purchase improvements or pay damages for removal of improvements located on public lands of the United States in the Anderson Ranch Reservoir site, Boise reclamation project, Idaho.

I recommend enactment of this proposed legislation.

The bill, if enacted by the Congress, would authorize the Secretary of the Interior to purchase improvements or to make payment of damages for the removal of improvements located on the public lands of the United States within the boundaries of the Anderson Ranch Reservoir, Boise reclamation project, Idaho. Amounts payable would not exceed the reasonable value of the improvements or the actual damages sustained from their removal. Payments would be made only to those persons, firms, or corporations who would be equitably entitled thereto within the meaning of the bill.

None of the persons to whom payments would be authorized by the bill is legally entitled to payment for the value of the improvements which he has erected. They are mere squatters on the public lands. However, there appear to be valid moral reasons for compensating some of them. Among those to whom payment of compensation might well be justified would be the persons who settled In the area many years prior to the authorization of the Anderson Ranch Reservoir. These people, as far as the records show, never attempted to establish a legal right to remain upon the lands in question. However, their undisturbed possession over a long period of years may have lulled them into a sense of security. Furthermore, they have been paying State and County personal property taxes on their improvements.

I am advised by the Director of the Bureau of the Budget that there is no objection to the presentation of this report to your committee.

Sincerely yours,

HAROLD L. ICKES,
Secretary of the Interior.

AMENDING FEDERAL NARCOTIC LAWS TO APPLY TO A RECENTLY DISCOVERED SYNTHETIC DRUG (ISONIPECAINE)

JUNE 1, 1944.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed

Mr. DOUGHTON, from the Committee on Ways and Means, submitted the following

REPORT

[To accompany H. R. 4881]

The Committee on Ways and Means, to whom was referred the bill (H. R. 4881) to amend the Internal Revenue Code, the Narcotic Drugs Import and Export Act, as amended, and the Tariff Act of 1930, as amended, to classify a new synthetic drug, and for other purposes, report favorably thereon with an amendment and recommend that the bill, as amended, do pass.

The amendment is as follows:

Page 5, lines 4 through 8, strike out the sentence "The word 'isonipecaine' as used in this paragraph shall mean any substance identified chemically as 1-methyl-4-phenyl-piperidine-4-carboxylic acid ethyl ester, or any salt thereof, by whatever trade name designated.", and substitute in lieu thereof the following:

The words "isonipecaine" and "marihuana" as used in this paragraph shall have the same meaning as defined in sections 3228 (e) and 3238 (b), respectively, of the Internal Revenue Code.

This bill is designed to meet the situation which requires prompt legislative action to make existing Federal narcotic laws applicable to a recently discovered synthetic drug. The committee has been advised that this synthetic drug has an effect similar to morphine upon the human organism, although it has no appreciable chemical similarity to morphine; and that scientific experimentation in this country has disclosed that this drug possesses addiction liability comparable to morphine.

The committee was advised that isonipecaine was first synthesized in Germany where it was called Eudolat. The name was later changed to Dolantin and it was first manufactured by Germany's I. G. Farbenindustrie under German patent No. 695,216. Demerol is the trade

mark name of the synthetic drug substitute for morphine manufactured in this country under United States patent No. 2,176,151 and distributed for sale throughout the United States by the owner of the patent, the Winthrop Chemical Co.

As "Demerol" has been trade-marked as a brand name, it should not be employed in legislation. It was necessary, therefore, to coin a name to fit this synthetic drug, which name would be descriptive of it. The term "isonipecaine" is deemed a suitable designation. Since this new synthetic drug belongs to the general class of alkaloids, of which morphine is a representative, the name should end in "ine", and as this drug is a derivative of a chemical known as isonipecotic acid, the first eight letters of this term should be used. The suffix is joined to it by the letter "a" for euphonic purposes. The term "isonipecaine" as defined in the bill would include the drug identified by the trade-mark Demerol and any derivative or salt thereof, by whatever trade name designated.

It has been reported that the Winthrop Chemical Co. is producing Demerol for distribution in the United States at a rate of 300 ounces daily, or approximately 240,000 ounces annually, while the production of morphine in this country is only 100,000 ounces annually.

Demerol is said to bear no chemical relationship to morphine or any other product obtained from opium, but it has definite morphinelike physiological characteristics and is recommended by its sponsors for use in the practice of medicine, in cases where morphine might be indicated, to accomplish the same purposes as morphine. The committee is informed that scientific experimentation has revealed that Demerol (identified as "isonipecaine" in the bill) possesses addiction liability comparable to morphine. There is attached as an appendix excerpts from the Journal of the American Medical Association and various clinical and pharmacological reports, which establish that Demerol possesses the liability of producing physical dependence similar to that caused by morphine and similar addiction liability. Therefore, it is believed that, unless subjected to the same enforcement control as morphine, the manufacture, distribution, and use of this new synthetic drug will soon be productive of serious abuses, with inevitable spread of drug addiction. This danger has already been recognized and steps have been taken to safeguard the distribution and use of this synthetic drug in several other countries where it has been introduced as a medicine. Isonipecaine, known under a variety of trade names, has been subjected to the same control as morphine in Canada, Argentina, Mexico, Brazil, Colombia, and even in Germany where the drug was discovered.

The bill would amend various sections of existing law to subject isonipecaine to the same restrictions as morphine with respect to manufacture, distribution, importation, and exportation. The most important of these restrictions is that of limiting retail sales to those made only pursuant to a practitioner's prescription issued in good faith for medical purposes.

