and copy books and records. Cudahy Packing Co. v. U. S. (C. C. A. Ill. 1926) 15 F.(2d) 133. 2. Change in system of accounts Secretary could not order change in system of accounts without according packer, owner, agency, or dealer a hearing. Cudahy Packing Co. v. U. S. (C. C. A. Ill. 1926) 15 F. (2d) 133. § 222. Federal Trade Commission powers adopted for enforcement of chapter Federal Rules of Civil Procedure Application of Rules of Civil Procedure, see Rules 45, 81, following Title 28, Judicial Code and Judiciary, 723c. 1. Access to records District court had jurisdiction of mandamus to compel compliance with demand of secretary of agriculture for access to records of packers. Cudahy Pack ing Co. v. U. S. (C. C. A. Ill. 1926) 15 F. (2d) 133. Demand of Secretary of Agriculture under this section for access and right to copy books of accounts and records of packing companies, held unreasonable, and in violation of Fourth Amendment. Id. § 223. Responsibility of principal for act or omission of agent This section was amended by section 503 of the Act of Aug. 15, 1921, c. 64, as added by the Act Aug. 14, 1935, c. 532, § 1, 49 Stat. 649 by the addition of the § 226. 1. In general or words "or any live poultry dealer handler" after the word "packer" wherever it occurs in this section. Powers of Interstate Commerce Commission unaffected If the jurisdiction of the Interstate Commerce Commission is established, jurisdiction of the Secretary of Agriculture must give way thereto. Atchison, T. & S. F. Ry. Co. v. U. S. (D. C. N. Y. 1934) 8 F. Supp. 825, rev on other grounds (1935) 55 S. Ct. 748, 295 U. S. 193, 79 L. Ed. 1382. § 228a. Inspection of livestock, hides, animal products, etc.; place; charges; disposal of funds The Secretary of Agriculture, upon application of any exporter, importer, packer, owner, agent of, or dealer in livestock, hides, skins, meat, or other animal products, may, in his discretion, make inspections and examinations at places other than the headquarters of inspectors for the convenience of said applicants and charge the applicants for the expenses of travel and subsistence incurred for such inspections and examinations, the funds derived from such charges to be deposited in the Treasury of the United States to the credit of the appropriation from which the expenses are paid. (June 4, 1936, c. 489, 49 Stat. 1429; June 29, 1937, c. 404, 50 Stat, 403; June 16, 1938, c. 464, Title I, 52 Stat. 719.) CHARGE FOR INSPECTION § 231. Fee for inspection of brands appearing upon livestock The Secretary of Agriculture may, whenever necessary, authorize the charging and collection from owners of a reasonable fee for the inspection of brands appearing upon livestock subject to the provisions of this chapter for the purpose of determining the ownership of such livestock: Provided, That such fee shall not be imposed except upon written request made to the Secretary of Agriculture by the Board of Livestock Commissioners, or duly organized livestock association of the States from which such livestock have originated or been shipped to market. (Feb. 16, 1929, c. 227, 45 Stat. 1198; May 27, 1930, c. 341, 46 Stat. 402; 46 Stat. 1252; July 7, 1932, c. 443, 47 Stat. 620; 47 Stat. 1441; Mar. 26, 1934, c. 89, 48 Stat. 477; Title I, § 1, 49 Stat. 257; June 4, 1936, c. 489, 49 Stat. 1432; June 29, 1937, c. 404, 50 Stat. 406; June 16, 1938, c. 464, Title I, 52 Stat. 721.) CHAPTER 10.-WAREHOUSES The words "Part C" should be inserted after "c. 313" in the citations to sections 241 to 273 constituting this chapter. § 241. Short title of chapter 1. State legislation Nondiscriminatory state license tax on operators of cotton warehouses and compresses, as applied to warehouseman operating under license under federal Warehouse Act, held not unconstitutional as tax on business conducted as "federal instrumentality." Federal Compress & Warehouse Co. v. McLean (1934) 54 S. Ct. 267, 291 U. S. 17, 78 L. Ed. 622, aff (1933) 147 So. 325, 166 Miss. 739. § 244. License to warehouseman generally. The Secretary of Agriculture, or his designated representative, is authorized, upon application to him, to issue to any warehouseman a license for the conduct of a warehouse or warehouses in accordance with this chapter and such rules and regulations as may be made hereunder: Provided, That each such warehouse be found suitable for the proper storage of the particular agricultural product or products for which a license is applied for, and that such warehouseman agree, as a condition to the granting of the license, to comply with and abide by all the terms of this chapter and the rules and regulations prescribed hereunder. (As amended Mar. 2, 1931, c. 366, § 1, 46 Stat. 1463.) 