion upon the question or proposition certified to it, and its instruc- tions shall be binding upon the circuit court of appeals. Appeals at San Francisco, Portland or Seattle. Sec. 135. All appeals, and writs of error, and other cases, coming from the district court for the district of Alaska to the circuit court of appeals for the ninth circuit, shall be entered upon the docket and heard at San Francisco, California, or at Portland, Oregon, or at Seattle, Washington, as the trial court before whom the case was tried below shall fix and determine : Provided, That at any time before the hearing of any appeal, writ of error, or other case, the parties there- to, through their respective attorneys, may stipulate at which of the above-named places the same shall be heard, in which case the case shall be remitted to and entered upon the docket at the place so stipu- lated and shall be heard there. CHAPTER VII. The Court of Claims. Sec. 136. The Court of Claims, established by the Act of February twenty-fourth, eighteen hundred and fifty-five, shall be continued. It (52) 818 Important Federal Laws shall consist of a chief justice and four judges, who shall be ap- pointed by the President, by and with the advice and consent of the Senate, and hold their offices during good behavior. Each of them shall take an oath to support the Constitution of the United States, and to discharge faithfully the duties of his office. The chief justice shall be entitled to receive an annual salary of six thousand live hun- dred dollars, and each of the other judges an annual salary of six thousand dollars, payable monthly, from the Treasury. Seal. , , . Sec. 137. The Court of Claims shall have a seal, with such device as it may order. Annual Session. Sec. 138. The Court of Claims shall hold one annual session at the city of Washington, beginning on the first Monday in December and continuing as long as may be necessary for the prompt disposition of the business of the court Any three of the judges of said court shall constitute a quorum, and may hold a court for the transaction of business: Provided, That the concurrence of three judges shall be necessary to the decision of any case. Officers. Sec. 139. The said court shall appoint a chief clerk, an assistant clerk, if deemed necessarv, a bailiff', and a chief messenger. The clerks shall take an oath for the faithful discharge of their duties, and shall be under the direction of the court in the performance thereof; and for misconduct or incapacity they may be removed by it from of- fice; but the court shall report such removals, with the cause thereof, to Congress, if in session, or if not, at the next session. The bailiff shall hold his office for a term of four years, unless sooner removed by the court for cause. Salaries of Clerks. Sec. 140. The salary of the chief clerk shall be three thousand five hundred dollars a year; of the assistant clerk two thousand five hun- dred dollars a vear; of the bailiff' one thousand five hundred dollars a year, and of the chief messenger one thousand dollars a year, payable monthly from the Treasury. Chief Clerk Bond. Sec. 141. The chief clerk shall give bond to the United States in such amount, in such form, and with such security as shall be ap- proved by the Secretary of the Treasury. Contingent Fund. Sec. 142. The said clerk shall have authority when he has giveii bond as provided in the preceding section, to disburse, under the di- rection of the court, the contingent fund which may from time to time be appropriated for its use; and his accounts shall be settled by the Federal Judicial Code 819 proper accounting officers of the Treasury in the same way as the accounts of other disbursing agents of the Government are settled. Statement of Judgment to Congress. Sec. 143. On the first day of every regular session of Congress, the clerk of the Court of Claims shall transmit to Congress a full and complete statement of all the judgments rendered by the court during the previous year, stating the amounts thereof and the parties in whose favor they were rendered, together with a brief synopsis of the nature of the claims upon which they were rendered. At the end of every term of the court he shall transmit a copy of its decisions to the heads of departments ; to the Solicitor, the Comptroller, and the Auditors of the Treasury ; to the Commissioner of the General Land Office and of Indian Affairs ; to the chiefs of bureaus, and to other officers charged with the adjustment of claims against the United States. Members of Congress Not to Practice In. Sec. 144. Whoever, being elected or appointed a Senator, Member of, or Delegate to Congress, or a Resident Commissioner, shall, after his election or appointment, and either before or after he has qualified, and during his continuance in office, practice in the Court of Claims, shall be fined not more than ten thousand dollars and imprisoned not more than two years ; and shall, moreover, thereafter be incapable of holding any office of honor, trust, or profit under the Government of the United States. Jurisdiction. Sec. 145. The Court of Claims shall have jurisdiction to hear and determine the following matters : First. All claims (except for pensions) founded upon the Constitu- tion of the United States or any law of Congress, upon any regula- tion of an Executive Department, upon any contract, express or im- plied, with the Government of the United States, or for damages, liq- uidated or unliquidated, in cases not sounding in tort, in respect of which claims the party would be entitled to redress against the United States either in a court of law, equity, or admiralty if the United States were suable : Provided, however, That nothing in this section shall be construed as giving to the said court jurisdiction to hear and determine claims growing out of the late civil war, and commonly known as "war claims," or to hear amd determine other claims which, prior to March third, eighteen hundred and eighty-seven, had been rejected or reported on adversely by any court, department, or com- mission authorized to hear and determine the same. Second. All set-offs, counterclaims, claims for damages, whether liquidated or unliquidated, or other demands whatsoever on the part of the Government of the United States against any claimant against the Government in said court: Provided. That no suit against the Gov- ernment of the United States, brought by any officer of the United 820 Important Federal Laws States to recover fees for services alleged to have been performed for the United States, shall be allowed under this chapter until an ac- count for said fees shall have been rendered and finally acted upon as required by law, unless the proper accounting officer of the Treas- ury fails to act finally thereon within six months after the account is received in said office. Third. The claim of any paymaster, quartermaster, commissary of subsistence, or other disbursing officer of the United States, or of his administrators or executors, for relief from responsibility on account of loss by capture or otherwise, while in the line of his duty, of Gov- ernment funds, vouchers, records, or papers in his charge, and for which such officer was and is held responsible. Counterclaims. Sec. 146. Upon the trial of any cause in wdiich any set-ofif, coun- terclaim, claim for damages, or other demand is set up on the part of the Government against any person making claim against the Gov- ernment in said court, the court shall hear and determine such claim or demand both for and against the Government and claimant ; and if upon the whole case it finds that the claimant is indebted to the Government it shall render judgment to that effect, and such judg- ment shall be final, with the right of, appeal, as in other cases pro- vided for by laM\ Any transcript of such judgment, filed in the clerk's office of any district court, shall be entered upon the records thereof, and shall thereby become and be a judgment of such court and be en- forced as other judgments in such court are enforced. Decrees on Account of Disbursing Officers. Sec. 147. Whenever the Court of Claims ascertains the facts of any loss by any paymaster, quartermaster, commissary of subsistence, or other disbursing officer, in the cases hereinbefore provided, to have been without fault or negligence on the part of such officer, it shall make a decree setting forth the amount thereof, and upon such de- cree the proper accounting officers of the Treasury shall allow to such officer the amount so decreed as a credit in the settlement of his ac- counts. Claims Referred by Departments. Sec. 148. When any claim or matter is pending in any of the ex- ecutive departments which involves controverted questions of fact or law, the head of such department may transmit the same, with the vouchers, papers, documents and proofs pertaining thereto, to the Court of Claims and the same shall be there proceeded in under such rules as the court may adopt. When the facts and conclusions of law shall have been found, the court shall report its findings to the de- partment by which it was transmitted for its guidance and action: Provided, however. That if it shall have been transmitted with the consent of the claimant, or if it shall appear to the satisfaction of the Federal Judicial Code 821 court upon the facts established, that under existing laws or the pro- visions of this chapter it has jurisdiction to render judgment or de- cree thereon, it shall proceed to do so, in the latter case giving to either party such further opportunity for hearing as in its judgment jus- tice shall require, and shall report its findings therein to the depart- ment by v^^hich the same was referred to said court. The Secretary of the Treasury may, upon the certificate of any auditor, or of the Comptroller of the Treasury, direct any claim or matter, of which by reason of the subject-matter or character, the said court might under existing laws, take jurisdiction on the voluntary action of the claim- ant to be transmitted, with all the vouchers, papers, documents and proofs pertaining thereto, to the said court for trial and adjudication. Procedure. Sec. 149. All cases transmitted by the head of any department, or upon the certificate of any auditor, or of the Comptroller of the Treas- ury, according to the provisions of the preceding section, shall be pro- ceeded in as other cases pending ini the Court of Claims, and shall, in all respects, be subject to the same rules and regulations. Payment of Judgment. Sec. 150. The amount of any final judgment or decree rendered in favor of the claimant, in any case transmitted to the Court of Claims under the two preceding sections, shall be paid out of any specific appropriation applicable to the case, if any such there be ; and where no such appropriation exists, the judgment or decree shall be paid in the same manner as other judgments of the said court. Claims Referred to Congress. Sec. 151. Whenever any bill, except for a pension, is pending in either House of Congress providing for the payment of a claim against the United States, legal or equitable, or for a grant, gift, or bounty to any person, the House in which such bill is pending ma3^ for the investigation and determination of facts, refer the same to the Court of Claims, which shall proceed with the same in accordance with such rules as it may adopt and report to such House the facts in the case and the amount, where the same can be liquidated, including any facts bearing upon the question whether there has been delay or laches in presenting such claim or applying for such grant, gift, or bounty, and any facts bearing upon the question whether the bar of any statute of limitation should be removed or which shall be claimed to excuse the claimant for not having resorted to any established legal remedy, together with such conclusions as shall be sufficient to inform Congress of the nature and character of the demand, either as a claim, legal or equitable, or as a gratuity against the United States, and the amount, if any, legally or equitably due from the United States to the claimant : Provided, how^ever. That if it shall appear to the satisfaction of the court upon the facts established, that under existing laws or the provi- 822 Important Federal Laws sions of this chapter, the subject matter of the bill is such that it has jurisdiction to render judgment or decree thereon, it shall proceed to do so, giving to either party such further opportunity for hearing as in its judgment justice shall require, and it shall report its proceedings therein to the House of Congress by which the same was referred to said court. Allowance of Costs. Sec. 152. If the Governmeiat of the United States shall put in is- sue the right of the plaintiff to recover, the court may, in its dis- cretion, allow costs to the prevailing party from the time of joining such issue. Such costs, however, shall include only what is actually incurred for witnesses, and for summoning the same, and fees paid to the clerk of the court. Treaty Claims Barred. Sec. 153. The jurisdiction of the said court shall not extend to any claim against the Government not pending therein on December first, eighteen hundred and sixty-two, growing out of or dependent on any treaty stipulation entered into with foreign nations or with the Indian tribes. Claims in Other Courts. Sec. 154. No person shall file or prosecute in the Court of Claims, or in the Supreme Court on appeal therefrom, any claim for or in respect to which he or any assignee of his has pending in any other court any suit or process against any person who, at the time when the cause of action alleged in such suit or process arose, was, in respect thereto, acting or professing to act, mediately or immediately, under the authority of the United States. Aliens. Sec. 155. Aliens who are citizens or subjects of any government which accords to citizens of the United States the right to prosecute claims against such government in its courts, shall have the privilege of prosecuting claims against the United States in the Court of Claims, whereof such court, by reason of their subject-matter and character, might take jurisdiction. Claims to be Filed Within Six Years. Sec. 156. Every claim against the United States cognizable by the Court of Claims, shall be forever barred unless the petition setting forth a statement thereof is filed in the court, or transmitted to it by the Secretary of the Senate or the Clerk of the House of Representa- tives, as provided by law, within six years after the claim first ac- crues: Provided, That the claims of married women, first accrued during marriage, of persons under the age of twenty-one years, first accrued during minority, and of idiots, lunatics, insane persons, and persons beyond the seas at the time the claim accrued, entitled to the Federal Judicial Code 823 claim, shall not be barred if the petition be filed in the court or trans- mitted, as aforesaid, within three years after the disability has ceased; but no other disability than those enumerated shall prevent any claim from being barred, nor shall any of the said disabilities operate cum- ulatively. Rules of Practice, Sec. 157. The said court shall have power to establish rules for its government and for the regulation of practice therein, and it may punish for contempt in the manner prescribed by the common law, may appoint commissioners, and may exercise such powers as are neces- sary to carry into effect the powers granted to it by law. Oaths. Sec. 158. The judges and clerks of said court may administer oaths and affirmations, take acknowledgments of instruments in writ- ing, and give certificates of the same. Petitions. Sec. 159. The claimant shall in all cases fully set forth in his peti- tion the claim, the action thereon in Congress or by any of the depart- ments, if such action has been had, what persons are owners thereof or interested therein, when and upon what consideration such per- sons became so interested ; that no assignment or transfer of said claim or of any part thereof or interest therein has been made, except as stated in the petition ; that said claimant is justly entitled to the amount therein claimed from the United States after allowing all just credits and offsets ; that the claimant and, where the claim has been assigned, the original and every prior owner thereof, if a citi- zen, has at all times borne true allegiance to the Government of the United States, and, whether a citizen or not, has not in any way voluntarily aided, abetted, or given encouragement to rebellion against the said Government, and that he believes the facts as stated in the said petition to be true. The said petition shall be verified by the affidavit of the claimant, his agent or attorney. Dismissal of Allegiance Disproven. Sec. 160. The said allegations as to true allegiance and voluntary aiding, abetting, or giving encouragement to rebellion against the Gov- ernment may be traversed by the Government, and if on the trial such issues shall be decided against the claimant, his petition shall be dismissed. Proof of Loyalty. Sec. 161. Whenever it is material in any claim to ascertain whether any person did or did not give any aid or comfort to forces or gov- ernment of the late Confederate States during the Civil _War, the claimant asserting the loyalty of any such person to the United States during such Civil War shall be required to prove affirmatively that such person did, during said Civil War, consistently adhere to the 824 Important Federal Laws United States and did give no aid or comfort to persons engaged in said Confederate service in said Civil War. Property Taken After June 1, 1865. Sec. 162. The Court of Claims shall have jurisdiction to hear and determine the claims of those whose property was taken subsequent to June the first, eighteen hundred and sixty-five, under the provi- sions of the Act of Congress approved March twelfth, eighteen hun- dred and sixty-three, entitled "An Act to provide for the collection of abandoned property and for the prevention of frauds in insur- rectionary districts within the United States," and Acts amendatory thereof where the property so taken was sold and the net proceeds thereof were placed in the Treasury of the United States ; and the Secretary of the Treasury shall return said net proceeds to the own- ers thereof, on the judgment of said court, and full jurisdiction is given to said court to adjudge said claims, any statute of limitations to the contrary notwithstanding. Commissioners to Take Testimony. Sec. 163. The Court of Claims shall have power to appoint com- missioners to take testimony to be used in the investigation of claims which come before it, to prescribe the fees which they shall receive for their services, and to issue commissions for the taking of such testimony, whether taken at the instance of the claimant or of the United States. Information from Officials. Sec. 164. The said court shall have power to call upon any of the departments for any information or papers it may deem necessary, and shall have the use of all recorded and printed reports made by the committees of each House of Congress, when deemed necessary in the prosecution of its business. But thei head of any department may refuse and omit to comply with any call for information or pa- pers when, in his opinion, such compliance would be injurious to the public interest. Vv''hen Testimony is Not Taken. Sec. 165. When it appears to the court in any case that the facts set forth in the petition of the claimant do not furnish any ground for relief, it shall not authorize the taking of any testimony therein. Examination of Claimants. Sec. 166. The court may, at the instance of the attorney or solicitor appearing in behalf of the United States, make an order in any case pending therein, directing any claimant' in such case to appear, upon reasonable notice, before any commissioner of the court and be ex- amined on oath touching any or all matters pertaining to said claim. Such examination shall be reduced to writing by the said commis- sioner, and be returned to and filed in the court, and may, at the discretion of the attorney or solicitor of the United States appear- Federal Judicial Code 825 ing in the case, be read and used as evidence on the trial thereof. And if any claimant, after such order is made and due and reason- able notice thereof is given to him, fails to appear, or refuses to tes- tify or answer fully as to all matters within his knowledge mate- rial to the issue, the court may, in its discretion, order that the said cause shall not be brought forward for trial until he shall have fully complied with the order of the court in the premises. Places for Taking Testimony. Sec. 167. The testimony in cases pending before the Court of Claims shall be taken in the county where the witness resides, when the same can be conveniently done. Subpoenas. Sec. 168. The Court of Claims may issue subpoenas to require the attendance of witnesses in order to be examined before any person commissioned to take testimony therein. Such subpoenas shall have the same force as if issued from a district court, and compliance therewith shall be compelled under such rules and orders as the court shall establish. Cross Examinations. Sec. 169. In taking testimony to be used in support of any claim, opportunity shall be given to the United States to file interrogatories, or by attorney to examine witnesses, under such regulations as said court shall prescribe ; and like opportunity shall be afforded the claim- ant, in cases w^iere testimony is taken on behalf of the United States, under like regulations. Oaths. Sec. 170. The commissioner taking testimony to be used in the Court of Claims shall administer an oath or affirmation to the witnesses brought before him for examination. Commissioners' Fees. Sec. 171. When testimony is taken for the claimant, the fees of the commissioner before whom it is taken, and the cost of the com- mission and notice, shall be paid by such claimant; and when it is taken at the instance of the Government, such fees shall be paid out of the contingent fund provided for the Court of Claims, or other appropriation made by Congress for that purpose. Fraud. Sec. 172. Any person who corruptly practices or attempts to prac- tice any fraud against the United States in the proof, statement, es- tablishment, or allowance of any claim or of any part of any claim against the United States shall, ipso facto, forfeit the same to the Government; and it shall be the duty of the Court of Claims, in such cases, to find specifically that such fraud was practiced or attempted to be practiced, and thereupon to give judgment that such claim is 826 Important Federal Laws forfeited to the Government, and that the claimant be forever barred from prosecuting the same. False Claims. Sec. 173. No claim shall be allowed by the accounting officers un- der the provisions of the Act of Congress approved June sixteenth, eighteen hundred and seventy-four, or by the Court of Claims, or by Congress, to any person where such claimant, or those under whom he claims, shall willfully, knowingly, and with intent to defraud the United States, have claimed more than was justly due in respect of such claim, or presented any false evidence to Congress, or to any department or court, in support thereof. New Trials. Sec. 174. When judgment is rendered against any claimant, the court may grant a new trial for any reason which, by the rules of common law or chancery in suits between individuals, would furnish sufficient ground for granting a new trial. Same. Sec. 175. The Court of Claims, at any time while any claim is pending before it, or on appeal from it, or within two years next after the final disposition of such claim, may, on motion, on behalf of the United States, grant a new trial and stay the payment of any judg- ment therein, upon such evidence, cumulative or otherwise, as shall satisfy the court that any fraud, wrong, or justice in the premises has been done to the United States ; but until an order is made stay- ing the payment of a judgment, the same shall be payable and paid as now provided by law. Cost of Record. Sec. 176. There shall be taxed against the losing party in each and everv cause pending in the Court of Claims the cost of printing the record in such case, which shall be collected, except when the judg- ment is against the United States, by the clerk of said court and paid into the Treasury of the United States. Interest Allowance. Sec. 177. No interest shall be allowed on any claim up to the time of the rendition of judgment thereon by the Court of Claims, unless upon a contract expressly stipulating for the payment of interest. Payment on Full Discharge. Sec. 178. The payment of the amount due by any judgment of the Court of Claims, and of anv interest thereon allowed by law, as pro- vided by law, shall be a full discharge to the United States of all claim and demand touching any of the matters involved in the con- troversy. Final Judgment a Bar. Sec. 179. Any final judgment against the claimant on any claim Federal Judicial Code 827 prosecuted as provided in this chapter shall forever bar any further claim or demand against the United States arising out of the matters involved in the controversy. Petitions for Settlement of Unadjusted Accounts. Sec. 180. Whenever any person shall present his petition to the Court of Claims alleging that he is or has been indebted to the United States as an officer or agent thereof, or by virtue of any contract therewith, or that he is the guarantor, or surety, or personal repre- sentative or any officer or agent or contractor so indebted, or that he or tlie person for whom he is such surety, guarantor, or personal rep- resentative has held any office or agency under the United States, or entered into any contract therewith, under which it may be or has been claimed that an indebtedness to the United States had arisen and exists, and that he or the person he represents has applied to the proper department of the Government requesting that the account of such office, agency, or indebtedness may be adjusted and settled, and that three years have elapsed from the date of such application^ and said account still remains unsettled and unadjusted, and that no suit upon the same has been brought by the United States, said court shall, due notice first being given to the head of said department and to the Attorney General of the United States, proceed to hear the parties and to ascertain the amount, if any, due the United States on said account. The Attorney General shall represent the United States at the hearing of said cause. The court may postpone the same from time to time whenever justice shall require. The judgment of said court or of the Supreme Court of the United States, to which an ap- peal shall lie, as in other cases, as to the amount due, shall be binding and conclusive upon the parties. The payment of such amount so found due by the court shall discharge such obligation. An action shall accrue to the United States against such principal, or surety, or rep- resentative to recover the amount so found due, which may be brought at any time within three years after the final judgment of said court; and unless suit shall be brought within said time, such claim and the claim on the original indebtedness shall be forever barred. The pro- visions of section one hundred and sixty-six shall apply to cases under this section. Appeals. Sec. 181. The plaintiff or the United States, in any suit brought under the provision of the section last preceding, shall have the same right of appeal as is conferred under sections two hundred and forty- two and two hundred and forty-three ; and such right shall be exer- cised only within the time and in the manner therein prescribed. Appeals in Indian Cases. Sec. 182. In any case brought in the Court of Claims under any Act of Congress by which that court is authorized to render a judg- 828 Important Federal Laws ment or decree against the United States, or against any Indian tribe or any Indians, or against any fund held in trust by the United States for any Indian tribe or for any Indians, the claimant, or the United States, or the tribe of Indians, or other party in interest shall have the same right of appeal as is conferred under sections two hundred and forty-two and two hundred and forty-three ; and such right shall be exercised only within the time and in the manner therein prescribed. Reports of Suits on Bond. Sec. 183. The Attorney General shall report to Congress, at the beginning of each regular session, the suits under section one hundred and eighty, in which a final judgment or decree has been rendered, giv- ing the date of each and a statement of the costs taxed in each case. Loyalty in Civil War Cases. Sec. 184. In any case of a claim for supplies or stores taken by or furnished to any part of the military or naval forces of the United States for their use during the late Civil War, the petition shall aver that the person who furnished such supplies or stores, or from whom such supplies or stores were taken, did not give any aid or comfort to said rebellion, but was throughout that war loyal to the Government of the United States, and the fact of such loyalty shall be a jurisdic- tional fact ; and unless the said court shall, on a preliminary inquiry, find that the person who furnished such supplies or stores, or from whom the same were taken as aforesaid, was loyal to the Govern- ment of the United States throughout said war, the court shall not have jurisdiction of such cause, and the same shall, without further proceedings, be dismissed. Duty of Attorney General. Sec. 185. The Attorney-General, or his assistants under his direc- tion, shall appear for the defense and protection of the interests of the United States in all cases which may be transmitted to the Court of Claims under the provisions of this chapter, with the same power to interpose counter claims, offsets, defenses for fraud practiced or attempted to be practiced by claimants, and other defenses, in like manner as he is required to defend the United States in said court. Witnesses Not Excluded on Account of Color or Interest. Sec. 186. No person shall be excluded as a witness in the Court of Claims on account of color or because he or she is a party to or inter- ested in the cause or proceeding; and any plaintifT or party in inter- est may be examined as a witness on the part of the Government. (As ?mended February 5, 1912.) Report to Congress. Sec. 187. Reports of the Court of Claims to Congress, under sec- tions one hundred and forty-eight and one hundred and fifty-one, if not finally acted upon during the session at which they were reported, shall be continued from session to session and from Congress to Con- gress until the same shall be finally acted upon. Federal Judicial Code 829 CHAPTER Vni. The Court of Customs Appeals. Sec. 188. There shall be a United States Court of Customs Ap- peals, which shall consist of a presiding judge and four associate judges, each of whom shall be appointed by the President, by and with the advice and consent of the Senate, and shall receive a salary of seven thousand dollars a year. The presiding judge shall be so desig- nated in the order of appointment and in the commission issued to him by the President ; and the associate judges shall have precedence ac- cording to the date of their commissions. Any three members of said court shall constitute a quorum, and the concurrence of three members shall be necessary to any decision thereof. In case of a vacancy or of the temporary inability or disqualification, for any rea- son, of one or two of the judges of said court, the President may, upon the request of the presiding judge of said court, designate any qualified United States circuit or district judge or judges to act in his or their place ; and such circuit or district judges shall be duly qualified to so act. Sessions in Circuits. Sec. 189. The said Court of Customs Appeals shall always be open for the transaction of business, and sessions thereof may, in the discretion of the court, be held in the several judicial circuits, and at such places as said court may from time to time designate. Any judge who, in pursuance of the provisions of this chapter, shall attend a ses- sion of said court at any place other than the city of Washington, shall be paid, upon his written and itemized certificate, by the mar- shal of the district in which the court shall be held, his actual and necessary expenses incurred for travel and attendance, and the ac- tual and necessary expenses of one stenographic clerk who may ac- company him ; and such payments shall be allowed the marshal in the settlement of his accounts with the United States. Marshal. Sec. 190. Said courts shall have the services of a marshal, with the same duties and powers, under the regulations of the court, as are now^ provided for the marshal of the Supreme Court of the United States, so far as the same may be applicable. Said services within the District of Columbia shall be performed by a marshal to be ap- pointed by and to hold office during the pleasure of the court, who shall receive a salary of three thousand dollars per annum. Said services outside of the District of Columbia shall be performed by the United States marshals in and for the districts where sessions of said court may* be held ; and to this end said marshals shall be the marshals of said court. The marshal of said court, for the District of Columbia, is authorized to purchase, under the direction of the presiding judge, such books, periodicals, and stationery, as may be 830 Important Federal Laws necessary for the use of said court; and such expenditures shall be allowed and paid by the Secretary of the Treasury upon claim duly made and approved by said presiding judge. Clerk. Sec. 191. The court shall appoint a clerk, whose office shall be in the city of Washington, District of Columbia, and who shall perform and exercise the same duties and powers in regard to all matters within the jurisdiction of said court as are now exercised and performed by the clerk of the Supreme Court of the United States, so far as may be applicable. The salary of the clerk shall be three thousand live hundred dollars per annum, which sum shall be in full payment for all service rendered by such clerk ; and all fees of any kind whatever, and all costs shall be by him turned into the United States Treasury. Said clerk shall not be appointed by the court or any judge thereof as a commis- sioner, master, receiver, or referee. The costs and fees in the said court shall be fixed and established by said court in a table of fees to be adopted and approved by the Supreme Court of the United States within four months after the organization of said court: Provided, That the costs and fees so fixed shall not, with respect to any item, exceed the costs and fees charged in the Supreme Court of the United States; and the same shall be expended, accounted for, and paid over to the Treasury of the United States. Assistants. Sec. 192. In addition to the clerk, the court may appoint an as- sistant clerk at a salary of two thousand dollars per annum, five sten- ographic clerks at a salary of one thousand six hundred dollars per annum each, one stenographic reporter at a salary of two thousand five hundred dollars per annum, and a messenger at a salary of eight hundred and forty dollars per annum, all payable in equal monthly in- stallments, and all of whom, including the clerk, shall hold office during the pleasure of and perform such duties as are assigned them by the court. Said reporter shall prepare and transmit to the Secretary of the Treasury once a week in time for publication in the Treasury Decisions copies of all decisions rendered to that date, by said court, and prepare and transmit, under the direction of said court, at least once a year, re- ports of said decisions rendered to that date, constituting a volume, which shall be printed by the Treasury Department in such numbers and dis- tributed or sold in such manner as the Secretary of the Treasury shall direct. Rooms in Public Buildings. Sec. 193. The marshal of said court for the District of Columbia and the marshals of the several districts in which said Court of Cus- toms Appeals may be held shall, under the direction of the Attorney General, and with his approval, provide such rooms in the public build- ings of the United States as may be necessary for said court : Provided, Federal Judicial Code 831 That in case proper rooms can not be provided in such buildings, then the said marshals, with the approval of the Attorney General, may, from time to time, lease such rooms as may be necessary for said court. Thd bailiffs and messengers of said court shall be allowed the same compensation for their respective services as are allowed for similar services in the existing district courts. In no case shall said marshals secure other rooms than those regularly occupied by existing district courts, or other public officers, except where such can not, by reason of actual occupancy or use, be occupied or used by said Court of Customs Appeals. General Powers. Sec. 194. The said Court of Customs Appeals shall be a court of record, with jurisdiction as in this chapter established and limited. It shall prescribe the form and style of its seal, and the form of its writs and other process and procedure, and exercise such powers conferred by law as may be conformable and necessary to the exercise of its juris- diction. It shall have power to establish all rules and regulations for the conduct of the business of the court, and as may be needful for the uniformity of decisions within its jurisdiction as conferred by law. It shall have power to review any decision or matter within its jurisdic- tion, and may affirm, modify, or reverse the same and remand the case with such orders as may seem to it proper in the premises, which shall be executed accordingly. Exclusive Jurisdiction in Certain Appeals. Sec. 195. That the Court of Customs Appeals established by this chapter shall exercise exclusive appellate jurisdiction to review by ap- peal, as herein provided, final decisions by a board of general appraisers in all cases as to the construction of the law and the facts respecting the classification of merchandise and the rate of duty imposed thereon under such classifications, and the fees and charges connected therewith, and all appealable questions as to the jurisdiction of said board, and all appealable questions as to the laws and regulations governing the col- lection of the customs revenues ; and the judgments and decrees of said Court of Customs Appeals shall be final in all such cases: Provided, however. That in any cases in which the judgment or decree of the Court of Customs Appeals is made final by the provisions of this title, it shall be competent for the Supreme Court, upon the petition of either party, filed within sixty days next after the issue by the Court of Customs Appeals of its mandate upon decision, in any case in which there is drawn in question the construction of the Constitution of the United States, or any part thereof, or of any treaty made pursuant thereto, or in any other case when the Attorney General of the United States shall, before the decision of the Court of Customs Appeals is rendered, file wath the court a certificate to the effect that the case is of such import- ance as to render expedient its review by the Supreme Court, to require, 832 Important Federal Laws by certiorari or otherwise, such case to be certified to the Supreme Court for its reiew and determination, with the same power and author- ity in the case as if it had been carried by appeal or writ of error to the Supreme Court : And provided further, That this Act shall not apply to any case involving only the construction of section one, or any por- tion thereof, of an Act entitled "An Act to provide revenue, equalize duties, and encourage the industries of the United States, and for other purposes," approved August fifth, nineteen hundred and nine, nor to any case involving the construction of section two of an Act entitled "An Act to promote reciprocal trade relations with the Dominion of Canada, and for other purposes," approved July twenty-sixth, nineteen hundred and eleven. (As amended August 22, 1914.) Appellate Jurisdiction of Other Courts Abolished, Sec. 196. After the organization of said court no appeal shall be taken or allowed from any Board of United States General Appraisers to any other court, and no appellate jurisdiction shall thereafter be exercised or allowed by any other courts in cases decided by said Board of United States General Appraisers ; but all appeals allowed by law from such Board of General Appraisers shall be subject to review only in the Court of Customs Appeals hereby established, according to the provisions of this chapter: Provided, That nothing in this chapter shall be deemed to deprive the Supreme Court of the United States of juris- diction to hear and determine all customs cases which have heretofore been certified to said court from thei United States circuit courts of appeals on applications for writs of certiorari or otherwise, nor to review by writ of certiorari any customs case heretofore decided or now pend- ing and hereafter decided by any circuit court of appeals, provided appli- cation for said writ be made within six months after August fifth, nine- teen hundred and nine : Provided further. That all customs cases decided by a circuit or district court of the United States or a court of a Terri- tory of the United States prior to said date above mentioned, and which have not been removed from said courts by appeal or writ of error, and all such cases theretofore submitted for decision in said courts and re- maining undecided may be reviewed on appeal at the instance of either party by the United States Court of Customs Appeals, provided such appeal be taken within one year from the date of the entry of the order, judgment, or decrees sought to be reviewed. Transfer of Pending Cases. Sec. 197. Immediately upon the organization of the Court of Cus- toms Appeals, all cases within the jurisdiction of that court pending and not submitted for decision in any of the United States circuit courts of appeals. United States circuit, territorial or district courts, shall, with the record and samples therein, be certified by said courts to said Court of Customs Appeals for further proceedings in accordance herewith : Provided, That where orders for the taking of further testimony before Federal Judicial Code 833 a referee have been made in any of such cases, the taking of such testi- mony shall be completed before such certification. Appeals from Board of General Appraisers. Sec. 198. If the importer, owner, consignee, or agent of any im- ported merchandise, or the collector or Secretary of the Treasury, shall be dissatisfied with the decision of the Board of General Appraisers as to the construction of the law and the facts respecting the classification of such merchandise and the rate of duty imposed thereon under such classification, or with any other appealable decision of said board, they, or either of them, may, within sixty days next after the entry of such decree or judgment, and not afterwards, apply to the Court of Customs Appeals for a review of the questions of law and fact involved in such decision: Provided, That in Alaska and in the insular and other outside possessions of the United States ninety days shall be allowed for making such application to the Court of Customs Appeals. Such application ehall be made by filing in the office of the clerk of said court a concise statement of errors of law and fact complained of ; and a copy of such statement shall be served on the collector, or on the importer, owner, consignee, or agent, as the case may be. Thereupon the court shall immediately order the Board of General Appraisers to transmit to said court the record and evidence taken by them, together with the certified statement of the facts involved in the case and their decision thereon; and all the evidence taken by and before said board shall be competent evidence before said Court of Customs Appeals. The decision of said Court of Customs Appeals shall be final, and such cause shall be re- manded to said Board of General Appraisers for further proceedings to be taken in pursuance of such determination. Calendar Hearing. Sec. 199. Immediately upon receipt of any record transmitted to said court for determination the clerk thereof shall place the same upon the calendar for hearing and submission; and such calendar shall be called and all cases thereupon submitted, except for good cause shown, at least once every sixty days : Provided, That such calendar need not be called during the months of July and August of any year. CHAPTER IX. The Commerce Court. The Commerce Court was abolished by Act of October 22, 1913, and its jurisdiction transferred to the District Courts. The following sections show the jurisdiction of the Commerce Court, transferred to the District Courts : Sec. 207. The Commerce Court shall have the jurisdiction pos- sessed by circuit courts of the United States and the judges thereof (53) 834 Important Federal Laws immediately prior to June eighteenth, nineteen hundred and ten, over all cases of the following kinds : First. All cases for the enforcement, otherwise than by adjudica- tion and collection of a forfeiture or penalty or by infliction of criminal punishment, of any order of the Interstate Commerce Commission other than for the payment of money. Second. Cases brought to enjoin, set aside, annul, or suspend in whole or in part any order of the Interstate Commerce Commission. Third. Such cases as by section three of the Act entitled "An Act to further regulate commerce with foreign nations and among the States," approved February nineteenth, nineteen hundred and three, are authorized to be maintained in a circuit court of the United States. Fourth. All such mandamus proceedings as under the provisions of section twenty or section twenty-three of the Act entitled "An Act to regulate commerce," approved February fourth, eighteen hundred and eighty-seven, as amended, are authorized to be maintained in a circuit court of the United States. Nothing contained in this chapter shall be construed as enlarging the jurisdiction now possessed by the circuit courts of the United States or the judges thereof, that is hereby transferred to and vested in the Commerce Court. The jurisdiction of the Commerce Court over cases of the foregoing classes shall be exclusive; but "this chapter shall not affect the jurisdic- tion possessed by any circuit or district court of the United States over cases or proceedings of a kind not within the above-enumerated classes. Suits to Enjoin Order of Commission. Sec. 208. Suits to enjoin, set aside, annul, or suspend any order of the Interstate Commerce Commission shall be brought in the Com- merce Court against the United States. The pendency of such suit shall not of itself stay or suspend the operation of the order of the Inter- state Commerce Commission ; but the Commerce Court, in its discretion, may restrain or suspend, in whole or in part, the operation of the com- mission's order pending the final hearing and determination of the suit. No order or injunction so restraining or suspending an order of the Interstate Commerce Commission shall be made by the Commerce Court otherwise than upon notice and after hearing, except that in cases where irreparable damage would otherwise ensue to the petitioner, said court, or a judge thereof may, on hearing after not less than three days' notice to the Interstate Commerce Commission and the Attorney General, allow a temporary stay or suspension in whole or in part of the operation of the order of the Interstate Commerce Commission for not more than sixty days from the date of the order of such court or judge, pending application to the court for its order or injunction, in which case the said order shall contain a specific finding, based vipon evidence sub- mitted to the judge making the order and identified by reference thereto, that such irreparable damage would result to the petitioner and specify- Federal Judicial Code 835 ing the nature of the damage. The court may, at the time of hearing such appHcation, upon a hke finding, continue the temporary stay or suspension in whole or in part until its decision upon the application. Filing Petition for Relief. Sec. 209. The jurisdiction of the Commerce Court shall he invoked by filingin the office of the clerk of the court a written petition setting forth briefly and succinctly the facts constituting the petitioner's cause of action, and specifying the relief sought. A copy of such petition shall be forthwith served by the marshal or a deputy marshal of the Commerce Court or by the proper United States marshal or deputy marshal upon every defendant therein named, and when the United States is a party defendant, the service shall be made by filing a copy of said petition in the ofifice of the Secretary of the Interstate Com^ merce Commission and in the Department of Justice. Within thirty days after the petition is served, unless that time is extended by order of the court or a judge thereof, an answer to the petition shall "be filed in the clerk's office, and a copy thereof mailed to the petitioner's attorney, which answer shall briefly and categorically respond to the allegations of the petition. No replication need be filed to the answer, and objec- tions to the sufficiency of the petition or answer as not setting forth a cause of action or defense must be taken at the final hearing or by motion to dismiss the petition based on said grounds, which motion may be made at any time before answer is filed. In case no answer shall be filed as provided herein the petitioner may apply to the court on notice for such relief as may be proper upon the facts alleged in the petition. The court may, by rule, prescribe the method of taking evi- dence in cases pending in said court ; and may prescribe that the evi- dence be taken before a single judge of the court, with power, to rule upon the admission of evidence. Except as may be otherwise provided in this chapter, or by rule of the court, the practice and procedure in the Commerce Court shall conform as nearly as may be to that in like cases in a district court of the United States. Appeals to Supreme Court. Sec. 210. A final judgment or decree of the Commerce Court may be reviewed by the Supreme Court of the United States if appeal to the Supreme Court be taken by an aggrieved party within sixty days after the entry of said final judgment or decree. Such appeal may be taken in like manner as appeals from a district court of the United States to the Supreme Court, and the Commerce Court may direct the original record to be transmitted on appeal instead of a transcript there- of. The Supreme Court may affirm, reverse, or modify the final judg- ment or decree of the Commerce Court as the case may require. Appeal to the Supreme Court, however, shall in no case supersede or stay the judgment or decree of the Commerce Court appealed from, unless the Supreme Court or a justice thereof shall so direct; and appellant shall give bond in such form and of such amount as the Supreme Court, 836 Important Federal Laws or the justice of that court allowing the stay, may require. An appeal may also be taken to the Supreme Court of the United States from an interlocutory order or decree of the Commerce Court granting or con- tinuing an injunction restraining the enforcement of an order of the Interstate Commerce Commission, provided such appeal be taken within thirty days from the entry of such order or decree. Appeals to the Supreme Court under this section shall have priority in hearing and determination over all other causes except criminal causes in that court. Proceeding in Name of United States. Sec. 211. All cases and proceedings in the Commerce Court which but for this chapter would be brought by or against the Interstate Com- merce Commission, shall be brought by or against the United States, and the United States may intervene in any case or proceeding in the Commerce Court whenever, though it has not been made a party, public interests are involved. Attorney General, Duties Of. Sec. 212. The Attorney General shall have charge and control of the interests of the Government in all cases and proceedings in the Commerce Court, and in the Supreme Court of the United States upon appeal from the Commerce Court. If in his opinion the public interest requires it, he may retain and employ in the name of the United States, within the appropriations from time to time made by the Congress for such purposes, such special attorneys and counselors at law as he may think necessary to assist in the discharge of any of the duties incumbent upon him and his subordinate attorneys ; and the Attorney General shall stipulate with such special attorneys and counsel the amount of their compensation, which shall not be in excess of the sums appro- priated therefor by Congress for such purposes, and shall have super- vision of their action : Provided, That the Interstate Commerce Com- mission and any party or parties in interest to the proceeding before the commission, in which an order or requirement is made, may appear as parties thereto of their own motion and as of right, and be repre- sented by their counsel, in any suit wherein is involved the validity of such order or requirement or any part thereof, and the interest of such party; and the court wherein is pending such suit may make all such rules and orders as to such appearances and representations, the number of counsel, and all matters of procedure, and otherwise, as to subserve the ends of justice and speed the determination of such suits : Provided further, That communities, associations, corporations, firms, and indi- viduals who are interested in the controversy or question before the Interstate Commerce Commission, or in any suit which may be brought by any one under the provisions of this chapter, or the Acts of which it is amendatorv or which are amendatory of it, relating to action of the Interstate Commerce Commission, may intervene in said suit or proceedings at any time after the institution thereof ; and the Attorney General shall not dispose of or discontinue said suit or proceeding over Federal Judicial Code 837 the objection of such party or intervenor aforesaid, but said intervener or interveners may prosecute, defend, or continue said suit or proceed- ing unaffected by the action or non-action of the Attorney General therein. Right of Complainants to be Made Parties. Sec. 213. Complainants before the Interstate Commerce Commis- sion interested in a case shall have the right to appear and be made parties to the case and be represented before the courts by counsel, under such regulations as are now permitted in similar circumstances under the rules and practice of equity courts of the United States. DISTRICT COURT JURISDICTION ACT. Act of October 22, 1913. An Act making appropriations to supply urgent deficiencies in appropriations for the fiscal year nineteen hundred and thirteen, and for other purposes. Commerce Court Abolished — Jurisdiction in District Courts. The Commerce Court, created and estabUshed by the Act en- titled "An Act to create a Commerce Court and to amend the Act entitled 'An Act to regulate commerce,' approved February fourth, eighteen hundred and eighty-seven, as heretofore amended, and for other purposes," approved June eighteenth, nineteen hundred and ten, is abolished from and after December thirty-first, nineteen hundred and thirteen, and the jurisdiction vested in said Commerce Court by said Act is transferred to and vested in the several district courts of the United States, and all Acts or parts of Acts in so far as they relate to the establishment of the Commerce Court are repealed. Nothing herein contained shall be deemed to affect the tenure of any of the judges now acting as circuit judges by appointment under the terms of said Act, but such judges shall continue to act under assignment, as in the said Act provided, as judges of the district courts and circuit courts of ap- peals; and in the event of and on the death, resignation, or removal from ofifice of any of such judges, his office is hereby abolished and no suc- cessor to him shall be appointed. The venue of any suit hereafter brought to enforce, suspend, or set aside, in w^hole or in part, any order of the Interstate Commerce Com- mission shall be in the judicial district wherein is the residence of the party or anv of the parties upon whose petition the order was made, except that where the order does not relate to transportation or is not made upon the petition of any party the venue shall be in the district v/here the matter complained of in the petition before the Commission arises, and except that where the order does not relate either to trans- portation or to a matter so complained of before the Commission the matter covered by the order shall be deemed to arise in the district where one of the petitioners in court has either its principal office or its prin- cipal operating office. In case such transportation relates to a through 838 Important Federal Laws shipment the term "destination" shall be construed as meaning final destination of such shipment. The procedure in the district courts in respect to cases of which jurisdiction is conferred upon them by this Act shall be the same as that heretofore prevailing in the Commerce Court. The orders, writs, and processes of the district courts may in these cases run, be served, and be returnable anywhere in the United States ; and the right of appeal from the district courts in such cases shall be the same as the right of appeal heretofore prevailing under existing law from the Commerce Court. No interlocutory injunction suspending or restraining the enforcement, operation, or execution of, or setting aside, in whole or in part, any order made or entered by the Interstate Commerce Commission shall be issued or granted by any district court of the United States, or by any judge thereof, or by any circuit judge acting as district judge, unless the application for the same shall be presented to a circuit or district judge, and shall be heard and determined by three judges, of whom at least one shall be a circuit judge, and unless a majority of said three judges shall concur in granting such application. \\'hen such applica- tion as