such review and the board grants his application. The decision of the board, upon such review, that the respondent has not violated section 15 of this Act shall be binding upon the Secretary under this Act. The President shall create and maintain an administrative board of review, and such board is hereby vested with the necessary jurisdiction, for the purposes of this paragraph. The board shall consist of five members appointed by the President for terms and subject to regulations prescribed by him. The President may remove any member of the board for cause. A majority vote shall prevail upon any motion before or upon any decision by the board.

(2) The Secretary is authorized to settle an apparent or found violation of this Act, upon the basis (a) of a suitable notice or warning to the respondent or (b) of a written agreement by the respondent to cease and desist from such violation, if the Secretary believes that such settlement satisfies the purposes of this Act. The Secretary may modify the procedure prescribed by subdivision (1) (a) of this section to permit a settlement accordingly.

CRIMINAL PROCEEDING

SEC. 20. (a) If the respondent ignores such notice of apparent violation, or if the respondent disregards such notice or warning for settlement, or if the respondent fails to carry out his said agreement, or if upon such administrative hearing or review the Secretary concludes that the respondent has violated section 15 of this Act and that the public interest requires a criminal proceeding with respect of such violation, then the Secretary is authorized to report such violation to the proper United States attorney for the institution of a criminal proceeding under his Act in the proper court of the United States. Such report shall be accompanied by a transcript of the administrative record of the matter, in complete or fairly summary form, authenticated under oath.

(b) Any person who violates any of the provisions of section 15 of this Act shall be guilty of a misdemeanor and shall, upon conviction thereof, be subject to the following penalties:

(1) In the case of a technical violation not dangerous to the public health or injurious to the purchasing public, the penalty shall be a fine of not more than $200.

(2) In the case of any other violation, not included within paragraph (3) of this subdivision, the penalty shall be a fine of not more than $1,000 or imprisonment for not more than six months, or both such fine and imprisonment; and, for a second or subsequent offense, the penalty shall be a fine of not more than $2,000 or imprisonment for not more than one year, or both such fine and imprisonment.

(3) In the case of a gross and willful violation highly dangerous to the public health, the penalty shall be a fine of not less than $1,000 nor more than $10,000 or imprisonment for not less than one year nor more than three years, or both such fine and imprisonment.

(c) (1) When construing and enforcing the provisions of this Act, the act, omission, or failure of any officer, employee, or agent of a person, within the scope of his office, employment, or agency, shall in each case be deemed to be the act, omission, or failure of such person, as well as that of the officer, employee, or agent.

(2) Whenever a corporation or association violates any of the provisions of this Act, such violation shall also be deemed to be the violation of any individual director, officer, or agent of the corporation or association who personally and knowingly ordered or committed such violation.

EXEMPTIONS PUBLISHERS, DEALERS, AND OTHERS

SEC. 21. (a) No person acting in the capacity of publisher, advertising agency, radio broadcast licensee, or any commercial disseminator of advertisement for another, shall be deemed in violation of section 15 of this Act because of his dissemination for another of any false advertisement of a food, drug, or cosmetic by another. But if any such person willfully refuses or neglects to disclose the name and post-office address of the party who caused him to disseminate any advertisement subject to investigation under this Act, upon written request by the Secretary or his representative duly designated for the purpose, such person shall be guilty of a misdemeanor and shall, upon conviction thereof, be subject to a fine of not more than $500 for each offense.

(b) No person acting in the capacity of a dealer shall be deemed in violation of section 15 of this Act because of his commerce in any adulterated or misbranded food, drug, or cosmetic secured by him from another, if its adulteration or misbranding occurred prior to the receipt of the article by such dealer and he has no knowledge of such adulteration or misbranding. But if any dealer willfully refuses or neglects to disclose the name and post-office address of the party from whom he secured any food, drug, or cosmetic subject to investigation under this Act, upon written request by the Secretary or his representative duly designated for the purpose, such dealer shall be guilty of a misdemeanor and shall, upon conviction thereof, be subject to a fine of not more than $500 for each offense.

