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the Secretary of Agriculture: Provided, That if there be not sufficient places, in the markets of which are made bona fide sales of spot cotton of grades for which standards are established by the Secretary of Agriculture, to enable him to designate at least five spot markets in accordance with section 1922 (c) of this chapter, he shall, from data as to spot sales collected by him, make rules and regulations for determining the actual commercial differences in the value of spot cotton of the grades established by him as reflected by bona fide sales of spot cotton, of the same or different grades, in the markets selected and designated by him, from time to time, for that purpose, and in that event differences in value of cotton of various grades involved in contracts made pursuant to section 1922 (a) and (b) shall be determined in compliance with such rules and regulations: Provided further, That it shall be the duty of any person engaged in the business of dealing in cotton, when requested by the Secretary of Agriculture or any agent acting under his instructions, to answer correctly to the best of his knowledge, under oath or otherwise, all questions touching his knowledge of the number of bales, the classification, the price or bona fide price offered, and other terms of purchase or sale, of any cotton involved in any transaction participated in by him, or to produce all books, letters, papers, or documents in his possession or under his control relating to such matter.

SEC. 1928. COLLECTION AND ENFORCEMENT.

(a) RULES AND REGULATIONS.-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 chapter and otherwise to enforce its provisions.

(b) RECORDS AND RETURNS.-Further to effect the purpose of subsection (a), the Secretary 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 1920 (a) of this chapter, 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 1920 (a) of this chapter 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

(c) EMPLOYMENT OF AGENTS.-He may appoint agents to conduct the inspection necessary to collect said tax and otherwise to enforce this chapter and all rules and regulations made by him in pursuance hereof, and may fix the compensation of such agents.

SEC. 1929. PENALTIES.

(a) IN GENERAL.—

(1) NONPAYMENT OR EVASION OF TAX.-Any person liable to the payment of any tax imposed by this chapter who fails to pay, or evades, or attempts to evade the payment of such tax; and

(2) OTHER VIOLATIONS.-Any person who otherwise violates any provision of this chapter, or any rule or regulation made in pursuance hereof, upon conviction thereof, shall be fined not less

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than $100 nor more than $20,000, in the discretion of the court; and, in case of natural persons, may, in addition, be punished by imprisonment for not less than 60 days nor more than three years, in the discretion of the court.

(b) ADDITIONAL.-In addition to the foregoing punishment there shall be imposed, on account of each violation of this chapter, a penalty of $2,000, to be recovered in an action founded on this chapter 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 chapter is furnished, to institute and prosecute actions for the recovery of the penalties prescribed by this subsection.

(c) WITHHOLDING INFORMATION.-Any person engaged in the business of dealing in cotton who shall, within a reasonable time prescribed by the Secretary of Agriculture or any agent acting under his instructions, willfully fail or refuse to answer questions or to produce books, letters, papers, or documents, as required under section 1927 (b), or who shall willfully give any answer that is false or misleading, shall be guilty of a misdemeanor, and upon conviction thereof shall be punished by a fine not exceeding $500.

SEC. 1930. IMMUNITY OF WITNESSES.

No person whose evidence is deemed material by the officer prosecuting on behalf of the United States in any case brought under any provision of this chapter shall withhold his testimony because of complicity by him in any violation of this chapter or of any regulation made pursuant to this chapter, but any such person called by such officer who testifies in such case shall be exempt from prosecution for any offense to which his testimony relates.

SEC. 1931. DEFINITIONS.

(a) CONTRACT OF SALE. For the purposes of this chapter, the term "contract of sale" shall be held to include sales, agreements of sale, and agreements to sell.

(b) PERSON.-The word "person," wherever used in this chapter, shall be construed to import the plural or singular, as the case demands, and shall include individuals, associations, partnerships, and corporations.

SEC. 1932. LIABILITY OF PRINCIPAL FOR ACTS OF AGENT.

When construing and enforcing the provisions of this chapter, the act, omission, or failure of any official, agent, or other person acting for or employed by any association, partnership, or corporation within the scope of his employment or office shall, in every case, also be deemed the act, omission, or failure of such association, partnership, or corporation, as well as that of the person.

SEC. 1933. REPORTS OF SECRETARY OF AGRICULTURE.

The Secretary of Agriculture is directed to publish from time to time the results of investigations made in pursuance of this chapter.

SEC. 1934. OTHER LAWS APPLICABLE.

The provisions of the internal revenue laws of the United States, so far as applicable, including section 3615 of this title, shall be extended, and made to apply, to this chapter.

SEC. 1935. OPERATION OF STATE LAWS.

The payment of any tax levied by this chapter shall not exempt any person from any penalty or punishment now or hereafter provided by the laws of any State for entering into contracts of sale of cotton for future delivery, nor shall the payment of any tax imposed by this chapter be held to prohibit any State or municipality from imposing a tax on the same transaction.

CHAPTER 15-TOBACCO, SNUFF, CIGARS, AND

CIGARETTES

SUBCHAPTER A-RATE AND PAYMENT OF TAX

SEC. 2000. RATE OF TAX.

(a) TOBACCO AND SNUFF.-Upon all tobacco and snuff manufactured in or imported into the United States, and sold by the manufacturer or importer, or removed for consumption or sale, there shall be levied, collected, and paid the following taxes:

(1) SNUFF.-On snuff, manufactured of tobacco or any substitute for tobacco, ground, dry, damp, pickled, scented, or otherwise, of all descriptions, when prepared for use, a tax of 18 cents. per pound.

(2) TOBACCO. On all chewing and smoking tobacco, fine-cut, cavendish, plug or twist, cut or granulated, of every description; on tobacco twisted by hand or reduced into a condition to be consumed, or in any manner other than the ordinary mode of drying and curing, prepared for sale or consumption, even if prepared without the use of any machine or instrument, and without being pressed or sweetened; and on all fine-cut shorts and refuse scraps, clippings, cuttings, and sweepings of tobacco, a tax of 18 cents per pound.

The tax imposed by this subsection shall be in addition to any import duties imposed upon imported tobacco and snuff.

(b) SNUFF FLOUR.-Snuff flour, when sold, or removed for use or consumption, shall be taxed as snuff.

(c) CIGARS AND CIGARETTES.-Upon cigars and cigarettes manufactured in or imported into the United States, which are sold by the manufacturer or importer, or removed for consumption or sale, there shall be levied, collected, and paid the following taxes:

(1) CIGARS. On cigars of all descriptions made of tobacco, or any substitute therefor, and weighing not more than three pounds per thousand, 75 cents per thousand;

On cigars made of tobacco, or any substitute therefor, and weighing more than three pounds per thousand, if manufactured or imported to retail at not more than 21⁄2 cents each, $2.50 per thousand;

If manufactured or imported to retail at more than 21⁄2 cents each and not more than 4 cents each, $3.00 per thousand;

If manufactured or imported to retail at more than 4 cents each and not more than 6 cents each, $4.00 per thousand;

If manufactured or imported to retail at more than 6 cents each and not more than 8 cents each, $7.00 per thousand;

If manufactured or imported to retail at more than 8 cents each and not more than 15 cents each, $10.00 per thousand;

If manufactured or imported to retail at more than 15 cents each and not more than 20 cents each, $15.00 per thousand;

If manufactured or imported to retail at more than 20 cents each, $20.00 per thousand.

Whenever in this subsection reference is made to cigars manufactured or imported to retail at not over a certain price each, then in determining the tax to be paid regard shall be had to the ordinary retail price of a single cigar in its principal market.

(2) CIGARETTES.-On cigarettes made of tobacco, or any substitute therefor, and weighing not more than three pounds per thousand, $3.50 per thousand;

Weighing more than three pounds per thousand, $8.40 per thousand; except that if more than 6%1⁄2 inches in length they shall be taxable at the rate provided in the preceding paragraph, counting each 24 inches (or fraction thereof) of the length of each as one cigarette.

The tax imposed by this subsection shall be in addition to any import duties imposed upon imported cigars and cigarettes.

(d) CIGARETTE PAPER.-There shall be levied, collected, and paid upon cigarette paper made up into packages, books, sets, or tubes, made up in or imported into the United States and sold by the manufacturer or importer to any person (other than to a manufacturer of cigarettes for use by him in the manufacture of cigarettes), the following taxes:

On each package, book, or set containing more than 25 but not more than 50 papers, 1⁄2 cent;

Containing more than 50 but not more than 100 papers, 1 cent; Containing more than 100 papers, 1⁄2 cent for each 50 papers or fractional part thereof; and

Upon tubes, 1 cent for each 50 tubes or fractional part thereof.

[For exemption from tax under section 2000 of articles sold for export or for shipment to a possession of the United States, see section 2135(a).] SEC. 2001. TAXPAYER.

(a) MANUFACTURER OR IMPORTER.-The taxes imposed by section 2000 shall be paid by the manufacturer or importer.

(b) MANUFACTURER ON COMMISSION, SHARES, OR CONTRACT.

(1) TOBACCO and snuff.-Whenever tobacco or snuff of any description is manufactured, in whole or in part, upon commission or shares, or the material from which any such articles are made, or are to be made, is furnished by one person and made and manufactured by another, or the material is furnished or sold by one person with an understanding or agreement with another that the manufactured article is to be received in payment therefor or for any part thereof, the stamps required by law shall be affixed by the actual maker or manufacturer before the article passes from the place of making or manufacturing.

(2) CIGARS AND CIGARETTES.-Whenever cigars or cigarettes of any description are manufactured, in whole or in part, upon commission or shares, or the material is furnished by one party and manufactured by another, or the material is furnished or sold by one party with an understanding or agreement with

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