aforesaid is presented to a judge, he shall mimediatelv call to his assistance to hear and determine the application two other judges. Said application shall not be heard or determined before at least five days' notice of the hearing has been given to the Interstate Commerce Com- mission, to the Attorney General of the United States, and to such other persons as may be defendants in the suit: Provided, That in cases where irreparable damage would otherwise ensue to the petitioner, a majority of said three judges concurring, may, on hearing, after not less than three days' notice to the Interstate Commerce Commission and the Attorney General, allow a temporary stay or suspension, in whole or in part, of the operation of the order of the Interstate Commerce Com- mission for not more than sixty days from the date of the order of said judges pending the application for the order or injunction, in which case the said order shall contain a specific finding, based upon evidence sub- mitted to the judges making the order and identified by reference thereto, that such irreparable damage would result to the petitioner and specify- ing the nature of the damage. The said judges may, at the time of hearing such application, upon a like finding, continue the temporary stay or suspension in whole or in part until decision upon the applica- tion. The hearing upon such application for an interlocutorv injunction shall be given precedence and shall be in every way expedited and be assigned for a hearing at the earliest practicable day after the expiration of the notice hereinbefore provided for. An appeal mav be taken direct to the Supreme Court of the United States from the order granting or denying, after notice and hearing, an interlocutory injunction, in such case if such appeal be taken within thirty days after the order, in respect to which complaint is made, is granted or refused ; and upon the final Federal Judicial Code 839 hearing of any suit brought to suspend or set aside, in whole or in part, any order of said Commission the same requirement as to judges and the same procedure as to expedition and appeal shall apply. A final judgment or decree of the district court may be reviewed by the Supreme Court of the United States if appeal to the Supreme Court be taken by an aggrieved party within sixty days after the entry of such final judgment or decree, and such appeals may be taken in like manner as appeals are taken under existing law in equity cases. And in such case the notice rec|uired shall be served upon the defendants in the case and upon the attorney general of the State. All cases pending in the Com- merce Court at the date of the passage of this Act shall be deemed pend- ing in and be transferred forthwith to said district courts except cases which mav previously have been submitted to that court for final decree and the latter to be transferred to the district courts if not decided by the Commerce Court before December first, nineteen hundred and thirteen, and all cases wherein injunctions or other orders or decrees, mandatory or otherwise, have been directed or entered prior to the abolition of the said court shall be transferred forthwith to said district courts, which shall have jurisdiction to proceed therewith and to enforce said injunc- tions, orders, or decrees. Each of said cases and all the records, papers, and proceedings shall be transferred to the district court wherein it might have been filed at the time it was filed in the Commerce Court if this Act had then been in eft'ect ; and if it might have been filed in any one of two or more district courts it shall be transferred to that one of said district courts which may be designated by the petitioner or petitioners in said case, or, upon failure of said petitioners to act in the premises within thirty days after the passage of this Act, to such one of said district courts as may be designated by the judges of the Com- merce Court. The judges of the Commerce Court shall have authority, and are hereby directed, to make any and all orders and to take any other action necessary to transfer as aforesaid the cases and all the records, papers and proceedings then pending in the Commerce Court to said district courts. All administrative books, dockets, files, and all papers of the Commerce Court not transferred as part of the record of any particular case shall be lodged in the Department of Justice. All furniture, carpets, and other property of the Commerce Court is turned over to the Department of Justice and the Attorney General is authorized to supply such portion thereof as in his judgment may be proper and necessary to the United States Board of Mediation and Conciliation. Any case hereafter remanded from the Supreme Court which, but for the passage of this Act, would have been remanded to the Com- merce Court, shall be remanded to a district court, designated by the Supreme Court, wherein it might have been instituted at the time it was instituted in the Commerce Court if this Act had then been in effect, and thereafter such district court shall take all necessary and proper pro- 840 Important Federal Laws ceedings in such case in accordance with law and such mandate, order, or decree therein as may be made by said Supreme Court. All laws or parts of laws inconsistent with the foregoing provisions relating to the Commerce Court, are repealed. CHAPTER X. The Supreme Court. Sec. 215. The Supreme Court of the United States shall consist of a Chief Justice of the United States and eight associate justices, any six of whom shall constitute a quorum. Procedure. Sec. 216. The associate justices shall have precedence according to the dates of their commissions, or, when the commissions of two or more of them bear the same date, according to their ages. Vacancy in Office of Chief Justice. Sec. 217. In case of a vacancy in the office of Chief Justice, or of his inability to perform the duties and powers of his office, they shall devolve upon the associate justice who is first in precedence, until such disability is removed, or another Chief Justice is appointed and duly ciualified. This provision shall apply to every associate justice who succeeds to the office of Chief Justice. Salaries. Sec. 218. The Chief Justice of the Supreme Court of the United States shall receive the sum of fifteen thousand dollars a year, and the justices thereof shall receive the sum of fourteen thousand five hun- dred dollars a year each, to be paid monthly. Officers. Sec. 219. The Supreme Court shall have power to appoint a clerk and a marshal for said court, and a reporter of its decisions. Clerk— Bond. Sec. 220. The clerk of the Supreme Court shall, before he enters upon the execution of his office, give bond, with sufficient sureties, to be approved by the court, to the United States, in the sum of not less than five thousand and not more than twenty thousand dollars, to be determined and regulated bv the Attorney (leneral, faithfully to dis- charge the duties of his office, and seasonably to record the decrees, judgments, and determinations of the court. The Supreme Court may at any time, upon the motion of the Attorney General, to be made upon thirty days' notice, require a new bond, or a bond for an increased amount within the limits above prescribed; and the failure of the clerk to execute the same shall vacate his office. All bonds given by the clerk shall, after approval, be recorded in his office, and copies thereof from the records, certified by the clerk under seal of the court, shall be Federal Judicial Code 841 competent evidence in any court. The original bonds shall be filed in the Department of Justice. Deputy Clerks. Sec. 221. One or more deputies of the clerk of the Supreme Court may be appointed by the court on the application of the clerk, and may be removed at the pleasure of the court. In case of the death of the clerk, his deputy or deputies shall, unless removed, continue in ofifice and perform the duties of the clerk in his name until a clerk is appointed and qualified; and for the defaults or misfeasances in office of any such deputy, whether in the lifetime of the clerk or after his death, the clerk, and his estate, and the sureties on his official bond shall be liable ; and his executor or administrator shall have such remedy for any such defaults or misfeasances committed after his death as the clerk would be entitled to if the same had occurred in his lifetime. Old Records. Sec. 222. The records and proceedings of the court of appeals, appointed previous to the adoption of the present Constitution, shall be kept in the office of the clerk of the Supreme Court, who shall give copies thereof to any person requiring and paying for them, in the manner provided by law for giving copies of the records and proceed- ings of the Supreme Court ; and such copies shall have like faith and credit with all other proceedings of said court. Fees. Sec. 223. The Supreme Court is authorized and empowered to prepare the tables of fees to be charged by the clerk thereof. Marshal and Assistants. Sec. 224. The marshal is entitled to receive a salary at the rate of four thousand five hundred dollars a year. He shall attend the court at its sessions ; shall serve and execute all process and orders issuing from it, or made by the Chief Justice or an associate justice in pur- suance of law ; and shall take charge of all property of the United States used by the court or its members. With the approval of the Chief Justice" he may appoint assistants and messengers to attend the court, with the compensation allowed to officers of the House of Represen- tatives of similar grade. Reporter. Sec. 225. The reporter shall cause the decisions of the Supreme Court to be printed and published within eight months after they are made ; and within the same time he shall deliver three hundred copies of the volumes of said reports to the Attorney General. The reporter shall, in any year when he is so directed by the court, cause to be printed and published a second volume of said decisions, of which he shall deliver a like number of copies in like manner and time. Salary of Reporter. Sec. 226. The reporter shall be entitled to receive from the Treas- 842 Important Federal Laws ury an annual salary of four thousand five hundred dollars when his report of said decisions constitutes one volume, and an additional sum of one thousand two hundred dollars when, by direction of the court, he causes to be printed and published in any year a second volume ; and said reporter shall be annually entitled to clerk hire in the sum of one thousand two hundred dollars, and to office rent, stationery, and contingent expenses in the sum of six hundred dollars : Provided, That the volumes of the decisions of the court heretofore published shall be furnished by the reporter to the public at a sum not exceeding two dollars per volume, and those hereafter published at a sum not exceed- ing one dollar and seventy-five cents per volume ; and the number of volumes now required to be delivered to the Attorney General shall be furnished by the reporter without any charge therefor. Said salary and compensation, respectively, shall be paid only when he causes such decisions to be printed, published, and delivered within the time and in the manner prescribed by law, and upon the condition that the volumes of said reports shall be sold by him to the public for a price not exceed- ing one dollar and seventy-five cents a volume. Supreme Court Reports. Sec. 227. The Attorney General shall distribute copies of the Su- preme Court reports, as follows: To the President, the justices of the Supreme Court, the judges of the Commerce Court, the judges of the Court of Customs Appeals, the judges of the circuit courts of appeals, the judges of the district courts, the judges of the Court of Claims, the judges of the Court of Appeals and of the Supreme Court of the District of Columbia, the judges of the several Territorial courts, the Secretary of State, the Secretary of the Treasury, the Secretary of War, the Secretary of the Navy, the Secretary of the Interior, the Post- master General, the Attorney General, the Secretary of Agriculture, the Secretary of Commerce and Labor, the Solicitor General, the Assistant to the Attorney General, each Assistant Attorney General, each United States district attorney, each Assistant Secretary of each Executive Department, the Assistant Postmasters General, the Secretary of the Senate for the use of the Senate, the Clerk of the House of Repre- sentatives for the use of the House of Representatives, the Governors of the Territories, the Solicitor for the Department of State, the Treas- urer of the United States, the Solicitor of the Treasur}% the Register of the Treasury, the Comptroller of the Treasury, the Comptroller of the Currency, the Commissioner of Internal Revenue, the Director of the Mint, each of the six Auditors in the Treasury Department, the Judge Advocate General. War Department, the Paymaster General, War Department, the Judge Advocate General, Navy Department, the Commissioner of Indian Aftairs, the Commissioner of Pensions, the Commissioner of the General Land Office, the Commissioner of Pat- ents, the Commissioner of Education, the Commissioner of Labor, the Commissioner of Navigation, the Commissioner of Corporations, the Federal Judicial Code 843 Commissioner General of Immigration, the Chief of the Bureau of Manufactures, the Director of the Geological Survey, the Director of the Census, the Forester, Department of Agriculture, the Purchasing Agent, Post Office Department, the Interstate Commerce Commission, the Clerk of the Supreme Court of the United States, the Marshal of the Supreme Court of the United States, the Attorney for the District of Columbia, the Naval Academy at Annapolis, the Military Academy at West Point, and the heads of such other executive offices as may be provided by law, of equal grade with any of said offices, each one copy; to the Law Library of the Supreme Court, twenty-five copies ; to the Law Library of the Department of the Interior, two copies ; to the Law Library of the Department of Justice, two copies ; to the Secretary of the Senate for the use of the committees of the Senate, twenty-five copies ; to the Clerk of the House of Representatives for the use of the committees of the House, thirty copies ; to the Marshal of the Su- preme Court of the United States, as custodian of the public property used by the court, for the use of the justices thereof in the conference room, robing room, and court room, three copies, to the Secretary of War for the use of the proper courts and officers of the Philippine Islands and for the headquarters of military departments in the United States, twelve copies ; and to each of the places where district courts of the United States are now holden, including Hawaii, and Porto Rico, one copy. He shall also distribute one complete set of said reports, and one set of the digests thereof, to such executive officers as are en- titled to receive said reports under this section and have not already received them, to each United States judge and to each United States district attorney who has not received a set, to each of the places where district courts are now held to which said reports have not been dis- tributed, and to each of the places at which a district court may here- after be held, the edition of said reports and digests to be selected by the judge or officer receiving them. No distribution of reports and digests under this section shall be made to any place where the court is held in a building not owned by the United States, unless there be at such place a United States officer to whose responsible custody they can be committed. The clerks of said courts (except the Supreme Court) shall in all cases keep said reports and digest for the use of the courts and of the officers thereof. Such reports and digest shall remain the property of the United States, and shall be preserved by the officers above named and by them turned over to their successors in office. Maximum Price. Sec. 228. The publishers of the decisions of the Supreme Court shall deliver to the Attorney General, in addition to the three hundred copies delivered by the Reporter, such number of copies of each report heretofore published, as the Attorney General may require, for which he shall pay not more than two dollars per volume, and such number 844 Important Federal Laws of copies of each report hereafter pubHshed as he may require, for which he shall pay not more than one dollar and seventy-five cents per volume. The Attorney General shall include in his annual estimates submitted to Congress, an estimate for the current volumes of such reports, and also for the additional sets of reports and digests required for distribution under the section last preceding. Federal Reporter. Sec. 229. The Attorney General is authorized to procure complete sets of the Federal Reporter or, in his discretion, other publication containing the decisions of the circuit courts of appeals, circuit courts, and district courts, and digests thereof, and also future volumes of the same as issued, and distribute a copy of each such reports and digests to each place where a circuit court of appeals, or a district court, is now or may hereafter regularly be held, and to the Supreme Court of the United States, the Court of Claims, the Court of Customs Appeals, the Commerce Court, the Court of Appeals and the Supreme Court of the District of Columbia, the Attorney General, the Solicitor General, the Solicitor of the Treasury, the Assistant Attorney General for the Department of the Interior, the Commissioner of Patents, and the Interstate Commerce Commission ; and to the Secretary of the Senate, for the use of the Senate, and to the Clerk of the House of Representatives, for the use of the House of Representatives, not more than three sets each. Whenever any such court room, office, or officer shall have a partial or complete set of any such reports, or digests, already purchased or owned by the United States, the Attorney General shall distribute to such court room, office, or officer, only sufficient vol- umes to make a complete set thereof. No distribution of reports or digests under this section shall be made to any place where the court is held in a building not owned by the United States, unless there be at such place a United States officer to whose responsible custody they can be committed. The clerks of the courts (except the Supreme Court) to which the reports and digests are distributed under this section, shall keep such reports and digests for the use of the courts and the officers thereof. _ All reports and digests distributed under the provisions of this section shall be and remain the property of the United States and, before distribution, shall be plainly marked on their covers with the words "The Property of the United States," and shall be transmitted by the officers receiving them to their successors in office. Not to exceed two dollars per volume shall be paid for the back and current volumes of the Federal Reporter or other publication purchased under the provisions of this section, and not to exceed five dollars per volume for the digest, the said money to be disbursed under the direction of the Attorney General ; and the Attorney General shall include in his annual estimates submitted to Congress, an estimate for the back and current volumes of such reports and digests, the distribution of which is pro- vided for in this section. Federal Judicial Code 845 Terms. Sec. 230. The Supreme Court shall hold at the seat of govern- ment, one term annually, commencing on the first Monday in October, and such adjourned or special terms as it may find necessary for the dispatch of business. (As amended September 6, 1916.) Lack of Quorum. Sec. 231. If, at any session of the Supreme Court, a quorum does not attend on the day appointed for holding it, the justices who do attend may adjourn the court from day to day for twenty days after said appointed time, unless there be sooner a quorum. If a quorum does not attend within said twenty days, the business of the court shall be continued over till the next appointed session; and if, during a term, after a quorum has assembled, less than that number attend on any day, the justices attending may adjourn the court from day to day until there is a quorum, or may adjourn without day. Orders by Less Than a Quorum. Sec. 232. The justices attending at any term, when less than a quorum is present, may, within the twenty days mentioned in the pre- ceding section, make all necessary orders touching any suit, proceed- ing, or process, depending in or returned to the court, preparatory to the hearing, trial, or decision thereof. Suits Against Ambassadors. Sec. 233. The Supreme Court shall have exclusive jurisdiction of all controversies of a civil nature where a State is a party, except between a State and its citizens, or between a State and citizens of other States, or aliens, in which latter cases it shall have original, but not exclusive, jurisdiction. And it shall have exclusively all such juris- diction of suits or proceedings against ambassadors or other public ministers, or their domestics or domestic servants, as a court of law can have consistently with the law of nations ; and original, but not exclusive, jurisdiction, of all suits brought by ambassadors, or other public ministers, or in which a consul or vice consul is a party. Writs of Prohibition and Mandamus. Sec. 234. The Supreme Court shall have power to issue writs of prohibition to the district courts, when proceeding as courts of admi- ralty and maritime jurisdiction ; and writs of mandamus, in cases war- ranted by the principles and usages of law, to any courts appointed under the authority of the United States, or to persons holding office under the authority of the United States, where a State, or an ambas- sador, or other public minister, or a consul, or vice consul is a party. Trial of Facts by Jury. Sec. 235. The trial of issues of fact in the Supreme Court, in all actions at law against citizens of the United States, shall be by jury. 846 Important Federal Laws Appellate Jurisdiction. Sec. 236. The Supreme Court shall have appellate jurisdiction in the cases hereinafter specially provided for. Writs of Error from State Courts. Sec. 237. A final judgment or decree in any suit in the highest court of a State in which a decision in the suit could be had, where is drawn in question the validity of a treaty or statute of, or an author- ity exercised under, the United States, and the decision is against their validity; or where is drawn in question the validity of a statute of, or an authority exercised under any State, on the ground of their being repugnant to the Constitution, treaties, or laws of the United States, and the decision is in favor of their validity, may be re-examined and reversed or affirmed in the Supreme Court upon a writ of error. The writ shall have the same efTect as if the judgment or decree complained of had been rendered or passed in a court of the United States. The Suj^reme Court may reverse, modify, or affirm the judgment or decree of such State court, and may, in its discretion, award execution or remand the same to the court from which it was removed by the writ. It shall be competent for the Supreme Court by certiorari or other- wise, to require that there be certified to it for review and determina- tion with the same power and authority and with like effect as if brought up by writ of error, any cause wherein a final judgment or decree has been rendered or passed by the highest court of a state in which a decision could be had. where is drawn in question the validity of a treatv or statute of, or an authority exercised under, the United States, and the decision is in favor of their validity ; or where is drawn in question the validity of a statute of, or an authority exercised under, any state, on the ground of their being repugnant to the Constitution, treaties, or laws of the United States, and the decision is against their validity ; or where any title, right, privilege, or immunity is claimed under the Constitution, or any treaty or statute of, or commission held or authority exercised under the United States, and the decision is either in favor of or against the title, right, privilege or immunity especialh'' set up or claimed, by either party, under such Constitution, treaty, statute, commission, or authority. (As amended September 6, 1916.) Appeals from District Court. Sec. 238. Appeals and writs of error may be taken from the district courts, including the United States district court for Hawaii and the United States district court for Porto Rico, direct to the Supreme Court in the following cases : In any case in which the juris- diction of the court is in issue, in which case the question of jurisdic- tion alone shall be certified to the Supreme Court from the court below for decision ; from the final sentences and decrees in prize causes ; in any case that involves the construction or application of the Constitu- tion of the United States ; in any case in which the constitutionality of any law of the United States, or the validity or construction of any Federal Judicial Code 847 treaty made under its authority is drawn in question ; and in any case in which the constitution or law of a State is claimed to be in contra- vention of the Constitution of the United States. (As amended January 28, 1915.) Cases Submitted for Instruction. Sec. 239. In any case within its appellate jurisdiction, as defined in section one hundred and twenty-eight, the circuit court of appeals at any time may certify to the Supreme Court of the United States any questions or propositions of law concerning which it desires the instruc- tion of that court for its proper decision; and thereupon the Supreme Court may either give its instruction on the questions and propositions certified to it, which shall be binding upon the circuit court of appeals in such case, or it may require that the whole record and cause be sent up to it for its consideration, and thereupon shall decide the whole matter in controversy in the same manner as if it had been brought there for review by writ of error or appeal. Certiorari to Circuit Court of Appeals- Sec. 240. In any case, civil or criminal, in which the judgment or decree of the circuit court of appeals is made final by the provisions of this Title, it shall be competent for the Supreme Court to require, by certiorari or otherwise, upon the petition of any party thereto, any such case to be certified to the Supreme Court for its review and deter- mination, with the same power and authority in the case as if it had been carried by appeal or writ of error to the Supreme Court. Writs and Appeals from Circuit Court of Appeals. Sec. 241. In any case in which the judgment or decree of the cir- cuit court of appeals is not made final by the provisions of this Title, there shall be of right an appeal or writ of error to the Supreme Court of the United States where the matter in controversy shall exceed one thousand dollars, besides costs. Appeals from Court of Claims. Sec. 242. An appeal to the Supreme Court shall be allowed on behalf of the United States, from all judgments of the Court of Claims adverse to the United States, and on behalf of the plaintiff in any case w^here the amount in controversy exceeds three thousand dollars, or where his claim is forfeited to the United States by the judgment of said court as provided in section one hundred and seventy-two. Time of Appeal. Sec. 243. All appeals from the Court of Claims shall be taken within ninety days after the judgment is rendered, and shall be allowed under such regulations as the Supreme Court may direct. (Supplemental Section. Acts of 1915.) Appeals in Bankruptcy. Sec. 4. That judgments and decrees of the circuit courts of ap- peals in all proceedings and causes arising under "An Act to establish 848 Important Federal Laws a uniform system of bankruptcy throughout the United States," ap- proved July first, eighteen hundred and ninety-eight, and in all contro- versies arising in such proceedings and causes ; also, in all causes arising under "An Act relating to the liability of common carriers by railroad to their employees in certain cases," approved April twenty-second, nineteen hundred and eight; also, in all causes arising under "An Act to promote the safety of employees and travelers upon railroads by limiting the hours of service of employees thereon," approved March fourth, nineteen hundred and seven ; also, in all causes arising under "An Act to promote the safety of employees and travelers upon rail- roads by compelling common carriers engaged in interstate commerce to equip their cars with automatic couplers and continuous brakes and their locomotives with driving-wheel brakes, and for other purposes," approved March second, eighteen hundred and ninety-three; and, also, in all causes arising under any amendment or supplement to any one of the aforementioned Acts which has been heretofore or may here- after be enacted, shall be final, save only that it shall be competent for the Supreme Court to require by certiorari, upon the petition of any party thereto, that the proceeding, case, or controversy be certified to it for review and determination, with the same power and authority and with like effect as if taken to that court by appeal or writ of error. (As amended, 1916.) (Supplemental Sections. Acts of 1915.) Jurisdiction in Certain Railroad Cases. Sec. 5. No court of the United States shall have jurisdiction of any action or suit by or against any railroad company upon the ground that said railroad company was incorporated under an Act of Con- gress. Not to Affect Pending Cases. Sec. 6. That this Act shall not afifect cases now pending in the Supreme Court of the United States or cases in which writs of error or appeals have been allowed at the date of its approval. And nothing in this Act shall be deemed to repeal, amend, or modify the provisions of an Act entitled "An Act providing for writs of error in certain in- stances in criminal cases," approved March second, nineteen hundred and seven. (Supplemental Sections. Acts of 1916.) Sec. 4. That no court having power to review a judgment or decree rendered or passed by another shall dismiss a writ of error solely because an appeal should have been taken, or dismiss an appeal solely because a writ of error should have been sued out, but when such mis- take or error occurs it shall disregard the samd and take the action which would be appropriate if the proper appellate procedure had been followed. Sec. 5. That no judgment or decree rendered or passed by the Federal Judicial Code 849 Supreme Court of the Philippine Islands more than sixty days after the approval of this Act shall he reviewed by the Supreme Court upon writ of error or appeal ; but it shall be competent for the Supreme Court, by certiorari or otherwise, to require that there be certified to it for review and determination, with the same power and authority and with like effect as if brought up by writ of error or appeal, any cause wherein, after such sixty days, the Supreme Court of the Phil- ippine Islands may render or pass a judgment or decree which would be subject to review under existing laws. Sec. 6. That no writ of error, appeal, or writ or certiorari in- tended to bring up any cause for review by the Supreme Court shall be allowed or entertained unless duly applied for wnthin three months after entry of the judgment or decree complained of: Provided, That writs of certiorari addressed to the Supreme Court of the Philippine Islands may be granted if application therefor be made within six months. Sec. 7. That this Act shall take effect thirty days after its ap- proval, but it shall not apply to nor affect any writ of error, appeal, or writ of certiorari theretofore duly applied for. The right of review under existing laws in respect of judgments and decrees entered before this Act takes effect shall remain unaffected for the period of six months thereafter, but at the end of that time such right shall cease. Section 244 repealed, i\ct of January 28, 1915. Appeals — Territories. Sec. 245. Writs of error and appeals from the final judgments and decrees of the supreme courts of the Territories of Arizona and New Mexico may be taken and prosecuted to the Supreme Court of the United States in any case w4ierein is involved the validity of any copyright, or in which is drawn in question the validity of a treaty or statute of. or authority exercised under, the United States, without regard to the sum or value of the matter in dispute ; and in all other cases in which the sum or value of the matter in dispute, exclusive of costs, to be ascertained by the oath of either party or of other com- petent witnesses, exceeds the sum or value of five thousand dollars. Appeals — Hawaii and Porto Rico. Sec. 246. Writs of error and appeals from the final judgments and decrees of the Supreme Court of the Territory of Hawaii and of the Supreme Court of Porto Rico may be taken and prosecuted to the Supreme Court of the United States within the same time, in the same manner, under the same regulations, and in the same classes of cases, in which writs of error and appeals from the final judgments and de- crees of the highest court of a State in which a decision in the suit could be had, may be taken and prosecuted to the Supreme Court of the United States under the provisions of section two hundred and thirty-seven, and in all other cases, civil or criminal, in the Supreme Court of the Territory of JJawaii or the Supreme Court of Porto Rico, (54) 850 Important Federal Laws it shall be competent for the Supreme Court of the United States to require by certiorari, upon the petition of any party thereto, that the case be certified to it, after final judgment or decree, for review and determination, with the same power and authority as if taken to that court by appeal or writ of error ; but certiorari shall not be allowed in any such case unless the petition therefor is presented to the Supreme Court of the United States within six months from the date of such judgment or decree. Writs of error and appeals from the final judg- ments and decrees of the supreme courts of the Territory of Hawaii and of Porto Rico, wherein the amount involved, exclusive of costs, to be ascertained by the oath of either party or of other competent wit- nesses, exceeds the value of $5,CKX), may be taken and prosecuted in the circuit courts of appeals. (As amended January 28, 1915.) Appeals — Alaska. Sec. 247. Appeals and writs of error may be taken and prosecuted from final judgments and decrees of the district court for the district of Alaska or for any division thereof, direct to the Supreme Court of the United States, in the following cases : In prize cases ; and in all cases which involve the construction or application of the Constitu- tion of the United States, or in which the constitutionality of any law of the United States or the validity or construction of any treaty made under its authority is drawn in question, or in which the constitution or law of a State is claimed to be in contravention of the Constitution of the United States. Such writs of error and appeal shall be taken within the same time, in the same manner, and under the same regula- tions as writs of error and appeals are taken from the district courts to the Supreme Court. Review of Philippine Cases. Sec. 248. The Supreme Court of the United States shall have jurisdiction to review, revise, reverse, modify, or affirm the final judg- ments and decrees of the supreme court of the Philippine Islands in all actions, cases, causes, and proceedings now pending therein or here- after determined thereby, in which the Constitution or any statute, treaty, title, right, or privilege of the United States is involved, or in causes in which the value in controversy exceeds twenty-five thousand dollars, or in which the title or possession of real estate exceeding in value the sum of twenty-five thousand dollars, to be ascertained bv the oath of either party or of other competent witnesses, is involved or brought in question; and such final judgments or decrees may and can be reviewed, revised, reversed, modified, or affirmed by said Supreme Court on appeal or writ of error by the party aggrieved, within the same time, in the same manner, under the same regulations, and by the same procedure, as far as applicable, as the final judgments and decrees of the district courts of the United States. Federal Judicial Code 851 When Territory Becomes State. Sec. 249. In all cases where the judgment or decree of any court of a Territory might be reviewed by the Supreme Court on writ of error or appeal, such writ of error or appeal may be taken, within the time and in the manner provided by law, notwithstanding such Terri- tory has, after such judgment or decree, been admitted as a State; and the Supreme Court shall direct the mandate to such court as the nature of the writ of error or appeal requires. Appeal from District of Columbia, Sec. 250. Any final judgment or decree of the court of appeals of the District of Columbia may be re-examined and affirmed, reversed, or modified by the Supreme Court of the United States, upon writ of error or appeal, in the following cases : First. In cases in which the jurisdiction of the trial court is in issue ; but when any such case is not otherwise reviewable in said Supreme Court, then the question of jurisdiction alone shall be certi- fied to said Supreme Court for decision. Second. In prize cases. Third. In cases involving the construction or application of the Constitution of the United States, or the constitutionality of any law of the United States, or the validity or construction of any treaty made under its authority. Fourth. In cases in which the constitution, or any law of a State, is claimed to be in contravention of the Constitution of the United States. Fifth. In cases in which the validity of any authority exercised under the United States, or the existence or scope of any power or duty of an officer of the United States is drawn in question. Sixth. In cases in which the construction of any law of the United States is drawn in question by the defendant. Except as provided in the next succeeding section, the judgments and decrees of said court of appeals shall be final in all cases arising under the patent laws, the copyright laws, the revenue laws, the crim- inal laws, and in admiralty cases ; and, except as provided in the next succeeding section, the judgments and decrees of said court of appeals shall be final in all cases not reviewable as hereinbefore provided. Writs of error and appeals shall be taken within the same time, in the same manner, and under the same regulations as writs of error and appeals are taken from the circuit courts of appeals to the Supreme Court of the United States. Certiorari in Certain Cases in District of Columbia. Sec. 251. In any case in which the judgment or decree of said court of appeals is made final by the section last preceding, it shall be competent for the Supreme Court of the United States to require, by certiorari or otherwise, any such case to be certified to it for its review 852 Important Federal Laws and determination, with the same power and authority in the case as if it had been carried by writ of error or appeal to said Supreme Court. It shall also be competent for said court of appeals, in any case in which its judgment or decree is made final under the section last preceding, at any time to certify to the Supreme Court of the United States any questions or propositions of law concerning which it desires the in- struction of that court for their proper decision ; and thereupon the Supreme Court may either give its instructions on the questions and propositions certified to it, which shall be binding upon said courts of appeals in such case, or it may require that the whole record and cause be sent up to it for its consideration, and thereupon shall decide the whole matter in controversy in the same manner as if it had been brought there for review by writ of error or appeal. Claims in Bankruptcy. Sec. 252. The Supreme Court of the United States is hereby in- vested with appellate jurisdiction of controversies arising in bank- ruptcy proceedings, from the courts of bankruptcy, from which it has appellate jurisdiction in other cases; and shall exercise a like jurisdic- tion from courts of bankruptcy not within any organized circuit of the United States and from the supreme court of the District of Columbia. An appeal may be taken to the Supreme Court of the United States from any final decision of a court of appeals allowing or rejecting a claim under the laws relating to bankruptcy, under such rules and within such time as may be prescribed by said Supreme Court, in the following cases and no other : First. Where the amount in controversy exceeds the sum of two thousand dollars, and the question involved is one which might have been taken on appeal or writ of error from the highest court of a State to the Supreme Court of the United States ; or Second. Where some justice of the Supreme Court shall certify that in his opinion the determination of the question involved in the allowance or rejection of such claim is essential to a uniform construc- tion of the laws relating to bankruptcy throughout the United States. Controversies may be certified to the Supreme Court of the United States from other courts of the United States, and the former court may exercise jurisdiction thereof, and may issue writs of certiorari pursuant to the provisions of the United States laws now in force or such as may be hereafter enacted. Procedure of Criminal Cases from a State Court. Sec. 253. Cases on writ of error to revise the judgment of a State court in any criminal case shall have precedence on the docket of the Supreme Court, of all cases to which the Government of the United States is not a party, excepting only such cases as the court, in its discretion, may decide to be of public importance. Federal Judicial Code 853 Printing Cost. Sec. 254. There shall be taxed against the losing party in each and every cause pending in the Supreme Court the cost of printing the record in such case, except when the judgment is against the United States. Women May Practice Before United States Supreme Court. Sec. 255. Any woman who shall have been a member of the bar of the highest court of any State or Territory, or of the court of appeals of the District of Columbia, for the space of three years, and shall have maintained a good standing before such court, and who shall be a person of good moral character, shall, on motion, and the production of such record, be admitted to practice before the Supreme Court of the United States. CHAPTER XI. Provisions Common to More Than One Court. Exclusive Jurisdiction. Sec. 256. The jurisdiction vested in the courts of the United States in the cases and proceedings hereinafter mentioned, shall be exclusive of the courts of the several States : First. Of all crimes and offenses cognizable under the authority of the United States. Second. Of all suits for penalties and forfeitures incurred under the laws of the United States. Third. Of all civil causes of admiralty and maritime jurisdiction; saving to suitors, in all cases, the right of a common-law remedy, where the common law is competent to give it. Fourth. Of all seizures under the laws of the United States, on land or on waters not within admiralty and maritime jurisdiction; of all prizes brought into the United States ; and of all proceedings for the condemnation of property taken as prize. Fifth. Of all cases arising under the patent-right, or copyright laws of the United States. Sixth. Of all matters and proceedings in bankruptcy. Seventh. Of all controversies of a civil nature, where a State is a party, except between a State and its citizens, or between a State and citizens of other States, or aliens. Eighth. Of all suits and proceedings against ambassadors, or other public ministers, or their domestics, or domestic servants, or against consuls or vice-consuls. Oath of Office. Sec. 257. The justices of the Supreme Court, the circuit judges, and the district judges, hereafter appointed, shall take the following oath before they proceed to perform the duties of their respective offices: "I, , do solemnly swear (or afifirm) that I will ad- 854 Important Federal Laws minister justice without respect to persons, and do equal right to the poor and to the rich, and that I will faithfully and impartially dis- charge and perform all the duties incumbent upon me as accord- ing to the best of my abilities and understanding, agreeably to the Constitution and laws of the United States : So help me God." Judges Not to Practice Law. Sec. 258. It shall not be lawful for any judge appointed under the authority of the United States to exercise the profession or employment of counsel or attorney, or to be engaged in the practice of the law. Any person offending against the prohibition of this section shall be deemed guilty of a high misdemeanor. Expenses. Sec. 259. The circuit justices, the circuit and district judges of the United States, and the judges of the district courts of the United States in Alaska, Hawaii, and Porto Rico, shall each be allowed and paid his necessary expenses of travel, and his reasonable expenses (not to exceed ten dollars per day) actually incurred for maintenance, consequent upon his attending court or transacting other official busi- ness in pursuance of law at any place other than his official place of residence, said expenses to be paid by the marshal of the dis- trict in which such court is held or official business transacted, upon the written certificate of the justice or judge. The official place of residence of each justice and of each circuit judge while assigned to the Commerce Court shall be at Washington ; and the official place of residence of each circuit and district judge, and of each judge of the district courts of the United States in Alaska, Hawaii, and Porto Rico, shall be at that place nearest his actual residence at which either a circuit court of appeals or a district court is regularly held. Every such judge shall, upon his appointment, and from time to time thereafter whenever he may change his official residence, in writ- ing notify the Department of Justice of his official place of residence. Retired Judges. Sec. 260. When any judge of any court of the United States ap- pointed to hold his office during good behavior resigns his office, after having held a commission or commissions as judge of any such court or courts at least ten years continuously, and having attained the age of seventy years, he shall, during the residue of his natural life, receive the salary which is payable at the time of his retirement for the office that he held at the time of his resignation. Writs of Ne Exeat. Sec. 261. Writs of ne exeat may be granted by any justice of the Supreme Court, in cases where they might be granted by the Supreme Court; and by any district judge, in cases where they might be granted by the district court of which he is a judge. But no writ of ne exeat shall be granted unless a suit in equity is commenced, and satisfac- Federal Judicial Code 855 tory proof is made to the court or judge granting the same that the defendant designs quickly to depart from the United States. Power to Issue Writs. Sec. 262. The Supreme Court and the district courts shall have power to issue writs of scire facias. The Supreme Court, the circuit courts of appeals, and the district courts shall have power to issue all writs not specifically provided for by statute, which may be nec- essary for the exercise of their respective jurisdictions, and agreeable to the usages and principles of law. Section 263 repealed by Clayton Anti-Trust Act, page 238. Injunctions. Sec. 264. Writs of injunction may be granted by any justice of the Supreme Court in cases where they might be granted by the Supreme Court ; and by any judge of a district court in cases where they might be granted by such court. But no justice of the Supreme Court shall hear or allow any application for an injunction or restraining order in any cause pending in the circuit to which he is allotted, else- where than within such circuit, or at such place outside of the same as the parties may stipulate in writing, except when it can not be heard by the district judge of the district. In case of the absence from the district of the district judge, or of his disability, any circuit judge of the circuit in which the district is situated may grant an injunc- tion or restraining order in any case pending in the district court, where the same might be granted by the district judge. No Injunction to State Courts Except in Bankruptcy. Sec. 265. The writ of injunction shall not be granted by anv court of the United States to stay proceedings in any court of a State, ex- cept in cases where such injunction may be authorized by any law re- lating to proceedings in bankruptcy. Injunction on Constitutionality of State Laws. Sec. 266. No interlocutory injunction suspending or restraining the enforcement, operation, or execution of any statute of a State by restraining the action of any officer of such State in the enforcement or execution of such statute, or in the enforcement or execution of an order made by an administrative board or commission acting under and pursuant to the statutes of such state, shall be issued or granted by any justice of the Supreme Court, or by any district court of the United States, or by any judge thereof, or by any circuit judge acting as district judge, upon the ground of the unconstitutionality of such statute, unless the application for the same shall be presented to a justice of the Supreme Court of the United States, or to a circuit or district judge, and shall be heard and determined by three judges, of whom at least one shall be a justice of the Supreme Court, or a circuit judge, and the other two may be either circuit or district judges, and unless 856 Important Federal Laws a majority of said three judges shall concur in granting such applica- tion. Whenever such application as aforesaid is presented to a jus- tice of the Supreme Court, or to a judge, he shall immediately call to his assistance to hear and determine the application two other judges: Provided, however. That one of such three judges shall be a justice of the Supreme Court, or a circuit judge. Such application shall not be heard or determined before at least five days' notice of the hearing has been given to the governor and to the attorney general of the State, and to such other persons as may be defendants in the suit: Provided, That if of opinion that irreparable loss or damage would result to the complainant unless a temporary restraining order is granted, any justice of the Supreme Court, or any circuit or district judge, may grant such temporary restraining order at any time be- fore such hearing and determination of the application for an interloc- utory injunction, but such temporary restraining order shall remain in force only until the hearing and determination of the application for an interlocutory injunction upon notice as aforesaid. The hearing upon such application for an interlocutory injunction shall be given precedence and shall be in every way expedited and be assigned for a hearing at the earliest practicable day after the expiration of the notice hereinbefore provided for. An appeal may be taken direct to the Supreme Court of the United States from the order granting or denying, after notice and hearing, an interlocutory injunction in such case. It is further provided, that if before the final hearing of such application, a suit shall have been brought in a court of this State hav- ing jurisdiction thereof under the laws of such State to enforce such statute or order, accompanied by a stay in such State court, of proceed- ings under such statute or order pending the determination of such suit by such State court, all proceedings in any court of the United States to restrain the execution of such statute or order shall be stayed land- ing the final determination of such suit in the courts of the State. Such stav may be vacated U])on proof made after hearing and notice of ten days served upon the attorney general of the State that the suit in the State courts is not being prosecuted with diligence and good faith. (As amended March 4, 1913.) Equity Suit Restrictions. Sec. 267. Suits in equity shall not be sustained in any court of the United States in any case where a plain, adequate, and complete remedy may be had at law. Power to Administer Oaths and Punish Contempt. Sec. 268. The said courts shall have power to impose and admin- ister all necessary oaths, and to punish, by fine or imprisonment, at the discretion of the court, contempts of their authority: Provided, That such power to punish contempts shall not be construed to ex- tend to any cases except the misbehavior of any person in their pres- Federal Judicial Code 857 ence, or so near thereto as to obstruct the admhiistration of justice, the misbehavior of any of the officers of said courts in their offi- cial transactions, and the disobedience or resistance by any such of- ficer, or by any party, juror, witness, or other person to any lawful writ, process, order, rule, decree, or command of the said courts. New Trials. Sec. 269. All of the said courts shall have power to grant new trials, in cases where there has been a trial by jury, for reasons for which new trials have usually been granted in the courts of law. Security for Peace and Good Behavior. Sec. 270. The judges of the Supreme Court and of the circuit courts of appeals and district courts, United States commissioners, and the judges and other magistrates of the several States, who are or may be authorized by law to make arrests for ofifenses against the United States, shall have the like authority to hold to security of the peace and for good behavior, in cases arising under the Constitution and laws of the United States, as may be lawfully exercised by any judge or justice of the peace of the respective States, in cases cogniz- able before them. Enforcing Orders of Foreign Courts. Sec. 271. The district courts and the United States commission- ers shall have power to carry into effect, according to the true intent and meaning thereof, the award or arbitration or decree of any con- sul, vice consul, or commercial agent of any foreign nation, made or rendered by virtue of authority conferred on him as such consul, vice consul, or commercial agent, to sit as judge or arbitrator in such differences as may arise between the captains and crews of the ves- sels belonging to the nation whose interests are committed to his charge, application for the exercise of such power being first made to such court or commissioner, by petition of such consul, vice con- sul, or commercial agent. And said courts and commissioners may issue all proper remedial process, mesne and final, to carry into full effect such award, arbitration, or decree, and to enforce obedience thereto by imprisonment in the jail or other place of confinement in the district in which the United States may lawfully imprison any per- son arrested under the authority of the United States, until such award, arbitration, or decree is complied with, or the parties are other- wise discharged therefrom, by the consent in writing of such consul, vice consul, or commercial agent, or his successor in office, or by the authority of the foreign government appointing such consul, vice consul, or commercial agent: Provided, however, That the expenses of the said imprisonment and maintenance of the prisoners, and the cost of the proceedings, shall be borne by such foreign government, or by its consul, vice consul, or commercial agent requiring such im- prisonment. The marshals of the United States shall serve all such 858 Important Federal Laws process, and do all other acts necessary and proper to carry into effect the premises, under the authority of the said courts and commissioners. Pleadings by Parties. Sec. 272. In all the courts of the United States the parties may plead and manage their own causes personally, or by the assistance of such counsel or attorneys at law as, by the rules of the said courts, respectively, are permitted to manage and conduct causes therein. Officers Barred from Practice. Sec. 273. No clerk, or assistant or deputy clerk, of any Territorial, district, or circuit court of appeals, or of the Court of Claims, or of the Supreme Court of the United States, or marshal or deputy marshal of the United States' within the district for which he is appointed, shall act as a solicitor, proctor, attorney, or counsel in anv cause de- pending in any of said courts, or in any district for which he is acting as such officer. Penalties. Sec. 274. Whoever shall violate the provisions of the preceding section shall be stricken from the roll of attorneys by the court upon complaint, upon which the respondent shall have due notice and be heard in his defense ; and in the case of a marshal or deputy marshal so act- ing, he shall be recommended by the court for dismissal from office. Note. — The three following sections were added by act of March 3, 1915. Suits in Equity. Sec. 274a. That in case any of said courts shall find that a suit at law should have been brought in equity or a suit in equity should have been brought at law, the court shall order any amendments to the pleadings which may be necessary to conform them to the proper prac- tice. Any party to the suit shall have the right, at any stage of the cause, to amend his pleadings so as to obviate the objection that his suit was not brought on the right side of the court. The cause shall pro- ceed and be determined upon such amended pleadings. All testimony taken before such amendment, if preserved, shall stand as testimony in the cause with like effect as if the pleadings had been originally in the amended form. Equitable Defense by Answer, Plea or Rejoinder. Sec. 274b. That in all actions at law equitable defenses may be interposed by answer, plea, or replication without the necessity of filing a bill on the equity side of the court. The defendant shall have the same rights in such case as if he had filed a bill embodying the defense of seeking the relief prayed for in such answer or plea. Equitable relief respecting the subject-matter of the suit may thus be obtained by answer or plea. In case affirmative relief