1. In general Statute imposing license tax on warehousemen does not violate federal statute authorizing licensing of warehouses storing cotton for interstate commerce. Alabama Warehousing Co. v. State (Ala. 1933) 149 So. 843. § 246. Suspension and revocation of license of warehouseman generally. The Secretary of Agriculture, or his designated representative, may, after opportunity for hearing has been afforded to the licensee concerned, suspend or revoke any license to any warehouseman conducting a warehouse under this chapter, for any violation of or failure to comply with any provision of this chapter or of the rules and regulations made hereunder, or upon the ground that unreasonable or exorbitant charges have been made for services rendered. Pending investigation, the Secretary of Agriculture, or his designated representative, whenever he deems necessary, may suspend a license temporarily without hearing. (As amended Mar. 12, 1931, c. 366, § 8, 46 Stat. 1465.) § 247. Bond of applicant for warehouse license; additional bond. Each warehouseman applying for a license to conduct a warehouse in accordance with this chapter shall, as a condition to the granting thereof, execute and file with the Secretary of Agriculture a good and sufficient bond to the United States to secure the faithful performance of his obligations as a warehouseman under the terms of this chapter and the rules. and regulations prescribed hereunder, and of such additional obligations as a warehouseman as may be assumed by him under contracts with the respective depositors of agricultural products in such warehouse. Said bond shall be in such form and amount, shall have such surety or sureties, subject to 'service of process in suits on the bond within the State, District, or Territory in which the warehouse is located, and shall contain such terms and conditions as the Secretary of Agriculture may prescribe to carry out the purposes of this chapter, and may, in the discretion of the Secretary of Agriculture, include the requirements of fire and/or other insurance. Whenever the Secretary of Agriculture, or his designated representative, shall determine that a previously approved bond is, or for any cause has become, insufficient, he may require an additional bond or bonds to be given by the warehouseman concerned, conforming with the requirements of this section, and unless the same be given within the time fixed by a written demand therefor the license of such warehouseman may be suspended or revoked. (As amended Mar. 2, 1931, c. 366, § 2, 46 Stat. 1463.) 1. Obligations and liability; in general Petition against warehouseman and surety for breach of bond must show violation of warehouseman's statutory obligations. L. R. Sams Co., Inc., v. JewellLoudermilk Co. (1931) 157 S. E. 336, 42 Ga. App. 676. Warehouseman and surety liable to pledgee of receipts which are by state law negotiable. Maryland Casualty Co. v. Washington Loan & Banking Co. (1928) 145 S. E. 761, 167 Ga. 354. § 248. License to person not warehouseman; bond; general duties of person so licensed. The Secretary of Agriculture, or his designated representative, may, under such rules and regulations as he shall prescribe, issue a license to any person not a warehouseman to accept the custody of agricultural products, and to store the same in a warehouse or warehouses owned, operated, or leased by any State, upon condition that such person agree to comply with and abide by the terms of this chapter and the rules and regulations prescribed hereunder. Each person so licensed shall issue receipts for the agricultural products placed in his custody, and shall give bond, in accordance with the provisions of this chapter, and the rules and regulations hereunder affecting warehousemen licensed under this chapter, and shall otherwise be subject to this chapter, and such rules and regulations, to the same extent as is provided for warehousemen licensed hereunder. (As amended Mar. 2, 1931, c. 366, § 4, 46 Stat. 1464.) § 250. Designation as bonded warehouse. Upon the filing with and approval by the Secretary of Agriculture, or his designated representative, of a bond, in compliance with this chapter, for the conduct of a warehouse, such warehouse may be designated as bonded hereunder; but no warehouse shall be designated as bonded under this chapter, and no name or description conveying the impression that it is so bonded, shall be used, until a bond, such as provided for in section 247 of this chapter, has been filed with and approved by the Secretary of Agriculture, or his designated representative, nor unless the license issued under this chapter for the conduct of such warehouse remains unsuspended and unrevoked. amended Mar. 2, 1931, c. 366, § 3, 46 Stat. 1463.) (As § 251. Fee for inspection of warehouse or for license; disposition of moneys. The Secretary of Agriculture, or his designated representative, may charge, assess, and cause to be collected a reasonable fee for every examination or inspection of a warehouse under this chapter when such examination or inspection is made upon application of a warehouseman, and for each license issued to a