Public Law 73–263

That section 11 of the Agricultural Adjustment Act, as amended, is amended by adding after the word “tobacco” a comma and the words “sugar beets and sugarcane”, followed by a comma.

Sec. 2.

Subsection (d) of section 9 of the Agricultural Adjustment

Ante, p. 38.

Definitions.

Ante, p. 36.

Act, as amended, is amended by adding after paragraph (5)thereof the following:

“(6)“(6)

In the case of sugar beets and sugarcane—

“(A)“(A)

The term ‘first domestic processing’ means each domestic

“First domestic processing.”

processing, including each processing of successive domestic processings, of sugar beets, sugarcane, or raw sugar, which directly results in direct-consumption sugar.

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“(B)“(B)

The term ‘sugar’ means sugar in any form whatsoever,

“Sugar.”

derived from sugar beets or sugarcane, whether raw sugar or direct-consumption sugar, including also edible molasses, sirups and any mixture containing sugar (except blackstrap molasses and beet molasses).

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“(C)“(C)

The term ‘blackstrap molasses’ means the commercially so-designated

“Blackstrap molasses.”

‘byproduct’ of the cane-sugar industry, not used for human consumption or for the extraction of sugar.

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“(D)“(D)

The term ‘beet molasses’ means the commercially so-designated

“Beet molasses.”

‘byproduct’ of the beet-sugar industry, not used for human consumption or for the extraction of sugar.

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“(E)“(E)

The term ‘raw sugar’ means any sugar, as defined above,

“Raw sugar.”

manufactured or marketed in, or brought into, the United States, in any form whatsoever, for the purpose of being, or which shall be, further refined (or improved in quality, or further prepared for distribution or use).

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“(F)“(F)

The term ‘direct-consumption sugar’ means any sugar, as

“Direct-consumption sugar.”

defined above, manufactured or marketed in, or brought into, the United States in any form whatsoever, for any purpose other than to be further refined (or improved in quality, or further prepared for distribution or use).

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“(G)“(G)

The term ‘raw value’ means a standard unit of sugar testing

“Raw value.”

ninety-six sugar degrees by the polariscope. All taxes shall be imposed and all quotas shall be established in terms of ‘raw value’ and for purposes of quota and tax measurements all sugar shall be translated into terms of ‘raw value’ according to regulations to be issued by the Secretary, except that in the case of direct-consumption sugar produced in continental United States from sugar beets the raw value of such sugar shall be one and seven one-hundredths times the weight thereof.”

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Sec. 3.

Sec. 4.

Section 8 of the Agricultural Adjustment Act, as amended,

Commodity benefits.

Ante, p. 35.

is amended by adding at the end thereof the following new section:

“Sec. 8a.

(1)(1)

Having due regard to the welfare of domestic

Standards for exercise of powers by Secretary of Agriculture.

producers and to the protection of domestic consumers and to a just relation between the prices received by domestic producers and the prices paid by domestic consumers, the Secretary of Agriculture may, in order to effectuate the declared policy of this Act, from time to time, by orders or regulations—

“(A)“(A)

(i)(i)

Forbid processors, handlers of sugar, and others from

Quotas to be fixed.

Orders forbidding importing, processing, etc., in excess of.

importing sugar into continental United States for consumption, or which shall be consumed, therein, and/or from transporting to, receiving in, processing or marketing in, continental United States, and/or from processing in any area to which the provisions of this title with respect to sugar beets and sugarcane may be made applicable, for consumption in continental United States, sugar from the Virgin Islands, the Philippine Islands, the Canal Zone, American Samoa, the island of Guam, and from foreign countries, including Cuba, respectively, in excess of quotas fixed by the Secretary of Agriculture, for any calendar year, based on average quantities therefrom brought into or imported into continental United States

Determination of quotas.

for consumption, or which was actually consumed, therein, during such three years, respectively, in the years 1925–1933, inclusive, as the Secretary of Agriculture may, from time to time, determine to be the most representative respective three years, adjusted, together

Adjustment.

with the quotas established pursuant to paragraph (ii), (in such manner as the Secretary shall determine) to the remainder of the total estimated consumption requirements of sugar for continental United States, determined pursuant to subsection (2) of this section, after deducting therefrom the quotas for continental United States, provided for by paragraph (B) of this subsection: Provided, however,

Provisos.