is prayed in such answer or plea, the plaintiff shall file a replication. Review of the judgment or decree entered in such case shall be regulated by -rule of court. Federal Judicial Code 859 Whether such review be sought by writ of error or by appeal the ap- pellate court shall have full power to render suck judgment upon the records as law and justice shall require. Diverse Citizenship. Sec. 274c. That where, in any suit brought in or removed from any State court to any district of the United States, the jurisdiction of the district court is based upon the diverse citizenship of the parties, and such diverse citizenship in fact existed at the time the suit was brought or removed, though defectively alleged, either party may amend at any stage of the proceedings and in the appellate court upon such terms as the court may impose, so as to show on the record such diverse citizenship and jurisdiction, and thereupon such suit shall be proceeded with the same as though the diverse citizenship had been fully and correctly pleaded at the inception of the suit, or, if it be a removed case, in the petition for removal. CHAPTER XII. Jurors. Sec. 275. Jurors to serve in the courts of the United States, in each State respectively, shall have the same qualifications, subject to the provisions hereinafter contained, and be entitled to the same exemp- tions, as jurors of the highest court of law in such State may have and be entitled to at the time when such jurors for service in the courts of the United States are summoned. Drawings. Sec. 276. All such jurors, grand and petit, including those sum- moned during the session of the court, shall be publicly drawn from a box containing, at the time of each drawing, the names of not less than three hundred persons, possessing the qualifications prescribed in the section last preceding, which names shall have been placed therein by the clerk of such court, or a duly qualified deputy clerk, and a commissioner, to be appointed by the judge thereof, or by the judge senior in commission in districts having more than one judge, which commis- sioner shall be a citizen of good standing, residing in the district in which such court is held, and a well-known member of the principal political party in the district in which the court is held opposing that to which the clerk, or a duly qualified deputy clerk then acting, may belong, the clerk, or duly qualified deputy clerk and said commissioner each to place one name in said box alternately, without reference to party aftiliations until the whole number required shall be placed therein. (As amended Febru- ary 3, 1917.) Apportionment of Jurors. Sec. 277. Jurors shall be returned from such parts of the district, from time to time, as the court shall direct, so as to be most favorable 860 Important Federal Laws to an impartial trial, and so as not to incur an unnecessary expense, or unduly burden the citizens of any part of the district with such service. No Race or Color Disqualifications. Sec. 278. No citizen possessing all other qualifications which are or may be prescribed by law shall be disqualified for service as grand or petit juror in any court of the United States on account of race, color, or previous condition of servitude. Issue and Serving Venire. Sec. 279. Writs of venire facias, wheti directed by the court, shall issue from the clerk's office, and shall be served and returned by the marshal in person, or by his deputy ; or, in case the marshal or his deputy is not an indifferent person, or is interested in the event of the cause, by such fit person as may be specially appointed for that purpose by the court, who shall administer to him an oath that he will truly and impartially serve and return the writ. Any person named in such writ who resides elsewhere than at the place at which the court is held, shall be served by the marshal mailing a copy thereof to such person commanding him to attend as a juror at a time and place designated therein, which copy shall be registered and de- posited in the postoffice addressed to such person at his usual post- office address. And the receipt of the person so addressed for such registered copy shall be regarded as personal service of such writ upon such person, and no mileage shall be allowed for the service of such person. The postage and registry fee shall be paid by the marshal and allowed him in the settlement of his accounts. Talesmen for Petit Jury. Sec. 280. When, froni challenges or otherwise, there is not a petit jury to determine any civil or criminal cause, the marshal or his deputy shall, by order of the court in which such defect of jurors happens, return jurymen from the bystanders sufficient to complete the panel ; and when the marshal or his deputy is disqualified as aforesaid, jurors may be so returned by such disinterested person as the court may appoint, and such person shall be sworn, as provided in the preceding section. Special Juries- Sec. 281. \\'hen special juries are ordered in any district court, they shall be returned by the marshal in the same manner and form as is required in such cases by the laws of the several States. Grand Juries. Sec. 282. Every grand jury impaneled before any district court shall consist of not less than sixteen nor more than twenty-three per- sons. If of the persons summoned less than sixteen attend, they shall be placed on the grand jury, and the court shall order the marshal to Federal Judicial Code 861 summon, either immediately or for a day fixed, from the body of the district, and not from the bystanders, a sufficient number of persons to complete the grand jury. And whenever a challenge to a grand juror is allowed, and there are not in attendance other jurors suffi- cient to complete the grand jury, the court shall make a like order to the marshal to summon a sufficient number of persons for that purpose. Foreman. Sec. 283. From the persons summoned and accepted as grand ju- rors, the court shall appoint the foreman, who shall have power to administer oaths and affirmations to witnesses appearing before the grand jury. Summoning of Grand Jury. Sec. 284. No grand jury shall be summoned to attend any district court unless the judge thereof, in his own discretion or upon a noti- fication by the district attorney that such jury will be needed, orders a venire to issue therefor. If the United States attorney for any dis- trict which has a city or borough containing at least three hundred thousand inhabitants shall certify in writing to the district judge, or the senior district judge of the district, that the exigencies of the public service require it, the judge may. in his discretion, also order a venire to issue for a second grand jury. And said court may in term order a grand jury to be summoned at such time, and to serve such time as it may direct, whenever, in its judgment, it may be proper to do so. But nothing herein shall operate to extend beyond the time permitted by law the imprisonment before indictment found of a person accused of a crime or ofi^ense, or the time during which a person so accused may be held under recognizance before indictment found. Discharge. Sec. 285. The district courts, the district courts of the Territories, and the Supreme Court of the District of Columbia may discharge their grand juries whenever they deem a continuance of the sessions of such juries unnecessary. Petit Juries. Sec. 286. No person shall serve as a petit juror in any district court more than one term in a year ; and it shall be sufficient cause of challenge to any juror called to be sworn in any cause that he has been summoned and attended said court as a juror at any term of said court held within one year prior to the time of such challenge. Challenges. . Sec. 287. When the offense charged is treason or a capital offense, the defendant shall be entitled to twenty and the United States to 862 Important Federal Laws six peremptory challenges. On the trial of any other felony, the defendant shall be entitled to ten and the United States to six peremp- tory challenges ; and in all other cases, civil and criminal, each party shall be entitled to three peremptory challenges ; and in all cases where there are several defendants or several plaintiffs, the parties on each side shall be deemed a single party for the purposes of all challenges under this section. All challenges, whether to the array or panel, or to individual jurors for cause or favor, shall be tried by the court with- out the aid of triers. Polygamy Trials. Sec. 2SS. In any prosecution for bigamy, polygamy or unlawful cohabitation, under any statute of the United States, it shall be suffi- cient cause of challenge to any person drawn or summoned as a jury- man or talesman — First, that he is or has been living in the practice of bigamy, polyg- amy, or unlawful cohabitation with more than one woman, or that he is or has been guilty of an offense punishable either by section one or three of an Act entitled "An Act to amend section fifty-three hun- dred and fifty-two of the Revised Statutes of the United States, in reference to bigamy, and for other purposes," approved March twen- ty-second, eighteen hundred and eighty-two, or by section fifty-three hundred and fifty-two of the Revised Statutes of the United States, or the Act of July first, eighteen hundred and sixty-two, entitled "An Act to punish and prevent the practice of polygamy in the Ter- ritories of the United States and other places, and disapproving and annulling certain Acts of the legislative assembly of the territory of Utah" ; or Second, that he believes it right for a man to have more than one living and undivorced wife at the same time, or to live in the practice of cohabitating with more than one woman. Any person appearing or off'ered as a juror or talesman, and chal- lenged on either of the foregoing grounds, may be questioned on his oath as to the existence of any such cause of challenge; and other evidence may be introduced bearing upon the question raised by such challenge; and this question shall be tried by the court. But as to the first ground of challenge before mentioned, the person challenged shall not be bound to answer if he shall say upon his oath that he declines on the ground that his answer may tend to criminate himself ; and if he shall answer as to said first ground, his answer shall not be_ given in evidence in any criminal prosecution against him for any off"ense above named; but if he declines to answer on any ground, he shall be rejected as incompetent. Federal Judicial Code 863 CHAPTER XIII. General Provisions. Circuit Courts Abolished. Sec. 289. The circuit courts of the United States, upon the taking effect of this Act, sliall be, and hereby are, abohshed; and thereupon, on said date, the clerks of said courts shall deliver to the clerks of the district courts of the United States for their respective districts all the journals, dockets, books, files, records, and other books and papers of or belonging to or in any manner connected with said cir- cuit courts ; and shall also on said date deliver to the clerks of said district courts all moneys, from whatever source received, then re- maining in their hands or under their control as clerks of said circuit courts, or received by them by virtue of their said offices. The jour- nals, dockets, books, files, records, and other books and papers so delivered to the clerks of the several district courts shall be and re- main a part of the official records of said district courts, and copies thereof, when certified under the hand and seal of the clerk of the district court, shall be received as evidence equally with the originals thereof ; and the clerks of the several district courts shall have the same authority to exercise all the powers and to perform all the duties with respect thereto as the clerks of the several circuit courts had prior to the taking effect of this Act. Pending Suits. Sec. 290. All suits and proceedings pending in said circuit courts on the date of the taking effect of this Act, whether originally brought therein or certified thereto from the district courts, shall thereupon and thereafter be proceeded with and disposed of in the district courts in the same manner and with the same eff'ect as if originally begun therein, the record thereof being entered in the records of the circuit courts so transferred as above provided. Powers to District Court. Sec. 291. Wherever, in any law not embraced within this Act, any reference is made to, or any power or duty is conferred or imposed upon, the circuit courts, such reference shall, upon the taking eff'ect of this Act, be deemed and held to refer to, and to confer such power and impose such duty upon, the district courts. Law Revised. Sec. 292. Wherever, in any law not contained within this Act, a reference is made to any law revised or embraced herein, such refer- ence, upon the taking effect hereof, shall be construed to refer to the section of this Act into which has been carried or revised the provi- sion of law to which reference is so made. Construction of Words. Sec. 293. The provisions of sections one to five, both inclusive, of 864 Important Federal Laws the Revised Statutes, shall apply to and govern the construction of the provisions of this Act. The words "this title," wherever they occur herein, shall be construed to mean this Act. Existing Laws Continued. Sec. 294. The provisions of this Act, so far as they are substan- tially the same as existing statutes, shall be construed as continua- tions thereof, and not as new enactments, and there shall be no impli- cation of a change of intent by reason of a change of words in such statute, unless such change of intent shall be clearly manifest. Legislative Construction, Sec. 295. The arrangement and classification of .the several sec- tions of this Act have been made for the purpose of a more convenient and orderly arrangement of the same, and therefore no inference or pre- sumption of a legislative construction is to be drawn by reason of the chapter under which any particular section is placed. Sec. 296. This Act may be designated and cited as "The Judicial Code." CHAPTER FOURTEEN. Repealing Provisions. Chapter Fourteen repeals former acts. PROOF OF HANDWRITING, Act of February 26, 1913. An Act relating to proof of signatures and handwriting. That in any proceeding before a court or judicial officer of the United States where the genuineness of the handwriting of any person may be involved, any admitted or proved handwriting of such person shall be competent evidence as a basis for comparison by witnesses, or by the jury, court, or officer conducting such proceeding, to prove or dis- prove such genuineness. Public Health 865 PUBLIC HEALTH. Act of August 14, 1912. An Act to change the name of the Public Health and Marine-Hospital Service to the Public Health Service, to increase the pay of officers of said service, and for other purposes. Public Health Service. That the Public Health and Marine-Hospital Service of the United States shall hereafter be known and designated as the Public Health Service, and all laws pertaining to the Public Health and Marine-Hos- pital Service of the United States shall hereafter apply to the Public Health Service, and all regulations now in force, made in accordance with law for the Public Heakh and Marine-Hospital Service of the United States shall apply to and remain in force as regulations of and for the Public Health Service until changed or rescinded. The Public Health Service may study and investigate the diseases of man and con- ditions influencing the propagation and spread thereof, including sanita- tion and sewage and the pollution either directly or indirectly of the navigable streams and lakes of the United States, and it may from time to time issue information in the form of publications for the use of the public. Act of March 27, 1890. Prevention of Plague — Rules and Regulations. Section 1. Whenever it shall appear to the satisfaction of the President that cholera, yellow- fever, smallpox, or plague exists in any State or Territory, or in the District of Columbia, and that there is danger of the spread of such disease, into other States, Territories, or the District of Columbia, he is hereby authorized to cause the Secretary of the Treasury to promulgate such rules and regulations as in his judgment may be necessary to prevent the spread of such disease from one State or Territory into another, or from any State or Territory into the District of Columbia, or from the District of Columbia into any State or Terri- tory, and to employ such inspectors and other persons as may be neces- sary to execute such regulations to prevent the spread of such disease. The said rules and regulations shall be prepared by the supervising sur- geon-general of the Marine Hospital service under the direction of the Secretary of the Treasury. And any person who shall willfully violate any rule or regulation so made and promulgated, shall be deemed guilty of a misdemeanor, and upon conviction shall be punished by a fine of not more than five hundred dollars ($500), or imprisonment for not more than two (2) years, or both, in the discretion of the court. Penalties — Officials. Sec. 2, Any officer, or person acting as an officer, or agent of the United States at any quarantine station, or other person employed to aid in preventing the spread of such disease, who shall willfully violate any of the quarantine laws of the United States, or any of the rules and (55) 866 Important Federal Laws regulations made and promulgated by the Secretary of the Treasury, as provided for in Section 1 of this act, or any lawful order of his superior officer or officers, shall be deemed guilty of a misdemeanor, and upon conviction shall be punished by a fine of not more than three hundred dollars ($300) or imprisonment for not more than one (1) year, or both, in the discretion of the court. Penalties — Common Carriers. Sec. 3. When any common carrier or officer, agent, or employee of any common carrier shall willfully violate any of the quarantine laws of the United States, or the rules and regulations made and promulgated as provided for in section 1 of this Act, such common carrier, officer, agent, or employee, shall be deemed guilty of a misdemeanor, and shall, on con- viction, be punished by a fine of not more than five hundred dollars ($500) or imprisonment for not more than two (2) years, or both, in the discretion of the court. Act of February 15, 1893. Co-operation with State and City Officials. The supervising surgeon-general of the Marine Hospital service shall, immediately after this act takes effect, examine the quarantine regulations of all state and municipal boards of health, and shall, under the direction of the Secretary of the Treasury, co-operate with and aid state and municipal boards of health in the execution and enforcement of the rules and regulations of such boards and in the execution and enforcement of the rules and regulations made by the Secretary of the Treasury to prevent the introduction of contagious or infectious diseases into the United States from foreign countries, and into one State or Territory or the District of Columbia from another State or Territory or District of Columbia ; and all rules and regulations made by the Secre- tary of the Treasury shall operate uniformly and in no manner discrimi- nate against any port or place ; and at such ports and places within the United States as have no quarantine regulations under state or municipal authority, where such regulations are, in the opinion of the Secretary of the Treasury, necessary to prevent the introduction of contagious or infectious diseases into the United States from foreign countries, or into one State or Territory or the District of Columbia from another State or Territory, or the District of Columbia, and at such ports and places within the United States where quarantine regulations exist under the authority of the State or Municipality which, in the opinion of the Secre- tary of the Treasury, are not sufficient to prevent the introduction of such diseases into the United States, or into one State or Territory or the District of Columbia from another State or Territory or the District of Columbia, the Secretary of the Treasury shall, if in his judgment it is necessary and proper, make such additional rules and regulations as are necessary to prevent the introduction of such diseases into the United States from foreign countries, or into one State or Territory or the Dis- Good Roads Act 867 trict of Columbia from another State or Territory or the District of Columbia, and when said rules and regulations have been made, they shall be promulgated by the Secretary of the Treasury and enforced by the sanitary authorities of the states and municipalities, v/here the state or municipal health authorities will undertake to execute and enforce them; but if the state or municipal authorities shall fail or refuse to enforce said rules or regulations, the President shall execute and enforce the same and adopt such measures, as in his judgment shall be necessary to prevent the introduction or spread of such diseases, and may detail or appoint officers for that purpose. The Secretary of the Treasury shall make such rules and regulations as are necessary to be observed by ves- sels at the port of departure and on the voyage, where such vessels sail from any foreign port or place to any port or place in the United States, to secure the best sanitary condition of such vessel, her cargo, passengers, and crews; which shall be published and communicated to and enforced by the Consular Officers of the United States. None of the penalties herein imposed shall attach to any vessel or owner or officer thereof until a copy of this act, with the rules and regulations made in pursuance thereof, has been posted up in the office of the Consul or other Consular Officer of the United States for ten days, in the port from which said vessel sailed; and the certificate of such Consul or Consular Officer over his official signature shall be competent evidence of such posting in any port of the United States. FEDERAL GOOD ROADS ACT. Act of July 11, 1916. An Act to provide that the United States shall aid the states in the construc- tion of rural post roads, and for other purposes. Sec. 1. That the Secretary of Agriculture is authorized to cooperate with the States, through their respective State highway departments, in the construction of rural post roads ; but no money apportioned under this Act to any State shall be expended therein until its legislature shall have assented to the provisions of this Act, except that, until the final adjournment of the first regular session of the legislature held after the passage of the Act, tlie assent of the governor of the State shall be sufficient. The Secretary of Agriculture and the State highway department of each State shall agree upon the roads to be constructed therein and the character and method of construction : Provided, That all roads con- structed under the provisions of this Act shall be free from tolls of all kinds. Definitions. Sec. 2. That for the purpose of this Act the term "rural post road" shall be construed to mean any public road over which the United States mails now are or may hereafter be transported, excluding every 868 Important Federal Laws street and road in a place having a population, as shown by the latest available Federal census, of two thousand five hundred or more, except that portion of any such street or road along which the houses average more than two hundred feet apart; the term "State highway department" shall be construed to include any department of another name, or com- mission, or official or officials, of a State empowered, under its laws, to exercise the functions ordinarily exercised by a state highway department ; the term "construction" shall be construed to include reconstruction and improvement of roads; "properly maintained" as used herein shall be construed to mean the making of needed repairs and the preservation of a reasonably smooth surface considering the type of the road ; but shall not be held to include extraordinary repairs, nor reconstruction ; neces- sary bridges and culverts shall be deemed parts of the respective roads covered by the provisions of this Act. Appropriations. Sec. 3. That for the purpose of carrying out the provisions of this Act there is hereby appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending June thirtieth, nineteen hundred and seventeen, the sum of $5,000,000; for the fiscal year ending June thirtieth, nineteen hundred and eighteen, the sum of $10,000,000; for the fiscal year ending June thirtieth, nineteen hundred and nineteen, the sum of $15,000,000; for the fiscal year ending June thirtieth, nineteen hundred and twenty, the sum of $20,000,000; and for the fiscal year ending June thirtieth, nineteen hundred and twenty-one, the sum of $25,000,000. So much of the appropriation apportioned to any State for any fiscal year as remains unexpended at the close thereof shall be available for expenditure in that State until the close of the succeeding fiscal year, except that amounts apportioned for any fiscal year to any State which has not a State highway department shall be available for expenditure in that State until the close of the third fiscal year succeeding the close of the fiscal year for which such apportionment was made. Any amount apportioned under the provisions of this Act unexpended at the end of the period during which it is available for expenditure under the terms of this section shall be reapportioned, within sixty days thereafter, to all the States in the same manner and on the same basis, and certified to the Secretary of the Treasury and to the State highway departments and to the governors of States having no State highway departments in the same way as if it were being apportioned under this Act for the first time : Provided, That in States where the constitution prohibits the State from engaging in any work of internal improvements, then the amount of the appropriation under this Act apportioned to any such State shall be turned over to the highway depart- ment of the State or to the governor of said State to be expended under the provisions of this Act and under the rules and regulations of the Department of Agriculture, when any number of counties in any such Good Roads Act 869 State shall appropriate or provide the proportion or share needed to be raised in order to entitle such State to its part of the appropriation apportioned under this Act. Administration. Sec. 4. That so much, not to exceed three per centum, of the appropriation for any fiscal year made by or under this Act as the Secretary of Agriculture may estimate to be necessary for administering the provisions of this Act shall be deducted for that purpose, available until expended. Within sixty days after the close of each fiscal year the Secretary of Agriculture shall determine what part, if any, of the sums theretofore deducted for administering the provisions of this Act will not be needed for that purpose and apportion such part, if any, for the fiscal year then current in the same manner and on the same basis, and certify it to the Secretary of the Treasury and to the State highway departments, and to the governors of States having no State highway departments, in the same way as other amounts authorized by this Act to be appor- tioned among all the States for such current fiscal year. The Secretary of Agriculture, after making the deduction authorized by this section, shall apportion the remainder of the appropriation for each fiscal year among the several States in the following manner : One-third in the ratio which the area of each State bears to the total area of all the States ; one-third in the ratio which the population of each State bears to the total population of all the States, as shown by the latest available Federal census ; one-third in the ratio which the mileage of rural delivery routes and star routes in each State bears to the total mileage of rural delivery routes and star routes in all the States, at the close of the next preceding fiscal year, as shown by the certificate of the Postmaster General, which he is directed to make and furnish annually to the Secretary of Agri- culture. Apportionment to States. Sec. 5. That within sixty days after the approval of this act the Secretary of Agriculture shall certify to the Secretary of the Treasury and to each State highway department and to the governor of each State having no State highway department the sum which he has esti- mated to be deducted for administering the provisions of this Act and the sum which he has apportioned to each State for the fiscal year end- ing June thirtieth, nineteen hundred and seventeen, and on or before January twentieth next preceding the commencement of each succeeding fiscal year shall make like certificates for such fiscal year. Requirements of the States. Sec. 6. That any State desiring to avail itself of the benefits of this Act shall, by its State highway department, submit to the Secretary of Agriculture project statements setting forth proposed construction of any rural post road or roads therein. If the Secretary of Agriculture approve a project, the State highway department shall furnish him such surveys, 870 Important Federal Laws * plans, specifications, and estimates therefor as he may require : Provided, however. That the Secretary of Agricuhure shall approve only such proj- ects as may be substantial in character and the expenditure of funds hereby authorized shall be applied only to such improvements. Items included for engineering, inspection and unforeseen contingencies shall not exceed ten per centum of the total estimated cost of the work. If the Secretary of Agriculture approve the plans, specifications and esti- mates, he shall notify the State highway department and immediately certify the fact to the Secretary of the Treasury. The Secretary of the Treasury shall thereupon set aside the share of the United States pay- able under this Act on account of such project, which shall not exceed fifty per centum of the total estimated cost thereof. No payment of any money apportioned under this Act shall be made on any project until such statement of the project, and the plans, specifications and estimates therefor, shall have been submitted to and approved by the Secretarv of Agriculture. When the Secretary of Agriculture shall find that any project so approved by him has been constructed in compliance with said plans and specifications he shall cause to be paid to the proper authority of said State the amount set aside for said project : Provided. That the Secre- tary of Agriculture may, in his discretion, from time to time make pay- ments on said construction as the same progresses, but these payments including previous payments, if any, shall not be more than the United States' pro rata part of the value of the labor and materials which have been actually put into said construction in conformity to said plans and specifications ; nor shall any such payment be in excess of $10,000 per mile, exclusive of the cost of bridges of more than twenty feet clear span. The construction work and labor in each State shall be done in accord- ance with its laws and under the direct supervision of the State highway department, subject to the inspection and approval of the Secretary of Agriculture and in accordance with the rules and regulations made pur- suant to this Act. The Secretary of Agriculture and the State highway department of each State may jointly determine at what times and in what amounts, payments, as work progresses, shall be made under this Act. Such pay- ments shall be made by the Secretary of the Treasury, on warrants drawn by the Secretary of Agriculture to such official, or officials, or depository, as may be designated by the State highway department and authorized under the laws of the State to receive public funds of the State or county. Maintenance. Sec. 7. To maintain the roads constructed under the provisions of this Act shall be the duty of the States, or their civil subdivisions, ac- cording to the laws of the several States. If at any time the Secretary of Agriculture shall find that any road in any State constructed under the provisions of this Act is not being properly maintained he shall give Good Roades Act 871 notice of such fact to the highway department of such State and if within four months from the receipt of said notice said road has not been put in a proper condition of maintenance then the Secretary of Agriculture shall thereafter refuse to approve any project for road construction in said State, or the civil subdivision thereof, as the fact may be, whose duty it is to maintain said road, until it has been put in a condition of proper maintenance. National Forest Roads. Sec. 8. That there is hereby appropriated and made available until expended, out of any moneys in the National Treasury not otherwise appropriated, the sum of $1,000,000 for the fiscal year ending June thirtieth, nineteen hundred and seventeen, and each fiscal year thereafter, up to and including the fiscal year ending June thirtieth, nineteen hun- dred and twenty-six, in all $10,000,000, to be available until expended under the supervision of the Secretary of Agriculture, upon request from the proper officers of the State, Territory or county for the survey, con- struction and maintenance of roads and trails within or only partly within the national forests, when necessary for the use and development of re- sources upon which communities within and adjacent to the national for- ests are dependent : Provided, That the State, Territory or county shall enter into a cooperative agreement with the Secretary of x^griculture for the survey, construction and maintenance of such roads or trails upon a basis equitable to both the State, Territory or county and the United States: And provided also, That the aggregate expenditures in any State, Territory or county shall not exceed ten per centum of the value, as determined by the Secretary of Agriculture, of the timber and forage resources which are or will be available for income upon the national forest lands within the respective county or counties wherein the roads or trails wall be constructed ; and the Secretary of Agriculture shall make annual report to Congress of the amounts expended hereunder. That immediately upon the execution of any cooperative agreement hereunder the Secretary of Agriculture shall notify the Secretary of the Treasury of the amount to be expended by the United States within or adjacent to any national forest thereunder, and beginning with the next fiscal year and each fiscal year thereafter the Secretary of the Treasury shall apply from any and all revenues from such forest ten per centum thereof to reimburse the United States for expenditures made under such acrreement until the whole amount advanced under such agreement shall have been returned from the receipts from such national forest. Assistants. Sec. 9. That out of the appropriations made by or under this Act, the Secretary of Agriculture is authorized to employ such assistants, clerks and other persons in the city of Washington and elsewhere, to be taken from the eligible lists of the Civil Service Commission, to rent buildings outside of the city of Washington, to purchase such supplies. 872 Important Federal Laws material, equipment, office fixtures and apparatus and to incur such travel and other expense as he may deem necessary for carrying out the pur- poses of this Act. Sec. 10. That the Secretary of Agriculture is authorized to make rules and regulations for carrying out the provisions of this Act. Sec. 11. That this Act shall be in force from the date of its passage. ADDENDUM EXCESS PROFITS TAX.^ Act of :March 3, 1917. Terms Construed. Sec. 200. That when used in this title — The term "corporation" includes joint-stock companies or associa- tions, and insurance companies ; The term "United States" means only the States, the Territories of Alaska and Hawaii, and the District of Columbia ; and The term "taxable year" means the twelve months ending Decem- ber thirty-first, except in the case of a corporation or partnership allowed to fix its own fiscal year, in which case it means such fiscal year. The first taxable year shall be the year ending December thirty- first, nineteen hundred and seventeen. Extra Tax on Incomes of Corporations and Partnerships. Sec. 201. That in addition to the taxes under existing laws there shall be levied, assessed, collected, and paid for each taxable year upon the net income of every corporation and partnership organized, author- ized, or existing under the laws of the United States, or of any State, Territory, or District thereof, no matter how created or organized, except- ing income derived from the business of life, health, and accident insur- ance combined in one policy issued on the weekly premium payment plan, a tax of. eight per centum of the amount by which such net income exceeds the sum of (a) $5,000 and (b) eight per centum of the actual capital invested. Every foreign corporation and partnership, including corporations and partnerships of the Philippine Islands and Porto Rico, shall pay for each taxable year a like tax upon the amount by which its net income received from all sources within the United States exceeds the sum of (a) eight per centum of the actual capital invested and used or employed in the business in the United States, and (b) that proportion of $5,000 which the entire actual capital invested and used or employed in the busi- ness in the United States bears to the entire actual capital invested : and in case no such capital is used or employed in the business in the United States the tax shall be imposed upon that portion of such net income which is in excess of the sum of (a) eight per centum of that proportion of the entire actual capital invested and used or employed in the business which the net income from sources within the United States bears to the entire net income, and (b) that proportion of $5,000 which the net income from sources within the United States bears to the entire net income. C) Supplementary section to corporation tax, see p. 328. 874 Important Federal Laws Actual Capital Meaning of Term. Sec. 202. That for the purpose of this title, actual capital invested means (1) actual cash paid in, (2) the actual cash value, at the time of payment, of assets other than cash paid in, and (3) paid in or earned surplus and undivided profits used or employed in the business ; but does not include money or other property borrowed by the corporation or partnership. Assessed from Income Tax Returns. Sec. 203. That the tax herein imposed upon corporations and partnerships shall be computed upon the basis of the net income shown liy their income tax returns under Title I of the Act entitled "An Act to increase the revenue, and for other purposes," approved September eighth, nineteen hundred and sixteen, or under this title, and shall be assessed and collected at the same time and in the same manner as the income tax due under Title I of such Act of September eighth, nineteen hundred and sixteen : Provided, That for the purpose of this title a partnership shall have the same privilege with reference to fixing its fiscal year as is accorded corporations under section thirteen (a) of Title I of such Act of September eighth, nineteen hundred and sixteen : And provided further, That where a corporation or partnership makes return prior to March first, nineteen hundred and eighteen, covering its own fiscal vear and includes therein anv income received during- the calendar year ending December thirty-first, nineteen hundred and sixteen, the tax herein imposed shall be that proportion of the tax based upon such full fiscal year which the time from January first, nineteen hundred and seventeen, to the end of such fiscal year bears to the full fiscal year. Corporations and Partnerships Exempt. Sec. 204. That corporations exempt from tax under the provisions of section eleven of Title I of the Act approved September eighth, nine- teen hundred and sixteen, and partnerships carrying on or doing the same business shall be exempt from the provisions of this title, and the tax imposed by this title shall not attach to incomes of partnerships derived from agriculture or from personal services. Corporations to State Actual Capital Invested. Sec. 205. That every corporation having a net income of $5,000 or more for the taxable year making a return under Title I of such Act of September eighth, nineteen hundred and sixteen, shall for the pur- poses of this title include in such return a detailed statement of the actual capital invested. Every partnership having a net income of $5,000 or more for the taxable year shall render a correct return of the income of the part- nership for the taxable year, setting forth specifically the actual capital invested and the gross income for such year and the deductions here- inafter allowed. Such returns shall be rendered at the same time and in the same manner and form as is prescribed for income-tax returns Addendum 875 under Title I of such Act of September eighth, nineteen hundred and sixteen. In computing net income of a partnership for the purposes of this title there shall be allowed like deductions as are allowed to individuals in sections five (a) and six (a) of such Act of September eighth, nineteen hundred and sixteen. General Laws Applicable. Sec. 206. That all administrative, special, and general provisions of law, including the laws in relation to the assessment, remission, collec- tion, and refund of internal-revenue taxes not heretofore specifically repealed and not inconsistent with the provisions of this title are hereby extended and made applicable to all the provisions of this title and to the tax herein imposed, and all provisions of Title I of such Act of Septem- ber eighth, nineteen hundred and sixteen, relating to returns and pay- ment of the tax therein imposed, including penalties, are hereby made applicable to the tax required by this title. Regulations to be Made. Sec. 207. That the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall make all necessary regulations for carrying out the provisions of this title, and may require any corporation or partnership subject to the provisions of this title to furnish him with such facts, data, and information as in his judgment are necessary to collect the tax provided for in this title. Returns of Dividends. Sec. 402. That Title I of the Act entitled "An Act to increase the revenue, and for other purposes," approved September eighth, nineteen hundred and sixteen, be amended by adding to Part III a new section, as follows : "Sec. 26. Every corporation, joint-stock company or association, or insurance company subject to the tax herein imposed, when required by the Commissioner of Internal Revenue, shall render a correct return, duly verified under oath, of its payments of dividends, whether made in cash or its equivalent or in stock, including the names and addresses of stockholders and the number of shares owned by each, in such form and manner as may be prescribed by the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury." PLANT QUARANTINE. Amended Section. Act of March 4, 1917. That section eight of an Act entitled "An Act to regulate the impor- tation of nursery stock and other plants and plant products; to enable the Secretary of Agriculture to establish and maintain quarantine dis- tricts for plant diseases and insect pests ; to permit and regulate the move- 876 Important Federal Laws merit of fruits, plants, and vegetables therefrom, and for other purposes," approved August twentieth, nineteen hundred and twelve, be, and the same is hereby, amended so as to read as follows : Interstate quarantine against plant diseases or insect infestation, au- thorized. "Sec. 8. That the Secretary of Agriculture is authorized and di- rected to quarantine any State, Territory, or District of the United States, or any portion thereof, when he shall determine that such quaran- tine is necessary to prevent the spread of a dangerous plant disease or insect infestation, new to or not theretofore widely prevalent or distrib- uted within and throughout the United States ; and the Secretary of Agriculture is directed to give notice of the establishment of such quar- antine to common carriers doing business in or through such quarantined area, and shall publish in such newspapers in the quarantined area as he shall select notice of the establishment of quarantine. That no person shall ship or offer for shipment to any common carrier, nor shall any common carrier receive for transportation or transport, nor shall any person carry or transport from any quarantined State or Territory or District of the United States, or from any quarantined portion thereof, into or through any other State or Territory or District, any class of nursery stock or any other class of plants, fruits, vegetables, roots, bulbs, seeds, or other plant products, or any class of stone or quarry products, or any other article of any character whatsoever, capable of carrying any dangerous plant disease or insect infestation, specified in the notice of quarantine except as hereinafter provided. That it shall be unlawful to move, or allow to be moved, any class of nursery stock or any other class of plants, fruits, vegetables, roots, bulbs, seeds, or other plant prod- ucts, or any class of stone or quarry products or any other article of any character whatsoever, capable of carrying any dangerous plant disease or insect infestation, specified in the notice of quarantine hereinbefore provided, and regardless of the use for which the same is intended, from any quarantined State or Territory or District of the United States or quarantined portion thereof, into or through any other State or Ter- ritory or District, in manner or method or under conditions other than those prescribed by the Secretary of Agriculture. That it shall be the duty of the Secretary of Agriculture, when the public interests will per- mit, to make and promulgate rules and regulations which shall permit and govern the inspection, disinfection, certification, and method and manner of delivery and shipment of the class of nursery stock or of any other class of plants, fruits, vegetables, roots, bulbs, seeds, or other plant products, or any class of stone or quarry products, or any other article of any character whatsoever, capable of carrying any dangerous plant disease or insect infestation, specified in the notice of quarantine here- inbefore provided, and regardless of the use for which the same is intended, from a quarantined State or Territory or district of the United States, or quarantined portion thereof, into or through any other Addendum 877 State or Territory or District; and the Secretary of Agriculture shall give notice of such rules and regulations as hereinbefore provided in this section for the notice of the establishment of quarantine: Provided, That before the Secretary of Agriculture shall promulgate his determi- nation that it is necessary to quarantine any State, Territory, or Dis- trict of the United States, or portion thereof, under the authority given in this section, he shall, after due notice to interested parties, give a pub- lic hearing under such rules and regulations as he shall prescribe, at which hearing any interested party may appear and be heard, either in person or by attorney." SUMMARY The preceding pages have given the text of seventy-two Federal Statutes which, in one way or another, affect the people of the nation at large. Prior to 1887, only thirty years ago, there was scarcely an Act of Congress concerned with the relations of citizens, one with an- other, or with states, one with another. Up to that year a railroad could charge one rate in one state, another rate in a contiguous state, and still another rate in a third state ; in other words, the railroads could charge a dift"erent rate for each state in the Union and, if they cared, they could charge a dift'erent rate for every shipper with w-hom they had dealings. It was the creation of the Interstate Commerce Commission in 1887 which put a stop to this practice, and this act may be taken as the be- ginning of a new^ era in Federal control. Thirty years ago no one would have believed that the time would come when the Federal government would step in and say that every beef butchered for interstate commerce must be inspected by the govern- ment ; that no goods could be shipped from one place to another which w^ere made by children ; or that a druggist could not sell opium or cocaine without a special permit from the government. The tendency of the times points to a closer supervision over the aft'airs of the citizens of the United States by Congress ; the old states rights idea has given way to the belief that Federal supervision makes for a better nation. The most casual reader who picks up this volume will find a large number of acts touching him personally. For instance, even the farmer will find that he cannot ship a barrel of apples out of his state without having his barrels properly stamped by the Federal government. There is not an individual who is not aft'ected in one way or another by some of these acts of Congress. In the following pages is given a brief sum- mary of these acts, setting forth, in language for the layman, the gen- eral purport of the Federal Statutes found in this volume. No attempt has been made to present a detailed analysis of the statutes, the sole de- sire being to indicate only in a brief way how they affect the general public. Farm Loan Act. July 17, 1916. The purposes of this act are to lower and equalize rates for farm loans ; to" provide longer times for payments ; to mobilize money for farm credits ; to stimulate co-operation among farmers ; and to check land monopoly by giving greater opportunities for the man wdth little monev to own land. The act creates a Farm Loan Board of five members including the Secretary of the Treasury. The appointed members receive $10,000 a 880 Important Federal Laws year. The board was authorized to establish twelve land bank districts, with a federal land bank in each, and appoint temporary directors. The banks are required to have a capital of at least $750,000. Twenty-five per cent, of this must be kept in quick assets. The land banks may be designated by the Secretary of the Treasury as public depositories. The banks are not permitted to do a general banking business. The local machinery of the act consists of farm loan associations, which are organized by ten or more persons who desire to become bor- rowers. The farm loan associations elect a board of at least five directors, a president, vice-president, secretary-treasurer and a loan committee of three members. The farm loan associations look after the loans to their members and collect interest and payments. The secretary-treasurer is the paid executive of the association. Loans range from $100 to $10,000 and each association must have at least $'20,000. The limit of the loan is fifty per cent, of the appraised value of the land and twenty per cent, of the value of im- provem.ents. Each borrower must invest five per cent, of the amount of his loan in the stock of the association. The money is used to buy stock in the federal land bank, which in turn uses the money to make more loans. The farm land bank handles the mortgages received from the local associations and sells bonds based upon the mortgages held. The money received by the sale of bonds is used to make more loans. The rate of interest to the farmer depends upon the interest rate of the bonds. The local associations are liable for failure of their members who are borrowers to the extent of their five per cent, subscription and an- other five per cent, which may be assessed. He is thus liable only for ten per cent, of his own loan, but since the loans are for fifty per cent, of value, only the most careless work would ever make it likely that the member would be liable. The conditions of loans are as follows : Loans are upon first mort- gages ; pavments are made annually or semi-annually ; rates of interest shall not be over six per cent. Loans are for purchase of land for agriculture, equipment, fertilizer, live stock, and improvement. Loans are to be made only to bona fide farmers or those who are about to become farmers. The powers and duties of the Federal Land Banks are set out in sections 13 and 14. They handle the farm loan business of their district subject to the Federal Board. In any locality where it appears to be impossible to start a farm loan association, the land banks may loan di- rectly, subject to the approval of the Federal Board. Joint stock land banks may be formed to carry on a farm loan business subject to the inspection of the Federal Board. The Federal Farm Loan Board has general powers over all of the operations under this act. They charter federal land banks, farm loan associations and joint stock land banks; fix rates of interest for federal Summary 881 land banks ; control the issue of bonds ; require reports ; make rules and regulations ; prescribe the form of bonds ; require payments from one bank to another of sums advanced ; suspend or remove land bank officers or assistants ; and have general supervisory power. The farm loan Act consists then of three main parts: (1) The Fed- eral Farm Loan Board; (2) the Twelve Federal Land Banks; (3) the Federal Farm Loan Associations. The farm loan associations are subject to the land banks and all are subject to the Federal Farm Loan Board. Agricultural Education Acts. 1S62. 1SS7. 1800, in06, 1914 and 1917. Several acts provide for national aid and co-operation in agricultural education. The Morrill act of 1862 gave public lands to each of the states for the establishment of schools of agriculture and mechanic arts. The Hatch act of 1887 established experiment stations in each of the states. The second JMorrill act of 1890 gave further national aid for agricultural colleges. The x^dams act of 1906 increased materially the aid for experiment work. The Smith-Lever act of 1914 gave large sums for the purpose of extension work in demonstrating directly to farmers. The Vocational act of 1917 gives aid for secondary schools of agricul- ture. Animal Disease Acts. May 29, 1884; Februiiry 2. 1903. The Bureau of Animal Industry was created in 1884 and was given power to control and suppress contagious diseases among animals. The bureau is given authority to investigate animal diseases and to make rules and regulations to prevent the spread of diseases. The law pro- hibits the transportation of infected stock and gives power to establish quarantine. The act of 1903 confers the whole power on the Secretary of Agriculture, under whose control the Bureau is placed. Extensive powers to seize and condemn infected stock are given. Cruelty to Animals Act. June 20. lOOG. This act prohibits carriers from confining animals in cars for more than twenty-eight consecutive hours, and requires that the animals be unloaded for a period of five consecutive hours and properly fed. The owner may, upon request in writing, have the time extended to thirty-six hours. The penalty is a fine of one hundred to five hundred dollars. Grain Standards Act. September S, 1916. The Secretary of Agriculture is authorized to establish standards of quality and condition of grain, and such standards are the official grain '(56) 882 Important Federal Laws standards of the United States. When standards are fixed no grain may be shipped in interstate commerce unless it has been inspected and graded according to the standard. An appeal may be taken to the Secretary of Agriculture from the grading of the inspectors. The Secretary issues licenses to competent persons to grade grain. Violators of the act are subject to a penalty of not more than one thousand dollars fine or im- prisonment for one year, or both. Warehouse Act. September 8, 1916. This act applies to all warehouses used in storing agricultural prod- ucts, including cotton, wool, grains, tobacco and flaxseed. The Secre- tary of Agriculture is authorized to investigate the storage, warehousing, classifying, weighing and certification of agricultural products ; upon application to him by any person applying for license to conduct a ware- house under this act, to inspect such warehouse or cause it to be in- spected ; at any times, with or without application to him, to inspect or cause to be inspected all warehouses licensed under this act ; to deter- mine whether warehouses for which licenses are applied for or have been issued under this act are suitable for the proper storage of any agricultural product or products ; to classify warehouses licensed or ap- plying for a license in accordance with their ownership, location, sur- roundings, capacity, conditions, and other qualities, and as to the kinds of licenses issued or that may be issued for them pursuant to this act; and to prescribe, within the limitations of this act, the duties of the ware- housemen conducting warehouses licensed under this act with respect to their care of and responsibility for agricultural products stored therein. The Secretary of Agriculture is authorized to issue licenses to ware- housemen for a term not exceeding one year. Every person licensed must give bond for the faithful performance of his duties and obliga- tions. The Secretary may also issue Hcenses to persons to_ act as weigh- ers and classifiers. Every warehouseman must accept agricultural prod- ucts for storage without discrimination. The act requires that receipts be given and prescribes the form of the receipt. No other receipt may be given until the original is cancelled. The warehouseman is required to deliver without any unnecessary delay any agricultural products to the depositor upon satisfaction of claims. The warehouseman is com- pelled to keep a record. Warehouses are subject to inspection by the Secretary of Agriculture and licenses may be revoked for cause. The Secretary may make investigations and examine books and documents. He mavalso make rules and regulations. The act does not conflict with state laws or limit their operation. Any person who forges a license, or who issues a false receipt, or who represents falsely that a warehouse is bonded, is subject to a fine of not more than five hundred dollars or imprisonment for six months, or both. Summary 883 Plant Quarantine Act. August 20, 1912. This act prohibits the importation of nursery stock until the same has been inspected by the Secretary of Agriculture and approved. Every case, box or package used in importing or in interstate commerce shall be marked to show the character of contents, country where grown, quantity, name and address of shipper and the name of the consignee. The Secretary of Agriculture may establish quarantine to prevent the entry or shipment of diseased shrubbery, trees and plants, and may make rules and regulations. The Federal Horticultural Board is created by the act to carry out its provisions. Pure Seeds Act. August 24, 1912. The importation of adulterated agricultural seeds is prohibited by this act. The act defines what shall be considered adulterated seeds, and also what are considered unfit for seeding purposes. The penalty for violation is a fine of not less than two hundred dollars nor more than five hundred dollars. The Secretary of the Treasury and the Secretary of Agriculture make rules and regulations for the further control of im- portation of seeds. Standard Apple Barrel Act. August 3. 