warehouseman or to any person to classify, inspect, grade, sample, and/or weigh agricultural products stored or to be stored under the provisions of this chapter, the Secretary of Agriculture, or his designated representative, may charge, assess, and cause to be collected a reasonable fee. All such fees shall be deposited and covered into the Treasury as miscellaneous receipts. (As amended Mar. 2, 1931, c. 366, § 5, 46 Stat. 1464.) § 252. License to classify, grade, or weigh agricultural products. The Secretary of Agriculture, or his designated representative, may upon presentation of satisfactory proof of competency, issue to any person a license to inspect, sample, or classify any agricultural product or products, stored or to be stored in a warehouse licensed under this chapter, according to condition, grade, or otherwise and to certificate the condition, grade, or other class thereof, or to weigh the same and certificate the weight thereof, or both to inspect, sample, or classify and weigh the same and to certificate the condition, grade, or other class and the weight thereof, upon condition that such person agree to comply with and abide by the terms of this chapter and of the rules and regulations prescribed hereunder so far as the same relate to him. (As amended Mar. 2, 1931, c. 366, § 6, 46 Stat. 1464.) § 253. Suspension and revocation of license to classify, grade, or weigh. Any license issued to any person to inspect, sample, or classify, or to weigh any agricultural product or products under this chapter may be suspended or revoked by the Secretary of Agriculture, or his designated representa tive, whenever he is satisfied, after opportunity afforded to the licensee concerned for a hearing, that such licensee has failed to inspect, sample, or classify, or to weigh any agricultural product or products correctly, or has violated any of the provisions of this chapter or of the rules and regulations prescribed hereunder, so far as the same may relate to him, or that he has used his license or allowed it to be used for any improper purpose whatever. Pending investigation, the Secretary of Agriculture, or his designated representative, whenever he deems necessary, 'may suspend a license temporarily without hearing. (As amended Mar. 2, 1931, c. 366, § 7, 46 Stat. 1464.) § 255. Deposits of products deemed made subject to chapter § 259. Receipts for products stored 1. In general Bank held not bona fide purchaser of receipt issued for goods not actually in § 260. Contents of receipts 1. Notations of liens Petition to establish liens on cotton stated no cause of action, where alleging that plaintiff as warehouseman issued negotiable warehouse receipts for cotton to owner thereof without making notations of liens on receipts, and alleging that de federal courts of suits for value of cotton destroyed by fire while stored in warehouse licensed under this chapter. Young & Jones v. Hiawatha Gin & Mfg. Co. (D. C. Miss. 1927) 17 F. (2d) 193. generally storage. National Bank of Wilkes V. Maryland Casualty Co. (1929) 146 S. E. 739, 167 Ga. 737. fendant became holder of receipts, without showing that defendant took receipts with notice of plaintiff's liens, or that receipts were not acquired by defendant bona fide and for value. Southern Cotton Oil Co. v. Merchants' & Citizens' Bank (1934) 176 S. E. 392, 179 Ga. 556. § 262. Delivery of products stored on demand; conditions to delivery 1. Liability under state act Liability of warehouseman, operating state warehouse under Laws N. Car., 1921. c. 137 (C. S. Supp. 1924, §§ 4925a4925u), is that of insurer, this section and section 269 not limiting the state act. Lacy v. Hartford Accident & Indemnity Co. (1927) 136 S. E. 359, 193 N. C. 179. 2. Liability under this chapter Under this chapter a warehouseman is liable only for negligence or wilful act. Central States Grain Co-operative, Inc., v. Nashville Warehouse & Elevator Corporation (C. C. A. Ind. 1931) 48 F. (2d) 138. 3. Breach of bond Warehouseman cannot be charged with breach of bond for failure to deliver product in absence of offer to surrender negotiable receipt, though assigning different reason for failure to deliver product. L. R. Sams Co., Inc., V. JewellLoudermilk Co. (1931) 157 S. E. 336, 42 Ga. App. 676. Petition for warehouseman's breach of bond by failure to deliver cotton, not alleging demand was accompanied by offer to surrender negotiable receipts with indorsements, held insufficient. L. R. Sams Co., Inc., v. Jewell-Loudermilk Co. (1931) 157 S. E. 336, 42 Ga. App. 676. § 269. Cooperation with State authorities; authority of Secretary; operation of existing laws In the discretion of the Secretary of Agriculture he is authorized to cooperate with State officials charged with the enforcement of State laws relating to warehouses, warehousemen, weighers, graders, inspectors, samplers, or classifiers; but the power, jurisdiction, and authority conferred upon the Secretary of Agriculture under this chapter shall be exclusive with respect to all persons securing a license hereunder so long as said license remains in effect. This chapter shall not be construed so as to limit the operation of any statute of the United States relating to warehouses or to warehousemen, weighers, graders, inspectors, samplers, or classifiers now in force in the District of Columbia or in any Territory or other place under the exclusive jurisdiction of the United States. (As amended Mar. 2, 1931, c. 366, § 9, 46 Stat. 1465.) 