Direct-consumption sugar from insular possessions included.

That in such quotas there may be included, in the case of the Virgin Islands, the Philippine Islands, the Canal Zone, American Samoa, and the island of Guam, direct-consumption sugar up to an amount not exceeding the respective quantities of direct-consumption sugar therefrom brought into or imported into continental United States for consumption, or which was actually consumed, therein during the year 1931, 1932, or 1933, whichever is greater, and in the case of Cuba, direct-consumption sugar up to an amount not exceeding

From Cuba.

22 per centum of the quota established for Cuba: And provided further, That any imported sugar, with respect to which a drawback

Imports where drawback allowed deemed nonquota.

Vol. 46, p. 693.

of duty is allowed, under the provisions of section 313 of the Tariff Act of 1930, shall not be charged against the quota established by the Secretary of Agriculture hereunder for the country from which such sugar was imported, and the Secretary of Agriculture may, by orders or regulations, readjust any quota subject to the provisions

Readjustments permitted.

of this section, except quotas fixed by paragraph (B) of this subsection; and may allot (or appoint an officer, including the Governor

Allotments; delegation of authority.

General of the Philippine Islands for that area, in his name to allot) any quota, and readjust any such allotment, from time to time, among the processors, handlers of sugar and others; and/or

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“(ii)“(ii)

Forbid processors, handlers of sugar, and others from transporting

Hawaii and Puerto Rico.

to, receiving in, processing or marketing in, continental United States, and/or from processing in the Territory of Hawaii

Quotas of; importing in excess of, forbidden.

or Puerto Rico for consumption in continental United States, sugar from the Territory of Hawaii or Puerto Rico, in excess of quotas fixed by the Secretary of Agriculture, for any calendar year, based on average quantities therefrom brought into continental United States for consumption, or which was actually consumed, therein during such three years, respectively, in the years 1925–1933, inclusive,

Determination of quotas.

as the Secretary of Agriculture may, from time to time, determine to be the most representative respective three years, adjusted,

Adjustment.

together with the quotas established pursuant to paragraph (i), (in such manner as the Secretary shall determine) to the remainder of the total estimated consumption requirements of sugar for continental United States, determined pursuant to subsection (2) of this section, after deducting therefrom the quotas for continental United States, provided for by paragraph (B) of this subsection: Provided, however, That in such quotas there may be included

Proviso.

Direct-consumption sugar included.

direct-consumption sugar up to an amount not exceeding the respective quantities of direct-consumption sugar therefrom brought into continental United States for consumption, or which was actually consumed, therein during the year 1931, 1932, or 1933, whichever is greater, and the Secretary of Agriculture may, by orders or regulations, allot such quotas and readjust any such allotment, from time to time, among the processors, handlers of sugar, and others; and/or

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“(B)“(B)

Forbid processors, handlers of sugar, and others from marketing

Sugar from continentally produced beets or cane.

in, or in the current of, or in competition with, or so as to burden, obstruct, or in any way affect, interstate or foreign commerce,

Orders forbidding interference in commerce in excess of quotas.

sugar manufactured from sugar beets and/or sugarcane, produced in the continental United States beet-sugar-producing area, the States of Louisiana and Florida, and any other State or States in excess of the following quotas, for any calendar year, except as

Quotas.

provided for in subsection (2) of this section: United States beet-sugar

Beet-sugar area.

area, one million five hundred and fifty thousand short tons raw value; the States of Louisiana and Florida, except as may be

Louisiana and Florida.

provided under paragraph (C) of this subsection, two hundred and sixty thousand short tons raw value; and the Secretary of Agriculture

Allotments and readjustments.

may, by orders or regulations, allot such quotas and readjust any such allotment, from time to time, among the processors, handlers of sugar, and others; and/or

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“(C)“(C)

For any calendar year, determine the quota, but not less

Quotas for small areas; raw value basis.

than the quota provided in paragraph (B), for any area producing less than two hundred and fifty thousand long tons of sugar raw value during the next preceding calendar year; and/or

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“(D)“(D)

Establish a separate quota or quotas for edible molasses

Separate quotas for sirups and for sugar mixtures.

and/or sirup of cane juice produced in continental United States, in addition to, and/or for edible molasses, sirups, and sugar mixtures produced in any other area or areas to which this title relates,

Deemed part of, or addition to other designated quotas.

as part of or in addition to, the quotas established pursuant to paragraphs (A) to (C), inclusive, of this subsection, for use as such and not for the extraction of sugar.