1912. This act fixes a standard barrel for apples as defined in the first section of the act. The act fixes the grades of apples and requires bar- rels to be marked with the grade. ^Misbranding is defined and penalized by a fine of one dollar per barrel and costs. Standard Fruit Basket Act. August 31, 1916. This act fixes the standard Climax baskets for two quarts, four quarts and twelve quarts, and also standard smaller baskets for smaller fruits and berries. The shipment in interstate commerce of any baskets but the standard basket is forbidden under a penalty of twenty-five dol- lars. Baskets for exports are exempt if they comply with form require- ments. The department of Agriculture makes tests of baskets and formu- lates the rules and regulations. The guarantee of the manufacturer or wholesaler protects the dealer. Standard Lime Barrel Act. August 23, 1910. This act establishes two standard barrels for lime, a large barrel of two hundred and eighty pounds and a small barrel of one hundred and eighty pounds. Every barrel used in foreign or interstate commerce must 884 Important Federal Laws be marked with the weight of the barrel and name of the manufacturer, where manufactured, and, if imported, the name of the country from which imported. If shipment is made in smaller containers the weight must be clearly marked. Violation of the act is followed by a fine of not more than one hundred dollars. The Bureau of Standards makes further rules and regulations for the enforcement of the act. Insecticides Act. April 26. iniO. This act prohibits the manufacture of adulterated insecticides, in- cluding paris green, lead, arsenates, etc. Any person who ships or sells any adulterated or misbranded insecticides is guilty of a violation of the act. Examination of insecticide is made by the Secretary of Agriculture, and if it appears that there is any adulteration or misbranding, notice is given to the offending party. After a hearing th^ Secretary may notify the prosecuting officers, whose duty is then to prosecute the oft'ending party. This act defines what is considered adulterated and misbranded insecticides. The guarantee of the wholesaler protects the retail dealer. Any adulterated or misbranded insecticides may be seized and destroyed. Insecticides may be imported, but are subject to examination in like man- ner. The Secretary of the Treasury, Secretary of Agriculture and Sec- retary of Commerce and Labor are instructed to make further rules and regulations for the carrying out of the provisions of this act. Vocational Education Act. February 27. 1917. This act provides federal aid for vocational education in agriculture, trades and industries, home economics and in training vocational teach- ers. The amount of aid when the appropriation reaches its maximum is $3,000,000 for agriculture, a similar amount for trades and industries, including home economics, and $L000,000 for training teachers, or a total of $7,000,000. The law creates a federal board to administer the act and leaves the states to determine upon the board to handle the states' part. The state board formulates the plans for its state and submits them to the Federal Board, and if they are approved the federal aid is given. The state has entire control, but must satisfy the federal requirements. Spe- cific conditions are fixed for each kind of grants which the state must meet. The states are required to accept the conditions of the act by their legislatures and to appoint the state treasurer as custodian of the fund. If a state fails to live up to the requirements the federal aid may be withheld. Federal Reserve Act. December 2.3. 1913. This act provides for the creation of twelve Federal Reserve Dis- tricts, and for a Federal Reserve Bank in each. The whole system is Summary 885 under the control of the Federal Reserve Board, consisting of seven members appointed by the President for a term of ten years at a salary of ten thousand dollars. A preliminary organization committee was pro- vided which established the districts. The capital stock of the Reserve Banks is made up by subscriptions from national bank associations, each one subscribing one-sixth of their capital stock. All national banks were compelled to come into the sys- tem, and state banks were authorized to become members by complying with the conditions. The powers of the Federal Reserve Banks are set forth in general in section 4 of the act. The banks are managed by a board of directors consisting of three classes — Class A, Class B and Class C. Class A directors are chosen by the stockholding banks ; Class B directors are chosen by the stockhold- ing banks from persons engaged in commerce, agriculture or industrial pursuits ; Class C directors consist of members appointed by the Federal Board. The act provides in detail for the method of conducting business; for the increase or decrease of capital stock; the division of earnings; the conversion of state banks into national banks ; the powers of the Federal Reserve Board ; provides for an advisory counsel ; designates the method of issuing circulating notes and their redemption; fixes the reserve requirements of banks ; authorizes the establishment of foreign branches of national banks ; permits national banks to loan on farm lands ; establishes the liability of stockholders, and gives broad powers to the Federal Board to supervise and mobilize the banking business. Postal Savings Act. June 25, 1910. This act provides for the establishment of postal savings banks in connection with the postoffice system. The board in charge of the sys- tem consists of the Postmaster General, the Secretary of the Treasury and the Attorney General. The board designates the postoffices which are to be postal savings banks. Any person over ten years of age may be a depositor, but no one may have more than one thousand dollars to his credit at any time. Interest at the rate of two per cent, is paid. The funds are kept in depository banks, which may be either national or state banks. The depositor may transfer his deposits in sums of twenty dollars or more into postal savings bonds. The postal savings deposits are kept entirely separate from other funds by the postmaster. Under this act the government serves as a depository for small sums, which it in turn deposits in solvent banks. National Bank Act. June 20, 1874. The first national Ijank act was passed February 23. 1863, and has been revised and supplemented from time to time by Congress. The 886 Important Federal Laws whole banking system was revised by the act of June 20, 1874. This act authorizes the formation of national banking associations to carry on the business of banking; establishes the method of organization; fixes the powers of the associations ; provides for the conduct of the business of the associations and for their dissolution; defines the power to hold property; fixes the minimum capital; defines the time and method of payment ; provides for increase and decrease of capital stock ; fixes the qualifications of directors, and requires an oath by directors; and pro- vides for conversion of state banks into national banks. On July 1, 1917, there were 7,635 national banks in operation, a greater number than ever before, and with large resources and deposits. During the year ending June 30, 1917, 163 new national banks were chartered, as against 117 during the same period in 1916; 150 national banks increased their capital in the sum of $25,607,400, as against 92 increases in the sum of $9,607,700 during the preceding year. During the year 1917 new national banks were organized in thirty-six states. The Federal Reserve Act of December 23, 1913, modifies this act in many particulars, and the two should be consulted together. Immigration Act. ^ February 5, 1917. This act is a revision and summary of previous acts on immigration. It levies a tax upon immigrants ; defines who shall be excluded ; requires a literacy test ; prohibits immigration for immoral purposes ; prohibits importation of contract laborers and advertising for immigrants in a for- eign country; regulates transportation; penalizes importation of defec- tives ; requires entry to be made at designated ports ; requires lists of immigrants from steamship companies ; provides for examinations of immigrants and for deportation in certain cases ; places the enforcement in the hands of the commissioner general of immigration ; prohibits an- archists from entering ; and regulates entry of seamen. Naturalization Laws. June 29, 1906; March 4. 1P09; June 25, 1910. These laws furnish the conditions upon which an alien may become a citizen and the method of becoming a citizen. The work of naturali- zation is in charge of the Bureau of Naturalization in the department of labor. Naturalization may take place in any federal court or any state court of record. An alien desiring citizenship must file a declaration of intention with' the court, setting forth the necessary facts of his resi- dence. After a continuous residence of five years he may apply by peti- tion for citizenship. He must declare his allegiance to the country and renounce other allegiance. He must not be an anarchist. If the court finds that the requirements are met the applicant is admitted to citizen- ship. No certificate of naturalization can be issued within thirty days preceding the holding of a general election. All applicants must speak Summary 887 English. The act sets forth in detail the form of petition and all the details of procedure. Methods of bringing suits to set aside citizenship for cause are provided. Penalties are attached for all violations and evasions. Naturalization is limited to white persons or to persons of African descent. Naturalization of Chinese is prohibited. Naturalization of alien enemies is also prohibited. Honorably discharged soldiers, sailors or seamen are exempt from many formalities. The minor children of an alien naturalized are thereby naturalized. The wife becomes a citizen upon the naturalization of her husband. A woman citizen who marries a foreigner loses her citizenship. Trade Commission Act. September 2G, 1914. This act created a Federal Trade Commission of five members, at a salary of $10,000 each, to regulate business practices and to control the general conduct of business of an interstate character. The act declares that unfair methods of business shall not be practiced and the commis- sion is empowered to enforce the provision. Whenever the commission believes that unfair methods are used they may begin proceedings, and if the charges are sustained they may order the practice discontinued. An appeal may be taken to the circuit court of appeals, and, the case takes precedence over all other cases. The commission has power to make investigations and gather in- formation ; to require reports and information from all corporations, except banks and common carriers ; to investigate manner in which de- crees of court under anti-trust acts are being carried out ; to investigate alleged violations of the anti-trust acts ; to make public such information as thev deem for public benefit ; tO' make annual and special reports to Congress ; to make rules and regulations under the act ; and to investi- gate trade conditions and practices in foreign commerce. The commission acts as a master in chancery in anti-trust cases when directed by a court. The commission has power to compel testimony and the production of books and papers in any case before it. Wit- nesses may not be excused from testifying because the evidence may tend to criminate him, but such person may not be prosectued on account of the matter so testified. Any person refusing to testify or produce documents is subject to a fine of one thousand dollars to five thousand dollars and imprisonment for one year. Any person who makes false entry or fails to make correct reports asked for by the commission is subject to a fine of one thousand dollars to five thousand dollars and imprisonment for three years. Corporations are subject to a penalty of one hundred dollars a day for each day they fail to make an annual or special report. Violations of the anti-trust acts are subject to the pen- alties of those acts. 888 Important Federal Laws Sherman Act. July 2, 1S90. This act prohibits contracts or combinations in restraint of trade. Monopoly is prohibited. The penalty is a fine not exceeding five thou- sand dollars or imprisonment for not more than one year, or both. Any person injured by restraint of trade may recover triple damages. Clayton Act. October 15, 1914. This act defines and prohibits the practices which restrain trade. It is made unlawful to discriminate in price, or to compel purchasers not to handle competitors' goods. Corporations may not acquire stock in another corporation if it tends to make monopoly. Interlocking direc- torates are prohibited in certain cases, and contracts of carriers may not be made with corporations which have on their boards any officer or director of the carrier. The power to enforce this provision is placed in the Interstate Commerce Commission as to carriers, the Federal Re- serve Board as to banks, and the Federal Trade Commission as to other business. Officers and directors are made liable as well as the corpora- tion. The issue of injunction is regulated and preliminary injunctions are prohibited without notice. Labor is declared not to be a commodity, and the anti-trust acts are made to exempt labor societies and agricultural and horticultural societies. Cotton Futures Act. September 8, 1916. This act is a substitute for the cotton futures act passed in 1914. It places a tax of two cents a pound upon cotton sold for future delivery unless such sales comply with the act. Contracts for future delivery must be in writing. No tax is levied if the conditions of the act regulating such sales are met. The markets which are to be considered bona fide spot markets are those which have been approved by the Secretary of Agriculture. Taxes under the act are paid by stamp. Contracts not complying with the act are void. Food and Drugs Act. June 30, 1906. This act prohibits the manufacture of any articles of food or of any drugs which are misbranded or adulterated in the District of Columbia or the territories, and the interstate commerce in foods or drugs which are misbranded or adulterated. Samples of food and drugs are exam- ined by the Bureau of Chemistry of the Department of Agriculture and, if found misbranded or adulterated, notice is given to the party from whom the samples were obtained. The person is given a hearing, and if it appears that the provisions are violated the district attorney is given the case. Sections 7 and 8 of the act define the meaning of adulterated and misbranded food and drugs. The guarantee of the wholesaler pro- Summary ^ 889 tects the retail dealer. Whenever any food, drug or liquor is found to be adulterated it may be sold or destroyed. Imported foods or drugs are subject to examination, and may be prohibited if found adulterated or misbranded. Meat Inspection Act. March 4, 1907. This act seeks to prevent shipments of unsound or unwholesome meat or meat products in interstate commerce The Secretary of Agri- culture is empowered to inspect all animals before slaughter and all meat after slaughter, and to stamp approval of good meat and compel the destruction of unhealthy meat. The Secretary is also authorized to in- spect all meat food products and approve or condemn the same. A label shall be attached to all meat and meat food products showing that they have been inspected and passed. The Secretary also has power to in- spect the sanitary conditions of all establishments where meat or meat food products are produced. It is made unlawful to offer for transport, or for carriers to accept for transport, any meat or meat food products not stamped as approved. Meat for export is also examined for disease and certificates of condition are given. Any person, firm or corporation violating this act is subject to a fine of not more than ten thousand dollars and imprisonment' for not more than tw'O years, or both fine and imprisonment. Any inspector who re- ceives a bribe, or any person wdio oft"ers or gives a bribe to any officer or inspector, is subject to a fine of not less than one thousand dollars nor more than ten thousand dollars, and imprisonment for from one to three years. This act does not apply to farmers, retail butchers or dealers, but if such persons knowingly sell in interstate commerce diseased meat they are subject to a fine of one thousand dollars or imprisonment for one year, or both fine and imprisonment. By the tariff" act of 1913 imported meat was made subject to the Meat Inspection Act and the pure food law. Opium and Narcotics Acts. January 17, 1914, aud December 17, 1914. The first step of Congress to regulate the importation and sale of opium and other narcotics w^as made with the passage of an act on Feb- ruary 9, 1909, which was amended January 17, 1914, in several par- ticulars in order to make it more eff'ective. Importation of all smoking opium or opium prepared for smoking was absolutely prohibited from and after July 1, 1913. On the same date Congress passed another act which placed a tax of $300 a pound upon all opium manufactured in the United States for smoking purposes. Furthermore, the act prohib- ited all persons not citizens oit the United States from engaging in such manufacture. The result of this act was to prohibit the manufacture of opium products. 890 Important Federal Laws The third act relating to narcotics was passed by Congress on De- cember 17, 1914. This third act provided that on and after Alarch 1, 1915, the importation and manufacture of opium or cocoa leaves or any compound thereof shall be prohibited. Any manufacturer or dealer shall register with the Collector of Internal Revenue of his district. The ad- ditional provisions of the act placed numerous restrictions around the manufacture and sale of all narcotics and provided penalties for their violation. The penalty for the violation of any one of the provisions of the act carries with it a fine of two thousand dollars, or imprisonment of five years, or both, in the discretion of the court. In order to make the act effective Congress appropriated $150,000 for carrying out its provisions. Mediation and Arbitration Act. July 15. 1913. This act provides a method for settling disputes between employers and employees on railroads. Whenever a controversy arises concerning wages, hours of labor, or condition of employment, either party may applv to the Board of Mediation and Arbitration created by the act, which shall proceed to try to settle the matter. The Board may also pro- ceed upon its own motion when it appears that interruption of traffic is imminent. If mediation fails the board next seeks to obtain arbitration by boards chosen by the employers and employees. The agreement to arbi- trate stipulates the method of procedure, and that the parties will accept the award. The boards of arbitration are given power to compel at- tendance and testimony of witnesses and the production of books and papers. The findings of the board are binding upon the parties, but no person is thereby compelled to render personal services without his con- sent. The Mediation Board consists of the Commissioner of ■Mediation and Arbitration and two officials of the government designated by the President. The Commissioner of Mediation and Arbitration receives an annual salarv of seven thousand five hundred dollars. Employers' Liability Act. April 22, 1908. This act applies to railroads doing an interstate business and fixes the liability for damages for personal injury of employees. It removes the defenses of contributory negligence and assumption of risk and prohibits contracts for exemption. Actions must be commenced within two years after injury. Safety Appliance Acts. March 2, 1893; February 23. 1905; May 30, 1908; May 6, 1910; February 17, 1911. These acts apply to common carriers and require certain equipment for safety of employees and travelers. Among the safety devices re- Summary 891 quired are the following: Power driving wheel brake and appliances, automatic couplers, grab irons and hand holds, standard height of draw- bars, power brakes. Cars may not be used which do not have sill steps and efficient hand brakes, ladders and running boards, hand holds or grab irons on the roofs, and engines must have automatic ash pans. The boiler inspection act requires that all engines used in interstate commerce be inspected by the inspectors of boilers created by this act. All accidents are to be reported to the Interstate Commerce Commission. The Presi- dent is authorized to have a medal of honor prepared to be conferred upon persons who endanger their lives to save others. Hours of Service Act. March 4, 1907. This act makes it unlawful to require or permit any employee to remain on duty more than sixteen consecutive hours, and requires that an employee who has been on duty continuously sixteen hours must have ten hours' rest, and any person who has been on duty sixteen hours in twenty-four must have at least eight hours ofif. Train dispatchers are not permitted to work more than nine hours in twenty-four, when ser- vice is operated night and day, nor more than thirteen hours when there is day service only, except in case of emergency. Compensation for Injuries of Federal Employees Act. September 7, 1916. This act is the usual workmen's compensation act applying only to federal employees. Since, however, there are millions of workers who in one form or another are serving the government the act has wide interest. For the first three days after injury no compensation is al- lowed. The rate for total disability is sixty-six and two-thirds per cent, of the monthly pay. The rate for partial disability is at the same rate, but the possible earnings of the injured party are deducted. The em- ployee uses his annual or sick leave first. In case of death the compen- sation is adjusted to the number and nearness of dependents. Burial expenses are allowed. Provision is made for lump-sum settlements. Claims must be made in writing within sixty days after injury. Med- ical examinations are required whenever necessary. Assignments are void. The injured party may be required to assign any legal claim he may have for damages against other parties causing the injury. The compensation from other sources figures in his claim against the United States. The act is administered by a commission of three members appointed for six years at an annual salary of four thousand dollars. They have all the powers necessary to carry out their work. They investigate all cases of injury and adjust the compensation. The President may trans- fer the administration of the act so far as it relates to the Panama Canal and Alaska railway to the officers respectively in charge. No compen- 892 Important Federal Laws sation is allowed in any case unless received while in the performance of duty, and no compensation shall be paid for injury wilfully caused, or caused by wilful misconduct, or while intoxicated. Child Labor Act. September 1. 1916. This act prohibits the shipment in interstate commerce of any goods manufactured by the labor of children under fourteen years of age, or of any products of mines and cjuarries produced by the labor of chil- dren under sixteen years of age. The Attorney General, Secretary of Commerce and Secretary of Labor are constituted a board to make rules and regulations to administer this act, while the enforcement of the act is placed in the hands of the Secretary of Labor. The penalty is two hundred dollars fine for first offense and one hundred dollars to one thousand dollars for second offense, to which may be added imprison- ment for three weeks. This act takes effect September 1, 1917. Children's Bureau Act. April 0. 1012. This bureau was established to investigate the care and safeguard- ing of children and to make reports for the information and education of the public. It is in charge of a chief, who is appointed by the Presi- dent, at an annual salary of five thousand dollars. Eight Hour Day Act. September 3 and 5, 1916. In all contracts for labor in the operation of railroads in interstate commerce eight hours was fixed as a day's work. A board of inquiry was created and, pending its report, wages were not to be reduced below the existing standard and all time over eight hours was to be paid for overtime at the same ratio. Eight Hours on Public Works Act. March 3, 1913. This act fixes eight hours as a day's work for all laborers and me- chanics employed by the United States or the District of Columbia, or by any contractor or subcontractor upon a public work in the United States. It is made unlawful to employ or to allow any one to work more than eight hours. Income Tax Act. September 8, 1916. This act is a substitute for the original income tax act passed in 1913. It levies a tax of two per centum upon the income of residents and the same rate upon the income of non-resident aliens from all sources in the United States. In addition a graduated tax is levied upon incomes Summary 893 as follows: $20,000 to $40,000, one per centum; $40,000 to $60,000, two per centum; $60,000 to $80,000, three per centum; $80,000 to $100,- 000, four per centum; $100,00 to $150,000, live per centum; $150,000 to $200,000, six per centum ; $200,000 to $250,000, seven per centum ; $250,000 to $300,000, eight per centum ; $300,000 to $500,000, nine per centum; S50O,00O to $1,000,000. ten per centum; $1,000,000 to $1,500,- 000, eleven per centum; $1,500,000 to $2,000,000, twelve per centum; above $2,000,000, thirteen per centum. The act defines income in section 2 and specifies what shall be ex- empt in section 4. The following deductions may be made in computing net incomes : Necessary expenses of the business ; interest paid ; taxes paid ; losses sustained ; losses in transactions but not exceeding profits ; worthless debts charged off ; depreciations ; exhaustion or depletion of natural resources. Tax is computed as of December 21 of each year. Report is re- quired on or before March 1. Taxes are payable on or before June 15. The law is administered by the Commissioner of Internal Revenue under the direction of the Secretary of the Treasury. Corporation Tax Act. September 8. 1916. This act rewrites the original corporation tax of 1909. The act levies a tax of two per cent, upon the net income of all corporations doing business in the United States. No tax is levied upon labor, agri- cultural and horticultural associations ; mutual savings banks not having capital stock represented by shares ; fraternal beneficiary societies ; build- ing and loan associations and co-operative banks ; cemetery companies for benefit of members ; religious, charitable, scientific and educational work ; chambers of commerce, etc., not for profit ; civic leagues ; pleas- ure clubs ; farmers' mutual insurance companies ; farmers and fruit growers' associations ; federal land banks and federal farm loan associa- tions and joint stock land banks. The tax is computed as of December 31, and report is made on or before March 1. The taxes are pay- able on or before June 15. The administration of this act is under the Commissioner of Internal Revenue subject to control of the Sec- retary of Treasury. Administrative Features of Tax Laws Act. September 8, 1916. These provisions amend existing statutes to make them conform to the new requirements for the collection of income and corporation taxes. Inheritance Tax. September 8. 1916. An inheritance tax is levied at the following rates upon the net estate: One and one-half per centum up to $50,000; three per centum, 894 Important Federal Laws $50,000 to $150,000; four and one-half per centum, $150,000 to $250,- 000: six per centum, $250,000 to $450,000; seven and one-half per centum, $450,000 to $1,000,000; nine per centum, $1,000,000 to $2,000,- 000; ten and one-half per centum, $2,000,000 to $3,000,000; twelve per centum, $3,000,000 to $4,000,000; thirteen and one4ialf per centum, $4,000,000 to $5,000,000; fifteen per centum, $5,000,000 and upwards. The law sets forth the method of determining the gross and net estates in sections 202 to 203. The tax is due within one year of death. A deduction at the rate of five per centum is made for payments before they are due. Interest at ten per centum is charged after ninety days overdue. An executor must give notice to the collector within thirtv days of his appointment and must at the proper time file reports of the estate. The tax is assessed by the Commissioner of Internal Revenue. The executor pays the tax to the Collector. In case of failure, pro- ceedings are brought in the United States courts to enforce payment. Penalties for false returns are five thousand dollars fine, or imprison- ment for one year, or both. The law is administered by the Commis- sioner of Internal Revenue, with the approval of the Secretarv of the Treasury. Rules and regulations are issued by the Commissioner. Munition Manufacturers' Tax Act. September S, 1916. This act imposes a tax of twelve and one-half per centum of the net profits of munitions manufactured, in addition to other income and cor- poration taxes. In computing net profits, the following deductions are allowed : Cost of raw materials, running expenses, interest paid, taxes, losses actually sustained and depreciations. A report is made on March 1 to the Collector of Internal Revenue. The tax is payable within thirty days of notice. The administration of the act is in the hands of the Commissioner of Internal Revenue, who is under the control of the Secretary of the Treasury. Ofiicials are penalized for disclosing information received. The penalty for violation is a fine of not more than ten thousand dollars, or imprisonment for not more than one year, or both. Miscellaneous Taxes. September 8, 1916. The taxes imposed by this part of the revenue act of 1916 amend several sections of the revenue acts and include several new taxes levied upon various kinds of business. Tariff Act. October .3, 1913. The Tariff Act consists of three main parts : First, the dutiable list, or the articles upon which duty is paid ; second, the free list, or those articles upon which no duty is paid ; third, administrative provisions, which deal with the assessment and collection of duties. Summary 895 The Tariff Act is divided into schedules as follows: A, chemicals, oils and paints ; B, earths, earthenware and glassware ; C, metals and manufactures of; D, wood and manufactures of; E, sugar, molasses and manufactures of ; F, tobacco and manufactures of ; G, agricul- tural products and provisions ; H, spirits, wines and other beverages ; I, cotton manufactures ; T. flax, hemp and jute manufactures ; K, wool and manufactures of;"L, silk and silk goods; M, papers and books; N, sundries. In each case the specific tariff duty is given. Additional provisions of the act of September 8, 1916, are intended to protect dyestuffs from foreign competition. The administrative provisions of the act detail methods by which the revenue officers fix the valuations and assess the tariff duties on each product. For other summaries see Tariff Commis- sion and Unfair Competition. Tariff Commission. September 8. 1916. . This act creates a Tariff Commission for the purpose of investi- gating tariff" rates. The commission consists of six members, with an annual salary of $7,500 each. They are empowered to investigate the tariff laws, the cost of production at home and abroad, and the classi- fication of articles. Their reports are to be made to the President and Congress. The commission has power to compel testimony and the pro- duction of books and papers. Unfair Competition. September S. 1916. This act makes it unlawful to sell goods in this country at a lower rate than they are sold on the usual markets of the country where pro- duced. A penaltv of five thousand dollars fine and one year imprison- ment is fixed for violations. A special duty is levied upon goods im- ported under an agreement which restricts the importer or dealer from using the goods of other persons. The President is given power to pro- hibit the importation of goods from a country which prohibits the im- portation of American goods. The President is also given retaliatory power during a war in which the United States is not engaged. Interstate Commerce Act. February 4, 1887. This act was one of the first acts by which the federal government began to control business. It was passed in 1887 and was changed in important particulars in 1906 and again in 1910. The law lays down the proposition that service and charges must be just and reasonable and that no discriminations shall be allowed. The law prohibits free passes except in certain cases. The long and short haul clause, found in this 896 Important Federal Laws act, prohibits a lower proportionate rate for a long than for a short haul over the same lines. Pooling of the profits of railroads is forbidden. The schedule of rates must be open to the public and thirty days' notice must be given of a change. A provision passed in August. 1916, gave the President power to have the first call on the use of the railroads for military purposes in preference to other purposes. Railroads must file schedules of rates with the Interstate Commerce Commission on forms prescribed by the commission. The act creates the Interstate Com- merce Commission, to consist of seven members appointed for seven years at an annual salary of ten thousand dollars. The commission is given power to inquire into the conduct of the business of carriers and to compel production of books and papers and the testimony of witnesses. Any person, company or organization may appeal to the commission as to rates or service and, after a hearing, the commission may set aside any rate or require any service The commission may also proceed upon its own motion to investigate rates and service. The commission may award damages to any shipper. The railroads must comply with the orders of the commission, but may appeal to the district court in certain cases. The commission is given power to make a physical valuation of all railroads and is given the necessarv means to do it. The commission may require annual reports and uniform accounts. Every railroad is required to give a bill of lading and to stand any losses incurred through negligence in shipment. Immunity of Witnesses Act. June 30. imG. Immunity of witnesses in certain cases extends only to natural per- sons who, in obedience to a subpoena, give testimony under oath or pro- duce evidence, documentary or otherwise, under oath. Anti-Rebate Act. Februai-y 19. 1903. This act. known as the Elkins Act, prohibits common carriers from giving any rebate, concession or discrimination, and prohibits shippers from acceptance of the same. Expediting Act. June 25, 1910. This act is designed to expedite cases appealed to the court under the interstate commerce act. Compulsory Testimony Act. February 11, 1893. This act is amendatory of an act approved February 4, 1887. It is concerned with trials before the Interstate Commerce Commission, and Summary 897 provides for compelling witnesses to give testimony in such trials as may come before the commission. The same rule holds in these trials as in all trial courts ; that is, no witness is compelled to testify in such a manner as to incriminate himself, or subject himself to fine or imprisonment. The act compels the production of books, papers and records which may be needed in presenting facts to the commission. Failure to testify or pro- duce such records as may be called for subjects the individual to fine or imprisonment, or both. Bill of Lading Act. August 29, 1916. This act regulates the issue and use of bills of lading in interstate and foreign commerce. The act defines bills of lading and fixes the liability of the carrier in the transportation and delivery of goods. The legal rights of creditors and others are defined and also the method of transfer of bills is determined. Federal Election Laws. January 26, 1907; June 25, 1910. The act for publicity of campaign contributions, passed in 1910, requires that no money shall be spent except through constituted com- mittees, and that every expenditure of ten dollars or more shall be evi- denced by a receipted bill. Every committee must keep a record of all contributions and, at least ten days and not more than fifteen days be- fore election, must file in the office of the clerk of the House of Rep- resentatives in Washington an itemized report of all contributions. A supplemental report must be issued on each sixth day thereafter until election. Every person, firm or corporation expending more than fifty dollars for the purpose of influencing a federal election in two or more states must also file a statement. The candidate must also file a com- plete statement of receipts. No candidate for either house of Congress may promise any office or position for support. Campaign expenditures, if limited by a state, are subject to that limit, but in no case may a candidate for the United States Senate spend more than ten thousand dollars nor a candidate for a seat in the lower House more than five thousand dollars for nomi- nation and election. Candidates may pay their own personal expenses without being subject to this act. An act of January, 1907, prohibits corporations from contributing to campaign funds. The Criminal Code also penalizes crimes against the elective franchise. Conspiracy to con- trol federal elections is penalized, as is also the use of troops at the polls. National Defense Act. June 3, 1916. This act covers the whole field of army organization and manage- ment, and was called forth because of the great world war. Under it the army is made to consist of the regular army, the volunteer army, (57) 898 Important Federal Laws the officers reserve corps, the enhsted reserve corps and the national guard. The act fixes the composition of the regular army and the organi- zation of the departments, including general officers of the line, general staff officers, adjutant general's department, inspection general's depart- ment, judge advocate general's department, the quartermaster corps, the medical department, the corps of engineers, the ordnance department, the signal corps, bureau of insular afifairs, chaplains, veterinarians, the com- position of infantry, cavalry and artillery units, the coast artillery and the Porto Rico regiment of infantry. The act defines the methods of appointment, promotion and retirement of officers ; regulates enlistment and pay of men ; fixes the regular army reserve ; provides for the train- ing of the officers reserve corps and the national guard, and for mili- tary instruction at schools and colleges. The composition, organization and maintenance of the national guard are given in detail in the act. Enlistment in the guard is fixed at six years, three of active service and three in reserve. The appointment of officers and the draft into the national service are specified. The guard is equipped with the same equipment as the regular army. The actual control is left to the states, subject to close supervision by the War De- partment. The national guard is inspected at least once a year by the War Department, and provisions are made for annual maneuvers of all or some part of the guard. The law authorizes the survey of all industrial plants by the Sec- retary of War for purposes of mobilization of industrial power and also for the investigation of government manufacture of arms, etc., and for the procurement of necessary equipment. The President is authorized to make an investigation of the nitrate supply and to take steps to acquire control of sufficient supply. Conscription Act. May IS, 1917. This act authorized the President to raise all army divisions to full strength ; to draft men into the service of the United States as provided by the National Defense Act; to draft an army of 500,000 men and such additional armies as may be necessary ; to raise recruit training units bv draft; to raise and organize ammunition and depot batteries and bat- talions ; and to raise armies by voluntary enlistment. The act provided for the registration of all men between the ages of 21 and 30. inclusive. This registration took place on June 5, 1917, at which time nearly 10,000,000 men were registered for military service. Bounties and substitutes were prohibited. The law exempted the legis- lative, executive and judicial officers of the United States and of the states and territories. ]\Iinisters of religion, students preparing for the ministrv, and members of denominations whose creed forbids participa- tion in war my be drafted for noncombatant duty. The President was Summary 899 authorized to exempt certain officials and others whose duties might be such as to make their services more necessary in a civil than in'- a mili- tary capacity. The work of the draft is carried on by means of state and local boards created by the President. The President formulates the rules and regulations to carry on the draft. The President is authorized to appoint such officers as are necessary and to make such appointments for the period of the war. The pay of officers and enlisted men is fixed in this act. It pro- hibits the sale of intoxicating liquor to soldiers in uniform and prohibits houses of prostitution within such distance from camps as the Secretary of War shall determine. Shipping Board Act. September 7, 1916. This act has for its purpose the development of a merchant marine and a naval auxiliary reserve to meet the needs of commerce and to regulate carriers by w-ater. It is one of several acts which have been called forth as a result of the great World War. The act creates a United States Shipping Board of five commissioners appointed by the President for six years at an annual salary of $7,500. The board is given power to build, charter or buy vessels, with the approval of the President, for use as naval auxiliaries or transports. The President may transfer government owned vessels to the board. The board may sell or lease any vessels owned by it. Any ship purchased or leased may be registered as a vessel of the United States. The Presi- dent is given broad powers to take over any vessel for military or naval purposes. The board is authorized to form shipping corporations for the pur- chase, construction, equipment, lease, charter, maintenance and operation of merchant vessels with a total capital stock not exceeding fifty million dollars. The board may subscribe for half the stock. The corporation may build, purchase or charter ships, but under the terms of the act its corporate existence automatically ceases "at the expiration of five years from the conclusion of the present European war." The President is authorized to issue a proclamation declaring the date on which the war formally closes. The board is authorized to investigate cost of ship building and of shipping business and the navigation and other laws. Bonds of $50,- 000,000 are authorized for the purpose of the act. The act regulates carriers by water to prevent monopoly, discrim- ination, retaliation and unfair methods. All carriers by water must file wdth the board all rate agreements with other carriers. The board may disapprove, cancel or amend any agreement. Preferential rates of all kinds and unjust rates are prohibited and the board is given power in regard thereto. The board may require reports from carriers by water. 900 Important Federal Laws Upon complaint they may make an investigation of rates or service and may order correction. The board may investigate unequal treatment of American vessels by foreign governments. The board may compel tes- timony and production of books and papers. The Federal District Court is given jurisdiction in matters arising out of the operation of this act. War Risk Insurance Act. September 2, 1914; March 3, 1917. This act creates the Bureau of War Risk Insurance in the treasury department for the insurance of American vessels against the risks of war. The Bureau is authorized to adopt and publish a standard war risk policy. An advisory board is provided. An amendment approved on March 3, 1917, provided an appropriation of $15,000,000 for paying losses accruing from the provisions of the act of 1914. Trade-mark Laws. February 20. 1905; May 4. 1906; Fel)riiary 18, 1909. This act prescribes the method of registering trade-marks and se- curing protection from their use by others. The owner makes a writ- ten declaration setting forth the necessary facts with respect to his trade- mark. His application is filed in the Patent Office and, if the examina- tion shows that it is in compliance with the law, a trade-mark is granted. The law specifies many conditions whereby a trade-mark will be refused. Notice of interference is filed with the Commissioner of Patents and no- tice is given to the applicant. An appeal may be taken from the exam- iner to the commissioner and from the commissioner to the Court of Appeals of the District of Columbia. Trade-marks are assignable. All certificates are issued in the name of the United States under the seal of the patent office. The certificates are in force for twenty years. Any person injured by a trade-mark may appeal to the Commissioner of Pat- ents and the commissioner may cancel the certificate. The law fixes the fees for filing applications and notices. Regis- tration is made prima facie evidence of ownership. Court procedure is prescribed. Proceedings in equity for damages are authorized. Fraud- ulent registration is penalized and the Commissioner of Patents is au- thorized to establish rules and regulations. Articles imported must not imitate the name of a domestic product. The registrant must give notice of a trade-mark by the words "Registered in U. S. Patent Office," or "Reg. U. S. Pat. Ofif." Copyright Law. March 4, 1909. This act consolidates all previous laws relating to copyrights. The law specifies the matter which may be copyrighted. The protection ex- tends to the work as a whole and to component parts of the work. The following classes of works may be copyrighted under the act : (a) Books, Summary 901 including composite and cyclopaedic works, directories, gazetteers and other compilations; (b) periodicals, including newspapers: (c) lec- tures, sermons, addresses (prepared for oral delivery) ; (d) dramatic or dramatico-musical compositions; (e) musical compositions; (f) maps ; (g) works of art, models or designs for works of art ; (h) re- productions of a work of art; (i) drawings or plastic works of a scien- tific or technical character; (j) photographs; (k) prints and pictorial illustrations; (1) motion picture photo plays; (m) motion pictures other than photo-plays. There are some things specified which are not copyrightable. The registration of copyright is secured by fihng in the office of the Register of Copyrights two copies of the work, together with the fee required. The law requires that the book must be printed from type set within the limits of the United States, or from plates made in the United States, and must be bound within the limits of the United States. Notice of copyright must be given on each separate publication wher- ever printed, but the omission of the notice through accident or mistake does not invalidate a copyright. False notice of copyright is punishable by fine and imprisonment. The duration of a copyright is for the period of twenty-eight years, and may be extended for another period of the same length. Any per- son may be restrained from infringement of copyright or may be com- pelled to pay damages for infringement. The act limits the importation of books within certain specifications. The act is administered by the Register of Copyrights in the Library of Congress, who has power to formulate additional rules and regulations. White Slave Traffic Act. June 25, 1910. This act prohibits transportation across state lines of any female for immoral purposes, and also penalizes the inducing of any female to travel across state lines for immoral pvirposes. Prize Fight Films. July 31, 1912. This act prohibits the transportation in interstate commerce of any moving picture films showing prize fights. Liquor Shipments. March 1, 1913. This act, known as the Webb-Kenyon Act, prohibits the shipment of liquor into "dry" territory in violation of the laws of the state or terri- tory, or into the District of Columbia. A subsequent liquor act, passed March 3, 1917, prohibits its shipment into any "dry" state or territory, and prohibits the advertisement of any intoxicating liquor in "dry" ter- ritory. 902 Important Federal Laws Bankruptcy Act. July 1, 1S98. The Constitution of the United States gives Congress power to reg- ulate bankruptcies (Art. I, Sec. 8). On July 1. 1898, the present Bank- rupt Code was estabhshed for the regulation of bankruptcies in the United States. The act defines a large number of terms used and des- ignates certain existing federal courts as courts of bankruptcy, and fixes their jurisdiction. The District Courts, Supreme Court of the District of Columbia, and the District Courts of the several territories, and of Alaska, may hear bankruptcy cases. The act specifies what shall be considered acts of bankruptcy, and defines who may become bankrupts, and determines the efifect upon partnerships. The duties of bankrupts are set forth in detail. The procedure of courts is also fixed. Criminal Code. March 4, 1009. In 1909 Congress consolidated the laws relating to crimes and set forth in one act the oft'enses for which penalties were attached. The act divides crimes into the following classes : Ofifenses against the ex- istence of the government ; offenses against neutrality ; offenses against the elective franchise and civil right of citizens ; oft'enses against the op- eration of government ; oft'enses relating to ofticial duties ; oft'enses re- lating to public justice; offenses against currency and coinage; offenses against the postal service ; oft'enses against foreign and interstate com- merce ; offenses within the admiralty, maritime and territorial jurisdic- tion of the United States ; certain oft'enses in territories ; piracy and other oft'enses upon the high seas ; general and special provisions ; slave trade and peonage. There are other criminal sections of statutes and many acts have been passed since the passage of the criminal code penal- izing other oft'enses. Federal Judicial Code. March 3, 1911. This act revised and codified the laws relating to the judiciary and established the following courts : District courts ; Circuit Court of Ap- peals ; Court of Claims ; Court of Customs Appeals ; Commerce Court (later abolished) : and provided new rules for the Supreme Court. The lowest Federal Court is the District Court. There are at pres- ent one hundred and three District courts, each comprising a territory consisting of a part of a state, of a whole state, or of a group of con- tiguous states. The court is presided over by a district judge, who is appointed by the President for life. The next higher court is the Circuit Court of Appeals, of which there are nine, each consisting of three judges appointed for life by the President. The Court of Claims hears and decides claims against the United States, and they are very numerous because of the great range of the Summary 903 activities of the United States in its dealings with individuals and states. Any person who is not satisfied with the decision of this court may ap- peal to the Supreme Court. The Court of Customs Appeals has jurisdiction over questions aris- ing out of the importation of goods into the country. Any person who is dissatisfied with the assessment of tarifif duties made by the custom house officers may appeal to the Court of Custom Appeals. The Commerce Court was abolished by the Act of December 22, 1913. and its jurisdiction placed in the United States District Courts. The Supreme Court was established by the Constitution in 1787. It consists of nine justices appointed by the President for life. Cases may be appealed to the Supreme Court from the Circuit Court of Ap- peals, Court of Claims, or, in some cases, direct from the District Court. Appeals also come from State Supreme Courts. The Federal Judicial Code outlines the specific powers and duties of each one of these courts. Parole of Prisoners Act. June 2.5, 1910; June 23, 1913. This act provides for the release of prisoners on parole from fed- eral prisons. The Board of Parole of each prison consists of the su- perintendent of prisons, of the Department of Justice and the warden and physician of each United States penitentiary. They establish rules and regulations subject to the approval of the attorney general. When- ever it appears that an applicant for parole will live and remain at lib- ertv without violating the laws, the Board may release such person on parole, and the prisoner is released subject to re-arrest for breaking his parole. Any prisoner arrested is given a chance of hearing and the Board may revoke the parole if it finds it has been violated, or it may modify the terms and conditions of the parole. The Board of Parole appoints a parole officer for each penitentiary, whose dutv it is to visit and exercise supervision of persons on parole. The gratuities given to discharged prisoners are also allowed paroled prisoners. Persons confined in state prisons under federal laws may also be paroled under the provisions of the act. The President's pardon power is not afifected by this act. District Court Jurisdictions Act. December 22, 1913. This act abolished the Commerce Court and transferred the juris- diction of that court over interstate commerce cases to the United States District Courts. Proof of Handwriting Act. February 26, 1913. This act provides that when the genuineness of handwriting is in- volved any admitted or approved handwriting of a person is competent 904 Important Federal Laws evidence as a basis for comparison with the handwriting in question to prove or disprove genuineness. Public Health Act. August 14, 1012; March 27, ISfR); February 15, 1S93. The federal government's work for public health is confined largely to the investigations made by the Public Health Service, and the edu- cational work which comes from the work and publications of the ser- vice. The Public Health Service is authorized to study and investigate the diseases of man and conditions influencing the propagation and spread thereof, including sanitation and sewage, and the pollution of streams and lakes. The federal government also has power to quarantine against the spread or importation of cholera, yellow fever, smallpox or plague. The President is authorized to cause the Secretary of the Treasury to pro- mulgate rules and regulations to prevent the spread of diseases from one state to another, or the importation of diseases from foreign countries. The federal authorities are authorized to co-operate with state and local officials in the investigation and suppression of disease. Good Roads Act. July 11. 1916. This act gives national aid to the states for the building of roads. The appropriation amounts to $85,000,000 to be expended over a period of five years. The amount is apportioned to the states as follows : One- third on population ; one-third on area ; and one-third on rural route and star route mileage. Any state to obtain its quota must maintain a highway department and must submit their plans to the Secretary of Agriculture for approval. The roads are constructed subject to federal supervision. The states maintain the roads after they are constructed, but if they neglect to maintain them, the federal authorities withhold fur- ther appropriations. Excess Profits Tax. March 3, 1917. Under this act an extra tax was laid upon the net income of cor- porations and partnerships amounting to eight per cent of the actual capital invested. This tax applies to the Philippine Islands and Porto Rico. The term "actual capital" is defined to mean: (1) The actual cash paid in; (2) the actual cash value at the time of payment of as- sets other than cash paid in; (3) paid-in or earned surplus and undi- vided profits used or employed in the business. This act appears in the addenda, pp. 873-875, having been received too late for inclusion in its proper place with the corporation tax. INDEX ABORTION — Articles or medicines for may not be imported 450 ACCIDENT REPORT. Definitiiins 289 Interstate Commerce Commission — Powers of 288 Reports by 288 Monthly reports required 287-288 Fenalties 288 ADAMSON ACT. Sec Hours of Ldhor. AGRICULTURAL EDUCATION 44-57 Agricultural Colleges — Federal Aid 44-49 (Tlie Morrill Act.) 44-47 Acceptance by the states of re- strictions 46-47 Apportionment 4.5-49 Fees 47 Grants to states 44-45, 47-48 Investment of funds 45-46 Land scrip — Location of 47 Payment to states 48-49 Reports 47 Report to Congress 49-50 States liable for fund 49 Extension Work — Federal Aid 54-57 Appropriation 55-56 Co-operative extension worli es- tablislied 54-55 Payments 56 Secretary of Agriculture, duty of__57 States liable for fund 56-57 Experiment Stations — • Acceptance by states 52 Aiipropriations 51, 52-53 Aiipriipriation repealable 52 Established in states 50-54 'Sot to affect relations of col- leges to states 52 Payments 53 Publications of 51 Purpose of 50 Secretary of Agriculture, duty of 50-.51, 54 Separate 52 States lialde for fund 53-54 Summary of the Act 873 AGRICULTURE. See Federal Farm Loans. Animal Dis- eases, Apple Barrels, Cruelty to Ani- mals, Fruit Baskets, Standards, Good Roads, Grain Sta)idards. Inseetieides, Meat, Plant Quarantine, Pure Sccd^s, Vocational Education, Warehouses, Litne Barrels. ALCOHOL, Denatured, farmers may manufacture 455-456 ANIMALS— Cruelty to 64-66 Civil action 65 Confinement in cars, limit of 64 Cruelty in transportation forbidden 64 Feeding and watering of animals required , 64-65 Penalty 65 Reports 65 Summary of the Act 873 Twenty-eight-hour law 64-65 ANIMAL DISEASES 57-63 Bureau of Animal Industry 57-58 Agents — Appointment of 58 Ajipi'opriation 60 Contag'ious diseases — -luvestiga- tion'of 58-59 Notice to carrier of infected areas-59 Penalty for violation 62 Power to seize goods or stock 61 Report r 60 Rules and regulations 60 Suppression of animal diseases by 60-61 Carriers not to transport infected stock 59 Quarantine of animals — Penalty 63-64 Resistance to enforcement 63 Rules and regulations 62-63 Transiwrtation prohibited in cer- tain cases 62 Transportation only as approved — 63 Secretary of Agriculture — Powers transferred from Secretary of the Treasury 60-61 Summary of the Act 873 ANTI-REBATES. See Rebates. 