(c) No person acting in the capacity of a dealer shall be prosecuted under this act with respect of any food, drug, or cosmetic secured by him from another person, residing in the United States, if he establishes a dated guaranty signed by and containing the post-office address of such other person, to the effect that the article when and as delivered by such other person is not adulterated or misbranded within the meaning of this act, designating it. Upon this guaranty and to the extent of it such other person shall be amenable to any prosecution and penalty which otherwise would attach in due course to the dealer under this act, with respect of the article and because of its adulteration or misbranding prior to his receipt of it. A guaranty made under this paragraph may be general and continuing or particular and limited in application.

LIBEL FOR CONDEMNATION PROCEEDING

SEC. 22. (a) Any food, drug, or cosmetic in commerce that is adulterated or misbranded in violation of this act shall be liable to be proceeded against on libel of information and to be se zed by process pursuant to the libel and to be condemned in any district court of the United States within the jurisdiction of which the article is found.

(b) If as a result of an investigation authorized by this act it appears that a food, drug, or cosmetic is adulterated or misbranded in violation of this act and that the public interest requires a libel for condemnation proceedings under this section with respect of such violation, to safeguard the public health or to protect the purchasing public from gross deception, the Secretary is authorized to report such violation to the proper United States attorney for the institution of such a proceeding in the proper district court of the United States. The Secretary may report such violation for such a proceeding without the preliminary administrative notice and hearing prescribed by section 19 (a) of this act, if he believes that the immediate institution of the proceeding is required in the public interest. Such report shall be supported by evidence of such violation, authenticated under cath.

(c) In any libel for condemnation proceeding under this section the court shall, by order at any time before trial, allow any party to such proceeding to obtain a representative sample of the article seized.

(d) Any food, drug, or cosmetic condemned in a proceeding under this section shall, after entry of the decree be disposed of by destruction or sale as the court may, in accordance with the provisions of this section, direct; except that the article shall not be sold under such decree contrary to the provisions of this act or any law of the jurisdiction in which sold. The proceeds of such sale, less the legal costs and charges, shall be paid into the Treasury of the United States: Provided, however, That after entry of the decree in such a proceeding and upon payment of the costs thereof and the execution of a good and sufficient bond conditioned that such article shall not be sold or disposed of contrary to the provisions of this act or the laws of any State or Territory, the court may by order direct that such article be delivered to the claimant, if any, to be destroyed or brought into compliance with the provisions of this act under the supervision of an officer or employee of the Department, duly designated by the Secretary for the purpose. The necessary expenses of such supervision shall be paid by the claimant obtaining release of the article under bond.

(e) The proceedings under this section shall conform, as nearly as may be, to the proceedings in admiralty; except that either party may demand trial by jury of any issue of fact joined in any suen case.

(f) When a decree of condemnation is entered against a food, drug, or cosmetic under this section, the court costs and fees and the storage and other proper expenses of the proceeding sha" be awarded against the person, if any, intervening as claimant of the article

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(g) A food, drug, or cosmetic shall be deemed to be in commerce, for the purposes of this section, (1) if it is in commerce, as defined in section 2 (d) of this Act; or (2) if it is in the course of transportation in commerce, as defined in section 2 (d) (1) of this Act; or (3) if it is in the course of shipment or delivery for shipment in such commerce; or (4) if, upon transportation or shipment in such commerce, it remains unloaded, unsold, or in the original unbroken package of such transportation or shipment; or (5) if it is sold, offered for sale, held for sale, or stored within the District of Columbia or within any Territory not organized with a legislative body.

INJUNCTION PROCEEDING

SEC. 23. The district courts of the United States are hereby vested with jurisdiction (a) to restrain by temporary injunction, drawn in appropriate form, a violation of section 15 of this Act, in issue before any such court in a criminal or libel for condemnation proceeding under this Act, if probable cause is shown that the public interest requires such injunction under this Act; and (b) to restrain by permanent injunction, drawn in appropriate form, a violation of section 15 of this Act with respect of which a final court judgment in favor of the United States has been entered in such a proceeding under this Act.

DUTY OF UNITED STATES ATTORNEYS

SEC. 24. (a) It shall be the duty of each United States attorney who receives from the Secretary a report of a violation of this Act for the institution of a recommended proceeding thereunder, supported by evidence authenticated under oath and satisfactory to the United States attorney of such violation, to cause an appropriate proceeding to be instituted accordingly in the proper court of the United States, without delay.