The legislation has been recommended to the Congress by the Treasury Department and has the approval of the Bureau of the Budget. Your committee believes that the proposed legislation is meritorious and recommends its prompt passage.

EXPLANATION OF BILL

SECTION 1

Section 2550 of the Internal Revenue Code provides for a tax of 1 cent per ounce on opium, coca leaves, any compound, salt, derivative or preparation thereof, produced in or imported into the United States, and sold or removed for consumption or sale. This tax is represented by narcotic commodity tax stamps, which are to be affixed to the bottle or other container. Section 1 of the proposed bill would make the new synthetic drug, described as "Isonipecaine", and any compound, salt, derivative or preparation thereof, subject to this tax and the control incident thereto.

SECTION 2

Section 2553 of the Internal Revenue Code prohibits the purchasing, selling, dispensing, or distributing of certain drugs except in or from the original stamped package, and further provides that "the absence of appropriate tax paid stamps for any of the aforesaid drugs shall be prima facie evidence of a violation" by the person in whose possession same may be found. Section 2 of the proposed bill would correct an error in phraseology which appears in the above quotation. The word "for" appears therein, and the word "from" was originally enacted by the Revenue Act of 1918 (40 Stat. 1037, 1130). The correction of this word is desired to assure the statutory presumption of guilt provided for in the first instance by the Congress, and as held to be valid by the Supreme Court of the United States in Thomas J. Casey v. United States (1928, 276 U. S. 413).

SECTIONS 3 AND 9

Paragraphs 5 and 6 of section 2557 (b) of the Internal Revenue Code, derived from sections 1 and 2 of the act of August 12, 1937 (50 Stat. 627), and sections 1 and 2 of that act also codified in the United States Code, title 21, sections 200 and 200a, provide additional punishment for second, third, and subsequent offenses for selling, importing, or exporting, or conspiring to sell, import, or export, opium, coca leaves, cocaine, or any salt, derivative, or preparation thereof, in violation of the laws of the United States. Sections 3 and 9 of the proposed bill would add the synthetic drug called isonipecaine to the drugs enumerated above.

SECTION 4

Section 2558 of the Internal Revenue Code provides for the confiscation and disposal of opium, its salts, derivatives, and compounds, and coca leaves, salts, derivatives, and compounds thereof, seized by the Government from any person charged with any violation of the provisions of the Internal Revenue Code relating to narcotics and of the Narcotic Drugs Import and Export Act, as amended (U. S. C., title 21, secs. 171-185). Section 4 of the proposed bill would merely enlarge the scope of this section by adding the new synthetic drug identified as isonipecaine. This section of the proposed bill would also add the citations of three additional acts amending the Narcotic Drugs Import and Export Act to the list of acts enumerated therein that amend that act.

SECTIONS 5 AND 7

Section 3228 of the Internal Revenue Code defines several words as used in certain sections of the Internal Revenue Code pertaining to narcotics and coca leaves. Section 7 of the proposed bill would add to that section a definition of the word "Isonipecaine" as used in the sections of the Internal Revenue Code proposed to be amended. Section 5 of the proposed bill, which would amend section 2565 of the Internal Revenue Code, would add a necessary reference to section 3228. Isonipecaine would be defined to mean any substance identified chemically as 1-methyl-4-phenyl-piperidine-4-carboxylic acid ethyl ester, or any salt thereof, by whatever trade name designated. The common trade name in this country by which such substance is identified is Demerol, which is a trade-mark covering 1-methyl-4phenyl-piperidine-4-carboxylic acid ethyl ester.

SECTION 6

Sections 3220 and 3221 of the Internal Revenue Code require every person who imports, manufactures, produces, compounds, sells, deals in, dispenses, or gives away opium or coca leaves, or any compound, manufacture, salt, derivative, or preparation thereof, to register with the Collector of Internal Revenue and to pay an occupational tax. Section 6 of the proposed bill would require every such person who engages in such activities with isonipecaine, or any compound, manyfacture, salt, derivative, or preparation thereof, to comply with these restrictions.

SECTION 8

Section 1 of the Narcotic Drugs Import and Export Act, as amended (U. S. C., title 21, sec. 171), defines various terms as used in that act. The term "narcotic drug" is defined to mean opium, coca leaves, cocaine, or any salt, derivative, or preparation of opium, coca leaves, or cocaine. Section 8 of the proposed bill would add isonipecaine to the enumeration in this term, and define the word "Isonipecaine" as used therein.

SECTION 10

Section 10 of the proposed bill would amend section 584 of the Tariff Act of 1930, as amended (U. S. C., title 19, sec. 1584), by enlarging the scope of the penalty imposed by that section against vessels carrying unmanifested heroin, morphine, or cocaine so as to include isonipecaine. Section 584, at present, provides a penalty of $50 an ounce against the master or owner of a vessel upon which is found unmanifested heroin, morphine, or cocaine. In addition, section 10 of the proposed bill would enlarge, the scope of the penalty imposed against vessels carrying unmanifested smoking opium prepared for smoking, to include marihuana. The committee amendment is a technical amendment incorporating in the Tariff Act of 1930 a definition of the term marihuana and isonipecaine by reference to specific sections of the Internal Revenue Code. A penalty of $25 an ounce is imposed under existing law for unmanifested smoking opium. At the present time the only control over the importation of marihuana is an internal revenue tax. In view of the fact that marihuana grows