905 906 Important Federal Laws ANTI-TRUST ACTS 233-239 /S'ce Federal Trade Commission. ,^her- man Aet and Clayton Act. APPLE BARRELS— Standard __-85-86 Branding of ^5 Grades of apples established So Misbranding prohibited 86 Penalties 86 Standard barrels — Reqniremeut for__85 Standard barrel established 8'2 Snnimaiy of the Act 875 ASH-PAN 294-295 Application of act 295 Ash-pan eqnipnient reqnired 204 Interstate Connnerce Commission. powers of 29;) Penalties 294 BANKHEAD ACT. See Good Roads. BANKRUPTCY ACT. Definitions 659 Time of taking effect of act 694 Bankrupts — Acts of l)ankrnptcy 662' Compositions by. when confirmed__667 Death or insanity of 666 Discharge of 66.S Duties of 665 Exemptions of 665 Extradition of 666 Partners 664 Protection and detention of 666 When set aside 66'S Who may become 663 Custody of" Property During Proceed- ings — Possession 692 Title to propertj' 693 Courts — Jurisdiction — Arbitration 673 Circuit Courts of Appeals 672 District Courts 672 State Courts 672 Supreme Court of United States_672 Supreme Courts of Territories__672 Transfer of cases 675 Procedure — Appeals and Writs of Errors___672 Arbitration 673 Compromises 673 Computation of Time 674 Evidence 671 Notices, puljlicatiou of 673 Oaths and Atfirmations 670 Offenses, punishment of 674 Petitions, filing of 686 Process and Pleadings 669 Iteference. after Ad.iudication — 671 Rules, Forms and Orders 674 Trials by Jury 670 Officers- Referees — Absence or Disability of 678 Appointment and Qualifications_675 Bonds of 681 Compensation of 677 Contempts before 677 Jurisdiction and Duties of_-676, 683 Number and Districts of 675 Records of 678 Reference of Cases to After Ad.iudication of 671 Trustees — Accounts and Payees of 681 Appointment and Qualifications of 678 Bonds of 681 Compensation of 679 Death or Removal of 678 Duties of 678. 683 Clerks- Compensation of 682 Duties of 682, 683 Receivers — Comjiensation of 679 Marshals — Compensation of 679, 6.82 Attornev General — Duties of 683 Settlement and Distribution of Es- tates in Bankruptcy — Claims. Proof and Allowance of 684, 685 Compositions 667, 668 Del)ts Dischargeable 669 Debts— what provable 688 Depositories for Money of Estate— 688 Dividends, how declared 689 Dividends, unclaimed 690 Exiienses of 6'SS Liens 690-691 Meetings of Creditors 683-684 Notices to Creditors 686 Possession of Property 692 Preferred Creditors 687 Priority of Debts 689 Set-offs and Counter-claims 692 Title to Property 693 Summary of the Act 894 Actions by and Against Bankrupts_-666 Index 907 Discharges of Bankrupts — Debts Dischar2:eable 609 • I<:ffec-t on Codehtor 669 When Granted 668 When Revoked 668 BANKS AND BANKING. ,s'f r Fc'lcral h'cscrrr Banks, National Bank Act and Postal Savings Act. BEER— Measurements of 358 BILLS OF LADING 511-521 Alterations void 514 Creditors — Le^al rights 516 Delivery of goods by carrier 512 Liability — if bill is not taken up 513 for refusing 514 for unauthorized 513 Partial 513 Persons entitled to 512-513 Duplicate — Character noted 511-512 Liability on 514 Issues in part forbidden 511 Liability of carrier for act of agents 516 Liens, carrier limit of 516-517 Lost bills, delivery on order of court_514 Non-notidlialiility to be marked 512 Order lull defined 511 Ownership — Protection in adverse claims 514 Time to ascertain 514-515 Third i)arties — enforcing rights 515 Responsibility for goods — Loaded by carrier 515 Loaded hx shipper 515-516 Straight bill defined 511 Summary of Act --8Sn BOILER INSPECTION 289-294 Accidents reported to chief inspec- tor 292-293 Administration of act 290 Assistant inspector 290 Chief inspector 290 Applicable to all parts of engine 293 Definitions 289 Inspection — Bv carriers 291 By districts 290 Locomotive boilers must be safe 289 Penalties 293 Report of chief inspector 292 CAMPAIGN CONTRIBUTIONS 522-528 Candidate defined 524 Committees — Political — Chairman and treasurer 522 Contributions to account of — 522-523 Definitions ' 522 Expenses by publicity 524 Contributions — • Account of 522-.523 Publicity of .523 Statement of 52.3-524 Corporations, political contribu- tions by, prohibited .528 Expenses — Legal candidates may pay .528 Personal candidates may pay .528 Statement of by candidates and committees .524 Penalties 528 Representatives in Congress — Appointments to office not to be promised by .526 Limitation of expenses of 526 Provisions as to 524-527 Senators — Appointments to office not to be promised by 526 Limitation of expenses by 526 Provisions as to 524-.527 CHILD LABOR 310-311 Board to enforce act 310 Definitions 312 District attorney, duties of 310-311 Penalties .311-312 Prohibited in certain cases .310 Secretary of Labor, ])owers of .310 Summary of the Act 884 CHILDREN'S BUREAU 312-313 Duties .313 Established 312 Summary of the Act 8.84 CLAYTON ACT 225-239 Carriers, regulation of purchases 230-231 Penalty 2.31 Competitor's goods — unlawful to compel purchaser not to handle 226 Contempt in presence of court 2.38 Time of beginning proceedings 239 Damages for violation of Anti-Trust Act 226-227 Definitions 22.5-226 Directors — Liable to penalty 2.34 Discriminations prohibited 226 District courts restrain violation of 234 Embezzlement, penalty forJ 2.30 Federal reserve board, powers of 231-2.32 Final .iudgment, prima facie evidence 227 In.iunctions — Against threatened loss by vio- lation of the Anti-Trust laws 2.35 Bond required 236 Labor disputes 236-237 908 Important Federal Laws Preliminary injunctions not to be issued without notice 235-236 Specific injunction 236 Interlocliing directorates prohib- ited 228-229 Banks and trust companies 228-229 Corporations having one million dollars capital and undivided profits 229-230 Interstate commerce commission. powers of 231 Labor not a commodity 227 Monopoly unlawful 227-228 Corporations not to acquire stock in competing corporations 227-228 Penalties ^^-__237 Scope of Anti-Trust Act— Defini- tion 225-226 Subpoenas 234 Summary of the Act 880 Trade Commission — Powers and duties 232 Jurisdiction of the courts 233 Orders of the commission 232 Prwedure 232-233 Service of process 233 Writ of error 238 COCAINE AND NARCOTICS. Sec Food (111(1 Dnnis. COMPENSATION FOR INJU- RIES— Federal Employees 298-309 Alaska Iviiilroad employees, ap- plication to 309 Allowance for disability 298-299 Annual estimates 30G-307 Appropriation for 307 Assignments, void 304 Awards, review of 308 Burial ex]ienses 302 Comiiensation for injuries 298 Computing pay 302 Claims filed 303 Claims— Determination of 307-308 Commission established 305-306 Damages received from other party deducted 305 Death allowance 299-302 Definitions 308 Disability 298 Partial 298 Total 298 Examination, medical 304 False statement concerning person- al injuries 308 Forms prescribed 303 Injuries by others 304-305 Compensation for 298 Medical assistance 299-304 Notice, no pay without 303 Other pay restricted 299 Panama canal employees, applica- tion to .309 Re-examination 304 Repeals 308-.309 Report by commission 307 Report by superior oflacer 304 Review of awards .308 Rules and regulations by the com- mission 307 Summary of the Act 883 Time for filing claims 30.3-304 Wage-earning capacity 302 Written notice of injury 303 CONSCRIPTION 596-605 Enlistment, voluntary allowed 603 Exemption boards _'_ 6O1V6OI Intoxicating liquor prohibited 605 Officers — Appointment of 603-604 Pay of 604 P;iy (if nfficers and enlisted men 604 President's i)owers — To draft National Guard 596 To draft army of .590.000 597 To draft additional army 597-598 To draft recruit training units 598 To inci'ease regular army .596 To create volunteer divisions .598 Prostitution, houses of, prohibited near camp 605 Registration 601-602 Ages of registrants 601 Qualifications for 602 Repeal 605 Restrictions suspended 605 Selective draft — - Bounties prohibited 599 Exemptions .599-600 President's pf>wers .598-599 Substitutes prohibited 599 State and local officials, co-opera- tion with 602-603 Summary of the Act 890 CONSTITUTION OF THE UNITED STATES 1-13 Amendment — ^Method of 8-9 Amendments to 9-13 Executive department 5-7 Federal and state relations 8 .Judicial Department 7-8 Legislative Department 1-5 Miscellaneous provisions 9 Ratification of 9 Index 909 CONTRACT LABOR— Importa- tion of products of, prohibited 451 COPYRIGHTS 634-652 Ad interim 640-641 Affidavits 639 Penalty 639-640 Assignments, foreign, to be acknowl- edged G47-64.S Classification 636 Costs allowed 647 Courts — jurisdiction of 646 Definitions 652 Disposal of 647 Duration of 641-642 Exclusive rights 634-635 Extension 642 False notice of copyright 644 Importation of books with 644-645 Importation of books 645-646 Seizure of luilawfully imported copies 646 Infringement — Remedies 642-644 Damages 642-643 Injunction 642 Recovery 643 Wilfnl 644 Injunctions may be granted 646-(347 Judgments reviewed 647 Limitations, statute of 647 Notice of copyright 640 Omission of 640 Postmaster's receipt 638-639 Property interest, copyright 647 Registration of 637 Register of copyrights 648-652 Bond 1 649 Certificate of registration 649-650 Deposits, disposition of 651 Entries, catalogues of 650-651 Fees 651 handling of 648-649 Index 650 Records 649 Report 649 Seal 649 Restrictions 639 Books to be bound in U. S 639 Lithograph and illustrations to be produced in United States 639 Type must be set in United States. 639 Rules and regulations 646 Summary of the Act 892 Terms of copyright 637 Two copies deposited 638 Failure to deposit 638 Uniting proceedings 644 Unpublished works, copyright pro- tection 637 CORPORATION TAX. See Income Ta.r, Corporation, l^.rcess Profits T(iT\ Munition Manufdctur- ers' Tax. Corporation Exriferty 707 Reserved lands, breaking fences of 709 Revenue ofllcers, resisting of 711 Revenue officers, offering pres- ents to 712 Ship papers, altering 713 Surveys, interrupting 710 Taking claims, papers 705 Telegraph, injuries to 710 Timlier, depredations on public lands 708 Trespassing on Bull Run, Nation- al Park, Oregon 709 Turpentine, boxing for 708 Weather forecast, counterfeiting_710 Workmen, enticing 706 Piracy and Offenses on the High Seas 774 Abandonment of mariners in for- eign port 775 Arming vessels to cruise against citizens of the T'nited States__777 Attacking commander 775 Destroying vessels at sea 776 Foreigners as pirates 777 Maltreatment of crew 774 Pirates, confederating with 777 Plundering vessels in distress 775 Revolt and mutiny on shipboard-774 Rol^bery on shore by piratical crew 776 Against Postal Service 742 Address, using fictitious 753 Bonds, illegally approving 756 Cancelled stamps, using or sell- ing 749 Contracts, employees, not to be interested in 757 Conveying letters out of mail on board vessels 743 912 Important Federal Laws Explosives, mailing of 753 False returns, by postmaster to increase compensation 749 False claims, inducing or prose- cuting 756 False evidence as to second class mail matter 756 Ferryman, delaying the mail — 74S Foreign mails, letters carried in_748 Foreign stamps, counterfeiting — 755 Foreign mail in transit, offenses against 758 Fraud, use of mails to promote--753 Imitating mail wagons 744 Increase of mail fraudulently — 758 Letters, detaining or eniliezzling by postmaster or employees — 746 Letter boxes or mail matter, in- .iuring 747 Lotteries, prohibiting circulars of 752 Lottery agents, postmasters not to be 752 Mail, illegal carrying 742 Mail, conveying by private ex- press 743 Mail, transporting persons to carry 743 Mail bags, injuring 744 Mail locks, or keys, stealing or forging 744 Mail matter, or contents, steal- ing 745 Mali carrier, assaulting with in- tent to rob 746 Mail carrier, deserting mail by— 747 ]\rail. obstructing 748 ^ Masters of ship, delivery of let- ters 747 Misappropriation of postal funds or ]iroperty 757 Money order, issuing without payment 750 Newspapers, detaining or de- stroying by postmaster or em- ployees 746 Obscene mail, prohibiting 750 Using obscene envelopes and wrappers 751 Official envelopes, fraudulent use of 757 Poisons, mailing 753 Post office, conducting without authority 742 Post routes, conveying letters over <-io Post office property, stealing 744 Post office, breaking into 745 Postal car. breaking into 745 Postage, collecting unlawful 740 Postage, failing to account for__750 Private express, sending letters by 743 Private persons may convey let- ters 744 Sending higher class mail as low- er class 756 Stamjis. unlawful pledging or sale of 750 Stamps, failing to cancel 750 T'niform of carrier, wearing 744 Against Public Justice 726-727 Rribery of judge 728 Felony, misprision of 731 Forging signature of judge 727 Internal revenue informers, ex- tortion 731 Intimidation of witness or jnror_720 Judicial officer accepting bribe__728 Obstructing process 730 Perjury 726 Perjury, subornation of 727 Prisoners, rescuing 731 Prisoners, allowing to escape 730 Process, stealing or altering 727 Public reoords. destroying 727 Witness accepting bribe 720 Against Slave Trade and Peonage — Bringing slaves into the United States 765 Confining slaves on vessels 764 Hovering on coasts with slaves on board 765 Kidnaping 769 Kidnaped person, bringing into the United States 769 Peonage, holding person to 769 Receiving or carrying away slaves 766-767 Seizing slaves on foreign shore-765 Serving on vessels engaged in the slave trade 766 Slave trade, seizure of vessels engaged in 767-768 Slave trade, equipping vessels for 766 Territories. Offenses in — Abortion, promoting 779 Adulterv 779 Bull fights 780 Certificate of marriage, failure to record 780 Cohabitation, unlawful 779 Fornication 780 Index 913 Incest 780 Obscene litertiture, circulation of 7T;t rol.v,ir:ini.v Tin Prize fi^'hts 78()-T.sl Train r()l)l)eries 781 Criminal rroceduro — Accessories, punishment of is:] Body of executed offender, dis- posal of 7N-'! Capital punishment, .jury may hrins in verdict without 7.S.'! Corrujition of !)!ood or foi-tViture of estate, not jiermillcd 7S1 Definition of terms 784 Felonies and misdemeanors, de- fined 784 llanjrins. i>unishmeiit of death 781 Indians, how punished 782 State courts, .iurisdiction of 782 3fui-der and manslanirhter. place where crime deemed to have been committed 784 Pardon ins power 7S2 Pi'incipals. definition of 78:i Whippinii .-ind jiillory al)olished_782 Snnnnary of tiie Act 894 CURRENCY— Offenses against. Src ('riiiiiiKil CihIc. (' inTciici/ (111(1 Coin- (KJC CUSTOMS ADMINISTRATION —Tariff Act 433-447 DRUGS. Sec Food and Dnint^. EIGHT HOUR DAY. .V|ii(ro]»riation for administration ex- l)enses .'^>14 Commission created to investigate IU4 Deemed a day's work ol.'t Electric street railroads excepted 31:! Internrlian railroads excepted '.'A'-'> Kailroads. exce[)tions shall not ap- ply to .314 Independently owned, excepted oi:'> Summary of the Act 884 Time of investigation 314 Wages not to be reduced during in- vestigations 314 EIGHT HOURS ON PUBLIC WORKS Contracts, shall not apply. ])rior to__:;ir> Emergency cases, excepted :11~> Employment, limit to 31."'> Penalty for violation 315-3K) Summary of the Act 884 T'nlawful to permit employees to work more than 315 (5S) ELECTION OFFENSES. Sec Criiiiiiial Code. EU'vtirc I'ldiichi.sc : see, also, Campaign Couirihutious. ELKINS ACT. Sec I'cJxilcx. EMPLOYEES' COMPENSATION. Nrc <'oiiiii('iix(ili(jii for I n jii lic^—i'cd- (•rpointment 40-41 State law:^. investigation 41-42 Qualifications 14-15 Keport to Coiigress by 10 Salaries, payment of 15 Term of sei'vice 14-15 Ponds. Farm Loan — Amortization and interest payments 30 Aiijilication for issue of .33-34 P>anks. responsibilit.v for 33-34 (V)llateral held by registrar 34 Defaulted loans 38-30 Definitions ^ 14 Denominations 35 Dividends 38 Land banks 38 914 Important Federal Laws National farm loan association__38 Farm Loan Board authorizes 33-34 First mortgages required as col- lateral 34 (Jovernment depositors — laud bank as ^i Investment in farm loan bonds 3!) Joint Sto<:-k Land Banks — Capital stock required 32 Issue of bonds on mortgage 32 Liability of stockholders 31 liate of interest, commissions and charges •^- Laud Banks — Agents of in case farm loan asso- ciation is not organized 30 Board of Directors 17-10 Capital stock 1-'--«> Amount required -♦' Subscriptions 20 Par value 2<^' Dividend limitations -0 Oi>ening of subscription books_--20 Original subscriptions, retire- ment of -^ Quick assets, percentage of 20 (Tovernment depositories, desig- nated as 20-21 Incoriwration 17 Organization, preliminary 17 Organization, permanent -17 Powers of 29-30 Restrictions on 30 National Farm Loan Associations— _ Agreement to use money as speci- tied ^--28 Amortization 2U-2^ Application for loan to 2.j Appraisal by loan committee 2o-2G Board of Directors of 21 Capital stock of. par value 24 Charter of issued by Farm Loan Board 23 Insurance required 28 Limit of loans 28 Loans based on first mortgage_-26-27 Officers ;— 21 Organization of 22-23 Powers of 26 Purposes of loan 2^ Rate of interest ---27 Secretary-treasurer 21-22 Duties 21-22 Bonds 21-22 Shareholders' responsibility 2.) Stockholders limited to borrowers. -24 Penalties — „_^_.--.^--*42-44 Reserves — Of land l)anks 38 Of National farm loan associations_.".8 Summary of the Act 871 Taxation, exemption from •">0 FEDERAL ELECTIONS. ,s'cc Criminnl Cixlr <. FEDERAL JUDICIAL CODE_78S-864 FEDERAL RESERVE BANK ACT. I'.Muks. Federal Reserve — F.ranches. organization of 109 Certificate of 11<^ Powers of 124-127 Capital stock — Increase and decrease 114-115 Shnreliolders* resiionsibility 107 Subscription to — By banks 107 Bv the public 108 By the I'nited States 108 Transfer, rules of 100 Voting ]K)wer 108-10!) Checks and drafts received at par_132 Cii-culating notes — Issue of 135 Deposits of Government funds in__12S Gold deposits with Secretary of Treasury i-^-* Gold notes — Issuance of 135-13(; Open market o])erations 127 Reserve requirements 129-130 United States Bonds, purchase of-134 Directors — Class C, appointment of 113 Classification HI, 112 Compensation 113 Class A and B. election of il2 First meeting of 114 Meeting of m Class B and C not to be inter- ested in other banks 112 Compensation 113 Qualifications of 111.112 Senators and representatives not to be directors 112 Term of office HI Comptroller of Currency- Appoints examiners 138-139 Fxpenses. reserve banks 138-139 Issues certificate of organization__110 Orticers. created 138-139 Alembers of organization commit- ' tee - 106 Member of Federal Board -„— ^P Powers as to issue of notes 130-131 Index 915 Definitions !<'<■' Farm lands, loans on 140-141 Federal Reserve Board ](X>-M 1 Advisory eonncil ,12o-12l Creation of 110-120 ICxannners. salaries lixed by 1-'!'.> Expenses, jiaid hy banks 120 Covernor of 120 Members, terms, salaries 119-120 Not to be interested in bankinj; — 120 Powers of 121-12n Report 121 Vacancies 120-121 y ice-Governor 120 Federal Reserve Districts 106-1OT Organization committee 106-107 Reserve banks, organization of 107 Federal Iteserve Notes — Application for 120 Anthorized 12S Circnlation privilege 1'^(> Issuance and redemption 130-131 Cold bonds, interest 13r» Preparation of 131-132 Retirement of 134 Loans and gratuities to bank ex- aminers ])roliil)ited 130-140 National Banks — Branches — foreign anthorized_141-142 Cajiital stock, reductions of 144 Circulatory notes, retirement of — 134 Deposits, demanil and time defined-137 Failure to accept terms of act 107 Failure to become memlier of bank_107 Farm lands, loans on, author- ized 140-141 Reserve rerpiirements 136-13S Redemption fund not to be considered reserve 138 Subscription to stock of Federal Reserve P.ank 107 Repealing ]>rovisions 142 Secretary of the Treasury — Chairman of Federal Board 120 I'owers with reference to issu- ing notes 130-131 Powers not affected 121 :Menibei' of organization board 106 State Banks- Conversion to National Banks 116 Subscription by 117-110 Suuunary of the Act ST6 FOOD AND DRUGS. Adulterated, defined 251-202 Cocaine and Narcotics — Api)ropriation 260 Commissioner of Iut(>rnal Rev- enue — Coniiiounils not to ajiply to _2(i7-2]>oint assislaiits_260 Tus]K'ctii)n. (U'ders oi»y producer, man- ufacturer, importer 263 Time of 263 PiCpeal. not to affect pure food and drug act 260 Reports, required 266 Written order for sale 264-26r> Exceptions 264-266 Provisions 266 Conmierce in adulterated or mis- branded. prohiI)ited 240 Condemnation, process of libel for__2.">4 Confiscatiou. seizure for 2.">4 Corporations, liable for failure of of- ficers 2r.r> Court procedure 2."4 Dealers ]>rotected by guaranty 253 District Attorney, duties 250-251 Drug, defined 251 Examinations 250 ITearings. for violations 250 Imports, adulterated or misbranded. refused admission 254 Examination 254 Manufacture of adulterated or mis- branded. ]irohibited 240 Misbranded, defined 252^253 Penalties 249-250 Rules and regulations 250 Snnunai'y of the Act 880 FRUIT BASKETS 86-88 Climax grape baskets 86 Department of Agriculture, duties of 87-88 Innnunity through guarantee of wholesaler 88 Interstate shipment not conform- ing, unlawful 87 Penalties '^'"^ Smaller baskets for fruit 87 Standards established for 86-87 Sunnnary of the Act S75 GOOD ROADS— Federal Aid_-867-873 Administration. I'xpeuses, 3 per centum to be de- ducted from appropriation 860 916 Important Federaj. Laws rnoxpi'iKk'd b.iliiiice to hi' ro;i]i- jiortiuiitHl N(JU A]ip()rtioiiinent — ]'.;is('(l oil .-ircn. ]io|inl;iI ion niitl iiiile;i.tii' of riinil authorized to enii)]oy s~] Kridiies and culverts siis Co-oiieration with states for ron- striiction of. aulliori/.ed >'iT Dehnltions ,S(;7-S(i,s Governor, assent of. sufficient irilil session of Lc-iislatHre N()T Le.:iislatiire niiisl assent to provisions of act Nf:7 Maintenance by state anthorities^STo '-71 Suspension of npportionnient in case of failure STnsTI Secretary of A.iiriculture — Approval of plans by STo Apiiortionnient of amounts !>y_l_^S7i> Authorized 1o co-o))erate with states throuiih state hi.iihway departments SH7 ronstruction pro.lects to be subipit- ted to. by stntes S(!!)-S7(» States- Payment to. diiriii.i: construction — 870 Supervision of work by 870 Summary of the Act -806 Tolls, all roads to be free from s<;7 GOVERNMENT— Offenses against. Sec Criiiiinnl Code. GOVERNMENT— Operation of. Nee CriiiiiiKil Code — (tjjciixcs Ai/aiiixt Operation of (iorcnniioit. GRAIN STANDARDS— Estab- lishment of 66-70 Appeals from Inspector (58 Ap])ropriation for 70 Ccrtilicates from persons not licensed. unlawful 08-(!0 Detinitions tit! Fees assessed 08 Findiui^s. prima facie evidenc(! 08 (irade or by sample, .crain sold by 66-07 Ins])e<:'tors not to have interest in elevators tV.) Inlerferiiiir with (>(ticials 70 Licenses issued lo insiiectors t!.S-0!l Kevocation or susi)ension of (i!) Misr(>i)reseiita1 ion forbidden 07-68 rii't'ereiice to persons under state laws (ro Penalties for violation of act 70 Ivules and rejiulations 00 Otiicial standards 60 Secretary of Auricuiture. inspection by _-'- 68 Standard^ of (pia^'ty and condition to he fixed State and city oflicials. co-operation with : 800-807 Summary of the Act 806 HORTICULTURE. Src ridiit (Jiinnnirnic. I'liic Kccd.s, I ii- xcctlcideK. HOURS OF SERVICE. ( ■oniiiion carriers. aiii)li<-able to ll'.x; Hours of emitloyee off duty 20(5 luter.state Commerce Commission, in- formation of violations to be fur- nished by 207 Duties of 207 Maximum service for employee 206 Penalty for violation 207 Provisions, when not to apply 207 T'nited States District Attorney, suits brought by 207 Summary of the Act 88.'! Time limit for bringins suit on vio- lations 207 IMMIGRATION 164-194 Ponds — Admission under 18r)-1S(> Conditions of 1*^'' Deposits in lieu of 186 Commissioner General of Immigration — Duties of 186-187 Information received 1*^7 Inspectors appointed by 180 Rules and regulations 187 Contract Labor — Advertising for. prohibited 170 Fees to informer ITO Index 917 Iiiil>()ri;iti(tii of. unlawful 100-170 IVuaJty 170 Dt'linifious 104-10.") 1 )('ii<>i'tati()n — Adniissidii inidcr bond INo-lSO Aiiaivliisls 1,S:{ Criniiuals IS:! I)is(>asefl luTsons 1,S2 llieirally LukUmI iniuilsrauts ISo I'rostitutes IS'} Detention, temporary 180 District Court — ( "onii>roniise restricted ISO Jurisdiction 180 I'rocedure 180 Kxaniinntiou — Lilerac.v lest 100-107. 173-174 .Medical 173-174 International Conference. ])resident aiithorized to call 100 Tmnuiral I'ui'iioses — Dejiorted aliens, return of 100 i:vidence of husliand and wife ad- niissalile KJO Inunijiration for. forbidden TOO renames 100 Sjiecial P.oards. powers of, in excln- sion <'ases ISO Tax- Children under 10 exenii)t 104 Lev.v and collection 105 Philippines, collection in 105 TransiK)rtation re.uulated 170-171 Asiatics, hriuirins in. ])rohihited__172 1 )ep(Utation 181-183 Defectives, brinjiing in, prohib- ited 171-173 Examination on shipboard 173 Insjiectiou of condition of vessel__174 Landins at unlawful place 171 Lists of aliens arriviufr 174 of alien emplo.vees 103 of passen.wrs fj'om home or in- sular ix.ints 17.1 Solicitiui: inunitfratiou prohibited 171 A'es.sel. ins]iecti(»n of ct)ndition of-174 Insjieetion — Appeals from insjiector 180 At immigjrant stations 177 Challenge of favorable decision 180 Condition of vessels sub.iect t.)L-.:).i.) P.ank de])osits, interest on .331 Betterments, exclnded .331 P>usiness expenses .331 Exceptions ,331 Konds guaranteed free from tax 331 Insurance reserves, additions to .331 Indebtedness, interest on 331 Life insurance com])anies .331 Losses and depreciation 331 Mutual insurance companies .331 Taxes 331 Deductions — Foreign Corpora- tions . .3.31-.3.33 Rank deixisits. interest on .3.32 Betterments, excluded .331 Business expenses in United States ,331 Exceptions 331 Bonds guaranteed free from tax_.331 Indebtedness, interest on 3.32 Insurance reserves, additions to__.331 Life insurance comitanies .331 Losses and depreciation 331 918 Important Federal Laws ^lutnal iiisiir.-mce coiiiiiiinies ool T;i\('s p;ii(l in T'liitfd Stntes 'XV.\ District court, jnrisdiciiou of ;>4'_' Exemptions P,2!)-:r>l Tnforniaf ion not to lio divnlsorl 'V.',s I'(Mia]li(>s for violation of 34n-:>41 I'liilijiliincs. aiii>li<-al ion to ;!4-! Porto liico. a]»plication to ■"542 Receipts, provision for o4l Iletnins. wlion made 334-oo('> Bv wliom made 334-a.3(; lieturn of list 339-340 Statistics of. publication of 342 Summary of tlie Act SS." INCOME TAX— Personal 317-328 Administration of 32r)-32N Amount of ^'^"-^'^? Appeals 343-34." As.sessment of 32.j-32s Collectoi'. investigation by 33s Credits allowed 321 Koductions allowed citizens 32(» Betterments not allowed 320-324 Busiriess expenses 320 Deterioration of business property_3>2'n Oil and SJ^s wells 320 Mines 320 Imterest on debts 320 Losses bv casualty 320 Taxes _1 320 Worthless debts charged off 320 Deductions Allowed Xon-Resident Aliens — Betterments, not allowed 322 Business expenses in T'nited States 321 Deterioration of business property_322 General taxes paid in the United States 321 T^osses by casualty 321-322 Proportion of interest on debts 321 Worthless debts charged oft 32 1 Definitions of Income 318-310 District Court, jurisdiction of 342 Exemptions 319-320 Personal o22-o2.) Informatiou not to be divulged 338 Penalties for violation of 340-341 Philipi)ines. api)lication to 342 Porto Rico, application to 342 Receipts, provision for 341 Returns, when made 323 Bv whom made 323-32". Return of list 339-340 Statistics of, publication of 342 Summary of the Act 884 Undistributed pi'ofit — additional tax includes 319 INHERITANCE TAX 345-348 ( "iimmissioner of Internal Reve- nue, duties of 34G-34S I »ctiiiil ions 34:5 i:x.(iil..i-s. duties of 345-34(i Cross value oC estates, method of tixing 344 Net value of estates, method of fixing 34." Payment, enforcement of .34fi-34S Penalties 347-348 Rate of tax 343 Summary of the Act 885 Tei'ui of payment 345 INJUNCTION. Sec i . N. •/iKlicidl Coilr oiid Chn/fon Art — Tn jiinitioii. INSECTICIDES. Adulteratetl. defined 92 Dotinitions 91-92. 95 District Attorney, duties 91 Examinations, notice of 91 Hearing under 91 Guaranty lu'otecis dealer 93 Imports, delivery refused 94 Destruction of ; 94 Tm))oi'tation. rules and regulations governing 94-95 Interstate Connuerce. shipment of adulterated insecticides. prohibited_90 Original i)ackages, confiscation 94 Disposal of 94 ^Manufacture of adulterated or mis- branded, prohibited 89-90 Penalties 90 Rules .-ind Regulations 90, 92 Secretary of Agriculture, violations certified l)y 91 Shipment of adulterated or mis- branded, prohibited 90 Snnunary of the Act 870 INSURANCE— War Risk. .See ll"/- Hisk Iii'Surance. INTERSTATE COMMERCE- _ 468-511 ( 'arriers — Agent in Washington to l)e desig- nated 504 Continuous passage required 479 Discrimination prohibited 472 Fi'ee passes prohibited 470-471 Liability for damages 480 Post name of agent 478 Rates, change of thirty-day notice-47C» Rate.s. .iiist and reasonable, re- qnir(>d 4G9-470 Index 919 Service, just nud reasouablo, re- quired 4(i!l-4T() Switch connection required 471-472 Parriers snlijert to the twi 4G8-4G9 Charges to he just ;ind reason- able 4«!)-47(> Competing lines, ownership 473-474 Connnodities clause 471 ('oniniissit)n. the Interstate Com- merce — Annual repoit to ( oiv^ress 501 Award daniai;es 4S7-401 ("ommission ci'eated 4S2-4.S."> Compel testimony 483-4S4 Investigate on own initiative 484 Investigate <-omplaints 483-484 Make reports of investisations_4S4-4Sr> Office and records 492-493 Physical valuation of rail- roads 493-497 I'owers of commission 483-484 Procedure, determine 4ft2 Pates and name, tix 48f!-489 Ifehearinss, smnt 491-492 Pequire annual reports 497-500 Salaries 492, 503-504 T'niform accounts, may require 497 Water traffic regulated by 478-479 Court .inrisdiction 507-508 Definitions 468 Discriminations defined and forbid- den 472 Damages — Liability for. by carriers 480 Procedure 480 Expediting of cases 509-510 Fi'ee passes prohibited 470-471 Exceptions _-_501-503 Immunity of Witnesses 505 Long and short-hanl provision 472-473 Military use of railroads 477 Penalties 480-482 Pooling forbidden 473 Rates- Carriers to furnish written state- ments of rates 477 Joint 476 Just and reasonable reqnired-_469-470 Notice of change — thirty days 476 Schedules open to imblic 475-476 Schedules of form of. may be jtrescribed liy connnission 476-477 Rebates prohibited 505-507 Penalties 506 Repeals 508 Service to be just and reason- able . ......_ = ...-.. 460-470' Ship ownership by railroads 473-474 Sununary of the Act 887 Switch connections, carriers" duty 471-472 Witnesses, Imminiity of 505 INTERSTATE COMMERCE— Offenses in. .SV'c Criminal Code — lutcrssUilc mid i'oi- eigii Cornmcicc. INTOXICATING LIQUOR. !<((■ JJ ;\[arked, stamped, or tagged 256 Destroyed 25*; Ileinspected 25r> Compliance with provisions 258 Establishments — Inspection 258 Rules, regulations; and sanitation-25S 920 Important Federal Laws Exports — Carcasses inspected fur 2r>!> Tattle, inspected for 2'."!» deai'Mnco witliunt certificate for- bidden •j.'in Iinjiorted Meat — Condition of 2(il' Exenii)t from duty 201.' Deemed and treated as domes- tic 202-2n:} Tiules and rejinlations 2ti2-2r>.'^) Ins]iectors — Access to establishments 2."(7 Ai)pointed 2.")." Antliorized to issue certificates 2f>o Kxaniinarion of food products for interstate and foi-tMirn connnerce-2.">7 Examination and insiiection made by 2r.7 Marie. lal)el or tajr 2r»7 Itenioval of for failure to comply_2."i(i Inspection — Farmers and retail butchers not to ai)i)ly to 2(i2 Label to indicate 2r>7 Secretary of Agriculture may cause to l)e made 2.">.''> 'i'o be made of all meat products. _2.Vi Tnl.-nvful to transport witliout 2r.s I'enalties 2."tn. 2(i Provisions 27."i ApplicMtion to carriers, officers. etc__27.". Appropriation 287 Arluti'ators. ]-iowers of 27(! Administer oaths 276 Invoke aid of United States courts.27(i Is.sue subpoenas 270 Ke Notice served of aiipointmeut 270 Awards — Certified copy of 277 Effective on disi^osal of exceptious_277 Exceptions filed 277 Judgment setting aside 278 Operati<^u. time of 277 Pieconvcning of bo.-ird to pass on 270 P.oard of .Vrbiti'afion — Appointments, failure to agree 270 rompensation 278 Duties 277 Noti<'es issued to arbitrators 270 Number 274 Organization 274 Powers 277 Selected 274 P.oard of .Mediation and Conciliation — Agreements 274 Appointment of members of board_274 Comiiosition 270 Couununiration with l)oard 27<> Exitressions of oi)inion l)y 274 Circuit Court of Ai)peal.s — Deternunafion final 278 Connnissioner of Mediation and Con- ciliation — Compensation 270 How apiiointed 270 Term of office 270 Pemoval)le 270 CompuKsory employment prohibited_278 Definitions 27:] Excei)tions — Ajijieals 277 Judgment entered 277 Final disposal 277 Master of vessels, seamen 277 Time of tiling 277 Notice — Appointment of arbitrators neces- sary 270 Meeting of Iwai'd 270 To Board of Mediation and Con- ciliation 270 Time, iieriod of 270 IJeconvening Board — Duties 270 fleeting, time and place of 276-277 Pvepeals "_ . 279 Summary of the Act SS2 Index 921 MORAL REFORM. /See Prize Fi Training Camps — Secretary of War authorized to maintain 566 Uniform — Protection of 594-5f>5 Vacancies — Filling 550 Veterinarians 542-544 Assistant veterinarians 542 Qualifications of 542-54P, I^xamination of 543 Provisions for appointing 542 War strength — authorized 550 NATURALIZATION. Anarchists i>ro]iiliited from 198 Alien enemies not to be natural- i5;ed 209-210 Alien seamen 210 Aliens who believe themselves citizens — exceptions 211-212 Bureau of naturalization 194-105 Courts which may naturalize 195 Cross-examination 199 Citizenship defined 212 Of children l)orn abroad 212 Of women by marriage 212 Expatriation 213-214 Declaration to be filed with Bu- reau of Naturalization 199-202 Elections — Naturalization before prohibited 198 Expatriation 213-214 Fees - 200-202 Hearings 198-199 Process of 195-197 Petition for 196-198 Petition, notice of by clerk 198 Petitions and declarations to be bound 202 Petition, form of 205-208 Penalties 203-204, 723-726 Rei>eal 204-205 Residence, proof of 199 Residence required 209 Suits to set aside citizenship 202-203 Summary of the Act 878 Soldiers and sailors alien 210-211 Woman's citizenship follows that of her husband 213-214 NEAT CATTLE AND HIDES— Importation prohibited -^ 451 NEUTRALITY— Offenses against. .s'cr CrimiiKil Coih\ XrufniUtil. NITRATE SUPPLY, investiga- tion of 593-594 OBSCENE LITERATURE, impor- tation prohibited 450 OFFICERS— Offenses. iS'cc Criiiihidl Voile, OfflvUil Duties. OPIUM. See Food and Drufjs. OPIUM ACTS. Exjiorts — Penalties for violation 271 Secretary of State to prescribe rules and regulations for 271 Unlawful 270-271 Provisions 271 Imiiorts — For medicinal jMiriioses 269 Penaltv for violation of provi- sions 269-270 Proof of time 270 Secretary of Treasury to prescribe rules and regulations for 269 Opium — ImiTOrtation, unlawful 269 Penalty for carriers in violation of ])ro visions 270 Rules and regulations 271 Secretary of State to request rules and regulations of foreign coun- tries __'- 271 Summary of the Act 881 Transportation through United States unlawful 270 PARIS GREEN, Sec InseAiUcides. Index 925 PAROLE OF PRISONERS. AitiJlicatiuu for 785 Arrest for violation of parole 786 Officers who may 786 Board of Parole — Composition of 785 Rules and regulations for proced- ure, prescribed 785 Limits of residence fixed 785 May revoke or modify parole 786 Release of prisoners, autliorized__7S5 Gratuities to paroled prisoners 787 Hearing on violation of parole 786 Parole officers, duties 786-787 Prisoners of United States — Parole of under state laws 787 Cost of parole of, paid by United States 787 Conditions of pai'ole of 785 Prisoners permitted to return liome-785 Terms and conditions 785 I'enalties for violation 787 President's power to pardon, or com- mute, not affected 787 Sentence, remainder to be served, if parole is revoked 786 Summary of the Act 895 PEONAGE. !<(■( Criminal Code — Slave Trade and Peonage. PIRACY. Sec rriininnl Code — Piracy and Of- fenses on the hi'jh seas. PLANT QUARANTINE. Amendment to Sec. 8. see p. 81 875 Certificates of Inspection; nursery stock must be accompanied 78. 81 Definitions 83, 86 Federal Horticultural Board — Composition 8.3 Purpose 83 Nursery Stock — Certificate of inspection, accompa- nied by 78 Importation for experimental or scientific purposes 70 Inspection of 78 Labeled and marked 78 Plant diseases, free from 78 Rules and regulations for admis- sion ''^ Penalties ^2 Quarantine, notice of to be pub- lished Sl-82 Rules and regulations 82 Secretary of Agriculture, duties of_78-82 Summary of the Act 875 POLITICAL CONTRIBUTIONS. See CtiniiKiign Coiiirihiition,'^. POSTAL SAVINGS BANKS. Accounts, opening of 145 Apj>ropriation for 150 Adjudication of Courts — Conclusive as to funds 151 Board of Trustees 144-145 Bonds, Postal Savings 148-140 Criminal statutes applicable to__150-151 Depository offices 145-146 Deposit cards and stamps 146 Deposits, size of 146 Withdrawal 147 Depository Banks 147-148 Funds of kept separate 150 Interest on deposits 146-147 Investment of funds 147-148 Pass books 140 Pledge of payment of deposits by United States 151 Postmaster-General to designate of- fices 151-152 Postmaster-General, executive head 151-152 Summai-y of the Act 887 United States investment in 149 POSTAL SERVICE— Offenses against. Sec Criminal Code — Postal Service. PRIZE FIGHT FILMS. Penalty for violation of provisions — 653 Receiving from mail. etc.. with in- tent to sell 653 Sending by mail, unlawful 653 Summary of the Act 803 PUBLIC JUSTICE— Offenses against. See Criminal Code — Public Justice. PURE SEEDS. Adulterated seeds 84 Bond. se(^ds delivered on 83 Imjiortation of adulterated seeds, pro- hibited 83 Rules and regulations to be made .iointly 83 Secretary of Treasury, rules and reg- ulations made by 83 Secretary of Agriculture, rules and regulations made by 83 Seeds — • Delivered on bond 83 Recleaned 84 Released 84 Adulterated 84 Summaiy of the Act 875 RAILROADS. See Rebates and Interstate Commerce. 926 Important Federal Laws REBATES. Immunity 507-508 Prohibited 505-507 Enforcement through court 507-508 Summary of the Act 888 REVENUE AND TAXATION. See Income Tax — Personal, Income Tax Ccrporations, Tariff, Mxmitions Manu- facturers' Tax. Inheritanee Tax, Ex- cess Profits Tax. Corporation Excise Tax. SAFETY APPLIANCES. Application of act 284 Automatic couplers 282 Brakes — • Power 282-284 Hand 285 Carriers, may refuse cars 282 Drawbars, standard height 2S2'-2.S3 Driving wheels 282 Grab irons and handholds 282.285 Interstate Commerce Commission. duties of 2.83.285.280,287 Penalties 28.3, 280-287 Punning boards 285 Sill steps 285 Summary of the Act 882 SHERMAN ACT. Attorney (Jeneral to institute pro- ceedings 224 Circuit Courts, .inrisdictiou 224 Damages — injuries to business or proi^erty 225 Right to sue for 225 Recoveiy 225 Definitions 225 District Attorney, duties 224 Hearings 224 Monopoly prohibited 224 Notice of petition 224 Proceedings in equity 224 May be by petition 224 Proi>erty— Condemnation of 22o Seizure of 225 Restraint of trade— illegal 223-224 Restraining order __224 Summary of the Act 880 Trade restraint — in states, illegal — 223 In territories, illegal 224 Penalties 22.3-224 SHIPPING 606-620 American vessels not to be sold to foreigners while the covmtry is at war without first being offered to the Board 609 Board— The Shipping 606-620 Creation of 007 Employees — Civil service 607 Powers of to compel testimony, etc. 618 Procedure of 607 Qualification of members 607 Unfair treatment, complaint to board 617 Violations, investigation of com- plaints by 616-617 Board, investigation by 611 Classifying and rating 611 Cost of shipbuilding, to investigate.611 Loans on vessels, status of 611 Marine insurance 611 Navigation laws 611 Carriers, by water 612-613 Discrimination prohibited 614 Fighting ships, prohibited use 612 Rebates by, prohibited 613 Retaliatory measures prohibited __613 Courts, .inrisdictiou of 018-619 Definitions 606 Foreign registry, transfer of ships to. forbidden 609 Government vessels, transfer to ship- ping board 608 Interstate Conunerce Commission, jurisdiction of 619 Merchant Vessels — Board authorized to build 607 American ship yards, jireference to.607 Military or naval use. powers of President 610 Panama Bonds, issued for exiienses__611 Rates, board to authorize increase__616 Discrimination prohibited 614 Filed with board 615 Preferences prohibited 614 Through rates 615 Reasonable rates required 615 Regulation of 613-616 Shipping Corporation — Cliarter 610 Dissolution of 611 Formed by board 610 Stock. United States to own ma- jority 610 Stock of, redemption 611 Shipping laws applicable — Teases restricted 609 Time of war, sale restricted 609 Unserviceable vessels to be disposed of 609 Vessels may be chartered to citizens_60S Index 927 SLAVE TRADE. Sec CriniiiKil Offenses, Slave Trade aiid Pconafie. SPIRIT METERS 357-358 TARIFF. See Unfair Competition, Tariff Comnm- sinn. Dycstuffs. Tariff Duties. Tariff Administration. Tariff, General Pro- visions. Summary of the Act 886 TARIFF ADMINISTRATION__433-460 Appraisal uf goods 4on-441 Assessment of duty 441-443 Bribery of officials — penalty 44<5-447 Collector not liable for rulings. etC-_446 Cost of jiroduction of imported articles to be determined 4.38-4.39 Deterioration and decay, allow- ance for 444-445 Importer to ])roduce books, pa- pers, etc.. upon demand 444 Invoices — requirements 433-4.38 Penalties for false 434-4.38 Market value — determination of 443 Repayment of excess charges 44.5-446 Summary of the Act 885 TARIFF COMMISSION 460-464 Appropriatiim 464 Co-operation with other departments_463 Members of 460-461 Trade se<:'rets 464 Divulging unlawful 464 Penalties for 464 Summary of the Act 887 TARIFF DUTIES 365-460 Agricultural products 388-392 Chemicals — Oils and paints 365-372 Cotton manufactures .395-398 Dutiable list 365-372 Dyestuffs 4.32-433 Earths, earthenware and glass- ware .372-377 Free list 414-4.31 Flax, hemp and jute 398-400 Glassware .372-.377 Metals and manufactures of 377-386 Paints, oils and chemicals 36.5-372 Papers and books 403-406 Schedule (n) 365-372 Schedule (b) .372-377 Schedule (c) 377-386 Schedule (d) .3.86-.387 Schedule (e) .387-388 Schedule (f) 38,8-392 Schedule (g) 392-395 Schedule (i) 39.5-398 Schedule (.i) .398-400 Schedule (k) 4<»-402 Schedule (1) 4U2-403 Schedule (m) 40.3-406 Schedule (n) 406-414 Sugar 387-388 Spirits, wines and vinegars .392-395 Silk and silk goods 402-403 Sundries 406-414 Wood and manufactures of 386-387 "Wool and manufactures of 400-402 Summary of the Act 886 TARIFF— General Provisions 433-460 Alcohol, denatured, farmers may make free of tax 4.55-456 Country of oi-igin to l»e marked on articles imported 449 Discriminating duty on goods im- I>orted in foreign A^essels 4.51 Discount of 5 iier cent on goods brought in American ships 4.52-453 Foreign vessels of war — Pur- chasifig supplies 453 Importations to be in vessels of United States or of country of origin except in case of treaty agreements ^ 451-452 Imported articles to be manufac- tured for export 4.53 Machinery to be repaired free of duty 452 Models of wearing apparel to be admitted free .' 452 Materials for repair of vessels free 452 IMerchandise fro m abandoned ship after two years may be lirought in free 453 President to ascertain the amount of articles imported and when less than five per cent of con- sumption re]>ort to Congress 458 Purchasing supplies free of duty by foreign vessels of war 453 Reimported articles to pay duty equal to internal revenue tax 4.58 Smelting and refining manufac- tures in bonded warehouses 455 TAXATION AND REVENUE. Sec Income Tax — personal. Income Tax — corporations. Tariff. Munitions Man- ufacturers' Tax. Inheritance Tax. Ex- cess Profits Tax, Corporation Excise Tax. 928 Important Federal Laws TERRITORIES— Offenses in. tSec VriDiindl Code — Territories. TESTIMONY— Compulsory 510-511 TOBACCO TAXES 363-364 TRADE COMMISSION 215-223 Anti-Trust Acts not affected 223 Appeals to court 218-219 Bureau of corporations transferred to 216 Created, appointment, term of office_215 Definitions 216-217 Departments required to furnish in- formation 221 Investigation by 217 Penalties ' 222-223 Powers of commission 219-220 Gather information 219 Investigate conduct of business 219 Eeeals to Commission 627 Application filed in foreign coun- try 624-625 Assignable 627 Certificates in fox-ce twenty years 628 Certificates, records, etc 627-628 Classes of— Foreign owners having plant in this country given equal rights — 633 Merchandise to be established by commissioner of patents 633 Commissioner of Patents — Examination by 626 Rules and regulations formulated by 631 Courts — Jurisdiction of 629 Damages — Suits in equity 631 Declaration for in writing 623-624 Definitions of 632-633 Ownership, evidence of 629 Fees charged 628-629 Fraudulent 631 Imported articles not to imitate domestic product 631-632 Iniunctions for relief 630 Orders of court 630 Injured party, application 628 Interference 626 Laws applicable 629 Non-residents designate representa- tive 624 Notice of 632 Piefusal of a reason for 625-626 Registration, method of 623 Rules and regulations 631 Summary of the Act 879 Supreme Court, writ of certiorari 630 T'nlawful luisiness no relief 631 UNFAIR COMPETITION 464-468 Importing and selling articles be- low market price unlawful if done to restrain trade in the T'nitod States 464-465 Double duty added to articles im- ported, if purchaser restricted not to buy those of another party 465 Prohibition of Importation — From countries refusing admis- sion of similar American ar- ticles 465-406 Restriction in time of war of imports from country deny- ing entry of similar Ameri- can articles 466-467 Proclamation to be i.ssued-_466-467 Punishment for violating 467 Vessels — Fi'om Ijelligerent countries in which Americans are denied equal trade facilities may be refused clear- ances 467 Clearances may be refused vessels denying in time of war in which the United States is not engaged, equal facilities to American citi- zens and traffic 467 Punishment for departure of de- tained vessels without clear- ances 467 Summary of the Act 887 Suspension of facilities to vessels of belligerents not allowed to them bv Americans 467 Index 929 UNITED STATES COURTS— FED- ERAL JUDICIAL CODE. Act Governing Construction of--863-864 Supreme Court. Orgauization— Juries, how secured S59 Quorum, lack of 845 Quorum, business by less than — 845 Terms of court 845 Officers — ■ Qualifications — may not practice law 858 Judges — Expenses 854 Fees, prescribed by 841 May grant writs of ue exeat — 854 May grant otber writs 855 May not practice law 854 Oath of office 853 Precedence of 840 Records, control by 841 Salaries 840 Vacancy in office of Chief Jus- tice " 840 Attorneys — - Women may be 8.53 Clerk 840 Bond 840 Deputies 841 Marshal 841 Reporter 841 Reports, distribution by 842 Reports, price 843 Salary 841 Attorney General — Duties as to appeals in Inter- state Commerce cases 836 Duties as to purchase of Fed- eral Reporter 844 Jurisdiction — • Original 845. S.53 Power to issue Writs of Prohi- bition 855 Power to issue Writs in Injunc- tion cases 855 Power in contempt cases 857 May grant new trials 8.57 Security for peace 857 Appellate — ■ Appeals from Alaska 850 Appeals from District of Co- lumbia 851 Appeals from Hawaii and Por- to Rico 849 ; Appeals from territories 849 Appeals after Territory has be- come state 851 From Circuit Court of Appeals.847 From Court of Claims 847 From District Courts 846 From District Courts in Inter- state Commerce cases 835 Appeals in bankruptcy cases 847, 852 Appeals in contempt cases _8.57 Appeals in criminal cases 852 Appeals in equity cases 856 Appeals in Philippine cases 848, 849, 850 Petitions for instructions from Circuit Court of Appeals 847 Appeals in Federal chartered railroads 848 Certiorari from District of Co- lumbia 851 Mistake in form of appeal, not vital 848 Writs of error from State courts 846 Procedure — Costs of printing record on ap- peal 858 Parties may appear personally or by attorney 858 Trials in Supreme Court 845 Circuit Courts of Appeals. Organization 812 Terms of court 814 Places of holding court 815 Officers — ■ Qualifications — may not practice law 8.58 Judges 812 Allotment of 813 Expenses 854 May not practice law 854 Power over cases appealed 816 Power to prescribe writs 813 Terms of 813 Supreme Court Justices may l)e 813 Clerks 814 Deputies 814 Marshals 814 Jurisdiction. Original- May grant writs 855 May grant new trials 857 Security for peace 857 Appellate — In general 815,855 In apiieals from Alaska 817 In appeals from Arizona and New Mexico 817 930 Important Federal Laws In iippenls from China court 816 In bankruptcy cases 816 In injunction and receiver cases 816 Form of appeal, mistake in, not vital 818 Procedure — Kules of pi-actice 823 Parties may appear personally or by attorney 858 Circuit Courts. Abolished 863 Transfer of cases to District courts 863 Court of Customs Appeals. Organization — Sessions, v^-liere held 829. 830 Powers of court to prescribe rules 831 Parties may appear personally or by attorney 858 Officers— Qualifications — may not practice law 858 Judges 829 Expenses 854: May not practice law 854 Oath of office 853 Clerk 8.30 Assistants 830 Marshal 829 Jurisdiction. Original — In contemjit cases 8.57 May grant new trials 857 Security for peace 857 Appellate — Exclusive 831, 832 From Board of General Ap- praisers 833 Pending cases 832 Commerce Court. Abolished, and junsdictlon given to District Courts 833-837 Court of Claims. Organization. Members of Congress forbidden to practice in Court of Claims_819 Report of Court of Claims to Con- gress -828 Seal 818 Sessions 818 Officers- Qualifications — may not practice law - 858 Judges 817 Expenses 854 May not practice law 854 Oath of office 853 Clerks- Appointment 818 Bond 818 Disbursement of Contingent Fund by 818 Report to Congress by 819 Salaries 818 Commissioners — Fees of 825 To take testimony 824 Attorney General — Report to Congress, of .iudg- ments 828 Jurisdiction — Generally 819 Claims by aliens 822 Claims against disbursing offi- cers 820 Claims referred liy departments_820 Claims referred to Congress 821 Claims by persons guilty of dis- loyalty 828 Does not extend to treaty claims 822 May grant writs 855 New trials 857 Security for peace 857 Procedure — Parties may appear personally or by attorney 858 Appeals — • In general 827 In Indian cases 827 Limitation of actions, six years_822 Petition 1 823 For unadjusted accounts 827 Counterclaims 820 Answer — Another action pending 822 Witnesses — Cross-examination of 825 Qualifications of 828 Subpoenas for 825 Evidence — Dismissal where allegiance dis- proven 823, 828 Examination of claimants 824 False claims 820 Fraudulent claims 825 Information from departments.824 I^oyalty. proof of 823, 828 Not heard, when 824 Where taken 825 New Trial — When granted 826, 857 Index 931 Judgment — As to disbursing officers 820 Constitutes bar 826 ■ Costs 822, 826 Interest 826 Payment of 821, 826 District Courts. Organization- Absence of judge, adjournment for 790 Adjournments in criminal cases_790 Cliange of time of holding court, effect 789 Extending term to finish trial__789 Courts always open for equity and admiralty cases 789 Designation of another judge__790 Designation of judge to relieve business 790 Designation of temporai-y judge-791 Designation, change of 791 Designation by senior judge 791 Designation of Circuit Judge to hold District Court 791 Division of business by judges__793 Juries, how secured 859 Transfer of records on admission of Territory to Statehood 810 Records, where kept 789 Officers- Qualifications — may not practice law 858 Judges- Authority of 792,855 Disqualified, when 792 Because of interest 792 Because of prejudice 792 Vacancies in office of 793 Expenses 854 May grant writs of ne exeat— 854 ;May not practice law 854 Clerks 788 Cannot be receiver 811 Deputies 788 Disqualifications ^ 811 Marshals 789 Disqualification 811 Commissioners — For administering oaths in ap- praisement cases 810 May enforce orders of foreign courts 857 Jurisdiction. Original — For Yellowstone Park 797 For Indian Reservations 797 For Interstate Commerce cases 834 Generally 793-795, 833, 853 In contempt cases 857 In equity cases 856,858 In injunction cases 855 In polygamy cases 862 In Federal chartered railroad cases 848 May grant writs of ne exeat__854 May grant writs 854, 855 May grant new trials 857 May enforce orders of foreign court 857 Juries, how secured 859 Pleadings in equity cases_858, 859 Security for peace 857 Appellate^ From Commissioners, in Chi- pese exclusion cases 797 From Interstate Commerce Commission 833-837 Removals of Cases from State Courts. Cases Removable — In general 797-799 Under State grants 799 Civil rights suits 800 Actions against liens 802 Revenue Law suits 801 Procedure for Removal — Petition for 799 Amendments of pleadings 859 Effect of removal on bonds and orders 803 Failure to furnish record for 802 Ti'ansfer of criminal cases, custody of prisoners 801 Proceedings after removal 803 Penalty for clerk's failure to furnish record .803 Remanding cases 803 Venue — Acts continuing from one dis- trict into another 804 Petitions for penalties and for- feitures 804 Actions against receivers, cap- ital cases 804 Cases of insurrectionary prop- erty 805 Cases of seizures on high seas_80o Cases against Controller of Currency 806 Civil suits 806 932 Important Federal Laws Where district contains divi- sions SOC Of suits of local nature 807 In local suits, where defend- ants are absent 808 Where several defendants, re- siding in different districts_S06 Forfeitures in maritime cases-80o Internal revenue cases 805 Patent cases 805 Offenses on high seas 804 In receiverships, where prop- erty is in different districts_807 Where propert.v in different districts 807 Where new districts are cre- ated 809 Where Territorv is admitted as State 811 Change by agreement to differ- ent division of district 809 Judgments — Enforcement of 810 Not affected bv change of dis- trict 810 Summary of the Act 894 VOCATIONAL EDUCATION ..96-106 Agricultural Subjects — Minimum allotments for 97 Ratio in proportion to rural pop- ulation 00-97 Requirements for use of funds for.102' Allotment not properly expended to be withheld 10'"> Appeal to Congress 105 Appropriation — For co-operating with states 96 Administration expenses 100 Benefits — Acceptance of. by States. required_99 In part allowed 99 Certificate to Secretary of the Treas- ury ; quarterly payments 104 Commissioner of Education to make recommendations 100 Conditions — Equal expenditures by states required 101-102 Payment of salaries restricted to qualified instructors 1O1-102 Supplementary instructions at state expense 101-102 Federal Board — Appointive members of 100 Composition of 99-100 Organization of 99-100 Pay of members 100 Terms of office 100 Powers and duties of 100 Co-operation with Department of Agriculture 100 Co-operation with Department of Labor 100 Co-operation with Department of Commerce 100 Co-operation with Bureau of Ed- ucation 100-104 Approve State plans 101-104 Ascertain if fund is uswl by State 104 Make annual report 104 Funds, use of. for buildings, lands, religions schools, forbidden 105 Losses of moneys to be replaced by State 105 Portion of fund not used to be de- ducted from subsequent allot- ment 104-105 Refiuirements for use by States of amounts for — Agricultural education 102 Trade and industrial teachers_102-10.? Home Economics 102-103 Part time schools and evening classes 103 Modifications of. for small towns 103 Training teachers, experience and qualifications 1O3-104 State Board- Annual report 101 Plans to be prepared by 101 Studies specified 101 Created by Legislature dO Temporary, by Governor, until meeting of Legislature 99 State treasurers to receive and dis- burse alkitments for 104 Summary of the Act 87G Trade. Home Economics and Indus- trial sul).iects 97-98 Mininnim allotments for 98 Home economics, projwrtion for 102 liatio in proportion to urban pop- ulation 97 Requirements for use of funds for 102-103 Training of teachers of voca- tional subjects in co-o]ieration with states 98 Minimum allotments 98 Ratio to total population 98 Requirements for use of funds_104-105 Index 933 WAR RISK INSURANCE. Appr(ii»rintii>ii 021 Advisory P.o.ird, created 621 Comiiensatiou 621 Purpose of 621 Bureau of War Risk Insurance — Authorized to fix i)reniiuni rates 621 Created 620 Compensation 620 Director 620 Duties of G21 Provisions for insurance of Amer- ican vessels, etc 620 Subject to direction of Secretary of Agriculture 620 Claims — Adjustment of 621 Paid for losses 621 Moneys, from premiums and salvage, covered into treasury 622 President authorized to suspend op- eration of act 622 Report of expenditures and receipts_622 Rules and regulations 621 Secretary of Treasury — Authorized to estal)lish Advisory Board 621 Summary of the Act 892 WAREHOUSES 70-78 Appropriation 78 Definitions 70-71 Agricultural products, delivered upon demand 76 In custody of other persons 72 License to classify, stored or to be stored 73 Provisions for storing 74 Receipts to be issued for storage 73 Bond, additional, may be required 72 Form and amount 72 Suit to recover damages on 72 Classitiers, licenses to 73 Insurance, fire, requirements of 72 Licenses 77 Classifiers, susjiended or revoked 73 Fees for 73 Suspended or revoked 72. 