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“(2)“(2)

(A)(A)

The consumption requirements of sugar for continental

Consumption requirements; adjusting quotas in relation thereto.

United States, for the calendar year 1934, and for each succeeding calendar year, shall be determined by the Secretary of Agriculture from available statistics of the Department of Agriculture. The consumption requirements so determined shall, at such intervals as the Secretary finds necessary to effectuate the declared policy and the purposes of this Act, be adjusted by him to meet the actual requirements of the consumer as determined by the Secretary.

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“(B)“(B)

In the event that available statistics of the Department of

Proration of excess if consumption requirements exceed estimate.

Agriculture during the course of any calendar year indicate that the consumption requirements of sugar for continental United States for such calendar year will exceed the amount of the consumption requirements determined for that year, the Secretary of Agriculture may prorate such estimated excess amount on the basis of the respective quotas determined by and pursuant to subsection (1) of this section: Provided, however, That for each calendar year there shall

Proviso.

Allotment to continental United States.

be allotted to continental United States not less than 30 per centum of any amount of consumption requirements therefor above six million four hundred and fifty-two thousand short tons raw value.

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“(C)“(C)

In the event that available statistics of the Department of

Proration of consumption requirements, when found less than estimate.

Agriculture during the course of any calendar year indicate that the consumption requirements of sugar for continental United States for such year will be less than the amount of the consumption requirements determined for that year, the amount of such deficiency may be proportionately deducted from the respective quotas determined by and pursuant to paragraph (A) of subsection (1) of this section.

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“(D)“(D)

If, during any calendar year, any producing area is unable

Proration when deficiency in producing area.

to produce and deliver its full quota of sugar, the Secretary of Agriculture may prorate this deficiency among the other areas on the basis of their respective quotas and ability to supply the deficiency.

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“(E)“(E)

Notwithstanding the provisions of paragraphs (A) to (C),

Deduction of surplus stock from quota.

inclusive, of subsection (1) of this section, the Secretary of Agriculture may, in order to effectuate the declared policy of this Act, from time to time, by orders or regulations, deduct from the quotas for production, importing, receiving, and/or marketing, and/or from the allotments thereof, established pursuant to said paragraphs, in any given year, an amount for each year, respectively, representing the surplus stocks of sugar produced in that area, or a portion of the total surplus stocks of sugar produced in that area, in whole or in part, which may have accumulated in the year next preceding, over and above the quotas established for such year.

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“(3)“(3)

In order more fully to effectuate the declared policy of this

Child labor.

Agreements to limit or regulate.

Act, as set forth in its declaration of policy, and to insure the equitable division between producers and/or growers and/or the processors of sugar beets or sugarcane of any of the proceeds which may be derived from the growing, processing and/or marketing of such sugar beets or sugarcane, and the processing and/or marketing of the products and byproducts thereof, all agreements authorized by this Act relating to sugar beets, sugarcane, or the products thereof may contain provisions which will limit or regulate child labor, and will fix minimum wages for workers or growers employed by the

Minimum wage provisions.

producers and/or processors of sugar beets and/or sugarcane who are parties to such agreements; and the Secretary, upon the request of any producer, or grower, or worker, or of any association of producers, or growers, or workers, or of any processor, of sugar beets or sugarcane, is hereby authorized to adjudicate any dispute as to

Adjudicating disputes.

any of the terms under which sugar beets or sugarcane are grown or are to be grown and/or marketed, and the sugar and byproducts thereof are to be marketed. The decision and any determination of

Secretary’s decision final.

the Secretary shall be final.

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“(4)“(4)

Any person willfully violating any order or regulation of

Penalties, etc.

Violating Secretary’s orders, etc.

the Secretary of Agriculture issued under this section shall, upon conviction, be punished by a fine of not more than $100.