(b) It shall be the duty of each United States attorney who receives from any health, food, or drug officer of any State or Territory, or any political subdivision thereof, a report of a violation of this Act, supported by evidence authenticated under oath and satisfactory to the United States attorney of such violation and that the public interest requires a proceeding under this Act with respect thereof, to cause an appropriate proceeding to be instituted accordingly in the proper court of the United States, without delay.

(c) All suits instituted under this Act shall be by and in the name of the United States.

IMPORTS

SEC. 25. (a) The Secretary of the Treasury shall deliver to the Secretary of Agriculture, upon his request, a representative sample of a food, drug, or cosmetic which is being imported or offered for import into the United States. The owner or consignee of such article shall be notified accordingly and shall receive a representative part of such sample, unless that is impracticable. If it appears from the examination of such sample that the food, drug, or cosmetic is adulterated or misbranded within the meaning of this Act, notice of such apparent violation shall be given to the owner or consignee of the article, hereinafter called the "respondent." The notice shall state such violation in sufficient detail to inform the respondent of it and shall fix a reasonable time and place of hearing upon it, before the Secretary of Agriculture or his representative authorized for the purpose, hereinafter called the "presiding officer." The respondent shall have the right to appear at such hearing and to show cause why the article should not be denied admission into the United States. Upon the hearing the presiding officer shall make a written report of the examination and hearing containing his finding and his reasons for it. A copy of such report shall be forthwith given to the respondent. If the report contains a finding that the article is adulterated or misbranded within the meaning of this Act, the respondent shall have the right of a review of such report by the board described in section 19 of this Act, provided he makes a prompt application to the board for such review and the board grants his application. The decision of the board, upon such review, that the article is not adulterated or misbranded within the meaning of this Act shall be binding upon the Secretary of Agriculture and the Secretary of the Treasury under this Act. (b) If the respondent ignores such notice of apparent violation or if upon such hearing or review the Secretary of Agriculture concludes that the article is adulterated or misbranded within the meaning of this Act, then such article

shall be denied admission into the United States unless it is brought into compliance with the Act as prescribed by regulations made under this section. (c) The Secretary of the Treasury shall refuse delivery to the consignee of any food, drug, or cosmetic so denied admission into the United States and shall cause the destruction of such article, unless the article is exported by the consignee within three months from the date of notice of such refusal, as prescribed by regulations made under this section: Provided, That the Secretary of the Treasury may deliver such article to the consignee, pending examination and decision in the matter, on execution of a bond as liquidated damages for the amount of the full invoice value of the article together with the duty thereon, and on refusal to return such article or any part thereof for any cause to the custody of the Secretary of the Treasury, when demanded, for the purpose of excluding it from the country or for any other purpose under this Act, said consignee shall forfeit the full amount of the bond as liquidated damages.

(d) All charges for storage, cartage, and labor on any article which is denied admission or refused delivery, under this section, shall be paid by the owner or consignee thereof and, in default of such payment, shall constitute a lien against any future importations made by such owner or consignee.

(e) The Secretary of the Treasury and the Secretary of Agriculture shall jointly make and promulgate reasonable regulations necessary for the efficient and effective administration of this section. Such regulations shall be promulgated upon public hearing held not less than thirty days after the notice of such hearing and shall be effective on a date fixed by the Secretary of Agriculture.

PUBLICITY

SEC. 26. (a) The Secretary shall cause to be published periodically explanatory reports of all judgments, decrees, and orders by the courts, under this Act. The report of any such judgment, decree, or order shall state any formal action taken to secure a review thereof by a higher court, if the action is known at the time such report is prepared.

(b) The Secretary shall cause to be published periodically general reports summarizing administrative opinions, advices, announcements, and orders made under this Act.

(c) The Secretary is authorized to disseminate general and correct information regarding food, drugs, or cosmetics, consistent with the provisions of this Act and necessary to safeguard the public health or to protect the purchasing public from fraud: Provided, That such information shall not refer by trade name or otherwise to a particular food, drug, or cosmetic unless and until it has been finally adjudged adulterated or misbranded in a court proceeding under this Act, except in cases actually involving imminent danger to public health or gross deception of the purchasing public.