77 Suspended without hearing 73 Term of, renewed 71 Warehouse, issued on application — 71 Penalties 78 Rules and regulations 77 Receipts, form of 7-1-75 Issued only for agricultural prod- ucts 74 Issued by warehousemen 74 Surrender of 76 Satisfactoo' security for 76 Provision for lost 76 Uncancelled 75-76 Secretary of Agriculture — Agricultural products, to make ex- amination of 70 Assistants 73 Bond of warehousemen filed with 72 Duties of 71-77 Fees 73 Licenses issued 71 State laws, operation of, not affected_77 Storage, separate for identification 74 Summary of the Act 874 Surety, snli.iect to service of process 72 Warehousemen, cancellation of re- ceipts by 76 Records, complete and correct, kept by 76 Discrimination forbidden 73 Execution and filing of bond 72 Lien, olfer to satisfy 76 WEBB-KENYON ACT. Nrc Liquor fihipinoits. WHITE SLAVE TRAFFIC 653-657 Court .iurisdiction 655 Definitions _' 65.3-654 Females under 18. transportation for immoral purposes 654-655 Foreign females • 655 Inducing females to travel interstate for immoral purposes 654 Interstate agreement 655-656 Summary of the Act 893 Transportation of females for im- moral puii^oses 654 WINES. Definition of natural 351-352 Penalty for evading tax .357 Sparkling, tax on 356-357 Sweet 354 Preparation of 354 Manufacture regulated 354-.355 Withdrawal fr attempts to communicate or transmit the same to any person not entitled to receive it, or willfully retains the same and fails to deliver it on de- mand to the officer or employee of the United States entitled to receive it; or (e) whoever, being intrusted with or having lawful possession or control of any document, writing, code book, signal book, sketch, photo- graph, photographic negative, blue print, plan, map, model, note, or infor- mation, relating to the national defense, through gross negligence permits the same to be removed from its proper place of custody or delivered to anyone in violation of his trust, or to be lost, stolen, abstracted, or de- stroyed, shall be punished by a fine of not more than $10,0(X), or by imprisonment for not more than two y^rs, or both. Transmitting Information. Sec. 2. (a) Whoever, with intent or reason to believe that it is to be used to the injury of the United States or to the advantage of a foreign nation, communicates, delivers, or transmits, or attempts to, or aids or induces another to, communicate, deliver, or transmit, to any foreign government, or to any faction or party or military or naval force within a foreign country, whether recognized or unrecognized by the United States, or to any representative, officer, agent, employee, subject, or citizen thereof, either directly or indirectly, any document, writing, code book, signal book, sketch, photograph, photographic negative, blue print, plan, map, model, note, instrument, appliance, or information re- lating to the national defense, shall be punished by imprisonment for not more than twenty years : Provided, That whoever shall violate the provisions of subsection (a) of this section in time of war shall be pun- ished by death or by imprisonment for not more than thirty years ; and (b) whoever, in time of war, with intent that the same shall be com- municated to the enemy, shall collect, record, publish, or communicate, or attempt to elicit any information with respect to the movement, num- bers, description, condition, or disposition of any of the armed forces, ships, aircraft, or war materials of the United States, or with respect to the plans or conduct, or supposed plans or conduct of any naval or military operations, or with respect to any works or measures under- taken for or connected with, or intended for the fortification or defense of any place, or any other information relating to the public defense, which might be useful to the enemy, shall be punished by death or by imprisonment for not more than thirty years. False Reports ; Insubordination ; Obstructing Recruiting. Sec. 3. Whoever, when the United States is at war, shall willfully make or convey false reports or false statements with intent to interfere with the operation or success of the military or naval forces of the United States or to promote the success of its enemies and whoever, when the United States is at war, shall willfully cause or attempt to cause insubordination, disloyalty, mutiny, or refusal of duty, in the military 74 Supplement to Important Federal Laws or naval forces of the United States, or shall willfully obstruct the re- cruiting or enlistment service of the United States, to the injury of the service or of the United States, shall be punished by a fine of not more than $10,000 or imprisonment for not more than twenty years, or both. Conspiracy. Sec. 4. If two or more persons conspire to violate the provisions of sections two or three of this title, and one or more of such persons does any act to effect the object of the conspiracy, each of the parties to such conspiracy shall be punished as in said sections provided in the case of the doing of the act the accomplishment of which is the object of such conspiracy. Except as above provided, conspiracies to commit offenses under this title shall be punished as provided by section thirty- seven of the Act to codify, revise, and amend the penal laws of the United States approved March fourth, nineteen hundred and nine. Harboring Offender. Sec. 5. Whoever harbors or conceals any person who he knows, or has reasonable grounds to believe or suspect, has committed, or is about to commit, an offense under this title shall be punished by a fine of not more than $10,000 or by imprisonment for not more than two years, or both. President's Power to Designate Places Protected from Espionage. Sec. 6. The President in time of war or in case of national emer- gency may by proclamation designate any place other than those set forth iu subsection (a) of section one hereof, in which anything for the use of the Army or Navy is being prepared or constructed or stored as a prohibited place for the purposes of this title: Provided, That he shall determine that information with respect thereto would be prejudicial to the national defense. Courts Martial — Power Not Limited. Sec. 7. Nothing contained in this title shall be deemed to limit the jurisdiction of the general courts-martial, military commissions, or naval courts-martial under sections thirteen hundred and forty-two, thirteen hundred and forty-three, and sixteen hundred and twenty-four of the Revised Statutes as amended. Territorial Application. Sec. 8. The provisions of this title shall extend to all Territories, possessions, and places subject to the jurisdiction of the United States whether or not contiguous thereto, and off"enses under this title when committed upon the high seas or elsewhere within the admiralty and maritime jurisdiction of the United States and outside the territorial limits thereof shall be punishable hereunder. The Espionage Act 75 Repeal. Sec. 9. The Act entitled "An Act to prevent the disclosure of national defense secrets," approved March third, nineteen hundred and eleven, is hereby repealed. Title II. Vessels in Ports of the United States. Section 1. Whenever the President by proclamation or executive order declares a national emergency to exist by reason of actual or threatened war, insurrection, or invasion, or disturbance or threatened disturbance of the international relations of the United States, the Secretary of the Treasury may make, subject to the approval of the President, rules and regulations governing the anchorage and movement of any vessel, foreign or domestic, in the territorial waters of the United States, may inspect such vessel at any time, place guards thereon, and, if necessary in his opinion in order to secure such vessels from damage or injury, or to prevent damage or injury to any harbor or waters of the United States, or to secure the observance of the rights and obliga- tions of the United States, may take, by and with the consent of the President, for such purposes, full possession and control of such vessel and remove therefrom the officers and crew thereof and all other per- sons not specially authorized by him to go or remain on board thereof. Within the territory and waters of the Canal Zone the Governor of the Panama Canal, with the approval of the President, shall exercise all the powers conferred by this section on the Secretary of the Treasury. Penalties. Sec. 2. If any owner, agent, master, officer, or person in charge, or any member of the crew of any such vessel fails to comply with any regulation or rule issued or order given by the Secretary of the Treasury or the Governor of the Panama Canal under the provisions of this title, or obstructs or interferes with the exercise of any power conferred by this title, the vessel, together with her tackle, apparel, furniture, and equip- ment, shall be subject to seizure and forfeiture to the United States in the same manner as merchandise is forfeited for violation of the customs revenue laws ; and the person guilty of such failure, obstruction, or inter- ference shall be fined not more than $10,000, or imprisoned not more than two years, or both. Same. Sec. 3. It shall be unlawful for the owner or master or any other person in charge or command of any private vessel, foreign or domestic, or for any member of the crew or other person, within the territorial waters of the United States, willfully to cause or permit the destruction or injury of such vessel or knowingly to permit said vessel to be used as a place of resort for any person conspiring with another or preparing 76 Supplement to Important Federal Laws to commit any offense against the United States, or in violation of the treaties of the United States or of the obligations of the United States mider the law of nations, or to defraud the United States, or knowingly to permit such vessels to be used in violation of the rights and obliga- tions of the United States under the law of nations ; and in case such vessel shall be so used, with the knowledge of the owner or master or other person in charge or command thereof, the vessel, together Vv'ith her tackle, apparel, furniture, and equipment, shall be subject to seizure and forfeiture to the United States in the same manner as merchandise is forfeited for violation of the customs revenue laws ; and whoever violates this section shall be fined not more than $10,000 or imprisoned not more than two years, or both. Powers of the President. Sec. 4. The President may employ such part of the land or naval forces of the United States as he may deem necessary to carry out the purpose of this title. Title III. Injuring Vessels Engaged in Foreign Commerce. Section 1. Whoever shall set fire to any vessel of foreign registry, or any vessel of American registry entitled to engage in commerce with foreign nations, or to any vessel of the United States as defined in sec- tion three hundred and ten of the Act of March fourth, nineteen hun- dred and nine, entitled "An Act to codify, revise, and amend the penal laws of the United States," or to the cargo of the same, or shall tamper with the mdtive power or instrumentalities of navigation of such vessel, or shall place bombs or explosives in or upon such vessel, or shall do any other act to or upon such vessel while within the jurisdiction of the United States, or, if such vessel is of American registry, while she is on the high sea. with intent to injure or endanger the safety of the vessel or of her cargo, or of persons on board, whether the injury or danger is so intended to take place within the jurisdiction of the United States, or after the vessel shall have departed therefrom ; or whoever shall attempt or con- spire to do any such acts with such intent, shall be fined not more than $10,000 or imprisoned not more than twenty years, or both. Title IV. Interference With Foreign Commerce by Violent Means. Section 1. Whoever, with intent to prevent, interfere with, or obstruct or attempt to prevent, interfere with, or obstruct the exportation to foreign countries of articles from the United States shall injure or de- stroy, by fire or explosives, such articles or the places where they may be while in such foreign commerce, shall be fined not more than $10,000, or imprisoned not more than ten years, or both. The Espionage Act 77 Title V. Refusing Clearance of Vessels. Section 1. During a war in which the United States is a neutral nation, the President, or any person thereunto authorized by him, may withhold clearance from or to any vessel, domestic or foreign, which is required by law to secure clearance before departing from port or from the jurisdiction of the United States, or, by service of formal notice upon the owner, master, or person in command or having charge of any domestic vessel not required by law to secure clearances before so depart- ing, to forbid its departure from port or from the jurisdiction of the United States, wdienever there is reasonable cause to believe that any such vessel, domestic or foreign, whether requiring clearance or not, is about to carry fuel, arms, ammunition, men, supplies, dispatches, or in- formation to any warship, tender, or supply ship of a foreign belligerent nation in violation of the laws, treaties, or obligations of the United States under the law of nations ; and it shall thereupon be unlawful for such vessel to depart. Detaining Vessels of Warlike Purposes. Sec. 2. During a war in which the United States is a neutral nation, the President, or any person thereunto authorized by him, may detain any armed vessel owned wholly or in part by American citizens', or any vessel, domestic or foreign (other than one which has entered the port's of the United States as a public vessel), which is manifestly built for warlike purposes or has been converted or adapted from a private ves- sel to one suitable for warlike use, until the owner or master, or person having charge of such vessel, shall furnish proof satisfactory to the President, or to the person duly authorized by him, that the vessel will not be employed by the said owners, or master, or person having charge thereof, to cruise against or commit or attempt to commit hostilities upon the subjects, citizens, or property of any foreign prince or state, or of any colony, district, or people wath which the United States is at peace, and that the said vessel will not be sold or delivered to any belligerent nation, or to an agent, ofificer, or citizen of such nation, by them or any of them, within the jurisdiction of the United States, or, having left that jurisdiction, upon the high seas. Neutrality — Building Vessels for Belligerents. Sec. 3. During a war in which the United States is a neutral na- tion, it shall be unlawful to send out of the jurisdiction of the United States any vessel built, armed, or equipped as a vessel of war, or con- verted from a private vessel into a vessel of war, with any intent or under any agreement or contract, written or oral, that such vessel shall be delivered to a belligerent nation, or to an agent, officer, or citizen of such nation, or with reasonable cause to believe that the said vessel shall or will be employed in the service of any such belligerent nation after its departure from the jurisdiction of the United States. 78 Supplement to Important Federal Laws Neutrality — Statement by Owner of Cargo. Sec. 4. During a war in which the United States is a neutral na- tion, in addition to the facts required by sections forty-one hundred and ninety-seven, forty-one hundred and ninety-eight, and forty-two hun- dred of the Revised Statutes to be set out in the masters' and shippers' manifests before clearance will be issued to vessels bound to foreign ports, each of which sections of the Revised Statutes is hereby declared to be and is continued in full force and effect, every master or person having charge or command of any vessel, domestic or foreign, whether requiring clearance or not, before departure of such vessel from port shall deliver to the collector of customs for the district wherein such vessel is then located a statement duly verified by oath, that the cargo or any part of the cargo is or is not to be delivered to other vessels in port or to be transshipped on the high seas and, if it is to be so delivered or transshipped, stating the kind and quantities and the value of the total quantity of each kind of article so to be delivered or transshipped, and the name of the person, corporation, vessel, or government, to whom the delivery or transshipment is to be made ; and the owners, shippers, or consignors of the cargo of such vessel shall in the same manner and under the same conditions deliver to the collector like statements under oath as to the cargo or the parts thereof laden or shipped by them respectively. Refusing Clearance. Sec. 5. Whenever it appears that the vessel is not entitled to clear- ance or whenever there is reasonable cause to believe that the additional statements under oath required in the foregoing section are false, the collector of customs for the district in which the vessel is located may, subject to review by the Secretary of Commerce, refuse clearance to any vessel, domestic or foreign, and by formal notice served upon the owners, master, or person or persons in command or charge of any domestic vessel for which clearance is not required by law, forbid the departure of the vessel from the port or from the jurisdiction of the United States; and it shall thereupon be unlawful for the vessel to depart. Penalty. Sec. 6. Whoever, in violation of any of the provisions of this title, shall take, or attempt or conspire to take, or authorize the taking of any such vessel, out of port or from the jurisdiction of the United States, shall be fined not more than $10,000 or imprisoned not more than five years, or both ; and, in addition, such vessel, her tackle, apparel, furniture, equipment, and her cargo shall be forfeited to the United States. Interned Person's Penalty for Escaping. Sec. 7. Whoever, being a person belonging to the armed land or naval forces of a belligerent nation or belligerent faction of any nation and being interned in the United States, in accordance with the law of The Espionage Act 79 nations, shall leave or attempt to leave said jurisdiction, or shall leave or attempt to leave the limits of interment in which freedom of move- ment has been allowed, without permission from the proper official of the United States in charge, or shall willfully overstay a leave of absence granted by such official, shall be subject to arrest by any marshal or deputy marshal of the United States, or by the military or naval author- ities thereof, and shall be returned to the place of internment and there confined and safely kept for such period of time as the official of the United States in charge shall direct ; and whoever, within the jurisdiction of the United States and subject thereto, shall aid or entice any interned person to escape or attempt to escape from the jurisdiction of the United States, or from the limits of internment prescribed, shall be fined not more than $1,000 or imprisoned not more than one year, or both. Violating Neutrality — Penalty. Sec. 8. Section thirteen of the Act entitled "An Act to codify, revise, and amend the penal laws of the United States," approved March fourth, nineteen hundred and nine, is hereby amended so as to read as follows : "Sec. 13. Whoever, within the territory or jurisdiction of the United States or of any of its possessions, knowingly begins or sets on foot or provides or prepares a means for or furnishes the money for, or who takes part in, any military or naval expedition or enterprise to be carried on from thence against the territory or dominion of any foreign prince or state, or of any colony, district, or people with whom the United States is at peace, shall be fined not more than $3,000 or imprisoned not more than three years, or both." Use of Land and Naval Forces. Sec. 9. That the President may employ such part of the land or naval forces of the United States as he may deem necessary to carry out the purposes of this title. Same. Sec. 10. Section fifteen of the Act entitled "An Act to codify, revise, and amend the penal laws of the United States," approved March fourth, nineteen hundred and nine, is hereby amended so as to read as follows : "Sec. 15. It shall be lawful for the President to employ such part of the land or naval forces of the United States, or of the militia thereof, as he may deem necessary to compel any foreign vessel to depart from the United States or any of its possessions in all cases in which, by the law of nations or the treaties of the United States, it ought not to remain, and to detain or prevent any foreign vessel from so departing in all cases in which, by the law of nations or the treaties of the United States, it is not entitled to depart." 80 Supplement to Important Federal Laws Repeal. Sec. 11. The joint resolution approved ^larch fourth, nineteen hundred and fifteen, "To empower the President to better enforce and maintain the neutrality of the United States," and any Act or parts of Acts in conflict with the provisions of this title are hereby repealed. Title VI. Seizure of Arms and Other Articles Intended for Export. Section 1. Whenever an attempt is made to export or ship from or take out of the United States, any arms or munitions of war, or other articles, in violation of law, or whenever there shall be known or prob- able cause to believe that any such arms or munitions of war, or other articles, are being or are intended to be exported, or shipped from, or taken out of the United States, in violation of law, the several collectors, naval officers, surveyors, inspectors of customs, and marshals, and deputy marshals of the United States, and every other person duly authorized for the purpose by the President, may seize and detain any articles or munitions of war about to be exported or shipped from or taken out of the United States, in violation of law, and the vessels or vehicles containing the same, and retain possession thereof until released or dis- posed of as hereinafter directed. If upon due inquiry as hereinafter provided, the property seized shall appear to have been about to be so unlawfully exported, shipped from, or taken out of the United States, the same shall be forfeited to the United States. Jurisdiction of the District Court. Sec. 2. It shall be the duty of the person making any seizure under this title to apply, with due diligence, to the judge of the district court of the United States, or to the judge of the United States district court of the Canal Zone, or to the judge of a court of first instance in the Philip- pine Islands, having jurisdiction over the place within which the seizure is made, for a warrant to justify the further detention of the property so seized, which warrant shall be granted only on oath or affirmation show- ing that there is known or probable cause to believe that the property seized is being or is intended to be exported or shipped from or taken out of the United States in violation of law; and if the judge refuses to issue the warrant, or application therefor is not made by the person making the seizure within a reasonable time, not exceeding ten days after the seizure, the property shall forthwith be restored to the owner or person from whom seized. If the judge is satisfied that the seizure was justified under the provisions of this title and issues his warrant accordingly, then the property shall be detained by the person seizing it until the President, who is hereby expressly authorized so to do, orders it to be restored to the owner or claimant, or until it is discharged in due course of law on petition of the claimant, or on trial of condemnation proceedings, as hereinafter provided. The Espionage Act 81 Petition for Restoration. Sec. 3. The owner or claimant of any property seized under this title may, at any time before condemnation proceedings have been insti- tuted, as hereinafter provided, file his petition for its restoration in the district court of the United States, or the district court of the Canal Zone, or the court of first instance in the Philippine Islands, having jurisdiction over the place in which the seizure was made, whereupon the court shall advance the cause for hearing and determination with all possible dis- patch, and, after causing notice to be given to the United States attorney for the district and to the person making the seizure, shall proceed to hear and decide whether the property seized shall be restored to the peti- tioner or forfeited to the United States. Libel Proceedings. Sec. 4. Whenever the person making any seizure under this title applies for and obtains a warrant for the detention of the property, and (a) upon the hearing and determination of the petition of the owner or claimant restoration is denied, or (b) the owner or claimant fails to file a petition for restoration within thirty days after the seizure, the United States attorney for the district where in it was seized, upon direction of the Attorney General, shall institute libel proceedings in the United States district court or the district court of the Canal Zone or the court of first instance of the Philippine Islands having jurisdiction over the place wherein the seizure was made, against the property for condemna- tion; and if, after trial and hearing of the issues involved, the property is condemned, it shall be disposed of by sale, and the proceeds thereof, less the legal costs and charges, paid into the Treasury. Procedure to Conform to Procedure in Admiralty. Sec. 5. The proceedings in such summary trials upon the petition of the owner or claimant of the property seized, as well as in the libel cases herein provided for, shall conform, as near as may be, to the proceedings in admiralty, except that either party rnay demand trial by jury of any issue of fact joined in such libel cases, and all such proceedings shall be at the suit of and in the name of the United States ; Provided, That upon the payment of the costs and legal expenses of both the summary trials and the libel proceedings herein provided for,, and the execution and delivery of a good and sufficient bond in an amount double the value of the property seized, conditioned that it will not be exported or used or employed contrary to the provisions of this title, the court, in its discre- tion, may direct that it be delivered to the owners thereof or to the claimants thereof. Act Not to Interfere with Lawful Trade. Sec. 6. Except in those cases in which the exportation of arms and , munitions of war or other articles is forbidden by proclamation or other- wise bv the President, as provided in section one of this title, nothing (6) 82 Supplement to Important Federal Laws herein contained shall be construed to extend to, or interfere with any trade in such commodities, conducted with any foreign port or place wheresoever, or with any other trade which might have been lawfully carried on before the passage of this title, under the law of nations, or under the treaties or conventions entered into by the United States, or under the laws thereof. Release. Sec. 7. Upon the payment of the costs and legal expense incurred in any such summary trial for possession or libel proceedings, the Presi- dent is hereby authorized, in his discretion, to order the release and restoration to the owners or claimant, as the case may be, of any prop- erty seized or condemned under the provisions of this title. Powers of the President. Sec. 8. The President may employ such part of the land or naval forces of the United States as he may deem necessary to carry out the purposes of this title. Title VII. Certain Exports in Time of War Unlawful. Section 1. Whenever during the present war the President shall find that the public safety shall so require, and shall make proclamation thereof, it shall be unlawful to export from or ship from or take out of the United States to any country named in such proclamation anv article or articles mentioned in such proclamation, except at such time or times, and under such regulations and orders, and subject to such limitations and exceptions as the President shall prescribe, until otherwise ordered by the President or by Congress : Provided, however. That no prefer- ence shall be given to the ports of one State over those of another. Penalties. Sec. 2. Any person who shall export, ship, or take out, or deliver or attempt to deliver for export, shipment, or taking out, any article in violation of this title, or of any regulation or order made hereunder, shall be fined not more than $10,000, or, if a natural person, imprisoned for not more than two years, or both ; and any article so delivered or exported, shipped, or taken out, or so attempted to be delivered or ex- ported, shipped, or taken out, shall be seized and forfeited to the United States ; and any officer, director, or agent of a corporation who partici- pates in any such violation shall be liable to like fine or imprisonment, or both. Refusing Clearance. Sec. 3. Whenever there is reasonable cause to believe that any vessel, domestic or foreign, is about to carry out of the United States any article or articles in violation of the provisions of this title, the The Espionage Act 83 collector of customs for the district in which such vessel is located is hereby authorized and empowered, subject to review by the Secretary of Commerce, to refuse clearance to any such vessel, domestic or foreign, for which clearance is required by law, and by formal notice served upon the owners, master, or person or persons in command or charge of any domestic vessel for which clearance is not required by law, to forbid the departure of such vessel from the port, and it shall thereupon be unlaw- ful for such vessel to depart. Whoever, in violation of any of the pro- visions of this section shall take, or attempt to take, or authorize the taking of any such vessel, out of port or from the jurisdiction of the United States, shall be fined not more than $10,000 or imprisoned not more than two years, or both ; and, in addition, such vessel, her tackle, apparel, furniture, equipment and her forbidden cargo shall be for- feited to the United States. Title VIII. Disturbance of Foreign Relations. Section 1. Whoever, in relation to any dispute or controversy between a foreign government and the United States, shall willfully and knowingly make any untrue statement, either orally or in writing, under oath before any person authorized and empowered to administer oaths, which the afifiant has knowledge or reason to believe will, or may be used to influence the measures or conduct of any foreign government, or of any officer or agent of any foreign government, to the injury of the United States, or with a view or intent to influence any measure of or action by the Government of the United States, or any branch thereof, to the injury of the United States, shall be fined not more than $5,000 or imprisoned not more than five years, or both. Pretending to be Foreign Representative — Penalty. Sec. 2. Whoever within the jurisdiction of the United States shall falsely assume or pretend to be a diplomatic or consular, or other official of a foreign government duly accredited as such to the Government of the United States with intent to defraud such foreign government or any person, and shall take upon himself to act as such, or in such pretended character shall demand or obtain, or attempt to obtain from any person or from said foreign government, or from any officer thereof, any money, paper, document, or other thing of value, shall be fined not more than $5,000, or imprisoned not more than five years, or both. Penalties. Sec. 3. Whoever, other than a diplomatic or consular officer or attache, shall act in the United States as an agent of a foreign govern- ment without prior notification to the Secretary of State shall be fined not more than $5,000, or imprisoned not more than five years, or both. 84 Supplement to Important Federal Laws Foreign Government — Definition. Sec. 4. The words "foreign government," as used in tliis Act and in sections one hundred and fifty-six, one hundred and fifty-seven, one liundred and sixty-one, one hundred and seventy, one hundred and sev- enty-one, one hundred and seventy-two, one hundred and seventy-three, and two hundred and twenty of the Act of Alarch fourth, nineteen hun- dred and nine, entitled "An Act to codify, revise, and amend the penal laws of the United States," shall be deemed to include any Government, faction, or body of insurgents within a country with which the United States is at peace, which Government, faction, or body of insurgents may or may not have been recognized by the United States as a Government. Conspiracy to Violate Act. Sec. 5. If two or more persons within the jurisdiction of the United States conspire to injure or destroy specific property situated within a foreign country and belonging to a foreign Government or to any polit- ical subdivision thereof with which the United States is at peace, or any railroad, canal, bridge, or other public utility so situated, and if one or more of such persons commits an act within the jurisdiction of the United States to eft'ect the object of the conspiracy, each of the parties to the conspiracy shall be fined not more than $5,000, or imprisoned not more than three years, or both. Any indictment or information under this section shall describe the specific propert\- which it was the object of the conspiracy to injure or destroy. Title IX. Passports. Section 1. Before a passport is issued to any person by or under authority of the United States such person shall subscribe to and submit a written application duly verified by his oath before a person authorized and empowered to administer oaths, which said application shall contain a true recital of each and every matter of fact which may be required by law or by any rules authorized by law to be stated as a prerequisite to the issuance of any such passport. Clerks of United States courts, agents of the Department of State, or other Federal officials authorized, or who may be authorized, to take passport applications and administer oaths thereon, shall collect, for all services in connection therewith, a fee of $1, and no more, in lieu of all fees prescribed by any statute of the United States, whether the application is executed singly, in duplicate, or in triplicate. False Application for Passport — Penalty. Sec. 2. Whoever shall willfully and knowingly make any false statement in an application for passport with intent to induce or secure the issuance of a passport under the authority of the United States. either for his own use or the use of another, contrary to the laws regu- The Espionage Act 85 lating the issuance of passports or the rules prescribed pursuant to such laws, or whoever shall willfully and knowingly use or attempt to use, or furnish to another for use, any passport the issue of which was secured in any way by reason of any false statement, shall be fined not more than $2,000 or imprisoned not more than five years or both. False Use of Passport. Sec. 3. Whoever shall willfully and knowingly use, or attempt to use, any passport issued or designed for the use of another than himself, or whoever shall willfully and knowingly use or attempt to use any pass- port in violation of the conditions or restrictions therein contained, or of the rules prescribed pursuant to the laws regulating the issuance of pass- ports, which said rules shall be printed on the passport ; or whoever shall willfully and knowingly furnish, dispose of, or deliver a passport to any person, for use by another than the person for whose use it was originally issued and designed, shall be fined not more than $2,000 or imprisoned not more than five years, or both. Counterfeiting Passport. Sec. 4. Whoever shall falsely make, forge, counterfeit, mutilate, or alter, or cause or procure to be falsely made, forged, counterfeited, muti- lated, or altered any passport or instrument purporting to be a passport, with intent to use the same, or with intent that the same may be used by another; or whoever shall willfully or knowingly use, or attempt to use, or furnish to another for use any such false, forged, counterfeited, mutilated, or altered passport or instrument purporting to be a passport, or any passport validly issued which has become void by the occurrence of any condition therein prescribed invalidating the same, shall be fined not more than $2,000 or imprisoned not more than five years, or both. Title X. ' Government Seal — Falsely Affixing. Section 1. Whoever shall fraudulently or wrongfully affix or im- press the seal of any executive department, or of any bureau, commis- sion, or office of the United States, to or upon any certificate, instrument, commission, document, or paper of any description ; or whoever, with knowledge of its fraudulent character, shall wnth wrongful or fraudulent intent use, buy, procure, sell, or transfer to another any such certificate, instrument, commission, document, or paper, to which or upon which said seal has been so fraudulently affixed or impressed, shall be fined not more than $5,000 or imprisoned not more than five years, or both. Counterfeiting Government Seal. Sec. 2. Whoever shall falsely make, forge, counterfeit, mutilate, or alter, or cause or procure to be made, forged, counterfeited, mutilated, or altered, or shall willingly assist in falsely making, forging, counterfeiting. 86 Supplement to Important Federal Laws mutilating, or altering, the seal of any executive department, or any bu- reau, commission, or office of the United States, or whoever shall know- ingly use, affix, or impress any such fraudulently made, forged, counter- feited, mutilated, or altered seal to or upon any certificate, instrument, commission, document, or paper, of any description, or whoever with wrongful or fraudulent intent shall have possession of any such falsely made, forged, counterfeited, mutilated, or altered seal, knowing the same to have been so falsely made, forged, counterfeited, mutilated, or altered, shall be fined not more than $5,0CX) or imprisoned not more than ten years, or both. Counterfeiting or Altering Pass. Sec. 3. Whoever shall falsely make, forge, counterfeit, alter, or tamper with any naval, military, or official pass or permit, issued by or under the authority of the United States, or with wrongful or fraudulent intent shall use or have in his possession any such pass or permit, or shall personate or falsely represent himself to be or not to be a person to whom such pass or permit has been duly issued, or shall willfully allow any other person to have or use any such pass or permit, issued for his use alone, shall be fined not more than $2,000 or imprisoned not more than five years, or both. Title XL Search Warrants. Section L A search warrant authorized by this title may be issued by a judge of a United States district court, or by a judge of a State or Territorial court of record, or by a United States commissioner for the district wherein the property sought is located. Grounds for Search. Sec. 2. A search warrant may be issued under this title upon either of the following grounds : i. When the property was stolen or embezzled in violation of a law of the United States ; in which case it may be taken on the warrant from any house or other place in which it is concealed, or from the possession of the person by whom it was stolen or embezzled, or from any person in whose possession it may be. 2. When the property was used as the means of committing a felony; in which case it may be taken on the warrant from any house or other place in which it is concealed, or from the possession of the person by whom it was used in the commission of the offense, or from any person in whose possession it may be. 3. When the property, or any paper, is possessed, controlled, or used in violation of section twenty-two of this title ; in which case it may be taken on the warrant from the person violating said section, or from any person in whose possession it may be, or from any house or .other place in which it is concealed. The Espionage Act 87 Probable Cause — Affidavit. Sec. 3. A search warrant can not be issued but upon probable cause, supported by affidavit, naming or describing the person and par- ticularly describing the property and the place to be searched. Judge or Commissioner to Require Affidavits. Sec. 4. The judge or commissioner must, before issuing the war- rant, examine on oath the complainant and any witness he may pro- duce, and require their affidavits or take their depositions in writing and cause them to be subscribed by the parties making them. Affidavits to Set Out Grounds. Sec. 5. The affidavits or depositions must set forth the facts tend- ing to establish the grounds of the application or probable cause for believing that they exist. Issuance of Warrant. Sec. 6. If the judge or commissioner is thereupon satisfied of the existence of the grounds of the application or that there is probable cause to believe their existence, he must issue a search warrant, signed by him with his name of office, to a civil officer of the United States duly authorized to enforce or assist in enforcing any law thereof, or to a person so duly authorized by the President of the United States, stating the particular grounds or probable cause for its issue and the names of the persons whose affidavits have been taken in support thereof, and com- manding him forthwith to search the person or place named, for the property specified, and to bring it before the judge or commissioner. Officers Who May Serve. Sec. 7. A search warrant may in all cases be served by any of the officers mentioned in its direction, but by no other person, except in aid of the officer on his requiring it, he being present and acting in its execu- tion. Breaking Into Places to Be Searched. Sec. 8. The officer may break open any outer or inner door or window of a house, or any part of a house, or anything therein, to execute the warrant, if, after notice of his authority and purpose, he is refused admittance. Same. Sec. 9. He may break open any outer or inner door or window of a house for the purpose of liberating a person w'ho, having entered to aid him in the execution of the warrant, is detained therein, or when necessary for his own liberation. Time of Search. Sec. 10. The judge or commissioner must insert a direction in the warrant that it be served in the daytime, unless the affidavits are positive 88 Supplement to Important Federal Laws that the property is on the person or in the place to be searched, in which case he may insert a direction that it be served at any time of the day or night. Warrant Void After Ten Days. Sec. 11. A search warrant must be executed and returned to the judge or commissioner who issued it within ten days after its date ; after the expiration "of this time the warrant, unless executed, is void. Copy to Person from Whom Property is Taken. Sec. 12. When the officer takes property under the warrant, he must give a copy of the warrant together with a receipt for the property taken (specifying it in detail to the person from whom it was taken by him, or in whose possession it was found ; or, in the absence of any person, he must leave it in the place where he found the property. Officer To Return Warrant to Judge. Sec. 13. The officer must forthwith return the warrant to the judge or commissioner and deliver to him a written inventory of the property taken, made publicly or in the presence of the person from whose pos- session it was taken, and of the applicant for the warrant, if they are present, verified by the affidavit of the officer at the foot of the inventory and taken before the judge or commissioner at the time, to the following effect: "I, R. S., the officer by whom this warrant was executed, do swear that the above inventory contains a true and detailed account of all the property taken by me on the warrant." Copy to be Returned by Judge if Requested. Sec. 14. The judge or commissioner must thereupon, if required, deliver a copy of the inventory to the person from whose possession the property was taken and to the applicant for the warrant. Controverted Cases. Sec. 15. If the grounds on which the warrant was issued be con- troverted, the judge or commissioner must proceed to take testimony in relation thereto, and the testimony of each witness must be reduced to writing and subscribed by each witness. Restoration of Property if No Probable Cause. Sec. 16. If it appears that the property or paper taken is not the same as that described in the warrant or that there is no probable cause for believing the existence of the grounds on which the warrant was issued, the judge or commissioner must cause it to be restored to the person from whom it was taken; but if it appears that the property or paper taken is the same as that described in the warrant and that there is probable cause for believing the existence of the grounds on which the warrant was issued, then the judge or commissioner shall order the same retained in the custody of the person seizing it or to be otherwise dis- posed of according to law. The Espionage Act 89 Filing Papers in Proper Court. Sec. 17. The judge or commissioner must annex the affidavits, search warrant, return, inventory, and evidence, and if he has not power to inquire into the offense in respect to which the warrant was issued he must at once file the same, together with a copy of the record of his proceedings, with the clerk of the court having power to so inquire. Penalties. Sec. 18. Whoever shall knowingly and willfully obstruct, resist, or oppose any such officer or person in serving or attempting to serve or execute any such search warrant, or shall assault, beat, or wound any such officer or person, knowing him to be an officer or person so author- ized, shall be fined not more than $1,000 or imprisoned not more than two years. Application of Criminal Code. Sec. 19. Sections one hundred and twenty-five and one hundred and twenty-six of the Criminal Code of the United States shall apply to and embrace all persons making oath or affirmation or procuring the same under the provisions of this title, and such persons shall be sub- ject to all the pains and penalties of said sections. Penalties — Persons. Sec. 20. A person who maliciously and without probable cause pro- cures a search warrant to be issued and executed shall be fined not more than $1,000 or imprisoned not more than one year. Penalties — Officers. Sec. 21. An officer who in executing a search warrant willfully exceeds his authority, or exercises it with unnecessary severity, shall be fined not more than $1,000 or imprisoned not more than one year. Penalties — Unlawfully Possessing Property. Sec. 22. Whoever, in aid of any foreign Government, shall know- ingly and willfully have possession of or control over any property or papers designed or intended for use or which is used as the means of violating any penal statute, or any of the rights or obligations of the United States under any treaty or the law of nations, shall be fined not more than $1,000 or imprisoned not more than two years, or both. Not to Affect Other Laws. Sec. 23. Nothing contained in this title shall be held to repeal or impair any existing provisions of law regulating search and the issue of search warrants. Title XII. Use of Mails. Section 1. Every letter, writing, circular, postal card, picture, print, engraving, photograph, newspaper, pamphlet, book or other publication, matter or thing, of any kind, in violation of any of the provisions of this 90 Supplement to Important Federal Laws Act is hereby declared to be nonmailable matter and shall not be con- veyed in the mails or delivered from any post office or by any letter car- rier: Provided, That nothing in this Act shall be so construed as to authorize any person other than an employee of the Dead Letter Office, duly authorized thereto, or other person upon a search warrant auth- orized by law, to open any letter not addressed to himself. Same. Seg. 2. Every letter, writing, circular, postal card, picture, print, engraving, photograph, newspaper, pamphlet, book, or other publication, matter or thing, of any kind, containing any matter advocating or urging treason, insurrection, or forcible resistance to any law of the United States, is herebv declared to be nonmailable. Same. Sec. 3. Whoever shall use or attempt to use the mails or Postal Service of the United States for the transmission of any matter declared by this title to be nonmailable, shall be fined not more than $5,000 or imprisoned not more than five years, or both. Any person violating any provision of this title may be tried and punished either in the district in which the unlawful matter or publication was mailed, or to which it was carried by mail for delivery according to the direction thereon, or in which jt was caused to be delivered by rnail to the person to whom it was addressed. Title XIIL general provisions. Definition — United States. Segtion L The term "United States" as used in this Act includes the Canal Zone and all territory and waters, continental or insular, sub- ject to the jurisdiction of the United States. Courts — Jurisdiction. Sec. 2. The several courts of first instance in the Philippine Islands and the district court of the Canal Zone shall have jurisdiction of oflr'enses under this xA.ct committed within their respective districts, and concurrent jurisdiction with the district courts of the United States of offenses under this Act committed upon the high seas, and of conspira- cies to commit such offenses, as defined by section thirty-seven of the Act entitled "An Act to codify, revise, and amend the penal laws of the United States," approved March fourth, nineteen hundred and nine, and the provisions of said section, for the purpose of this Act, are hereby extended to the Philippine Islands, and to the Canal Zone. In such cases the district attorneys of the Philippine Islands and of the Canal Zone shall have the powers and perform the duties provided in this Act for United States attorneys. The Espionage Act 91 Prosecution of Prior Offenses. Sec. 3. Offenses committed and penalties, forfeitures, or liabilities incurred prior to the taking effect hereof under any law embraced in or changed, modified, or repealed by any chapter of this Act may be prosecuted and punished, and suits and proceedings for causes arising or acts done or committed prior to the taking effect hereof may be com- menced and prosecuted, in the same manner and with the same effect as if this Act had not been passed. Saving Clause. Sec. 4. If any clause, sentence, paragraph, or part of this Act 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, para- graph, or part thereof directly involved in the controversy in which such judgment shall have been rendered. WAR RISK INSURANCE. Ameuduieiits of June 12, 1917. All Act to iimeud aa Act entitled "An Act to authorize the establishment of a Bureau of War Risk Insurance in the Treasury Department," approved September second, nineteen hundred and fourteen, ami for other purposes. Bureau Created. That the first section of the Act entitled "An Act to authorize the establishment of a Bureau of War Risk Insurance in the Treasury De- partment," approved September second, nineteen hundred and fourteen, is hereby amended to read as follows : "That there is established in the Treasury Department a bureau to be known as the Bureau of War Risk Insurance, the director of which shall be entitled to a salary at the rate of $5,000 per annum." Insurance of Vessels and Cargo. Sec. 2. That section two of such Act is hereby amended to read as follows : "Sec. 2. That the said Bureau of War Risk Insurance, subject to the general direction of the Secretary of the Treasury, shall, as soon as practicable, make provisions for the insurance by the United States of American vessels, their freight and passage moneys, cargoes shipped or to be shipped therein, and personal effects of the masters, officers, and crews thereof against loss or damage by the risks of war, whenever it shall appear to the Secretary that American vessels, shippers or import- ers in American vessels, or the masters, officers, or crews of such ves- sels, are unable in any trade to secure adequate war-risk insurance on reasonable terms. "The Bureau of War Risk Insurance, subject to the general direc- tion of the Secretary of the Treasury, shall^ as soon as practicable, make provisions for the insurance by the United States, as further provided in section three a, of masters, officers, and crews of American merchant vessels against loss of life or personal injury by the risks of war, and for compensation during detention following capture by enemies of the United States whenever it shall appear to the Secretary that in any trade the need for such insurance exists." Reinsurance of Friendly Vessels. Sec. 3. That there is hereby added to such Act a new section, to be known as section two a, to read as follows : "Sec. 2a. That the Bureau of War Risk Insurance, with the ap- proval of the Secretary of the Treasury, is hereby authorizeJ to make provisions for the reinsurance by the United States of vessels of foreign friendly flags or their cargoes, or both, when such vessels or their car- goes are insured by the Government of any country which is at war with an enemy of the United States ; and, further, to reinsure with the 92 War Risk Insurance 93 Governments of any countries which are at war with an enemy of the United States American vessels and their cargoes." Forms of War Risk Policies. Sec. 4. That section three of such Act is hereby amended to read as follows : "Sec. 3. That the Bureau of War Risk Insurance, with the ap- proval of the Secretary of the Treasury, is hereby authorized to adopt and publish forms of war-risk policies and to fix reasonable rates of premium for the policies which it is authorized to issue under this Act, which rates shall be subject to such change to each port and for each class as the Secretary shall find may be required by the circumstances. All proceeds of the aforesaid premium and from salvage which have been or are hereafter received shall be covered into the Treasury of the United States to the credit of the Bureau of War Risk Insurance, and in addition to all other appropriations made under this Act are hereby permanently appropriated for the purpose of paying losses and return premiums accruing under this Act." Insurance of Officers and Crews. Sec. 5. That there is hereby added to such Act a new section, to be known as section three a, to read as follows : '"Sec. 3a. That whenever it shall appear to the Secretary of the Treasury that the efl:'ecting of such insurance is desirable in the national interest in the case of vessels engaged in any trade, the owner of every American merchant vessel engaged in such trade shall insure the master, officers, and crew of such vessel against loss of life or personal injury from war risks as well as for compensation during detention by an enemy of the United States following capture. "Such insurance shall be effected either with the Bureau of War Risk Insurance or in insurance companies, and on terms satisfactory to the Secretary of the Treasury. "Such insurance shall provide, and the Bureau of War Risk Insur- ance is authorized to write policies so providing — "(a) In case of death, permanent disability which prevents the person injured from performing any and every kind of duty pertaining to his occupation, or the loss of both hands, both arms, both feet, both legs, or both eyes, or any two thereof, for the payment of an amount equivalent to one year's earnings, or to twelve times the monthly earnings of the insured, as fixed in the articles for the voyage (hereinafter re- ferred to as the principal sum), but in no case shall such amount be more than $5,000 or less than $1,500; "(b) In case of any of the following losses, for the payment of the percentage of the principal sum indicated in the following tables : "One hand, fifty per centum ; "One arm, sixty-five per centum ; 94 Supplement to Important Federal Laws "One foot, fifty per centum; "One leg, sixty-five per centum; • "One eye, forty-five per centum; "Total destruction of hearing, fifty per centum ; "That the Bureau of War Risk Insurance may include in its policy undertakings to pay specified percentages of the principal sum for other losses or disabilities ; and "(c) In case of detention by an enemy of the United States, follow- ing capture, for the payment during the continuance of such detention of compensation at the same rate as the earnings of the insured imme- diately preceding such detention, to be determined in substantially the same manner as provided in subdivision (a) of this section. "The aggregate payments under this section in respect to any one person shall not exceed the amount of the principal sum. "Payments provided for in this section shall be made only to the master, officer, or member of the crew concerned, except that a payment for loss of life shall be made to the estate of the insured for distribution to his family free from liability of debt, and payment on account of detention by an enemy following capture shall be made to dependents of the person detained, if designated by him. "No claim under this section shall be valid unless made by the master, officer, or member of the crew concerned, or his estate, or a per- son designated under this section, within two years after the date on which the President suspends the operations of this Act in so far as it authorizes insurance by the United States." Same — Compulsory. Sec. 6. That there is hereby added to such Act a new section to be known as section three b, to read as follows : "Sec. 3b. That in the event of failure of the owner of any vessel to effect insurance of the master, officers, and crew of such vessel prior to sailing, in accordance with section three a of this Act, the Secretary of the Treasury is hereby authorized to eft"ect such insurance with the Bureau of War Risk Insurance at the expense of the owner of such vessel, and the latter shall be liable for such expense and, in addition, to a penalty of not exceeding $1,000. The amount of such premium, with interest and of the penalty and of all costs, shall be a lien on the vessel." Advisory Board. Sec. 7. That section five of such Act is hereby amended to read as follows : "Sec. 5. That the Secretary of the Treasury is authorized to estab- lish an advisory board, to consist of three members skilled in the prac- tices of war-risk insurance, for the purpose of assisting the Bureau of War Risk Insurance in fixing rates of premium and in adjustment of claims for losses, and generally in carrying out the purposes of this Act; War Risk Insurance 95 the compensation of the members of said board to be determined by the Secretary of the Treasury, but not to exceed $20 a day each, while actually employed. He is likewise authorized to appoint two persons skilled in the practices of accident insurance for the purpose of assisting- the Bureau of War Risk Insurance in the adjustment of claims for death, personal injury, or detention ; the compensation of the persons so appointed to be determined by the Secretary of the Treasury, but not to exceed $20 a day each, while actually employed. In the event of disagreement as to the claim for losses, or amount thereof, between the said bureau and the parties to such contract of insurance, an action on the claim may be brought against the United States in the district court of the United States, sitting in admiralty, in the district in which the claimant or his agent may reside." Attorney's Fees Not Allowed. Sec. 8. That there is hereby added to such Act" a new section to be known as section five a, to read as follows : "Sec. 5a. No claim agent or attorney shall be entitled to receive any compensation whatever for services in the collection of claims against the Bureau of War Risk Insurance for death, personal injury, or deten- tion, except when proceedings are taken in accordance with section five in a district court of the United States, in which case the judge shall, as a part of his determination and order, settle and determine the amount of compensation not to exceed ten per centum of amount recovered, ta be paid by the claimant on behalf of whom such proceedings are insti- tuted to his legal adviser or advisers, and it shall be unlawful for any lawyer or other person acting in that behalf to ask for, contract for, or receive any larger sum than the amount so fixed." Appropriations. Sec. 9. That section seven of such Act is hereby amended to read "Sec. 7. That for the purpose of paying losses and return pre- miums accruing under the provisions of this Act there is hereby appro- priated out of any money in the Treasury of the United States not other- wise appropriated, the sum of $50,000,000." Sec. 10. That section eight of such Act is hereby amended to read as follows : "Sec. 8. That there is hereby appropriated, for the purpose of defraying the expenses of the establishment and maintenance of the Bureau of War Risk Insurance, including the payment of salaries herein authorized and other personal services, and for the purchase of necessary books of reference, periodicals, etc., that may be paid for in advance out of any money in the Treasury of the United States not otherwise appropriated, the sum of $250,000." Suspension of Act. "Sec. 11. That section nine of such Act is hereby amended to read as follows: 96 Supplement to Important Federal Laws "Sec. 9. ' That the President is authorized whenever in his judg- ment the necessity of further war insurance by the United States shall have ceased to exist to suspend the operation of the Act, in so far as it authorizes insurance by the United States against loss or damage by risks of war, which suspension shall be made, in any event, within four years after the passage of this Act, but shall not affect any insurance out- standing at the time or any claims pending adjustment. For the pur- pose of the final adjustment of any such outstanding insurance or claims, the Bureau of War Risk Insurance may, in the discretion of the Presi- dent, be continued in existence a further period not exceeding three years." Repeal. Sec. 12. That the Act entitled "An Act to amend an Act entitled 'An Act to authorize the establishment of a Bureau of War Risk Insur- ance of the Treasury Department,' approved September second, nine- teen hundred and fourteen," approved August eleventh, nineteen hun- dred and sixteen, and the Act entitled "An Act to amend an Act entitled 'An Act to authorize the establishment of a Bureau of War Risk Insur- ance in the Treasury Department,' approved September second, nineteen hundred and fourteen," approved March third, nineteen hundred and seventeen, are hereby repealed. i SOLDIERS' AND SAILORS' INSURANCE ACT. Act of October (i, lillT. An Act to :iinend .