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“(5)“(5)

Any person willfully exceeding any quota or allotment fixed

Willfully exceeding quota, etc.

for him under this title by the Secretary of Agriculture, and any other person knowingly participating, or aiding, in the exceeding of said quota or allotment, shall forfeit to the United States a sum equal to three times the current market value of such excess, which forfeiture shall be recoverable in a civil suit brought in the name of the United States.

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“(6)“(6)

The several district courts of the United States are hereby

Jurisdiction vested in district courts.

vested with jurisdiction specifically to enforce, and to prevent and restrain any person from violating, the provisions of this section, or of any order, regulation, agreement, or license heretofore or hereafter made or issued pursuant to this title, in any proceeding now pending or hereafter brought in said courts.

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“(7)“(7)

Upon the request of the Secretary of Agriculture, it shall be the

District attorneys to institute enforcement proceedings.

duty of the several district attorneys of the United States, in their respective districts, under the directions of the Attorney General, to institute proceedings to enforce the remedies and to collect the forfeitures provided for in, or pursuant to, this title.

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“(8)“(8)

The remedies provided for in this section shall be in addition

Remedies.

to, and not exclusive of, any of the remedies or penalties provided for elsewhere in this title or now or hereafter existing at law or in equity.

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“(9)“(9)

The term ‘person’ as used in this title includes an individual,

“Person” defined.

partnership, corporation, association, and any other business unit.”

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Sec. 5.

Paragraph (6) of subsection (d) of section 9 of the Agricultural

Ante, pp. 528, 670.

Adjustment Act, as amended, is hereby renumbered (7).

Sec. 6.

Section 9 of the Agricultural Adjustment Act, as amended,

Ante, p. 37.

Post, p. 1242.

is amended, by adding after subsection (e) thereof the following new subsection:

“(f)“(f)

For the purposes of part 2 of this title, processing shall be

“Processing” includes manufacturing.

held to include manufacturing.”

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Sec. 7.

Subsection (f) of section 10 of the Agricultural Adjustment

Ante, p. 37.

Application of title to possession of U.S.

Act, as amended, is amended by striking out the period at the end of such subsection and adding a semicolon and the following: “except that, in the case of sugar beets and sugarcane, the President, if he finds it necessary in order to effectuate the declared policy of this Act, is authorized by proclamation to make the provisions of this title applicable to the Philippine Islands, the Virgin Islands, American Samoa, the Canal Zone, and/or the island of Guam.”

Sec. 8.

Section 15 of the Agricultural Adjustment Act, as amended,

Ante, p. 39.

is amended by adding at the end thereof the following new subsection:

“(f)“(f)

The President, in his discretion, is authorized by proclamation

Processing tax collected in insular possessions, etc.

to decree that all or part of the taxes collected from the processing of sugar beets or sugarcane in Puerto Rico, the Territory of Hawaii, the Philippine Islands, the Virgin Islands, American Samoa, the Canal Zone, and/or the island of Guam (if the provisions of this title are made applicable thereto), and/or upon the processing in continental United States of sugar produced in, or coming from, said areas, shall not be covered into the general fund of the Treasury

Discretionary maintenance as separate fund.

Expenditure for benefit of local agriculture.

of the United States but shall be held as a separate fund, in the name of the respective area to which related, to be used and expended for the benefit of agriculture and/or paid as rental or benefit payments in connection with the reduction in the acreage, or reduction in the production for market, or both, of sugar beets and/or sugarcane, and/or used and expended for expansion of markets and for removal of surplus agricultural products in such areas, respectively, as the Secretary of Agriculture, with the approval of the President, shall direct.”

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Sec. 9.

Sec. 10.

Section 16 (a) (1) of the Agricultural Adjustment Act, as amended, is amended by inserting at the end thereof the following:

“Such tax upon articles imported prior to, but in customs custody

Floor stocks.

Tax payments on, before release from customs.

Payments in case of sugar.

or control on, the effective date, shall be paid prior to release therefrom. In the case of sugar, the tax on floor stocks, except the retail stocks of persons engaged in retail trade, shall be paid for the month in which the stocks are sold, or used in the manufacture of other articles, under rules and regulations prescribed by the Commissioner of Internal Revenue with the approval of the Secretary of the Treasury.”