SEPARABILITY CLAUSE

SEC. 27. If any provision of this Act is declared unconstitutional, or the applicability thereof to any person or circumstances is held invalid, the constitutionality of the remainder of the Act and the applicability thereof to other persons and circumstances shall not be affected thereby.

EFFECTIVE DATE AND REPEALS

SEC. 28. (a) This Act shall take effect six months after the date of approval. The Federal Food and Drugs Act of June 30, 1906, as amended (U.S.C., title 21, sees. 1-15), shall remain in force until such effective date, and except as otherwise provided in this paragraph, is hereby repealed, effective upon such date: Provided, That upon the approval of this Act and before its effective date the Secretary is authorized to conduct hearings and to promulgate regulations under the provisions hereof which shall become effective on or after the effective date of this Act as the Secretary shall direct: Provided further, That the Act of March 4, 1923 (U.S.C., title 21, sec. 6; 42 Stat. 1500, ch. 268), defining butter and providing a standard therefor, and the Act of July 24, 1919 (U.S.C., title 21, sec. 10; 41 Stat. 271, ch. 26), defining wrapped meats as in package form, shall remain in force and effect and be applicable to the provisions of this Act.

(b) The provisions of this Act shall not be held to modify or repeal any of the existing laws of the United States except as provided by paragraph (a) of this section.

The CHAIRMAN. The first gentleman who will appear is Mr. C. C. Parlin of Philadelphia, representing the National Publishers' Association.

STATEMENT OF CHARLES COOLIDGE PARLIN, OF THE CURTIS PUBLISHING CO., PHILADELPHIA, REPRESENTING THE NATIONAL PUBLISHERS' ASSOCIATION

The CHAIRMAN. Mr. Parlin, you requested to be allowed to speak for 3 minutes.

Mr. PARLIN. Thank you, sir.

The CHAIRMAN. We will hear you now.

Mr. PARLIN. Thank you, sir.

I speak for the National Publishers' Association, which is composed of approximately 150 periodical publications, including most of the leading magazines and a large number of trade papers, with approximately 50,000,000 circulation. Since we thought it necessary at the public hearing on S. 1944 to object to various provisions of that bill, we have asked permission to read into your records a resolution adopted by a committee of the National Publishers' Association relative to the revised Senate bill 2000 (now S. 2800).

RESOLUTION ADOPTED BY A COMMITTEE OF NATIONAL PUBLISHERS' ASSOCIATION, FEBRUARY 14, 1934

We believe that those provisions of S. 2000 on which we feel competent to express an opinion are satisfactory. We therefore recommend to the members of the National Publishers' Association not to oppose the passage of Copeland bill S. 2000.

On provisions which manufacturers are more competent than we to express an opinion we recommend full consideration for amendments which manufacturers may offer.

If any amendment materially changing the meaning of provisions which have special interests to publishers be adopted we reserve the right to alter this recommendation.

That is signed by Lee W. Maxwell, chairman, The Crowell Publishing Co.; Stanley R. Latshaw, The Butterick Co.; Roy Dickinson, Printer's Ink; Charles Coolidge Parlin, The Curtis Publishing Co.; E. H. McHugh, International Magazine Co.; Robert L. Johnson, Time, Inc.; O. J. Elder, Macfadden Publications; John C. Sterling, McCall Corporation.

The CHAIRMAN. Mr. Parlin, you stated there that you endorsed S. 2000. S. 2800 is the revised Copeland bill.

Mr. PARLIN. It was the revised S. 2000. That is the bill that is now S. 2800, is the bill that we had in mind. We did not have the number.

The CHAIRMAN. What you have said about S. 2000 relates to S. 2800?

Mr. PARLIN. We mean to apply that to S. 2800.

The CHAIRMAN. Yes. All right.

Mr. PARLIN. In that resolution we did not have the number, and we saw fit to enter our resolution, as we made it, and not to revise the number.

Senator VANDENBERG. Just what do you mean by the reference to the manufacturers? Do you mean that if the manufacturers objected to the bill you would have some doubts about it yourself?