1. Co-operation with state This chapter does not prevent state regulations of agricultural warehousemen, though tending to affect interstate or foreign commerce. Independent Gin & Warehouse Co. v. Dunwoody (C. C. A. Ala. 1930) 40 F. (2d) 1, affirming (D. C. 1928) 30 F. (2d) 306. This section does not prevent a licens ing of warehouses by a state. A court will not attempt to control the state warehouse system, but will leave the coordination of activities to the co-operation authorized by this section. Independent Gin & Warehouse Co. v. Dunwoody (D. C. Ala. 1928) 30 F. (2d) 306. 2. Liability under state act See note under section 262 of this title. § 270. Punishment generally for violation of provisions of chapter; reimbursement of owner of products converted. Every person who shall forge, alter, counterfeit, simulate, or falsely represent, or shall without proper authority use, any license issued by the Secretary of Agriculture, or his designated representative, under this chapter, or who shall violate or fail to comply with any provision of section 250 of this chapter, or who shall issue or utter a false or fraudulent receipt or certificate, or change in any manner an original receipt or certificate subsequently to issuance by a licensee, or any person who, without lawful authority, shall convert to his own use, or use for purposes of securing a loan, or remove from a licensed warehouse contrary to this chapter or the regulations promulgated thereunder, any agricultural products stored or to be stored in such warehouse, and for which licensed receipts have been or are to be issued, shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be fined not more than $10,000, or double the value of the products involved if such double value exceeds $10,000, or imprisoned not more than ten years, or both, in the discretion of the court, and the owner of the agricultural products so converted, used, or removed may, in the discretion of the Secretary of Agriculture, be reimbursed for the value thereof out of any fine collected hereunder, by check drawn on the Treasury at the direction of the Secretary of Agriculture, for the value of such products to the extent that such owner has not otherwise been reimbursed. That any person who shall draw with intent to deceive, a false sample of, or who shall willfully mutilate or falsely represent a sample drawn under this chapter, or who shall classify, grade, or weigh fraudulently, any agricultural products stored or to be stored under the provisions of this chapter, shall be deemed guilty of a misdemeanor, and upon conviction thereof fined not more than $500, or imprisoned for not more than six months, or both, in the discretion of the court. (As amended Mar. 2, 1931, c. 366, § defraud nor contain other allegations appropriate in cases of common law larceny. U. S. v. Hastings (1935) 56 8.Ct. 218, 296 U.S. 188, 80 L.Ed. 148. Where demurrer to indictment for removing and stealing cotton from licensed warehouse contrary to United States Warehouse Act was sustained on grounds that indictment failed to charge any offense, and failed to allege owner's name, fraudulent intent, and value of cotton, such grounds held to involve construction of Warehouse Act as creating offense with ingredients similar to those of commonlaw larceny, and hence District Court's decision was "based" on construction of act within statute authorizing government's appeal. U. S. v. Hastings (1935) 56 S.Ct. 218, 296 U.S. 188, 80 L.Ed. 148. CHAPTER 12.—ASSOCIATIONS OF PRODUCERS OF AGRICULTURAL PRODUCTS § 291. Authorization of association; powers generally 1. Anti-trust legislation The object of this chapter is primarily to insure cooperative associations that qualify thereunder_immunity from prosecution under the Federal antitrust laws. (1930) 36 Op. Atty. Gen. 326. 3. Interstate and foreign commerce Cooperative associations to be included in this chapter must be engaged in interstate and foreign commerce. (1930) 36 Op. Atty. Gen. 326. 4. Agricultural products Agricultural products do not include "naval stores" defined in section 92 of this title. (1930) 36 Op. Atty. Gen. 326. § 292. Monopolizing or restraining trade and unduly enhancing prices prohibited; remedy and procedure Federal Rules of Civil Procedure Application of Rules of Civil Proce dure, see Rule 81, following Title 28, Judicial Code and Judiciary, § 723c. |