Sec. 11.

Section 15 (e) of the Agricultural Adjustment Act, as

Ante, p. 40.

Equalizing tax on imports.

amended, is amended by striking out in lines 3 and 4 the words “in chief value”, and inserting in lieu thereof the word “partly”; by inserting in line 7, after the comma following the word “apply”, the words “whether imported as merchandise, or as a container of merchandise, or otherwise” followed by a comma; and by inserting in line 9, after the word “processing”, the words “of such commodity”.

Ante, p. 40.

Sec. 12.

Section 17 (a) of the Agricultural Adjustment Act, as amended, is amended, effective as of the date of the enactment of the said Act, to read as follows:

Exportation of taxpaid product.

“(a)“(a)

Upon the exportation to any foreign country (and/or to

Refunds authorized.

the Philippine Islands, the Virgin Islands, American Samoa, the Canal Zone, and the island of Guam) of any product with respect to which a tax has been paid under this title, or of any product processed wholly or partly from a commodity with respect to which product or commodity a tax has been paid under this title, the tax due and paid shall be refunded. The refund shall be paid to the exporter or to the consignor named in the bill of lading under which the product is exported, as determined under regulations prescribed by the Commissioner of Internal Revenue, with the approval of the

Applicability to exports to certain U.S. possessions.

Secretary of the Treasury. In the case of sugar beets and sugarcane, this subsection shall be applicable to exports of products thereof to the Philippine Islands, the Virgin Islands, American Samoa, the Canal Zone, and/or the island of Guam only if this title

“Product” defined.

with respect to sugar beets and sugarcane is not made applicable thereto. The term ‘product’ includes any product exported as

Processing for exportation.

Ante, p. 41.

merchandise, or as a container for merchandise, or otherwise.”

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Sec. 13.

Section 17 (b) of the Agricultural Adjustment Act, as amended, is amended by striking out in line 6 the words “in chief

Commodity benefits.

Ante, p. 34.

value” and inserting in lieu thereof the word “partly”.

Sec. 14.

Subsection (1) of section 8 of the Agricultural Adjustment Act, as amended, is amended by striking out the period at the end of the first sentence, and inserting in lieu thereof a semicolon

Payments in case of sugar beets or sugarcane.

and the following: “and, in the case of sugar beets or sugarcane, in the event that it shall be established to the satisfaction of the Secretary of Agriculture that returns to growers or producers, under the contracts for the 1933–1934 crop of sugar beets or sugar-cane, entered into by and between the processors and producers and/or growers thereof, were reduced by reason of the payment of the processing tax, and/or the corresponding floor-stocks tax, on sugar beets or sugarcane, in addition to the foregoing rental or benefit payments, to make such payments, representing in whole or in part such tax, as the Secretary deems fair and reasonable, to

Producers agreeing to acreage reduction.

producers who agree, or have agreed, to participate in the program for reduction in the acreage or reduction in the production for market, or both, of sugar beets or sugarcane.”

Sec. 15.

Section 13 of the Agricultural Adjustment Act, as

Duration of tax; termination of powers.

amended, is amended by inserting after the first sentence thereof the following: “In the case of sugar beets and sugarcane, the taxes provided

Ante, p. 39.

by this title shall cease to be in effect, and the powers vested in the President or in the Secretary of Agriculture shall terminate at the end of three years after the adoption of this amendment unless this title ceases to be in effect at an earlier date, as herein-above provided.”

Sec. 16.

The Agricultural Adjustment Act, as amended, is

Ante, p. 41, amended.

amended by the addition of the following new section numbered “20”:

“Sec. 20.

(a)(a)

Whoever in connection with the purchase of, or offer

Penalty provisions.

False representations.

to purchase, any commodity, subject to any tax under this title, or which is to be subjected to any tax under this title, makes any statement, written or oral, (1) intended or calculated to lead any person to believe that any amount deducted from the market price or the agreed price of the commodity consists of a tax imposed under this title, or (2) ascribing a particular part of the deduction from the market price or the agreed price of the commodity, to a tax imposed under this title, knowing that such statement is false or that the tax is not so great as the amount deducted from the market price or the

Deductions in market price.

agreed price of the commodity, ascribed to such tax, shall be guilty of a misdemeanor and, upon conviction thereof, shall be punished by

Punishment for.

a fine of not more than $1,000 or by imprisonment for not exceeding six months, or both.