-in Act entitled "An Act to antliorize the establishment of a Bureau of War l{isk Insurance in tbe Treasury Department," approved September second, nineteen hundred and fourteen, and for other purposes.i That the first section of the Act entitled "An Act to authorize the estabhshment of a Bureau of War Risk Insurance in the Treasury De- partment," approved September second, nineteen hundred and fourteen, as amended, is hereby amended to read as follows : "Article I. Organization of the Bureau. "Section 1. That there is established in the Treasury Department a bureau to be known as the Bureau of War Risk Insurance, the di- rector of which shall receive a salary at the rate of $5,000 per annum. "That there be in such bureau a Division of Marine and Seamen's Insurance and a Division of Military and Naval Insurance in charge of a commissionor of Marine and Seamen's Insurance and a commis- sioner of Military and Naval Insurance, respectively, each of whom shall receive a salary of $4,000 per annum." Sec. 2. That such Act of September second, nineteen hundred and fourteen, as amended, is hereby amended by adding new sections, as follows : "Sec. 12. That sections two to seven, inclusive, and section nine, shall be construed to refer only to the Division of Marine and Seamen's Insurance. Duties of Director. "Sec. 13. That the director, subject to the general direction of the Secretary of the Treasury, shall administer, execute, and enforce the provisions of this Act, and for that purpose have full power and authority to make rules and regulations, not inconsistent with the pro- visions of this Act, necessary or appropriate to carry out its purposes, and shall decide all questions arising under the xA.ct, except as other- wise provided in sections five and four hundred and five. Where- ever under any provision or provisions of the Act regulations are directed or authorized to be made, such regulations, unless the con- text otherwise requires, shall or may be made by the director, subject to the general direction of the Secretary of the Treasury. The direc- tor shall adopt reasonable and proper rules to govern the procedure of the divisions, to regulate the matter of compensation, if any, but in no case to exceed ten per centum, to be paid to claim agents and iFor original Act of 1914 as amended see Lapp's Important Federal Laws pp. 620-622. 97 (7) 98 ' Supplement to Important Federal Laws attorneys for services in connection with any of tlie matters provided . for in articles two, three, and four, and to regulate and provide for f the nature and extent of the proofs and evidence and the method of ' taking and furnishing the same in order to establish the right to bene- fits of allowance, allotment, compensation, or insurance provided for in this x\ct, the forms of application of those claiming to be entitled to such benefits, the method of making investigations and medical ex- aminations, and the manner and form of adjudications and awards. Deputies and Assistants. "Sec. 14. That the bureau and its divisions shall have such depu- ties, assistants, actuaries, clerks, and other employees as may be from time to time provided by Congress. The bureau shall, by arrange- ment with the Secretary of War and the Secretary of the Navy, re- spectively, make use of the services of surgeons in the Army and Navy. The Secretary of the Treasury is authorized to establish an advisory board consisting of three members skilled in the practice of insurance against death or disability for the purpose of assisting the Division of Mil- itary and Naval Insurance in fixing premium rates and in the adjustment of claims for losses under the contracts of insurance provided for in article four and in adjusting claims for compensation under article three ; compensation for the persons so appointed to be determined by the Secre- tary of the Treasury, but not to exceed $20 a day each while actually employed. Powers of Director and Assistants. "Sec. 15. That for the purposes of this Act, the director, com- missioners, and deputy commissioners, shall have power to issue sub- poenas for and compel the attendance of witnesses within a radius of one hundred miles, to require the production of books, papers, doc- uments, and other evidence, to administer oaths and to examine wit- nesses upon any matter within the jurisdiction of the bureau. The director may obtain such information and such reports from officials and employees of the departments of the Government of the United States and of the States as may be agreed upon by the heads of the respective departments. In case of disobedience to a subpoena, the bureau may invoke the aid of any district court of the United States in requiring the attendance and testimony of witnesses and the production of documentary evidence, and such court, within the jurisdiction of which the inquiry is carried on, may, in case of contumacy or refusal to obey a subpoena issued to any officer, agent, or employee of any corporation or other person, issue an order requiring such corporation or other person to appear before the bureau, 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. Any person so required to attend as a witness shall be allowed and paid the same fees and mileage as are paid witnesses in the district courts of the United States. Soldiers' and Sailors' Insurance Act 99 "Sec. 16. That the director shall submit annually to the Secretary of the Treasury estimates of the appropriations necessary for the work of the bureau. Appropriations. ''Sec. 17. That for the purpose of carrying out the provisions of this Act there is hereby appropriated, out of any moneys in the Treasury not otherwise appropriated, the sum of $100,000, for the payment of all expenses incident to the work authorized under this Act, including salaries of the director and commissioners and of such deputies, as- sistants, accountants, experts, clerks, and other employees in the District of Columbia or elsewhere, as the Secretary of the Treasury may deem necessary, traveling expenses, rent and equipment of offices, typewriters and exchange of same, purchase of law^ books and books of reference, printing and binding to be done at the Government Printing Office, and all other necessary expenses. With the exception of the director, the commissioners, and such special experts as the Secretary of the Treasury may from time to time find necessary for the conduct of the work of the bureau, all employees of the bureau shall be appointed from lists of eligibles to be supplied by the Civil Service Commission and in accordance with the civil-service law. Such fees, allowances, and salaries shall be the same as paid for similar services in other departments of the Government. "Sec. 18. That there is hereby appropriated from any money in the Treasury not otherwise appropriated, the sum of $141,000,000, to be known as the military and naval family allowance appropriation, for the payment of the family allowances provided by Article II. Pay- ments out' of this appropriation shall be made upon and in accordance with awards by the Commissioner of the Division of Military and Naval Insurance. "Sec. 19. That there is hereby appropriated, from any money in the Treasury not otherwise appropriated, the sum of $12,150,000, to be known as the military and naval compensation appropriation, for the payment of the compensation, funeral expenses, services, and sup- plies provided by Article III. Payments out of this appropriation shall be made upon and in accordance with awards by the director. "Sec. 20. That there is hereby appropriated, from any money in the Treasury not otherwise appropriated, the sum of $23,000,000, to be known as the military and naval insurance appropriation. All prem- iums that may be collected for the insurance provided by the provisions of Article IV shall be deposited and covered into the Treasury to the credit of this appropriation. "Such sum, including all premium payments, is hereby made avail- able for the payment of the liabilities of the United States incurred under contracts of insurance made under the provisions of Article IV. Pay- ments from this appropriation shall be made upon and in accordance with aw^ards by the director. 100 Supplement to Important Federal Laws "Sec. 21. That there shall be set aside as a separate fund in the Treasury, to he known as the military and naval pay deposit fund, all sums held out of pay as provided by section two hundred and three of this Act. Such fund, including all additions, is hereby made available for the payment of the sums so held and deposited, with interest, as provided in section two hundred and three, and the amount necessary to pay interest is hereby appropriated. Proof of Marriage. "Sec. 22. That for the purpose of this amendatory Act the mar- riage of the claimant to the person on account of whom the claim is made shall be shown — "(1) By a duly verified copy of a public or church record ; or "(2) By the affidavit of the clerg}^man or magistrate who officiated; or "(3) By the testimony of two or more eyewitnesses to the cere- mony ; or "(4) By a duly verified copy of the church record of baptism of the children ; or "(5) By the testimony of two or more witnesses who knew that the parties lived together as husband and wife, and were recognized as such, and who shall state how long, within their knowledge, such re- lation continued : Provided, That marriages, except such as are men- tioned in section forty-seven hundred and five of the Revised Statutes, shall be proven in compensation or insurance cases to be legal marriages according to the law of the place where the parties resided at the time of marriage or at the time when the right to compensation or insurance accrued ; and the open and notorious illicit cohabitation of a widow who is a claimant shall operate to terminate her right to compensation or insurance from the commencement of such cohabitation : Provided fur- ther. That for the purpose of the administration of Article II of this Act marriage shall be conclusively presumed, in the absence of proof, that there is a legal spouse living, if the man and woman have lived together in the openly acknowledged relation of husband and wife during the two years immediately preceding the date of the declaration of war, or the date of enlistment or of entrance into or employment in active service in the military or naval forces of the United States if subsequent to such declaration." Definitions, In Articles II, III, and IV of this Act unless the context otherwise requires — " ( 1 ) The term 'child' includes — "(a) A legitimate child. "(b) A child legally adopted more than six months before the enactment of this amendatorv act or before enlistment or entrance into or Soldiers' and Sailors' Insurance Act _ 101 employment in active service in the military or naval forces of the United States, whichever of these dates is the later. "(c) A stepchild, if a member of the man's household. "(d) An illegitimate child, but, as to the father, only, if acknowl- edged by instrument in writing signed by him, or if he has been judi- cially ordered or decreed to contribute to such child's support, and if such child, born after December thirty-first, nineteen hundred and seven- teen, shall have been born in the United States, or in its insular posses- sions. "(2) The term 'grandchild' means a child as above defined of a child as above defined. "(3) Except as used in section four hundred and one and in section four hundred and two the terms 'child' and 'grandchild' are limited to unmarried persons either (a) under eighteen years of age, or (b) of any age, if insane, idiotic, or otherwise permanently helpless. "(4) The term 'parent' includes a father, mother, grandfather, grandmother, stepfather, and stepmother, either of the person in the service or of the spouse. "(5) The terms 'brother' and 'sister' includes brothers and sisters of the half blood as well as those of the whole blood, stepbrothers and stepsisters, and brothers and sisters through adoption. "(6) The term 'commissioned officer' includes a warrant officer, but includes only an officer in active service in the military or naval forces of the United States. "(7) The terms 'man' and 'enlisted man' mean a person, whether male or female, and whether enlisted, enrolled or drafted into active service in the military or naval forces of the United States, and in- clude noncommissioned and petty officers, and members of training camps authorized by law. "(8) The term 'enlistment' includes voluntary enlistment, draft, and enrollment in active service in the military or naval forces of the United States. _ . r A/r•1• "(9) The term 'commissioner' means the Commissioner of Military and Naval Insurance. "(10) The term 'injury' includes disease. "(11) The term 'pay' means the pay for service in the United States according to grade and length of service, excluding all allow- ances. "(12) The term 'military or naval forces' means the Army, the Navy, the Alarine Corps, the Coast Guard, the Naval Reserves, the National Naval Volunteers, and any other branch of the United States service while serving pursuant to law with the Army or the Navy. Payments to Guardian. "Sec. 23. That when, by the terms of this amendatory Act, any payment is to be made to a minor, other than a person in the military 102 Supplement to Important Federal Laws or naval forces of the United States, or to a person mentally incompetent, such payment shall be made to the person who is constituted guardian or curator by the laws of the State or residence of claimant, or is other- wise legally vested with responsibility or care of the claimant. Records and Information of Insurance, "Sec. 24. That the Bureau of War Risk Insurance, so far as prac- ticable, shall upon request furnish information to and act for persons in the military or naval service, with respect to any contracts of insurance whether with the Government or otherwise, as may be prescribed by reg- ulations. Said bureau may upon request procure from and keep a record of the amount and kind of insurance held by every commissioned and appointive officer and of every enlisted man in the military or naval service of the United States, including the name and principal place of business of the company, society, or organization in which such insurance is held, the date of the policy, amount of premium, name of relationship of the beneficiary, and such other data as may be deemed of service in protecting the interests of the insured and beneficiaries. Perjury — Penalty For. "Sec. 25. That whoever in any claim for family allowance, com- pensation, or insurance, or in any document required by this Act or by regulation made under this Act, makes any statement of a material fact knowing it to be false, shall be guilty of perjury and shall be punished by a fine of not more than $5,000, or by imprisonment for not more than two years, or both. Fraudulently Accepting Allowance. "Sec. 26. That if any person entitled to payment of family allow- ance or compensation under this Act, whose right to such payment under this Act ceases upon the happening of any contingency, thereafter fraud- ulently accepts any such payment, he shall be punished by a fine of not more than $2,000, or by imprisonment for not more than one vear, or both." Article II. allotments and family allowances. Application Of. Sec. 200. That the provisions of this article shall apply to all enlisted men in the military or naval forces of the United States. Sec. 201. That allotment of pay shall, subject to the conditions, limitations, and exceptions hereinafter specified, be compulsory as to wife, a former wife divorced who has not remarried and to whom ali- mony has been decreed, and a child, and voluntary as to any other person ; but on the written consent of the wife or former wife divorced, sup- ported by evidence satisfactory to the bureau of her ability to support herself and the children in her custody, the allotment for her and for Soldiers' and Sailors' Insurance Act 103 such children may be waived ; and on the enlisted man's application or otherwise for good cause shown, exemption from the allotment may be granted upon such conditions as may be prescribed by regulations. The monthly compulsory allotment shall be in an amount equal to the family allowance hereinafter specified except that it shall not be more than one-half the pay, or less than $15; but for a wife living sep- arate and apart under court order or written agreement or for a former wife divorced, it shall not exceed the amount specified in the court order, decree, or written agreement to be paid to her. For an illegitimate child, to whose support the father has been judicially ordered or decreed to contribute, it shall not exceed the amount fixed in the order or decree. If there be an allotment for a wife or child, a former wife divorced and who has not remarried shall be entitled to a compulsory allotment only out of the difference, if any, between the allotment for the wife or child or both and one-half of the pay. Allotment of Monthly Pay. Sec. 202. That the enlisted man may allot any proportion or pro- portions or any fixed amount or amounts of his monthly pay or of the proportion thereof remaining after the compulsory allotment, for such purposes and for the benefit of such person or persons as he may direct, subject, however, to such conditions and limitations as may be prescribed under regulations to be made by the Secretary of War and the Secretary of the Navy, respectively. Same. Sec. 203. ' That in case one-half of an enlisted man's monthly pay is not allotted, regulations to be made by the Secretary of War and the Sec- retary of the Navy, respectively, may require, under such circumstances and conditions as may be prescribed in such regulations, that any propor- tion of such one-half pay as is not allotted shall be deposited to his credit, to be had during such period of his service as may be prescribed. Such deposits shall bear interest at the rate of four per centum per annum, with semiannual rests and, when payable, shall be paid principal and interest to the enlisted man, if living, otherwise to any beneficiary or beneficiaries he may have designated, or if there be no such beneficiary, then to the person or persons who would under the laws of the State of his resi- dence be entitled to his personal property in case of intestacy. Allowance — Amount and Distribution. Sec. 204. That a family allowance of not exceeding $50 per month shall be granted and paid by the United States upon written application to the bureau by such enlisted man or by or on behalf of any prospective beneficiary, in accordance with and subject to the conditions, limitations, and exceptions hereinafter specified. The family allowance shall be paid from the time of enlistment to death in or one month after discharge from the service, but not for more 104 Supplement to Important Federal Laws than one month after the termination of the present war emergency. No family allowance shall be made for any period preceding November first, nineteen hundred and seventeen. The payment shall be subject to such regulations as may be prescribed relative to cases of desertion and imprisonment and of missing men. Subject to the conditions, limitations, and exceptions hereinabove and hereinafter specified, the family allowance payable per month shall be as follows : ■ Class A. In the case of a man. to his wife (including a former wife divorced) and to his child or children: (a) If there be a wife but no child, $15. (b) If there be a wife and one child, $25. (c) If there be a wife and two children, $32.50, with $5 per month additional for each additional child. (d) If there be no wife, but one child, $5. (e) If there be no wife, but two children, $12.50. (f) If there be no wife, but three children, $20. (g) If there be no wife, but four children, $30. with $5 per month additional for each additional child. Class B. In the case of a man or woman, to a grandchild, a parent, brother or sister : (a) If there be one parent, $10. (b) If there be two parents, $20. (c) For each grandchild, brother, sister, and additional parent, $5. In the case of a woman, to a child or children : (d) If there be one child, $5. (e) If there be two children, $12.50. (f ) If there be three children, $20. (g) If there be four children, $30, with $5 per month additional for each additional child. Same. Sec. 205. That family allowances for members of Class A shall be paid only if and while a compulsory allotment is made to a member or members of such class. The monthly family allowance to a former wife divorced shall be payable only out of the difference, if any, between the monthly family allowance to the other members of Class A and the sum of $50, and only then if alimony shall have been decreed to her. For a wife living separate and apart under court order or written agreement or to a former wife divorced the monthly allowance, together with the allotment, if any, shall not exceed the amount specified in the court order, decree, or written agreement to be paid to her. For an illegitimate child, to whose support the father has been judicially ordered or decreed to contribute, it shall not exceed the amount fixed in the order or decree. Soldiers' and Sailors' Insurance Act 105 Same. Sec. 206. That family allowances to members of Class B shall be granted only if and while the member is dependent in whole or in part on the enlisted man, and then only if and while the enlisted man makes a monthly allotment of his pay for such member or members equal to the amount of the monthly family allowance as hereinabove specified, except that — (a) The maximum monthly allotment so required to be made to members of Class B shall be one-half of his pay. (b) If he is making no allotment to a member of Class A, the mini- mum monthly allotment so designated to be made to members of Class B shall be $15 per month. (c) If he is making the compulsory allotment to a member of Class A, the minimum monthly allotment so designated to be made to members of Class B shall be one-seventh of his pay, but not less than $5 per month. On the enlisted man's application, or otherwise for good cause shown, exemption from this additional allotment under Class B as a condition to the allowance may be granted, upon such conditions as may be prescribed by regulations. Limitations. Sec. 207. That the amount of the family allowance to members of Class B shall be subject to each of the following limitations : (a) If an allowance is paid to one or more beneficiaries of Class A, the total allowance to be paid to the beneficiaries of Class B shall not exceed the difference between the allowance paid to the beneficiaries of Class A and the sum of $50. (b) The total monthly allowance to beneficiaries of Class B added to the enlisted man's monthly allotment to them shall not exceed the average sum habitually contributed by him to their support monthly dur- ing the period of dependency but not exceeding a year immediately pre- ceding his enlistment or the enactment of this amendatory Act. Apportionment Between Classes A and B. Sec. 208. That as between the members of Class A and as between the members of Class B, the amount of the allotment and family allow- ance shall be apportioned as may be prescribed by regulations. Payment of Allotment to Beneficiaries from Monthly Pay. Sec. 209. The War and Navy Departments, respectively, shall pay over to the Treasury Department monthly the entire amount of such allotments for distribution to the beneficiaries, and the allotments and family allowances shall be paid by the bureau to or for the beneficiaries. Investigation of Allowances. Sec. 210. That upon receipt of any application for family allow- ance the commissioner shall make all proper investigations and shall make an award, on the basis of which award the amount of the allot- 106 Supplement to Important Federal Laws ments to be made by the man shall be certified to the War Department or Navy Department, as may be proper. Whenever the commissioner shall have reason to believe that an allowance has been improperly made or that the conditions have changed, he shall investigate or reinvestigate and may modify the award. The amount of each monthly allotment and allowance shall be determined according to the conditions then existing. Article III. compensation for death or disability. Payment to be Made. Sec. 300. That for death or disability resulting from personal in- jury suffered or disease contracted in the line of duty, by any com- missioned officer or enlisted man or by any member of the Army Nurse Corps (female) or of the Navy Nurse Corps (female) when employed in the active service under the War Department or Navy Department, the United States shall pay compensation as hereinafter provided ; but no compensation shall be paid if the injury or disease has been caused by his own willful misconduct. Amount of Compensation for Death. Sec. 301. That if death results from injury — If the deceased leaves a widow or child, or if he leaves a widowed mother dependent upon him for support, the monthly compensation shall be the following amounts : (a) For a widow alone, $25. (h) For a widow and one child, $35. (c) For a w'idow and two children, $47.50, with $5 for each addi- tic^nal child up to two. (d) If there be no widow, then for one child, $20. (e) For two children, $30. (f) For three children, $40, with $5 for each additional child up to two. (g) For a widowed mother, $20. The amount payable under this subdivision shall not be greater than a sum which, when added to the total amount payable to the widow and children, does not exceed $75. This compensation shall be payable for the death of but one child, and no compensation for the death of a child shall be payable if such widowed mother is in receipt of compensation under the provisions of this article for the death of her husband. Such compensation shall be payable whether her widowhood arises before or after the death of the person and whenever her condition is such that if the person were living the widowed mother would have been dependent upon him for support. If the death occur before discharge or resignation from service, the United States shall pay for burial expenses and the return of body to his home a sum not to exceed $100, as may be fixed by regulations. Soldiers' and Sailors' Insurance Act 107 The payment of compensation to a widow or widowed mother shall continue until her death or remarriage. The payment of compensation to or for a child shall continue until such child reaches the age of eighteen years or marries, or if such child be incapable, because of insanity, idiocy, or being otherwise permanently helpless, then during such incapacity. Whenever the compensation payable to or for the benefit of any person under the provisions of this section is terminated by the happen- ing of the contingency upon which it is limited, the compensation there- after for the remaining beneficiary or beneficiaries, if any, shall be the amount which would have been payable to them if they had been the sole original beneficiaries. As between the widow and the children not in her custody, and as between children, the amount of the compensation shall be apportioned as may be prescribed by regulations. The word "widow" as used in this section shall not include one who shall have married the deceased later than ten years after the time of injury. Amount of Compensation for Disability. Sec. 302. That if disability results from the injury — (1) If and while the disability is total, the monthly compensation shall be the following amounts : (a) If he has neither wife nor child living, $30. (b) If he has a wife but no child living, $45. (c) If he has a wife and one child living, $55. (d) If he has a wife and two children living, $65. (e) If he has a wife and three or more children living, $75. (f) If he has no wife but one child living, $40, with $10 for each additional child up to two. (g) If he has a widowed mother dependent on him for support, then, in addition to the above amounts, $10. To an injured person who is totally disabled and in addition so helpless as to be in constant need of a nurse or attendant, such addi- tional sum shall be paid, but not exceeding $20 per month, as the director may deem reasonable: Provided, however. That for the loss of both feet or both hands or both eyes, or for becoming totally blind or help- less and permanently bedridden from causes occurring in the line of duty in the service of the United States, the rate of compensation shall be $100 per month : Provided further. That no allowance shall be made for nurse or attendant. (2) If and while the disability is partial, the monthly compensation shall be a percentage of the compensation that would be payable for his total disability, equal to the degree of the reduction in earning capacity resulting from the disability, but no compensation shall be payable for a reduction in earning capacity rated at less than ten per centum. A schedule of ratings of reductions in earning capacity from specific 108 Supplement to Important F'ederal Laws injuries or combinations of injuries of a permanent nature shall be adopted and applied by the bureau. Ratings may be as high as one hundred per centum. The ratings shall be based, as far as practicable, upon the average impairments of earning capacity resulting from such injuries in civil occupations and not upon the impairment in earning capacity in each individual case, so that there shall be no reduction in the rate of compensation for individual success in overcoming the handi- cap of a permanent injury. The bureau shall from time to time readjust this schedule of ratings in accordance with actual experience. (3) In addition to the compensation above provided, the injured person shall be furnished by the United States such reasonable govern- mental medical, surgical, and hospital services and with such supplies, including artificial limbs, trusses, and similar appliances, as the director may determine to be useful and reasonably necessary : Provided, That nothing in this Act shall be construed to afitect the necessary military control over any member of the military or naval establishments before he shall have been discharged from the military or naval service. (4) The amount of each monthly payment shall be determined according to the family conditions then existing. Examination of Claimant. Sec. 303. That every person applying for or in receipt of compen- sation for disability under the provisions of this article shall, as fre- quently and at such times and places as may be reasonably required, submit himself to examination by a medical officer of the United States or by a duly qualified physician designated or approved by the director. He may have a duly qualified physician designated and paid by him present to participate in such examination. For all examinations he shall, in the discretion of the director, be paid his reasonable traveling and other expenses and also loss of wages incurred in order to submit to such examination. If he refuses to submit himself for, or in any way obstructs, any examination, his right to claim compensation under this article shall be suspended until such refusal or obstruction ceases. No compensation shall be payable while such refusal or obstruction continues, and no compensation shall be payable for the intervening period. Every person in receipt of compensation for disability shall submit to any reasonable medical or surgical treatment furnished by the bureau whenever requested by the bureau; and the consequences of unreasonable refusal to submit to any such treatment shall not be deemed to result from the injury compensated for. Reeducation or Rehabilitation. Sec. 304. That in cases of dismemberment, of injuries to sight or hearing, and of other injuries commonly causing permanent disability, the injured person shall follow such course or courses of rehabilitation, Soldiers' and Sailors' Insurance Act 109 reeducation, and vocational training as the United States may provide or procure to be provided. Should such course prevent the injured person from following a substantially gainful occupation while taking same, a form of enlistment may be required which shall bring the in- jured person into the military or naval service. Such enlistment shall entitle the person to full pay as during the last month of his active ' service, and his family to family allowances and allotment as hereinbe- fore provided, in lieu of all other compensation for the time being. In case of his willful failure properly to follow such course or .so to enlist, payment of compensation shall be suspended until such willful failure ceases and no compensation shall be payable for the intervening period. Review of Award. Sec. 305. That upon its own motion or upon application the bureau may at any time review an award, and, in accordance with the facts found upon such review, may end, diminish, or increase the compensa- tion previously awarded, or, if compensation has been refused or dis- continued, may award compensation. Time Limit for Compensation. Sec. 306. That no compensation shall be payable for death pr disability which does not occur prior to or within one year after dis- charge or resignation from the service, except that where, after a med- ical examination made pursuant to regulations, at the time of discharge or resignation from the service, or within such reasonable time there- after, not exceeding one year, as may be allowed by regulations, a cer- tificate has been obtained 'from the director to the effect that the injured person at 'the time of his discharge or resignation was suffering from injury likely to result in death or disability, compensation shall be pay- able for death or disability, whenever occurring, proximately resulting from such injury. Record of Death Required. Sec. 307. That compensation shall not be payable for death in the course of the service until the death be officially recorded in the depart- ment under which he may be serving. No compensation shall be payable for a period during which the man has been reported "missing'' and a family allowance has been paid for him under the provisions of Article II. Death Penalty and Dishonorable Discharge. Sec. 308. That no compensation shall be payable for death inflicted as a lawful punishment for a crime or military offense except when in- flicted by the enemy. A dismissal or dishonorable or bad conduct dis- charge from the service shall bar and terminate all right to any compensa- tion under the provisions of this article. 110 Supplement to Important Federal Laws Sec. 309. That no compensation shall be payable unless a claim therefor be filed, in case of disability, within five years after discharge or resignation from the service, or, in case of death during the service, within five years after such death is officially recorded in the department under which he may be serving: Provided, however. That where com- pensation is payable for death or disability occurring after discharge or resignation from the service, claim must be made within five vears after such death or the beginning of such disability. The time herein provided may be extended by the director not tcv exceed one year for good cause shown. If at the time that any right accrues to any person under the provisions of this article, such person is a minor, or is of unsound mind or physically unable to make a claim, the time herein provided shall not begin to run until such disability ceases. Back Claims. Sec. 310. That no compensation shall be payable for anv period more than two years prior to the date of claim therefor, nor shall in- creased compensation be awarded to revert back more than one year prior to the date of claim therefor. Compensation Not Assignable. .Sec. 311. That compensation under this article shall not be assign- able, and shall be exempt from attachment and execution and from all taxation. Service or Retirement Pay Bars Compensation. Sec. 312. That compensation under this article shall not be paid while the person is in receipt of service or retirement pay. The laws providing for gratuities or payments in the event of death in the service and existing pension laws shall not be applicable after the enactment of this amendment to persons now in or hereafter entering the military or naval service, or to their widows, children, or their dependents, ex- cept in so far as rights under any such law shall have heretofore accrued. Compensation because of disability or death of members of the Army Nurse Corps (female) or of the Navy Nurse Corps (female) shall be in lieu of any compensation for such disability or death under the Act entitled "An Act to provide compensation for employees of the United States suft'ering injuries while in the performance of their duties, and for other purposes," approved September seventh, nineteen hundred and sixteen. Liability of Third Parties. Sec. 313. That if an injury or death for which compensation is payable under this amendatory Act is caused under circumstances cre- ating a legal liability upon some person other than the United States or the enemy to pay damages therefor, the director, as a condition to pay- ment of compensation by the United States, shall require the beneficiary- Soldiers' and Sailors' Insurance Act 111 to assign to the United States any right of action he may have to enforce such Hability of such other person or any right which he may have to share in any money or other property received in satisfaction of such liabihty of such other person. The cause of action so assigned to the United States may be prosecuted or compromised by the director and any money reahzed thereon shall be placed to the credit of the compen- sation fund. Widows' Pension, Previous Wars. Sec. 314. That from and after the passage of this Act the rate of pension for a v^idow of an officer or enlisted man of the Army, Navy, or Marine Corps of the United States who served in the Civil War, the War with Spain, or the Philippine Insurrection, now on the pension roll or hereafter to be placed on the pension roll, and entitled to receive a less rate than hereinafter provided, shall be $25 per month; and nothing herein shall be construed to affect the additional allowance provided by existing pension laws on account of a helpless child or child under six- teen years of age : Provided, however, That this Act shall not be so construed as to reduce any pension under any Act, public or private : And provided further. That the provisions of this section shall be admin- istered, executed, and enforced by the Commissioner of Pensions. Article IV. INSURANCE. Insurance by United States. Sec. 400. That in order to give to every commissioned of^cer and enlisted man and to every member of the Army Nurse Corps (female) and of the Navy Nurse Corps (female) when employed in active service under the War Department or Navy Department greater protection for themselves and their dependents than is provided in Article III, the United States, upon application to the bureau and without medical exam- ination, shall grant insurance against the death or total permanent disa- bility of any such person in any multiple of $500, and not less than $1,000 or njore than $10,000, upon the payment of the premiums as hereinafter provided. Application and Amount. Sec. 401. That such insurance must be applied for within one hundred and twenty days after enlistment or after entrance _ into or employment in the active service and before discharge or resignation, except that those persons who are in the active war service at the time of the publication of the terms and conditions of such contract of insur- ance may apply at any time within one hundred and twenty days there- after and while in such service. Any person in the active service on or after the sixth day of April, nineteen hundred and sexenteen, who. while in such service and before the expiration of one hundred and twenty 112 Supplement to Important Federal Laws days from and after such publication, becomes or has become totally and permanently disabled or dies, or has died, without having applied for insurance, shall be deemed to have applied for and to have been granted insurance, payable to such person during his life in monthly installments of $25 each. If he shall die either before he shall have received any of such monthly installments or before he shall have received two hun- dred and forty of such monthly installments, then $25 per month shall be paid to his wife from the time of his death and during her widow- hood, or to his child, or widowed mother if and while they survive him: Provided, however, That not more than two hundred and forty of such monthly installments, including those received by such person during his total and permanent disability, shall be so paid ; and in that event the amount of the monthly installments shall be apportioned between them as may be provided by regulations. Terms and Conditions of Contract of Insurance. Sec. 402. That the director, subject to the general direction of the Secretary of the Treasury, shall promptly determine upon and publish the full and exact terms and conditions of such contract of insurance. The insurance shall not be assignable, and shall not be subject to the claims of creditors of the insured or of the beneficiary. It shall be pay- able only to a spouse, child, grandchild, parent, brother or sister, and also during total and permanent disability to the injured person, or to any or all of them. The insurance shall be payable in two hundred and forty equal monthly installments. Provisions for maturity at certain ages, for continuous installments during the life of the insured or bene- ficiaries, or both, for cash, loan, paid-up and extended Values, dividends from gains and savings, and such other provisions for the protection and advantage of and for alternative benefits to the insured and the bene- ficiaries as may be found to be reasonable and practicable, may be pro- vided for in the contract of insurance, or from time to time by regula- tions. All calculations shall be based upon the American Experience Table of Mortality and interest at three and one-half per centum per annum, except that no deduction shall be made for continuous install- ments during the life of the insured in case his total and permanent dis- ability continues more than two hundred and forty months. Subject to regulations, the insured shall at all times have the right to change the beneficiary or beneficiaries of such insurance without the consent of such beneficiary or beneficiaries, but only within the classes herein pro- vided. If no beneficiary within the permitted class be designated by the insured, either in his lifetime or by his last will and testament, or if the designated beneficiary does not survive the insured, the insurance shall be payable to such person or persons, within the permitted class of beneficiaries as would under the laws of the State of the residence of the insured, be entitled to his personal property in case of intestacy. Soldiers' and Satlors' Insurance Act 113 If no such person survive the insured, then there shall be paid to the estate of the insured an amount equal to the reserve value, if any, of the insurance at the time of his death, calculated on the basis of the American Experience Table of Mortality and three and one-half per centum interest in full of all obligations under the contract of insurance. Excess Hazard — Cost Of. Sec. 403. That the United States shall bear the expenses of ad- ministration and the excess mortality and disability cost resulting from the hazards of war. The premium rates shall be the net rates based upon the American Experience Table of Mortality and interest at three and one-half per centum per annum. Conversion of Insurajice After the War. Sec. 404. That during the period of war and thereafter until con- verted the insurance shall be term insurance for successive terms of one year each. Xot later than five years after the date of the termination of the war as declared by proclamation of the President of the United States, the term insurance shall be converted, without medical examina- tion, into such form or forms of insurance as may be prescribed by regulations and as the insured may request. Regulations shall provide for the right to convert into ordinary life, twenty payment life, endow- ment maturing at age sixty-two and into other usual forms of insurance and shall prescribe the time and method of payment of the premiums thereon, but payments of premiums in advance shall not be required for periods of more than one month each and may be deducted from the pay or deposit of the insured or be otherwise made at his election. Disagreement — Suit in District Court. Sec. 405. That in the event of disagreement as to a claim under the contract of insurance between the bureau and any beneficiary or beneficiaries thereunder, an action on the claim may be brought against the United States in the district court of the United States in and for the district in which such beneficiaries or any one of them resides. The court, as part of its judgment, shall determine and allow such reasonable attorney's fees, not to exceed ten per centum of the amount recovered, to be paid by the claimant on behalf of whom such proceedings are in- stituted to his attorney ; and it shall be unlawful fo^r the attorney or for any other person acting as claim agent or otherwise to ask for, contract for, or receive any other compensation because of such action. No other compensation or fee shall be charged or received by any person except such as may be authorized by the commissioner in regulations to be pro- mulgated by him. Any person violating the provisions of this section shall be deemed guilty of a misdemeanor, and upon conviction thereof shall, for each and every such offense, be fined not exceeding $500, or be imprisoned at hard labor not exceeding two years, or both, in the discre- tion of the court. (8) TRADING WITH THE ENEMY ACT. Act of October 6, 1917. That this Act shall be known as the "Trading with the enemy Act." Definitions. Sec. 2. That the word "enemy," as used herein .shall be deemed to mean, for the purposes of such trading and of this Act — (a) Any individual, partnership, or other body of individuals, of any nationality, resident within the territory (including that occupied by the military and naval forces) of any nation with which the United States is at war. or resident outside the United States and doing busi- ness within such territory, and any corporation incorporated within such territory of any nation with which the United States is at war or incor- porated within any country other than the United States and doing busi- ness within such territory. (b) The government of any nation with which the United States is at war, or any political or municipal subdivision thereof, or any officer, official, agent, or agency thereof. (c) Such other individuals, or body or class of individuals, as may be natives, citizens, or subjects of any nation with which the United States is at war, other than citizens of the United States, wherever resi- dent or wherever doing business, as the President, if he shall find the safety of the United States or the successful prosecution of the war shall so require, may, by proclamation, include within the term "enemy." The words "ally of enemy," as used herein, shall be deemed to mean — (a) Any individual, partnership, or other body of individuals, of any nationality, resident within the territory (including that occupied by the military and naval forces) of any nation which is an ally of a nation with which the United States is at war, or resident outside of the United States and doing business within such territory, and any corporation incorporated within such territory of such ally nation, or incorporated within any country other than the United States and doing business within such territory. (b) The government of any nation which is an ally of a nation with which the United States is at war, or any political or municipal subdivi- sion of such ally nation, or any officer, official, agent, or agency thereof. (c) Such other individuals, or body or class of individuals, as may be natives, citizens, or subjects of any nation which is an ally of a nation with which the United States is at war, other than citizens of the United States, wherever resident or wherever doing business, as the President, if he shall find the safety of the United States or the successful prosecu- tion of the war shall so require, may, by proclamation, include within the term "ally of enemy." 114 Trading With the Enemy Act 115 The word "person," as used herein, shall be deemed to mean an individual, partnership, association, company, or other unincorporated body of individuals, or corporation or body politic. The words "United States," as used herein, shall be deemed to mean all land and water, continental or insular, in any way within the juris- diction of the United States or occupied by the military or naval forces thereof. The words "the beginning of the war," as used herein, shall be deemed to mean midnight ending the day on which Congress has declared or shall declare war or the existence of a state of war. The words "end of the war," as used herein, shall be deemed to mean the date of proclamation of exchange of ratifications of the treaty of peace, unless the President shall, by proclamation, declare a prior date, in which case the date so proclaimed shall be deemed to be the "end of the war" within the meaning of this Act. The words "bank or banks," as used herein, shall be deemed to mean and include national banks, State banks, trust companies, or other banks or banking associations doing business under the laws of the United States, or of any State of the United States. The words "to trade," as used herein, shall be deemed to mean — (a) Pay, satisfy, compromise, or give security for the payment or satisfaction of any debt or obligation. (b) Draw, accept, pay, present for acceptance or payment, or in- dorse any negotiable instrument or chose in action. (c) Enter into, carry on, complete, or perform any contract, agree- ment, or obligation. (d) Buy or sell, loan or extend credit, trade in, deal with, exchange, transmit, transfer, assign, or otherwise dispose of, or receive any form of property. (e) To have any form of business or commercial communication or intercourse with. Prohibitions. Sec. 3. That it shall be unlawful — (a) For any person in the United States, except with the license of the President, granted to such person, or to the enemy, or ally of enemy, as provided in this Act, to trade, or attempt to trade, either directly or indirectly with, to, or from, or for, or on account of, or on behalf of, or for the benefit of any other person with knowledge or reasonable cause to be- lieve that such other person is an enemy or ally of enemy, or is con- ducting or taking part in such trade, directly or indirectly for, or on account of, or on behalf of, or for the benefit of, an enemy or ally of enemy. (b) For any person, except with the license of the President, to transport or attempt to transport into or from the United States, or for 116 Supplement to Important Federal Laws any owner, master, or other person in charge of a vessel of American registry to transport or attempt to transport from any place to any other place, any subject or citizen of an enemy or ally of enemy nation, with knowledge or reasonable cause to believe that the person transported or attempted to be transported is such subject or citizen. (c) For any person (other than a person in the service of the United States Government or of the Government of any nation, except that of an enemy or ally of enemy nation, and other than such persons or classes of persons as may be exempted hereunder by the President or by such person as he may direct) to send, or take out of, or bring into, or to attempt to send, or take out of, or bring into the United States, any letter or other writing or tangible form of communication, except in the regular course of the mail ; and it shall be unlawful for any person to send, take, or transmit, or attempt to send, take, or transmit out of the United States, any letter or other writing, book, map, plan, or other paper, picture, or any telegram, cablegram, or wireless message, or other form of communication intended for or to be delivered, directly or indirectly, to an enemy or ally of enemy: Provided, however. That any person may send, take, or transmit out of the United States anything herein forbidden if he shall first submit the same to the President, or to such officer as the President may direct, and shall obtain the license or consent of the President, under such rules and regulations, and with such exemptions, as shall be prescribed by the President. (d) Whenever, during the present war, the President shall deem that the public safety demands it, he may cause to be censored under such rules and regulations as he may from time to time establish, communica- tions by mail, cable, radio, or other means of transmission passing be- tween the United States and any foreign country he may from time to time specify, or which may be carried by any vessel or other means of transportation touching at any port, place, or territory of the United States and bound to or from any foreign country. Any person who willfully evades or attempts to evade the submis- sion of any such communication to such censorship or willfully uses or attempts to use any code or other device for the purpose of concealing from such censorship the intended meaning of such communication shall be punished as provided in section sixteen of this Act. Enemy Companies Doing Business in United States — License. Sec. 4. (a) Every enemy or ally of enemy insurance or reinsurance company, and every enemy or ally of enemy, doing business within the United States through an agency or branch office, or otherwise, may, within thirty days after the passage of this Act, apply to the President for a license to continue to do business ; and, within thirty days after such application, the President may enter an order either granting or refusing to grant such license. The license, if granted, may be temporary Trading With the Enemy Act 117 or otherwise, and for such period of time, and may contain such pro- visions and conditions regulating the business, agencies, managers and trustees and the control and disposition of the funds of the company, or of such enemy or ally of enemy, as the President shall deem necessary for the safety of the United States ; and any license granted hereunder may be revoked or regranted or renewed in such manner and at such times as the President shall determine : Provided, however. That reason- able notice of his intent to refuse to grant a license or to revoke a license granted to any reinsurance company shall be given by him to all insur- ance companies incorporated within the United States and known to the President to be doing business with such reinsurance company : Pro- vided further, That no insurance company, organized within the United States, shall be obligated to continue any existing contract, entered intO' prior to the beginning of the war, with any enemy or ally of enemy insur- ance or reinsurance company, but any such company may abrogate and cancel any such contract by serving thirty days' notice in writing upon the President of its election to abrogate such contract. For a period of thirty days after the passage of this Act and further pending the entry of such order by the President, after application made by any enemy or ally of enemy insurance or reinsurance company, within such thirty days as above provided, the provisions of the President's proclamation of April sixth, nineteen hundred and seventeen, relative to agencies in the United States of certain insurance companies, as modi- fied by the provisions of the President's proclamation of July thirteenth, nineteen hundred and seventeen, relative to marine and war-risk insur- ance, shall remain in full force and efifect so far as it applies to such German insurance companies, and the conditions of said proclamation of April sixth, nineteen hundred and seventeen, as modified by said proclamation of July thirteenth, nineteen hundred and seventeen, shall also during said period of thirty days after the passage of this Act, and pending the order of the President as herein provided, apply to any enemy or ally of enemy insurance or reinsurance company, anything in this Act to the contrary notwithstanding. It shall be unlawful for any enemy or ally of enemy insurance or reinsurance company, to whom license is granted, to transmit out of the United States any funds belong- ing to or held for the benefit of such company or to use any such funds as the basis for the establishment directly or indirectly of any credit within or outside of the United States to, or for the benefit of, or on behalf of, or on account of, an enemy or ally of enemy. For a period of thirty days aftey the passage of this Act, and fur- ther pending the entry of such order by the President, after application made within such thirty days by an enemy or ally of enemy, other than an insurance or reinsurance company as above provided, it shall be law- ful for such enemy or ally of enemy to continue to do business in this country and for any person to trade with, to, from, for, on account of, . 