Regulations. prohibited; pen tion and the government of the country in which such matches were manufactured as shall satisfy the Secretary of the Treasury that they are not white phosphorus matches. The Secretary of the Treasury is authorized and directed to prescribe such regulations as may be necessary for the enforcement of the provisions of this section. Exportation SEC. 11. That after January first, nineteen hundred alty; confisca and fourteen, it shall be unlawful to export from the de- United States any white phosphorus matches. Any perexport- son guilty of violation of this section shall be fined not less than one thousand dollars and not more than five thousand dollars, and any white phosphorus matches exported or attempted to be exported shall be confiscated to the United States and destroyed in such manner as may be prescribed by the Secretary of the Treasury, who shall have power to issue such regulations to customs officers as are necessary to the enforcement of this section. struction ed. of branding, stamp ages; caution for violation. Marking, SEC. 12. That every manufacturer of matches shall ing of pack mark, brand, affix, stamp, or print, in such manner as label; penalties the Commissioner of Internal Revenue shall prescribe, on every package of white phosphorus matches manufactured, sold, or removed by him, the factory number required under section two of this act. Every such manufacturer who omits to mark, brand, affix, stamp, or print such factory number on such package shall be fined not more than fifty dollars for each package in respect of which such offense is committed. Every manufacturer of white phosphorus matches shall securely affix by pasting on each original package containing stamped packages of white phosphorus matches manufactured by him, a label, on which shall be printed, besides the number of the manufactory and the district in which it is situated, these words: "Notice. The manufacturer of the white phosphorus matches herein contained has complied with all the requirements of law. Every person is cautioned not to use again the stamps on the packages herein contained under the penalty provided by law in such cases." Every manufacturer of white phosphorus matches who neglects to affix such label to any original package containing stamped packages of white phosphorus matches made by him or sold or removed by or for him, and every person who removes any such label so affixed from any such original package, shall be fined not more than fifty dollars for each package in respect of which such offense is committed. things required Penalty. Omitting SEC. 13. That if any manufacturer of white phosand for doing phorus matches, or any importer or exporter of matches, things forbidden. shall omit, neglect, or refuse to do or cause to be done any of the things required by law in carrying on or conducting his business, or shall do anything by this act prohibited, if there be no specific penalty or punishment imposed by any other section of this act for the neglecting, omitting, or refusing to do, or for the doing or causing to be done, the thing required or prohibited, he shall be fined one thousand dollars for each offense, and all the white phosphorus matches owned by him or in which he has any interest as owner shall be forfeited to the United States. SEC. 14. That all fines, penalties, and forfeitures imposed by this act may be recovered in any court of competent jurisdiction. Jurisdiction. SEC. 15. That the Commissioner of Internal Revenue, Regulations. with the approval of the Secretary of the Treasury, may make all needful regulations for the carrying into effect of this act. existing law ap SEC. 16. That sections thirty-one hundred and sixty- Provisions four to thirty-one hundred and seventy-seven, thirty-one plicable. hundred and seventy-nine to thirty-two hundred and forty-three, thirty-three hundred and forty-six as amended, thirty-four hundred and twenty-nine as amended, thirty-four hundred and forty-five to thirtyfour hundred and forty-eight, thirty-four hundred and fifty to thirty-four hundred and sixty-three, all inclusive, of the Revised Statutes of the United States, and all other provisions and penalties of existing law relating to internal revenue so far as applicable, are hereby made to extend to and include and apply to the taxes imposed by this act and to the articles upon which and to the persons upon whom they are imposed. effect. SEC. 17. That this act shall take effect on July first, Date act takes nineteen hundred and thirteen, except as previously provided in this act; and except as to its application to the sale or removal of white phosphorus matches by the manufacturers, as to which it shall take effect on January first, nineteen hundred and fifteen. Regulations No. 32. Sec. CHAPTER FIFTEEN. UNITED STATES COTTON FUTURES ACT.1 1. Title of act. [Act August 11, 1916 (39 Stat. 476.)] 2. Definitions; act of official deemed 6. Mode of determining differences to 6A. Tax not to be levied on contracts complying with conditions prescribed, "Section Six A Contracts." 7. Bona fide spot markets; designation. 8. Bona fide spot markets; mode of Sec. 11. Tax to be paid by stamps. 14. Failure to pay tax or other viola- 15. Penalty; additional; United States attorneys to prosecute actions. 16. Testimony deemed material not to be withheld; exemption of witness from prosecution. 17. Payment of tax not to exempt from State laws, nor to prohibit tax by State or municipality. 18. Expenditure on previous appro priation. 19. Appropriation; publication of re- 20. Date of taking effect; contracts 21. 22. Effect of partial invalidity of act. 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: SEC. 1. That this act shall be known by the short title of the "United States cotton futures act." Title of act. act of official corporation. or SEC. 2. That, for the purposes of this act, the term Definitions; "contract of sale" shall be held to include sales, agree- deemed act of ments of sale, and agreements to sell. That the word association 66 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 inforcing the provisions of this act, the act, omission, or failure of any official, agent, or other person acting for or employed by 1 The cotton futures act of Aug. 18, 1914, was held to be unconstitutional in the case of Hubbard v. Lowe, 226 Fed. 135, but an appeal to the Supreme Court was afterwards dismissed. (See 242 U. S., 654.) The law was reenacted by the act of Aug. 11, 1916, an act making appropriations for the Department of Agriculture for the fiscal year ending June 30, 1917. Tax 2 per pound volved. Contracts cents be in writing. levied in to con 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. 3. That upon each contract of 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 cotton involved in any such contract. Subdivision 5, Schedule A, Title XI, act of February 24, 1919, imposes a tax of 2 cents upon each $100 in value of any product or merchandise sold on exchange for future delivery. Sections 3 and 4 contemplate making of contracts in accordance with usual rules of exchanges, and contract is not invalid because made by broker in own name, on own credit, without disclosing name of principal. (Hutton v. Terrill, 255 Fed., 860.) 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 contract, 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 contract or memorandum specify in bales the quantity of the cotton involved, without giving the weight, each bale shall, for the purposes of this act, be deemed to weigh five hundred pounds. Broker's seller's slip or buyer's slip, duly signed "by the party to be charged" in accordance with the rules of the exchange, is sufficient to prove a valid sale or purchase, and it is not essential that the contract be signed by both parties, or that both the seller's and buyer's slips shall be introduced in evidence. (Thorn v. Brown, 257 Fed., 519.) Where contracts for purchase and sale of cotton futures are made between brokers on an exchange, where brokers only can make such contracts, this section does not require that the contracts should show the names of the principals for whom they act. (Id.) Tax not to be SEC. 5. That no tax shall be levied under this act on tracts complying any contract of sale mentioned in section three hereof with conditions if the contract comply with each of the following condi prescribed. tions: 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 contract is to be fulfilled or settled: Provided, That middling shall be |