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“(b)“(b)

Whoever in connection with the processing of any commodity

Statements concerning processing.

subject to any tax under this title, whether commercially, for toll, upon an exchange, or otherwise, makes any statement, written or oral, (1) intended or calculated to lead any person to believe that any part of the charge for said processing, whether commercially, for toll, upon an exchange, or otherwise, consists of a tax imposed under this title, or (2) ascribing a particular part of the charge for processing, whether commercially, for toll, upon an exchange, or otherwise, to a tax imposed under this title, knowing that such statement is false, or that the tax is not so great as the amount charged for said processing ascribed to such tax, shall be guilty of a misdemeanor, and upon conviction thereof, shall be punished by a fine of not more than $1,000 or by imprisonment for not exceeding six months, or both.

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“(c)“(c)

Whoever in connection with any settlement, under a contract

Misstatements concerning gross sales.

to buy any commodity, and/or to sell such commodity, or any product or byproduct thereof, subject to any tax under this title, makes any statement, written or oral, (1) intended or calculated to lead any person to believe that any amount deducted from the gross sales price, in arriving at the basis of settlement under the contract, consists of a tax under this title, or (2) ascribing a particular amount deducted from the gross sales price, in arriving at the basis of settlement under the contract, to a tax imposed under this title, knowing that such statement is false, or that the tax is not so great as the amount so deducted and/or ascribed to such tax, shall be guilty of a misdemeanor, and, upon conviction thereof, shall be punished by a fine of not more than $1,000 or by imprisonment for not exceeding six months, or both.”

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Sec. 17.

Section 16 of the Agricultural Adjustment Act, as

Floor stocks.

amended, is amended by adding the following new subsections:

Ante, p. 40.

Prior imports, duty paid.

“(c)“(c)

(1) Any sugar, imported prior to the effective date of a processing tax on sugar beets and sugarcane, with respect to which it is established (under regulations prescribed by the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury) that there was paid at the time of importation a duty at the rate in effect on January 1, 1934, and (2) any sugar held on

Sugar held under contract.

April 25, 1934, by, or to be delivered under a bona fide contract of sale entered into prior to April 25, 1934, to, any manufacturer or converter, for use in the production of any article (except sugar) and not for ultimate consumption as sugar, and (3) any article

Processed from sugar beets, cane, etc.

(except sugar) processed wholly or in chief value from sugar beets, sugarcane, or any product thereof, shall be exempt from taxation under subsection (a) of this section, but sugar held in customs custody or control on April 25, 1934, shall not be exempt from taxation under subsection (a) of this section, unless the rate of duty paid upon the withdrawal thereof was the rate of duty in effect on January 1, 1934. The provisions of paragraph (2) of subsection (a)

Certain tax refunds not to apply.

of this section shall not apply in the case of sugar beets or sugarcane or the products thereof.

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“(d)“(d)

The Secretary of Agriculture is authorized to purchase, out

Secretary authorized to make purchases from surplus stocks.

of such proceeds of taxes as are available therefor, during the period this Act is in effect with respect to sugar beets and sugarcane, not in excess of three hundred thousand tons of sugar raw value from the surplus stocks of direct-consumption sugar produced in the United States beet-sugar area, at a price not in excess of the market price

Price; disposal of, etc.

for direct consumption sugar on the date of purchase, and to dispose of such sugar by sale or otherwise, including distribution to any organization for the relief of the unemployed, under such conditions and at such times as will tend to effectuate the declared policy of section 8a of this Act. The sugar so purchased shall not be included

Ante, p. 672.

Not included in quota.

Use of receipts.

Ante, p. 38.

in the quota for the United States beet-sugar area. All proceeds received by the Secretary of Agriculture, in the exercise of the powers granted hereby, are appropriated to be available to the Secretary of Agriculture for the purposes described in subsections (a) and (b) of section 12 of this Act.”

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