118 Supplement to Important Federal Laws on behalf of, or for the benefit of such enemy or ally of enemy, anything in this Act to the contrary notwithstanding: Provided, however. That the provisions of sections three and sixteen hereof shall apply to any act or attempted act of transmission or transfer of money or other property out of the United States and to the use or attempted use of such money or property as the basis for the establishment of any credit within or outside of the United States to, or for the benefit of, or on behalf of, or on account of, an enemy or ally of enemy. If no license is applied for within thirty days after the passage of this Act, or if a license shall be refused to any enemy or ally of enemy, whether insurance or reinsurance company, or other person, making -application, or if any license granted shall be revoked by the President, the provisions of sections three and sixteen hereof shall forthwith apply to all trade or to any attempt to trade with, to, from, for, by, on account of, or on behalf of, or for the benefit of such company or other person: Provided, however. That after such refusal or revocation, anything in this Act to the contrary notwithstanding, it shall be lawful for a policy- holder or for an insurance company, not an enemy or ally of enemy, holding insurance or having effected reinsurance in or with such enemy or ally of enemy insurance or reinsurance company, to receive payment of, and for such enemy or ally of enemy insurance or reinsurance com- pany to pay any premium, return premium, claim, money, security, or other property due or which may become due on or in respect to such insurance or reinsurance in force at the date of such refusal or revocation of license; and nothing in this Act shall vitiate or nullify then existing policies or contracts of insurance or reinsurance, or the conditions there- of; and any such policy-holder or insurance company, not an enemv or ally of enemy, having any claim to or upon money or other property of the enemy or ally of enemy insurance or reinsurance company in the custody or control of the alien property custodian, hereinafter provided for, or of the Treasurer of the United States, may make application for the payment thereof and may institute suit as provided in section nine hereof. (b) That, during the present war, no enemy, or ally of enemy, and no partnership of which he is a member or was a member at the begin- ning of the war, shall for any purpose assume or use any name other than that by which such enemy or partnership was ordinarily known at the beginning of the war, except under license from the President. Whenever, during the present vv^ar, in the opinion of the President the public safety or public interest requires the President may prohibit any or all foreign insurance companies from doing business in the United States, or the President may license such company or companies to do business upon such terms as he may deem proper. Trading With the Enemy Act 119 Suspension of Provisions Applicable to an Ally of Enemy. Sec. 5. (a) That the President, if he shall find it compatible with the safety of the United States and with the successful prosecution of the war, may, by proclamation, suspend the provisions of this Act so far as they apply to an ally of enemy, and he may revoke or renew such suspension from time to time; and the President may grant Hcenses, special or general, temporary or otherwise, and for such period of time and containing such provisions and conditions as he shall prescribe, to any person or class of persons to do business as provided in subsection (a) of section four hereof, and to perform any act made unlawful with- out such license in section three hereof, and to file and prosecute applica- tions under subsection (b) of section ten hereof; and he may revoke or renew such licenses from time to time, if he shall be of opinion that such grant or revocation or renewal shall be compatible with the safety of the United States and with the successful prosecution of the war; and he may make such rules and regulations, not inconsistent with law, as may be necessary and proper to carry out the provisions of this Act; and the President may exercise any power or authority conferred by this Act through such officer or officers as he shall direct. If the President shall have reasonable cause to believe that any act is about to be performed in violation of section three hereof he shall have authority to order the postponement of the performance of such act for a period not exceeding ninety days, pending investigation of the facts by him. (b) That the President may investigate, regulate, or prohibit, under such rules and regulations as he may prescribe, by means of licenses or otherwise, any transactions in foreign exchange, export or ear-markings of gold or silver coin or bullion or currency, transfers of credit in any form (other than credits relating solely to transactions to be executed wholly within the United States), and transfers of evidences of indebt- edness or of the ownership of property between the United States and any foreign country, whether enemy, ally of enemy or otherwise, or between residents of one or more foreign countries, by any person within the United States ; and he may require any such person engaged in any such transaction to furnish, under oath, complete information relative thereto, including the production of any books of account, contracts, letters or other papers, in connection therewith in the custody or control of such person, either before or after such transaction is completed. Alien Property Custodian. Sec. 6. That the President is authorized to appoint, prescribe the duties of. and fix the salary (not to exceed $5,000 per annum) of an official to be known as the Alien Property Custodian, who shall be em- powered to receive all money and property in the United States due or belonging to an enemy, or ally of enemy, which may be paid, conveyed, transferred, assigned, or delivered to said custodian under the provisions 120 Supplement to Important Federal Laws of this act ; and to hold, administer, and account for the same under the general direction of the President and as provided in this Act. The Alien Property Custodian shall give such bond or bonds, and in such form and amount, and with such security as the President shall prescribe. The President may further employ in the District of Columbia and elsewhere and fix the compensation of such clerks, attorneys, investigators, account- ants, and other employees as he may find necessary for the due adminis- tration of the provisions of this Act : Provided, That such clerks, inves- tigators, accountants and other employees shall be appointed from lists of eligibles to be supplied by the Civil Service Commission and in accord- ance with the civil service law : Provided further. That the President shall cause a detailed report to be made to Congress on the first day of January of each year of all proceedings had under this Act during the year preceding. Such report shall contain a list of all persons appointed or employed, with the salary or compensation paid to each, and a state- ment of the different kinds of property taken into custody and the disposi- tion made thereof. Disclosure of Stockholders, Directors, and Officers of Corporations. Sec. 7. (a) That every corporation incorporated within the United States, and every unincorporated association, or company, or trusteee, or trustees within the United States, issuing shares or certificates represent- ing beneficial interests, shall, under such rules and regulations as the President may prescribe and, within sixty days after the passage of this Act, and at such other times thereafter as the President may require, transmit to the Alien Property Custodian a full list, duly sworn to, of every officer, director, or stock holder known to be, or whom the repre- sentative of such corporation, association, company, or trustee has reason- able cause to believe to be an enemy or ally of enemy resident within the territory, or a subject or citizen residing outside of the United States, of any nation with which the United States is at war, or resident within the territory, or a subject or citizen residing outside of the United States, of any ally or any nation with which the United States is at war, to- gether with the amount of stock or shares owned by each such officer, director, or stockholder, or in which he has any interest. The President may also require a similar list to be transmitted of all stock or shares owned on February third, nineteen hundred and sev- teen, by any person now defined as an enemy or ally of enemy, or in which any such person had any interest ; and he may also require a list to be transmitted of all cases in which said corporation, association, com- pany, or trustee has reasonable cause to believe that the stock or shares on February third, nineteen hundred and seventeen, were owned or are owned by such enemy or ally of enemy, though standing on the books in the name of another: Provided, however, That the name of any such officer, director, or stockholder shall be stricken permanently or tern- Trading With the Enemy Act 121 porarily from such list by the ahen property custodian when he shall be satisfied that he is not such enemy or ally of enemy. Any person in the United States who holds or has or shall hold or have custody or control of any property beneficial or otherwise, alone or jointly with others, of, for, or on behalf of an enemy or ally of enemy, or of any person whom he may have reasonable cause to believe to be an enemy or ally of enemy and any person in the United States who is or shall be indebted in any way to an enemy or ally of enemy, or to any person whom he may have reasonable cause to believe to be an enemy or ally of enemy, shall, with such exceptions and under such rules and regulations as the President shall prescribe, and within thirty days after the passage of this Act, or within thirty days after such property shall come within his custody or control, or after such debt shall become due, report the fact to the Alien Property Custodian by written statement under oath, containing such particulars as said custodian shall require. The President may also require a similar report of all property so held, of, for, or on behalf of, and of all debts so owed to, any person now defined as an enemy or ally of enemy, on February third, nineteen hun- dred and seventeen: Provided, That the name of any person shall be stricken from the said report by the alien property custodian, either temporarily or permanently, when he shall be satisfied that such person is not an enemy or ally of enemy. The President may extend the time for filing the lists or reports required by this section for an additional period not exceeding ninety days. Exceptions. (b) Nothing in this Act contained shall render valid or legal, or be construed to recognize as valid or legal, any act or transaction con- stituting trade with, to, from, for or on account of, or on behalf or for the benefit of an enemy performed or engaged in since the beginning of the war and prior to the passage of this Act, or any such act or transaction hereafter performed or engaged in except as authorized hereunder, which would otherwise have been or be void, illegal, or invalid at law. No con- veyance, transfer, delivery, payment, or loan of money or other property, in violation of section three hereof, made after the passage of this Act. and not under license as herein provided shall confer or create any right or remedy in respect thereof ; and no person shall by virtue of any assignment, indorsement, or delivery to him of any debt, bill, note, or other obligation or chose in action by, from, or on behalf of, or on account or for the benefit of an enemy or ally of enemy have any right or remedy against the debtor, obligor, or other person liable to pay, fulfill, or perform the same unless said assignment, indorsement, or delivery was made prior to the beginning of the war or shall be made under license as herein provided, or unless, if made after the beginning of the war and prior to the date of passage of the Act, the person to whom the same was made shall prove lack 122 Supplement to Important Federal Laws of knowledge and of reasonable cause to believe on his part that the same was made by, from or on behalf of, or on account of, or for the benefit of an enemy or ally of enemy; and any person who knowingly pays, discharges, or satisfies any such debt, note, bill, or other obligation or chose in action shall, on conviction thereof, be deemed to violate section three hereof : Provided, That nothing in this Act contained shall pre- vent the carrying out, completion, or performance of any contract, agree- ment, or obligation originally made with or entered into by an enemy or ally of enemy where, prior to the beginning of the war and not in contem- plation thereof, the interest of such enemy or ally of enemy devolved by assignment or otherwise upon a person not an enemy or ally of enemy, and no enemy or ally of enemy will be benefited by such carrying out, completion, or performance otherwise than by release from obligation thereunder. Nothing in this Act shall be deemed to prevent payment of money belonging or owing to an enemy or ally of enemy to a person within the United States, not an enemy or ally of enemy, for the benefit ot such person or of any other person within the United States, not an enemy or ally of enemy, if the funds so paid shall have been received prior to the beginning of the war and such payments arise out of transactions entered into prior to the beginning of the war, and not in contemplation thereof : Provided, That such payment shall not be made without the license of the President, general or special, as provided in this Act. Nothing in this Act shall be deemed to authorize the prosecution of any suit or action at law or in equity in any court within the United States by an enemy or ally of enemy prior to the end of the war, except as provided in section ten hereof : Provided, however, That an enemy or ally of enemy licensed to do business under this Act may prosecute and maintain any such suit or action so far as the same arises solely out of the business transacted within the United States under such license and so long as such license remains in full force and efifect : And provided further, That an enemy or ally of enemy may defend by counsel any suit in equity or action at law which may be brought against him. Receipt of notice from the President to the effect that he has reasonable ground to believe that any person is an enemy or ally of enemy shall be prima facie defense to any one receiving the same, in any suit or action at law or in equity brought or maintained, or to any right or set-off or recoupment asserted by, such person and based on fail- ure to complete or perform since the beginning of the war any contract or other obligation. In any prosecution under section sixteen hereof, proof of receipt of notice from the President to the effect that he has reasonable cause to believe that any person is an enemy or ally of enemy shall be prima facie evidence that the person receiving such notice has reasonable cause to believe such other person to be an enemy or ally of enemy within meaning of section three hereof. Trading With the Enemy Act 123 (c) If the President shall so require, any money or other property owing or belonging to or held for, by, on account of, or on behalf of, or for the benefit of an enemy or ally of enemy not holding a. license granted by the President hereunder, which the President after investigation shall de- termine is so owing or so belongs or is so held, shall be conveyed, trans- ferred, assigned, delivered, or paid over to the afien property custodian. (d) If not required to pay, convey, transfer, assign, or deliver under the provisions of subsection (c) hereof, any person not an enemy or ally of enemy who owes to, or holds for, on account of, or on behalf of, or for the benefit of an enemy or of an ally of enemy not holding a license granted by the President hereunder, any money or other property, or to whom any obligation or form of liability to such enemy or ally of enemy is presented for payment, may, at his option, with the consent of the President, pay, convey, transfer, assign, or deliver to the alien Property Custodian of any debt or obligation owed to an enemy or ally of regulations as the President shall prescribe. (e) No person shall be held liable in any court for or in respect to anything done or omitted in pursuance of any order, rule, or regulation made by the President under the authority of this Act. Any payment, conveyance, transfer, assignment, or delivery of money or property made to the Alien Property Custodian hereunder shall be a full acquittance and discharge for all purposes of the obligation of the person making the same to the extent of same. The Alien Property Custodian and such other persons as the President may appoint shall have power to execute, acknowledge, and deliver any such instument or instruments as may be necessary or proper to evidence upon the record or otherwise such acquittance and discharge and shall, in case of payment to the Alien Property Custodian of any debt or obligation owed to an enemy or ally of enemy, deliver up any notes, bonds, or other evidences of indebtedness or obligation, or any security therefor in which such enemy or ally of enemy had any right or interest that may have come into the possession of the Alien Property Custodian, with like effect as if he or they, respectively, were duly appointed by the enemy or ally of enemy, creditor, or obligee. The President shall issue to every person so appointed a certificate of the appointment and authority of such person, and such certificate shall be received in evidence in all courts within the United States. Whenever any such certificate of authority shall be offered to any registrar, clerk, or other recording officer. Federal or otherwise, within the United States, such officer shall record the same in like manner as a power of attorney, and such record or a duly certified copy thereof shall be received in evidence in all courts of the United States or other courts within the United States. Enforcement of Liens. Sec. 8. (a) That any person not an enemy of ally of enemy holding a lawful mortgage, pledge, or lien, or other right in the nature of security in property of an enemy or ally of enemy which, by law or by the terms of 124 Supplement to Important Federal Laws the instrument creating such mortgage, pledge, or Hen, or right, may be disposed of on notice or presentation or demand, and any person not an enemy or ally of enemy who is a party to any lawful contract with an enemy or ally of enemy, the terms of which provide for a termination thereof upon notice or for acceleration of maturity on presentation or demand, may continue to hold said property, and, after default, may dispose of the property in accordance with law or may terminate or mature such contract by notice or presentation or demand served or made upon the Alien Property Custodian in accordance with the law and the terms of such instrument or contract and under such rules and regulations as the President shall prescribe ; and such notice and such presentation and demand shall have, in all respects, the same force and effect as if duly served or made upon the enemy or ally of enemy per- sonally : Provided, That no such rule or regulation shall require that notice or presentation or demand shall be served or made in any case in which, by law or by terms of said instrument or contract, no notice, presentation, or demand was, prior to the passage of this Act, required ;: and that in case where, by law or by terms of such instrument or contract, notice is required, no longer period of notice shall be required : Pro- vided further. That if, on any such disposition of property, a surplus shall remain after the satisfaction of the mortgage, pledge lien, or other right in the nature of security, notice of that fact shall be given to the President pursuant to such rules and regulations as he may prescribe, and such surplus shall be held subject to his further order. Abrogation of Contracts. (b) That any contract entered into prior to the beginning of the- war between any citizen of the United States, or any corporation or- ganized within the United States, and an enemy or ally of an enemy, the terms of which provide for the delivery, during or after any war in which a present enemy or ally of enemy nation has been or is now engaged, of anything produced, mined, or manufactured in the United States, may be abrogated by such citizen or corporation by serving thirty days' notice in writing upon the Alien Property Custodian of his or its election to abrogate such contract. Statute of Limitations — Suspension. (c) The running of any statute of limitations shall be suspended' with reference to the rights or remedies on any contract or obligation entered into prior to the beginning of the war between parties neither- of whom is an enemy or ally of enemy, and containing any promise to pay or liability for payment which is evidenced by drafts or other com- mercial paper drawn against or secured by funds or other property situated in an enemy or ally of enemy country, and no suit shall be- maintained on any such contract or obligation in any court within the- United States until after the end of the war, or until the said funds. Trading With the Enemy Act 125 or property shall be released for the payment or satisfaction of such contract or obligation : Provided, however, That nothing herein con- tained shall be construed to prevent the suspension of the running of the statute of limitations in all other cases where such suspension would occur under existing law. Claims — Right to Sue. Sec. 9. That any person, not an enemy, or ally of enemy, claiming any interest, right, or title in any money or other property which may have been conveyed, transferred, assigned, delivered, or paid to the Alien Property Custodian hereunder, and held by him or by the Treasurer of the United States, or to whom any debt may be owing from an enemy, •or ally of enemy, whose property or any part thereof shall have been conveyed, transferred, assigned, delivered, or paid to the Alien Property Custodian hereunder, and held by him or by the Treasurer of the United States, may file with the said custodian a notice of his claim under oath and in such form and containing such particulars as the said custodian shall require ; and the President, if application is made therefor by the claimant, may, with the assent of the owner of said property and of all persons claiming any right, title, or interest therein, order the payment, •conveyance, transfer, assignment or delivery to said claimant of the money or other property so held by the Alien Property Custodian or by the Treasurer of the United States or of the interest therein to which the President shall determine said claimant is entitled : Provided, That no such order by the President shall bar any person from the prosecution of any suit at law or in equity against the claimant to establish any right, title or interest which he may have in such money or other property. If the President shall not so order within sixty days after the filing of such application, or if the claimant shall have filed the notice as above required and shall have made no application to the President, said claimant may, at any time before the expiration of six months after the end of the war, institute a suit in equity in the district court of the United States for the district in which such claimant resides, or, if a corporation, where it has its principal place of business (to which suit the Alien Property Custodian or the Treasurer of the United States, as the case may be, shall be made a party defendant), to establish the interest, right, title, or debt so claimed, and if suit shall be so instituted then the money or other property of the enemy, or ally of enemy, against whom such interest, right, or title is asserted, or debt claimed, shall be retained in the custody of the Alien Property Custodian, or in the Treasury of the United States, as provided in this Act, and until any final judgment or decree which shall be entered in favor of the claimant shall be fully satisfied by payment or conveyance, transfer, assignment, or delivery by the defendant or by the Alien Property Custodian or Treasurer of the United States on order of the court, or until final judgment or decree shall be entered against the claimant, or suit otherwise terminated. 126 Supplement to Important Federal Laws Except as herein provided, the money or other property conveyed, transferred, assigned, delivered, or paid to the Alien Property Custodian shall not be liable to lien, attachment, garnishment, trustee process, or execution, or subject to any order or decree of any court. This section shall not apply, however, to money paid to the Alien Property Custodian under section ten hereof. Patents — Provisions As To. Sec. 10. That nothing contained in this Act shall be held to make unlawful any of the following Acts : (a) An enemy, or ally of enemy, may file and prosecute in the United States an application for letters patent, or for registration of trademark, print, label, or copyright, and may pay any fees therefor in accordance with and as required by the provisions of existing law and fees for attorneys or agents for filing and prosecuting such applications. Any such enemy, or ally of enemy, who is unable during war, or within six months thereafter, on account of conditions arising out of war, to file any such application, or to pay any official fee, or to take any ac- tion required by law within the period prescribed by law, may be granted an extension of nine months beyond the expiration of said period, pro- vided the nation of which the said applicant is a citizen, subject, or corporation shall extend substantially similar privileges to citizens and corporations of the United States. (b) Any citizen of the United States, or any corporation organ- ized within the United States, may, when duly authorized by the Presi- dent, pay to an enemy or ally of enemy any tax, annuity, or fee which may be required by the laws of such enemy or ally of enemy nation in relation to patents and trademarks, prints, labels, and copyrights; and any such citizen or corporation may file and prosecute an application for letters patent or for registration of trademark, print, label, or copyright in the country of an enemy, or of an ally of enemy after first submitting such application to the President and receiving license so to file and prosecute, and to pay the fees required by law and customary agents' fees, the maximum amount of which in each case shall be subject to the control of the President. (c) Any citizen of the United States or any corporation organized within the United States desiring to manufacture, or cause to be manu- factured, a machine, manufacture, composition of matter, or design, or to carry on, or cause to be carried on, a process under any patent or to use any trademark, print, label or copyrighted matter owned or controlled by an enemy or ally of enemy at any time during the existence of a state of war may apply to the President for a license; and the President is hereby authorized to grant such a license, non-exclusive or exclusive as he shall deem best, provided he shall be of the opinion that such grant is for the public welfare, and that the applicant is able and intends Trading With the Enemy Act 127 in good faith to manufacture, or cause to be manufactured, the machine, manufacture, composition of matter, or design, or to carry on, or cause to be carried on, the process or to use the trademark, print, label or copyrighted matter. The President may prescribe the conditions of this license including the fixing of prices of articles and products necessary to the health of the military and naval forces of the United States and the successful prosecution of the war and the rules and regulations under which such license may be granted and the fee which shall be charged therefor, not exceeding $100, and not exceeding one per centum of the fund deposited as hereinafter provided. Such license shall be a complete defense to any suit at law or in equity instituted by the enemy or ally of enemy owners of the letters patent, trademark, print, label or copyright, or otherwise, against the licensee for infringement or for damages, royal- ty, or other money award on account of anything done by the licensee under such license, except as provided in subsection (f) hereof. (d) The licensee shall file with the President a full statement of the extent of the use and enjoyment of the license, and of the prices re- ceived in such form and at such stated periods (at least annually) as the President may prescribe ; and the license shall pay at such times as may be required to the Alien Property Custodian not to exceed five per centum of the gross sums received by the licensee from the sale of said inventions or use of the trademark, print, label or copyrighted matter, or, if the President shall so order, five per centum of the value of the use of such inventions, trademarks, prints, labels or copyrighted matter to the licensee as established by the President ; and sums so paid shall be deposited by said Alien Property Custodian forthwith in the Treasury of the United States as a trust fund for the said licensee and for the owner of the said patent, trademark, print, label or copyright registration as hereinafter provided, to be paid from the Treasury upon order of the court, as provided in subdivision (f ) of this section, or upon the direc- tion of the Alien Property Custodian. (e) Unless surrendered or terminated as provided in this Act, any license granted hereunder shall continue during the term fixed in the license or in the absence of any such limitation during the term of the patent, trademark, print, label, or copyright registration under which it is granted. Upon violation by the licensee of any of the provisions of this Act, or of the conditions of the license, the President may, after due notice and hearing, cancel any license granted by him. (f) The owner of any patent, trademark, print, label, or copyright under which a license is granted hereunder may, after the end of the war and until the expiration of one year thereafter, file a bill in equity against the Hcensee in the district court of the United States for the district in which the said licensee resides, or, if a corporation, in which it has its principal place of business (to which suit the Treasurer of the United States shall be made a party), for recovery from the said licensee for 128 Supplement to Important Federal Laws all use and enjoyment of the said patented invention, trademark, print, label, or copyrighted matter: Provided, however. That whenever suit is brought, as above, notice shall be filed with the Alien Property Cus- todian within thirty days after date of entry of suit : Provided further, That the licensee may make any and all defences which would be avail- able were no license granted. The court on due proceedings had may ad- judge and decree to the said, owner payment of a reasonable royalty. The amount of said judgment and decree, when final, shall be paid on order of the court to the owner of the patent from the fund deposited by the licensee, so far as such deposit will satisfy said judgment and decree ; and the said payment shall be in full or partial satisfaction of said judgment and decree, as the facts may appear; and if, after pay- ment of all such judgments and decrees, there shall remain any balance of said deposit, such balaijce shall be repaid to the licensee on order of the Alien Property Custodian. If no suit is brought within one year after the end of the war, or no notice is filed as above required, then the license shall not be liable to make any further deposits, and all funds deposited by him shall be repaid to him on order of the Alien Property Custodian. Upon entry of suit and notice filed as above required, or upon repayment of funds as above provided, the liability of the licensee to make further reports to the President shall cease. If suit is brought as above provided, the court may, at any time, terminate the license, and may, in such event, issue an injunction to restrain the licensee from infringement thereafter, or the court, in case the licensee, prior to suit shall have made investment of capital based on possession of the license, may continue the license for such period and upon such terms and with such royalties as it shall find to be just and reasonable. (g) Any enemy, or ally of enemy, may institute and prosecute suits in equity against any person other than a licensee under this Act to enjoin infringement of letters patent, trademark, print, label, and copyrights in the United States owned or controlled by said enemy or ally of enemy, in the same manner and to the extent that he would be entitled so to do if the United States was not at war: Provided, That no final judgment or decree shall be entered in favor of such enemy or ally of enemy by any court except after thirty days' notice to the Alien Property Cus- todian, such notice shall be in writing and shall be served in the same manner as civil process of Federal courts. (h) All powers of attorney heretofore or hereafter granted by an enemy or ally of enemy to any person within the United States, in so far as they may be requisite to the performance of acts authorized in subsections (a) and (g) of this section shall be valid. (i) Whenever the publication of an invention by the granting of a patent may, in the opinion of the President, be detrimental to the public safety or defense, or may assist the enemy or endanger the successful Trading With the Enemy Act 129 prosecution of the war, he may order that the invention be kept secret and withhold the grant of a patent until the end of the war: Provided, That the invention disclosed in the application for said patent may be held abandoned upon it being established, before or by the Commissioner of Patents that, in violation of said order, said invention has been published or that an application for a patent therefor has been filed in any other country, bv the inventor or his assigns or legal representatives, without the consent or approval of the commissioner or under a license of the President. When an applicant whose patent is withheld as herein provided and ' who faithfully obeys the order of the President above referred to shall tender his invention to the Government of the United States for its use, he shall, if he ultimately receives a patent, have the right to sue for compensation in the Court of Claims, such right to compensation to begin from the date of the use of the invention by the Government. Imports — Prohibition of. Sec. 11. Whenever during the present war the President shall find that the public safety so requires and shall make proclamation thereof it shall be unlawful to import into the United States from any country named in such proclamation any article or articles mentioned in such proclamation except at such time or times, and under such regulations or orders, and subject to such limitations and exceptions as the President shall prescribe, until otherwise ordered by the President or by Congress : Provided, however. That no preference shall be given to the ports of one State over those of another. Investment of Funds in Governrneht Bonds— Powers of Alien Prop- erty Custodian. Sec. 12. That all moneys (including checks and drafts payable on demand) paid to or received by the Alien Property Custodian pursuant to this Act shall be deposited forthwith in the Treasury of the United States, and may be invested and reinvested by the Secretary of the Treasury in United States bonds or United States certificates of indebted- ness, under such rules and regulations as the President shall prescribe for such deposit, investment, and sale of securities; and as soon after the end of the war as the President shall deem practicable, such securities shall be sold and the proceeds deposited in the Treasury. All other property of an enemy, or ally of enemy, conveyed, trans- ferred, assigned, delivered, or paid to the Alien Property Custodian hereunder shall be safelv held and administered by him except as here- inafter provided; and the President is authorized to designate as a depositary, or depositaries, of property of an enemy or ally of enemy any bank, or banks, or trust company, or trust companies, or other suit- able depositary or depositaries, located and doing business in the United States. The Alien Property Custodian may deposit with such desig- (9) 130 Supplement to Important Federal Laws nated depositary or depositaries, or with the Secretary of the Treasury, any stocks, bonds, notes, time drafts, time bills of exchange, or other securities, or property (except money or checks or drafts payable on demand which are required to be deposited with the Secretary of the Treasury) and such depositary or depositaries shall be authorized and empowered to collect any dividends or interest or income that may be- come due and any maturing obligations held for the account of such custodian. Any moneys collected on said account shall be paid and de- posited forthwith by said depository or by the Alien Property Custodian into the Treasury of the United States as hereinbefore provided. The President shall require all such designated depositaries to execute and file bonds sufficient in his judgment to protect property on deposit, such bonds to be conditioned as he may direct. The Alien Property Custodian shall be vested with all of the powers of a common-law trustee in respect of all property, other than money, which shall come into his possession in pursuance of the provisions of this Act, and, acting under the supervision and direction of the President, and under such rules and regulations as the President shall prescribe, may man- age such property and do any act or things in respect thereof or make any disposition thereof or of any part thereof, by sale or otherwise, and exer- cise any rights which may be or become a}>|:)urtenant thereto or to the own- ership thereof, if and when necessary to prevent waste or to protect such property, and to the end that the interests of the United States in such property and rights or of such person as may ultimately become en- titled thereto, or to the proceeds thereof, may be preserved and safe- guarded. It shall be the duty of every corporation incor]:)orated within the United States and every unincorporated association, or company, or trustee, or trustees within the United States issuing shares or cer- tificates representing beneficial interests to transfer such shares or cer- tificate upon its, his. or their books into the name of the Alien Property Custodian upon demand, accompanied by the presentation of the cer- tificates which represent such shares or l3eneficial interests. The Alien Property Custodian shall forthwith deposit in the Treasury of the United States, as hereinbefore provided, the proceeds of any such prop- erty or rights so sold by him. Any money or property required or authorized by the provisions of this Act to be paid, conveyed, transferred, assigned, or delivered to the Alien Property Custodian shall, if said custodian shall so direct by written order, be paid, conveyed, transferred, assigned, or delivered to the Treasurer of the United States with the same effect as if to the Alien Property Custodian. After the end of the war any claim of any enemy or of an ally of enemy to any money or other property received and held by the Alien Property Custodian or deposited in the United States Treasury, shall be settled as Congress .shall direct : Provided, however. That on order of the Trading With the Enemy Act 131 President as set forth in section nine hereof, or of the court, as set forth in sections nine and ten hereof, the AHen Property Custodian or the Treasurer of the United States, as the case may be, shall forthwith convey, transfer, assign, and pay to the person to whom the President shall so order, or in whose behalf the court shall enter final judgment or decree, any property of an enemy or ally of enemy held by said custodian or by said Treasurer, so far as may be necessary to comply with said cvrder of the President or said final judgment or decree of the court : And provided further, That the Treasurer of the United States, or order of the Alien Property Custodian, shall, as provided in section ten hereof, repay to the licensee any funds deposited by said licensee. Certificates as to Cargo and Consignee by Shipmaster. Sec. 13. That, during the present war, in addition to the facts re- quired by sections forty-one hundred and ninety-seven, forty-one hun- dred and ninety-eight, and forty-two hundred of the Revised Statutes, as amended by the Act of June fifteenth, nineteen hundred and seven- teen, to be set out in the master's and shipper's manifests before clear- ance will be issued to vessels bound to foreign ports, the master or per- son in charge of any vessel, before departure of such vessel from port, shall deliver to the collector of customs of the district wherein such vessel is located a statement duly verified by oath that the cargo is not shipped or to be delivered in violation of this Act, and the owners, shippers, or consignors of the cargo of such vessels shall in like manner deliver to the collector like statement under oath as to the cargo or the parts thereof laden or shipped by them, respectively, which statement shall contain also the names and addresses of the actual consignees of the cargo, or if the shipment is made to a bank or other broker, factor, or agent, the names and addresses of the persons who are the actual consignees on whose account the shipment is made. The master or person in control of the vessel shall, on reaching port of destination of any of the cargo, deliver a copy of the manifest and of the said master's, owner's, shipper's, or consignor's statement to the American consular officer of the district in which the cargo is unladen. Clearance for False Representation May be Refused. Sec. 14. That, during the present war, whenever there is reason- able cause to believe that the manifest or the additional statements under oath required by the preceding section are false or that any vessel, do- mestic or foreign, is about to carry out of the United States any property to or for the account or benefit of an enemy, or ally of enemy, or any property or person whose export, taking out, or transport will be in violation of this Act, the collector of customs for the district in which such vessel is located is hereby authorized and empowered, subject to review by the President, to refuse clearance to any such vessel, domestic or foreign, for which clearance is required by law, and by formal notice 132 Supplement to Important Federal Laws served upon the owners, master, or person or persons in command or charge of any domestic vessel for which clearance is not recjuired by law, to forbid the departure of such vessel from the port, and it shall there- upon be unlawful for such vessel to depart. The collector of customs shall, during the present war, in each case report to the President the amount of gold or silver coin or bullion or other moneys of the United States , contained in any cargo intended for export. Such report shall include the names and addresses of the consignors and consignees, to- gether with any facts known to the collector with reference to such ship- ment and particularly those which may indicate that such gold or silver coin or bullion or moneys of the United States may be intended for ^ engaged in war with a country with which the United States is at war, unless such citizen or subject of such foreign country shall hire or solicit a citizen of the L^nited States to enlist or go beyond the jurisdiction of the L^nited States with intent to enlist or enter the service of a foreign country. Enlistments under this proviso shall be under regulations prescribed by the Secretary of War." iLapp's Important Federal Laws, p. 697. Federal Judicial Code 163 FEDERAL JUDICIAL CODE. (Amendment of October 6, 1917.) An Act to amend sections twenty-four and two hundred and fifty-six of the Judicial Code, relating to the jurisdiction of the district courts, so as to save to claimants the rights and remedies under the workmen's compen- sation law of any State. Section 1. That clause three of section twenty-fotir of the Judicial Code is hereby amended to read as follows :^ "Third. Of all civil causes of admiralty and maritime jurisdiction, saving to suitors in all cases the right of a common-law remedy where the common law is competent to give it, and to claimants the rights and remedies under the workmen's compensation law of any State ; of all seizures on land or waters not within admiralty and maritime jurisdic- tion ; of all prizes brought into the United States ; and of all proceedings for the condemnation of property taken as prize." Sec. 2. That clause three of section two hundred and fifty-six of the Judicial Code is hereby amended to read as follows -.^ "Third. Of all civil causes of admiralty and maritime jurisdiction, saving to suitors in all cases the right of a common-law remedy where the common law is competent to give it, and to claimants the rights and remedies tinder the workmen's compensation law of any State." INTERSTATE COMMERCE.* (Amendment to Act of March 4, 1915.) Bills of Lading. That any common carrier, railroad, or transportation company subject to the provisions of this Act receiving property for transporta- tion from a point in one State or Territory or the District of Columbia to a point in another State, Territory, District of Columbia, or from any point in the United States to a point in an adjacent foreign country shall issue a receipt or bill of lading therefor, and shall be liable to the lawful holder thereof for any loss, damage, or injury to such property caused by it or by any common carrier, railroad, or transportation com- pany to which such property may be delivered or over whose line or lines such property may pass within the United States or within an adjacent foreign country when transported on a through bill of lading, and no contract, receipt, rule, regulation, or other limitation of any character whatsoever, shall exempt such common carrier, railroad, or transpor- tation company from the liability hereby imposed : and any such com- mon carrier, railroad, or transportation company so receiving property 2Lapp's Important Federal Laws, p. 794. -Lapp's Important Federal Laws, p. 853. *Errata in Lapp's Important Federal Laws. p. 500. 164 Supplement to Important Federal Laws for transportation from a point in one State, Territory, or the District of Columbia to a point in another State or Territory, or from a point in a State or Territory to a point in the District of Columbia, or from any point in the United States to a point in an adjacent foreign coun- try, or for transportation wholly within a Territory shall be liable to the lawful holder of said recei])t or bill of lading or to any party entitled to recover thereon, whether such receipt or bill of lading has been issued or not, for the full actual loss, damage, or injury to such property caused by it or by any such common carrier, railroad, or transportation company to which such property may be delivered or over whose line or lines such property may pass within the United States or within an adjacent foreign country when transported on a through bill of lading, notwithstanding any limitation of liability or lim- itation of the amount of recovery or representation or agreement as to value in any such receipt or bill of lading, or in any contract, rule, regulation, or in any tariff filed with the Inters,tate Commerce Com- mission ; and any such limitation, without respect to the manner or form in which it is sought to be made is hereby declared to be unlawful and void : Provided, however. That the i)rovisions hereof resj^ecting liability for full actual loss, damage, or injury, notwithstanding anv limitation of liability or recover)^ or representation or agreement or release as to value, and declaring any such limitation to be unlawful and void, shall not apply, first, to liaggage carried on passenger trains or boats, or trains or boats carrying ])assengers ; second, to property, except ordinary live stock, received for transportation concerning which the car- rier shall have been or shall hereafter be expressly authorized or required by order of the Interstate Commerce Commission to establish and main- tain rates dependent upon the value declared in writing b\- the shij^per or agreed upon in writing as the released value of the property, in which case such declaration or agreement shall have no other effect than to limit liability and recovery to an amount not exceeding the value so de- clared or released, and shall not, so far as relates to values, be held to be a violation of section ten of this Act to regulate commerce, as amended ; and any tariff schedule which may be filed with the com- mission pursuant to such order shall contain specific reference thereto and may establish rates varying with the value so declared or agreed upon ; and the commission is hereby empowered to make such order in cases where rates dependent upon and varying with declared or agreed values would, in its opinion, be just and reasonable under the circum- stances and conditions surrounding the transportation. The term "ordi- nary live stock" shall include all cattle, swine, sheep, goats, horses, and mules, except such as are chiefly valuable for breeding, racing, show purposes, or other special uses. Provided, further. That nothing in this section shall deprive any holder of such receipt or bill of lading Interstate Commerce 165 of any remedy or right of action which he has under the existing law : Provided, further, That it shall be unlawful for any such common car- rier to provide by rule, contract, regulation, or otherwise a shorter period for giving notice of claims than ninety days and for the filing of claims for a shorter period than four months, and for the institution of suits than two years: Provided, however, That if the loss, damage, or injury complained of was due to delay or damage while being loaded or unloaded, or damaged in transit by carelessness or negligence, then no notice of claim nor filing of claim shall be required as a condition precedent to recovery. (As amended August 9, 1916.) BANKING Federal Reserve Act. Amendments of June 21, 1917, are included in the federal re- serve act as it appears in Important Federal Laws, pp. 106-144. CONSCRIPTION The conscription act passed at the special session of Congress appears in Important Federal Laws, pp. 596-605. INDEX. ANIMAL DISEASES. N( r Fond tind i'uvl Control. ARMS AND AMMUNITION FOR EXPORT. Sec KMjiionagc Act. BANKING. l>e:iomiu;Uioii of uotes — Ainend- uient 155-156 F("iu>r;il Iteserve net — ArueiKliiients 165 BILLS OF LADING. Ameudnieut of August 9, 1916 — T:ir;it,i 163-165 BOND ISSUES. Act of April 21, 1917 141-144 Act of Septenil)ei- 24, 1917 145-154 CITIZENSHIP. 1 (('tilling stntus of persons enter- ing service of otlier countries 155 COAL AND COKE. Nrc Fijoil a ml Fuel Control. CONDEMNATION OF PROPERTY. .Military luiriioses 140-141 CONSCRIPTION ACT 168 CORPORATION TAXES. Nc Wdr Revenue Taxes. CRIMINAL CODE. Enlisting in foreign service 162 ENLISTING IN FOREIGN SERVICE. Uciiioving restrictions as to allies 162 ESPIONAGE ACT. Anns and ammunition for export — Exports — Seizure of SO District court jurisdiction 80 Restoration — I'rocedure 81 Libel proceedings 81 President's powers 82 Commerce — Interfering with 76-77 Conspiracy 74 To destroy property 84 Courts martial — Powers 74 Courts — Jurisdiction 90 Definitions 84, 90 Ivxports May be i)roLiibited 82 Penalties 82 Refusing clearance for vessels 82-83 False reports 73-74 Foreign relations — Disturbance of 83 Pretending to be foreign represen- tative 83 Penalty ^ 83-84 Defiiiitii>n of "foreign governnieut"_84 Foreign vessel. s — Seizure of 75-76 Government seal — Falsely aftixiug 85 . Counterfeitiug 85-86 Harboring offender 74 Information — Securing 73 Transmitting 73 Mails— Use of to violate 89-90 Neutrality — Building ships for belligerents 77-78 Detaining vessels 77 Enforcement of 79 Internment 78-79 Violation of 79 Refusing clearance 77-78 Passes and Permits — - Counterfeiting 86 Pa ssports — Regulation of 84-85 Phices protected from espionage — President's powers i 74 Prosecuting disloyalty 73-74 Repeals ___75 Search warrants — Provisions as to 86-89 Territorial applications 74-75 EXPLOSIVES— REGULATION OF. Accounts 136 Appropriation 140 Cooperation with states 139-140 Definitions 135 Exports — Prohibition of. *S'ce Espionage Act. Fires — Investigation of 139 Foreign relations — Disturbance of. Sec Espionage Act. Information not to be divulged 138 Inspector 13S Lawful transportation permitted 136 License 13(J Information 13(; Issue of 136-137 Issue to citizens only 137 Application for 137-138 Manufacture restricted 135 Marking 139 Misrepresentation __^ 138 Penalties 139 Protection of plants 139 Rules and regulations 1 139 Unlawful purchase 1.35-136 INDEX. FOOD AND FUEL CONTROL. Animal Diseases — Importation of tick infested cattle IiermitteJ 70-71 A])proi>riation 61' Army and Navy supplies — Requisi- tion 57 Coal aud Coke — Regulation of fuel 63-64 Commandeering of 64-65 Trade commission to investigate-60-66 Monopoly 66-67 Contracts — Interest in by agents and employees 53-54 Cooperation with voluntary agencies_53 Definitions 63 Destruction of Necessaries — Penalties 56 Distilled Spirits^ Prohibition of use of foodstuffs for 60-61 Commandeering 61 Grain Exchanges — Regulation 58-59 Hoarded Products — Condemnation of 56 Hoarding — Defined and prohibited ^55-56 Homestead Law — Amendment 7] Licensing by President 54-55 Limiting supplies— Penalty 56-57 Manufacturing plants — Requisition of 57-58 Minimum Prices — Guarantee 59-60 Monopoly prohibited 54 Nitrate of Soda- Procurement for agriculture 67 President's report 62 Purchase and sale by government 57 Purposes of 53 Reclamation Act— Amendment 71 Seeds — Agricultural — Purchase and sale by government- _6S Survey of food supply 68-70 Appropriations 69-70 Assistant Secretaries of Agri- culture 69 Cooperation with states 68-69 Definition 69 Duties and powers 68 Secretary of Agriculture 68 Waste prohibited 54 GOVERNMENT SEAL— COUNTER- FEITING. See Espionage Act. HOMESTEAD LAW. Anjondnifnt 71 INCOME TAX. Sec War Jicrouic Taxes. INHERITANCE TAX.. See War Rereniie Taxes. INSURANCE. Allotment of pay 103 Application of act 102-103 Appropriation for 99-100 Death or Disability Compensation — Amount 106 Assignment not permitted 110 P.ack claims no Death penalty a bar to 109 Examination of claimant 108 Liability of third parties 110-111 Payments for death 106 I'ayments for disability 107 Record of death ' 100 Reedncat ion 108-109 Review of award 109 Service of retirement pay bars compensation 110 Time limit 109-110 Definitions 100-101 Family allowance 103-105 Apportionment between classes A and P. 105 Limitation 105 Payment to beneficiaries, investi- gation of 105 Government insurance — After the war 113 Amount of 111-112 Application for 111-112 Disagreement on claims 113 Excess hazard 113 Terms and conditions 112-113 Marriage — Proof of 100 Payments to guardian 101, 102 Records, etc. 102 Perjury 102 Soldiers and Sailors 97-113 War Risk Bureau— Duties of 97-98 Deputies and assistants 98 Powers of director 98-99 Widows' Pensions — Previous Wars_lll INSURANCE. See War RisJc Insurance. INTERSTATE COMMERCE. Car service amendment 156-157 Commission — Enlargement of 157-158 Powers of 158-159 Secretary's salary 159 Obstructing during war 160-101 INDEX. NEUTRALITY. i: