Order regulating the handling of anti-hog-cholera serum and hog-cholera virus

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Material Information

Title:
Order regulating the handling of anti-hog-cholera serum and hog-cholera virus and approved marketing agreement for handlers of anti-hog-cholera serum and hog-cholera virus
Physical Description:
1 p. l., 28 p. : ; 25 cm.
Language:
English
Creator:
United States -- Bureau of Animal Industry
Publisher:
U.S. Govt. print. off.
Place of Publication:
Washington
Publication Date:

Subjects

Subjects / Keywords:
Serum   ( lcsh )
Classical swine fever   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

Statement of Responsibility:
Issued by the Secretary of agriculture, December 2, 1936, effective December 7, 1936.
General Note:
At head of title: B.A.I. order 361. United States Department of agriculture. Bureau of animal industry.

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 029790813
oclc - 39557746
System ID:
AA00018984:00001

Full Text








(B. A. L. Order 361)


UNITED STATES DEPARTMENT OF AGRICULTURE
BUREAU OF ANIMAL INDUSTRY




Order Regulating the Handling of Anti-Hog-Cholera

Serum and Hog-Cholera Virus
and

Approved Marketing Agreement for Handlers

of Anti-Hog-Cholera Serum and
Hog-Cholera Virus






Issued by the Secretary of Agriculture December 2, 1936
Effective December 7, 1936


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1937













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41







(B. A. I. Order 361)


I United States Department of Agriculture
Vi ....
BUREAU OF ANIMAL INDUSTRY


ORDER REGULATING THE HANDLING OF ANTI-HOG-
CHOLERA SERUM AND HOG-CHOLERA VIRUS

Whereas, Section 57, 49 Stat. 750, approved August 24, 1935 (here-
S inafter called the Act), provides as follows:
In order to effectuate the policy declared in section 56 of this Act the Secre-
tary of Agriculture shall have the power, after due notice and opportunity for
hearing, to enter into marketing agreements with manufacturers and others
S engaged in the handling of anti-hog-cholera serum and hog-cholera virus only
with respect to such handling as is in the current of interstate or foreign com-
merce or which directly burdens, obstructs, or affects interstate or foreign
commerce in such serum and virus. Such persons are hereafter in this Act
referred to as "handlers." The making of any such agreement shall not be
: .held to be in violation of any of the antitrust laws of the United States, and
any-such agreement shall be deemed to be lawful.
and
: :Whereas, Section 59 of the Act provides as follows:
; Whenever all the handlers of not less than 75 per centum of the volume of
"* anti-hog-cholera serum and hog-cholera virus which is handled in the current
:: of interstate or foreign commerce, or so as directly to burden, obstruct, or affect
":: interstate or foreign commerce, have signed a marketing agreement entered
Into with the Secretary of Agriculture pursuant to section 57 of this Act, the
Secretary of Agriculture shall issue an order which shall regulate only such
handling in the same manner as, and contain only such terms and conditions
as are contained in such marketing agreement, and shall from time to time
amend such order in conformance with amendments to such marketing agree-
ment. Such order shall terminate upon termination of such marketing agree-
ment as provided in such marketing agreement.
and
Whereas, the Secretary of Agriculture, having reason to believe
that a marketing agreement and an order with respect to the han-
dling of anti-hog-cholera serum and hog-cholera virus would tend to
effectuate the declared policy of Congress contained in section 56 of
the Act, to insure the maintenance of an adequate supply of anti-hog-
cholera serum and hog-cholera virus by regulating the marketing of
such serum and virus in interstate and foreign commerce and to pre-
vent undue and excessive fluctuations and unfair methods of com-
petition and unfair trade practices in such marketing, did, pursuant
to the provisions of the Act, on December 28, 1935, give notice of a
public hearing and did cause a public hearing to be held at Omaha,
Nebraska, January 13 and 14, 1936, at which time and place all
interested parties were accorded an opportunity to be heard on a
proposed marketing agreement and a proposed order regulating the
handling of anti-hog-cholera serum and hog-cholera virus; and
(1)




.... ..i

Whereas, the Secretary of Agriculture finds upon evidence intro.
duced at the said hearing and the record thereof:
(1) That not less than 75 per centum of the anti-hog-cholera
serum and hog-cholera virus produced in the United States enteras
into the current of interstate and foreign commerce;
(2) That the regulation of the marketing of anti-hog-cholera
serum and hog-cholera virus by thle marketing agreement and order
will tend to insure the maintenance of an adequate supply of anti-
hog-cholera serum and hog-cholera virus and to prevent undue and
excessive fluctuations and unfair methods of competition and unfair,
trade practices in such marketing;
(3) That the control agency is a proper agency to adminiter
the marketing agreement and order and that the powers granted to
and duties specified for such control agency are necessary for the
administration of the marketing agreement and order and conform
to the provisions of paragraph (C) of subsection (7) of Section 80c
of the Agricultural Adjustment Act, as amended;
(4) TI at the expenses which will necessarily be incurred by the
control agency during the remainder of the calendar year of 1986
for the maintenance and functioning of said agency will be approxi-
mately Twelve Hundred Fifty ($1250) Dollars; that such expemnsesm
are fair and reasonable; that the pro rata share thereof of ah
manufacturing handler in the amount of Two Dollars & Fifty Ceats
($2.50) for each million cubic centimeters (determined by the nearfut
whole number) of hyperimmune blood collected by such handlers
during the preceding calendar year is fair and reasonable and is
approved; and that the pro rata share thereof of each distributor-
handler of the total amount of One Hundred ($100) Dollars expended
in defraying the expenses of the two members of the control agency
representing such handlers (approximately Eighty-four (84#) Oents
for each million cubic centimeters determined by the nearest whole
number and based upon each handler's percentage of the total of
serum marketed by such handlers during the preceding calendar
year, is fair and reasonable and is approved; |
(5) That the reports required of handlers by the marketing agree-
ment and order are reasonably necessary for the proper adminstrs :
tion of the marketing agreement and order; and ::
Whlereaqs, the Secretary of Agriculture finds that the marketing
agreement regulating the handling of anti-hog-cholera serum aa ..
hog-cholera virus, executed by him on the 2nd day of December j
1936, entered into pursuant to section 57 of the Act, has been signed
by all the handlers of not less than 75 per centum of the volume 9f of
anti-hog-cholera serum and hog-cholera virus which was handled in !
the current of interstate or foreign commerce, or- so as directly to
burden, obstruct, or affect interstate or foreign commerce during the
calendar year 1935, which the Secretary determines to be a repre-
sentative period;
Now, THEREFORE, the Secretary of Agriculture, pursuant to the au- I
thority vested in him by the Act, hereby orders that such handling &
of anti-hog-cholera serum and hog-cholera virus as is in the current I
of interstate or foreign commerce, or which directly burdens, obh ..
structs, or affects interstate or foreign commerce in such serum and .i








virus, shall from the effective date hereof be in conformity to, and
in compliance with, the following terms and conditions:
ARTICLE I-DEFINITIONS
SSECTION 1. Definition of terms.-As used in this order, the follow-
ing terms have the following meanings:
1. "Secretary" means the Secretary of Agriculture of the United
states.
2. "Act" means the act to amend the Agricultural Adjustment
Act, and for other purposes Public No. 320, approved by the Presi-
dent August 24, 1935.
3. "Person" means individual, partnership, corporation, associa-
tion, or any other business unit.
4. "Serum" and "virus" means anti-hog-cholera serum and hog-
cholera virus, respectively, products used in the immunization of
swine against hog cholera, manufactured and marketed in compliance
with standards and regulations, promulgated by the United States
Department of Agriculture, and serum and virus manufactured in a
similar manner and for an identical purpose under license or au-
thority of any State or otherwise, and marketed in interstate and
foreign commerce or so as directly to burden, obstruct, or affect
interstate or foreign commerce.
5. "Handler" means any person who is engaged in the handling
of anti-hog-cholera serum and hog-cholera virus in the current of
interstate or foreign commerce, or so as directly to burden, obstruct,
or affect interstate or foreign commerce.
6. "To handle" means to sell for shipment in, to ship in, or in any
way to put into the channels of trade in the current of interstate
or foreign commerce, or so as directly to burden, obstruct, or affect
interstate or foreign commerce.
7. "To market" means lo consign or to sell or in any other manner
transfer or convey title to, or any interest in, serum and/or virus in
interstate or foreign commerce or so as to directly burden, obstruct,
or affect interstate or foreign commerce, or to enter into any contract
or arrangement to do or have done any of the said acts.
8. "Wholesaler" means that class of buyers comprising persons or
agencies who do not administer serum and virus but are regularly
engaged in purchasing and maintaining stocks of serum and virus
in sufficient quantities to supply dealer demand, who are properly
located and equipped with proper storage and distributing facilities
to supply dealer demand, who resell principally to dealers, and who
shall have been found by the control agency on submitted evidence
acceptable to said control agency to perform in good faith the usual
functions of a wholesaler, including, but without limitation, the
absorbing of all expenses incidental to the advertising, transporta-
tion, and selling of serum and virus, after receipt by them, to other
trade groups, together with the furnishing of field or veterinary
service necessary to determine whether the products sold have served
their purpose in specific cases.
9. "Dealer" means that class of buyers comprising veterinarians
and other persons regularly engaged in administering serum and




:: .. : ...... .
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I.
virus for service charges, drug stores, county farm bureamm,.. ,i^ i
chasers of serum for use in U. S. licensed stock, yards SiliV,:i
and agencies who maintain stocks of serum and virus in suE4Wi i,
quantities under proper storage and distributive facilities for rmk ""!
to ultimate consumers (owners of swine).
10. "Volume contract purchaser" means that clam or claib.t .....
buyers comprising persons or agencies who regularly purchase, |W .
delivery within a definite period of time serum and virus in spi ,|
fled amounts, adequate, in the opinion of the control agency, to just
such special classification. "
11. "Manufacturer" or "producer" means any person who m t'u-
factures or produces and is engaged in the handling or distribution
of serum and virus in the current of interstate or foreign lo am-
mierce, or so as directly to burden, obstruct, or affect interstate or
foreign commerce. i
12. "Distributor" means any person who does not manufactu
serum and/or virus, but is engaged in the handling or distribution
of serum and/or virus in the current of interstate or foreign com-
merce, or so as directly to burden, obstruct, or affect interstate or
foreign commerce.
13. "Control agency" means the agency established pursuant to
article II of this order. :' ',
14. "Books and records" means any books, papers, records, copies
of income tax reports, accounts, correspondence, contracts, document,
memoranda, or other data pertaining to the business of the person in
question.
15. "Subsidiary" means any person, of or over whom or which a
handler or an affiliate of a handler has, or several handlers collecively
have, either directly or indirectly, actual or legal control, whetheriby
stock ownership or in any other manner. ;
16. "Affiliate" means any person and/or subsidiary thereof, who |
or which has, either directly or indirectly, actual or legal control.of
or over a handler, whether by stock ownership or in any other
manner. : .
ARTICLE II-CONTROL AGENCY
SECTION 1. Membership and organization.-1. A control agency ,is
hereby established consisting of twelve (12) members. The orig'H
members and their respective alternates shall be as follows: .
To represent manufacturers marketing their products principally throu4':..
veterinarians: : .l
1. E. A. Cahill, alternate A. E. Bott. I
2. G. H. Williams, alternate John GuilfoUl. i; .....I
3. G. G. Graham, alternate C. J. Norden. ..
4. Dean Corsa, alternate E. P. Maxwell. ^
5. R. M. Young, alternate H. J. Shore. '.
To represent manufacturers marketing their products principally thro ji
other channels: .. i
6. W. J. Kennedy, alternate J. EH. Williams.
7. John E. Swaim, alternate Myron Miller. i
8. Frank H. Jones, alternate Fred Toler. Na :iII
9. T. B. Huff, alternate L IL Smith. Il
10. W. G. Peters, alternate J. L. Robinson. : '.
To represent distributors marketing their products principally tnp
veterinarians: : ..
11. Thomas A. Edwards, alternate F. W. Calry. i







To represent distributors marketing their products principally through other
S. channels:
12. A. H. Adams, alternate F. W. Klusmlre.
who shall hold office for a term ending December 31, 1936, and until
their successors are selected and qualified.
S"I. The successors to the members and their respective alternates
itiamed herein shall be selected by the Secretary annually at least
fifteen (15) days prior to the termination of the term of office of their
respective predecessors. Such selections shall be made by the Secre-
tary from the respective nominees of groups hereinafter designated
to make nominations. Nominations shall be made on December 1 of
each year in the following manner: The handlers who are manu-
facturers marketing their products principally through veterinarians,
as a group, may nominate by inscribing on a ballot the names of
Twenty (20) individuals to represent such handlers as members and/or
alternates. The handlers who are manufacturers marketing their
products principally through other channels, as a group, may nomni-
Snate by inscribing on a ballot the names of twenty (20) individuals
Sto represent such handlers as members and/or alternates. The hand-
Slers who are distributors marketing their products principally through
J veterinarians, as a group, may nominate by inscribing on a ballot
1 the names of four (4) individuals to represent such handlers as menm-
Sbers and/or alternates. The handlers who are distributors market-
M ing their products principally through other channels may nominate
.by inscribing on a ballot the names of four (4) individuals to repre-
H, sent such handlers as members and/or alternates.
i 3. Each of the twelve (12) members of the control agency and each
: of the twelve (12) alternates shall be selected by the Secretary from
the individuals in each of the four groups comprising the forty-eight
| (48) nominees for membership and/or alternates who receive the
RI highest numbers, successively, of votes cast by handlers entitled to
-I vote for nominees in each group. No two (2) individuals from the
same partnership, corporation, association, or any other business unit,
including agents, affiliates, subsidiaries, and/or representatives
thereof, shall be selected for membership in or serve as members of
the control agency at the same time. The nominees in each instance
shall be nominated by a vote of the handlers who are entitled under
S the provisions of this order to vote for such nominees. At any elec-
S tion of nominees each handler shall be entitled to cast one (1) vote
S -on behalf of himself, agents, partners, affiliates, subsidiaries, and/or
representatives for each of the members of the control agency and
their respective alternates for whom he is entitled to vote.
4. Members of the control agency and their respective alternates,
subsequent to the members herein designated, shall be selected an-
nually for a term of one year beginning the first day of January, and
shall serve until their respective successors shall be selected and shall
qualify. Any individual selected as a member of the control agency
or an alternate shall qualify by filing a written acceptance of his
appointment with the Secretary or his designated representative.
5. To fill any vacancy occasioned by the removal, resignation, or
disqualification of any member of the control agency or an alternate,
a successor for his unexpired term shall be selected by the Secretary
from nominees selected by the respective group of handlers in whose





6
representation the vacancy has occurred, such nominees to be d.-
termined by the selection by the proper group as specified in pea-
graph 2 of this section of two (2) nominees for each vacancy to be
filled and selected in the manner specified in paragraph 8 of this
section. Such selection of nominees shall be made within thirty (80) u. .
days after such vacancy occurs. If a nomination is not made within
such thirty (80) days, the Secretary may select an individual to 3DI
such vacancy.
6. The members of the control agency shall select a chairman from
their membership, and all communications from the Secretary may
be addressed to the chairman at such address as may from time to
time be filed with the Secretary. The agency shall select such other
officers and adopt such rules not inconsistent with the provisions of
this order for the conduct of its business as it may deem advisable.
The agency shall give to the Secretary or his designated agent the
same notice of meetings of the control agency as is given to members
of the agency and their alternates.
7. A reasonable compensation to be determined by the control
agency, to be paid to the Secretary of the control agency, and the
expenses of the members of the control agency while engaged in the
business of the control agency, shall be necessary expenses to be
incurred by the control agency for its maintenance and functioning
under the provisions of article III hereof.
SEC. 2. Powers.-The control agency shall have power:
(1) To administer, as hereinafter specifically provided, the term
and provisions hereof; ,
(2) To make, in accordance with the provisions hereinafter con-
tained, administrative rules and regulations;
(3) To receive, investigate, and report to the Secretary of Agricul-
ture complaints of violations of this order; and
(4) To recommend to the Secretary of Agriculture amendments I
to this order.
SEc. 3. Duties.-It shall be the duty of the control agency: -: I
(1) To act as intermediary between the Secretary and any handler;
(2) To keep minute books and records which will clearly reflect
all of its acts and transactions, and such minute books and records
shall, at any time, be subject to the examination of the Secretary;
(3) To furnish to the Secretary such available information as he
may request;
(4) To appoint such employees as it may deem necessary and to J
determine the salaries and define the duties of any such employees; J
(5) To establish and/or foster any agency for the purpose of secur.
ing new or improved markets for the serum and virus industry
through marketing research. The expenses of such expansion or
improvement of markets through research shall be a necessary expense
incurred by the control agency for its maintenance and functioning,
and shall be defrayed by it from funds collected pursuant to article
III of this order; and i
(6) To make such disbursements as may be necessary to meet ex- i|
penses necessarily incurred by the control agency for its maintenance
and functioning under the provisions of this order. i
SEc. 4. Procedure.-1. All decisions of the control agency except 9
where otherwise specifically provided, shall be by a three-fourths (%) j|







*f vote of the members who have qualified by filing their written accept-
a nce and who are eligible to vote.
f 2. The control agency may provide for voting by its members by
mail or telegraph upon due notice to all members, and when any prop-
Sosition is submitted for voting by such method, one dissenting vote
shall prevent its adoption until submitted to a meeting of the control
1: agency.
3. The members of the control agency (including alternates, suc-
cessors, or other persons selected by the Secretary), and any agent
: or employee appointed or employed by the control agency, shall be
l subject to removal or suspension by the Secretary at any time. Each
and every order, regulation, decision, determination, or other act of
Sthe control agency, shall be subject to the continuing right of the
S Secretary to disapprove of the same at any time, and upon such
Disapproval, shall be deemed null and void except as to acts done in
Reliance thereon or in compliance therewith.
ir 4. If a member of the control agency shall be a party in interest
Sto any dispute or complaint, or a representative of such party in
| interest, he shall, for the purpose of the consideration of such dispute
i or complaint, be disqualified as a member of the control agency.
it Such disqualification, however, shall not be deemed to create a
l vacancy in the control agency.
Ill 5. The alternate for each member of the control agency shall have
,: the power to act in the place and stead of such member in his
|1! absence and/or in the event of his removal, resignation, or disquali-
iiI fiction until a successor for such member's unexpired term has been
selected.
if ~ 6. The control agency, subject to the disapproval of the Secretary,
l may select an executive committee of not more than four (4) mem-
l.." bers who shall be empowered to act for the control agency in the
; routine administration of this order, at such times as the control
S agency is not meeting and cannot be conveniently convened for the
purpose. Any and all acts of the executive committee shall be sub-
ject to the approval of the control agency, which shall take action
with respect to any act of the executive committee at the next meet-
ing of the control agency held immediately following any action by
the executive committee.
SEC. 5. Funds.-All funds received by the control agency, pur-
suant to any provision of this order, shall be used solely for the
purpose therein specified and shall be accounted for in the following
manner:
1. The Secretary shall require the control agency and its mem-
bers, or alternates acting as members, to account for all receipts and
disbursements.
2. Upon the removal or expiration of the term of office of any
member of the control agency, or of an alternate acting as a mem-
ber, such member or alternate shall account for all receipts and dis-
bursements, and deliver all property and funds in his hands, to-
gether with all books and records in his possession, to his successor
in office, and shall execute such assignments and other instruments
as may be necessary or appropriate to vest in such successor full
title to all of the property, funds, and/or claims vested in such
member or alternate pursuant to this order.
114474-37-2




....' .* ......

3. Upon the termination or suspension of this order or of Ia.
provision thereof, the funds of the control agency shall be dieoiij
of in the manner provided in article VII, section 2, paragraph Ot
this order. :
ARTICLE 111I-ASSESSMENTS
SwEnoI 1. Expenses.-1. Each handler shall pay to the cial-
agency, upon demand, such handler's pro rata share, as is appro .
by the Secretary, of the expenses in the amount of $15,000 (whi"
amount the Secretary has found will necessarily be incurred by tim
control agency during the year ending December 31, 1936), or e-
penses in such other amount, as the Secretary may later find wil
necessarily be incurred by the control agency during the said year
for the maintenance an(d functioning of the control agency during
said year, as set forth in this order.
2. Subsequent to the year ending December 31, 1936, every hadi"r
shall pay the control agency, upon demand, such handler's pro rats
share, as may be approved by the Secretary, of such expenses as time
Secretary may find will necessarily be incurred by the control agency
during any period specified by the Secretary for the maintenance
and functioning of the control agency, as set forth in this order.
SEC. 2. Shares.-1. The share of such expenses for each handler
who is a manufacturer shall be that amount which is paid to the cm-
trol agency pursuant to paragraph 4 of this section, and such pro
rata share is hereby approved by the Secretary. Thesenn
may be adjusted, from time to time, by the control agency, with time
approval of the Secretary, in order to provide funds sufficient i
amount to cover any later findings by the Secretary of estimated
expenses or the actual expenses of the control agency during the
said year.
2. The share of such expenses for each handler, who is a distributor
marketing his products principally through veterinarians, shall ho
such handler's pro rata share (to be computed by the disinterested
agency selected under the provisions of paragraph 4 of this section
and shall be based upon such handler's percentage of the total of j
serum marketed by such handlers during the preceding calendar
year) of the total amount expended in defraying the expenses of ti :|
two (2) members of the control agency who have been selected by tinf |
Secretary to represent such handlers, pursuant to the provisions o ...
article II. Such pro rata share of expenses shall be subject to ti .
approval of the Secretary. These assessments may be adjusted fr xi
time to time, by the control agency, with the approval of the 9ecn-
tary, in order to provide funds sufficient in amount to cover any later
findings by the Secretary of estimated expenses or the actual expenses
of the control agency during the said year.
3. The share of such expenses for each handler, who is a die- ,
tributor marketing his products principally through other channels ....
shall be such handler's pro rata share (to be computed by the di r
interested agency selected under the provisions of paragraph 4 ofI
this section and shall be based upon such handler's percentage of twi
total of serum marketed by such handlers during the preceding
calendar year) of the total amount expended in defraying the ea
penses of the two (2) members of the control agency who have bem.







elected by the Secretary to represent such handlers, pursuant to the
provisions of article II. Such pro rata share of expenses shall be
subject to the approval of the Secretary. These assessments may be
adjusted, from time to time, by the control agency, with the approval
if the Secretary, in order to provide funds sufficient in amount to
cover any later findings by the Secretary of estimated expenses or
the actual expenses of the control agency during the said year.
4. Within five (5) days after this order becomes effective, and on
January 15 of each year thereafter, while this order is effective, each
manufacturer who is a handler shall furnish the Secretary, through
a disinterested agency, to be selected by the control agency and
approved by the Secretary, a report which shall be sworn to and
which shall set forth the amount of hyperimmune blood which has
been collected by such handler during the preceding calendar year,
and each distributor who is a handler shall furnish the Secretary,
through such disinterested agency, a report which shall be sworn to
and which shall set forth the amount of serum marketed by such
handler during the preceding calendar year. The control agency
shall inform the disinterested agency concerning the total amount
of expenses to be paid by handlers who are manufacturers and by
handlers who are distributors. The pro rata share of expenses to be
paid by each manufacturer who is a handler shall be based upon
such handler's percentage of the total amount of hyperimmune blood
which has been, collected by such handlers during the preceding
calendar year. During the calendar year 1936, each manufacturer
who is a handler shall pay the control agency thirty (30) dollars
with respect to each million cubic centimeters (determined by the
nearest whole number) of hyperimmune blood collected by such
handler during the preceding calendar year, as determined by the
reports submitted pursuant to this paragraph. Such payments shall
become due in quarterly installments beginning January 1 of each
year, and shall be made to the disinterested agency, which shall
transmit the total amount received from all handlers to the control
agency without disclosing the amount of each payment made by in-
dividual handlers. A quarterly report shall be made to the Secretary
by such disinterested agency, setting forth the amount of the quar-
terly payment made by each handler. Any funds derived from as-
sessments or any other source which have not been expended by the
control agency at the end of the calendar year shall be carried over
by the control agency to be expended during the succeeding calendar
year.
ARTICLE IV-FILING OF PRICES AND TERMS OF SALE FOR SERUM
AND VIRUS
SECTnow 1. Open prices.-1. Each handler shall file with the Sec-
retary and the control agency, within ten (10) days after the effective
date of this order, a separate list of his selling prices in the United
States including terms of sale and discounts to each class of buyers,
as defined in this order or under the provisions thereof, other than
those specified in section 2 of this article. All filed prices to dealers
and wholesalers shall be on a delivered basis where the amount sold
is 3,000 cc or more. Each handler's prices, discounts, and terms of




10 . ....
sale shall be uniform for all buyers in each classification of the tra I
as defined by the control agency pursuant to this order. ,
2. The price list for each class of buyers filed by a handler mq
subject to the limitations set forth in paragraph 8 of this section,
be modified at any time by such handler by firmg for any class of
buyers a new or amended list of prices including discounts and terms
of sale, which shall only become effective when said new or amended
list shall have been on file for three (3) days in any office designated
by the control agency: Provided, however, That in the event such
list is mailed by registered letter or telegraphed to such office, it shall
be deemed to have been filed either (a) at the time during usual busi-
ness hours it is actually delivered in such office, or (b) at the time
during usual business hours such communication would have been
received, considering the usual time required for the means of con-
munication used, in the absence of delays in transit, whichever time
is the earlier.
3. Each handler shall make no sales unless he has an effective
price list, including discounts and terms of sale as set forth in para-
graph 1 of this section, filed with the control agency, and that after
any such price list or amended price list becomes effective, he shall
make no sales at prices, discounts or terms of sale different from those
set forth in his latest effective list, and shall file no new or amended
price list until his most recently filed price list for any class of buyers
becomes effective: Provided, however, no handler shall withdraw any
filing of a price list prior to the effective date of such price list.
4. The control agency shall immediately upon receipt of any such
new or amended price list, give written notice thereof to each of the
handlers and to the Secretary. All price lists shall be made immedi-
ately available to the daily and trade press and to the consuming
public by employing a means of communication at least as rapid as
that used to notify the handlers and the Secretary.
SEC. 2. Exceptions to fled prices.-1. The provisions of this order
shall not apply to any sales made by any handler for delivery out-
side the United States. 9
2. If the Secretary has reason to believe, from economic data
directly available to him or secured by him under the provisions i
of the act, that any price list, term of sale or discount, in whole
or in part, is inequitable to consumers or handlers by reason of the
fact that it may cause immediate injury by impeding the carrying
out of this order or the effectuation of the declared policy of the act
or by creating an abuse of the privilege of exemptions from the 31
antitrust laws, hlie may suspend the effectiveness of such price list, ,j
term of sale or discount, in whole or in part, pending an investiga- I
tion which shliall be completed as soon as practicable, and he shall
report such suspension to the control agency, who shall in turn im-
mediately notify the handler whose price filing has been suspended.
The Secretary may declare a filed price, discount, or term of sale, i
whole or in part, to be ineffective if, after an investigation and an
opportunity to be heard has been afforded the handler whose price
filing is questioned, the Secretary finds from the facts presented
during such investigation that such price list, term of sale, or dis-
count, in whole or in part, is inequitable as measured by the stand-:
ards set up in this paragraph.


4





11


SEC. 3. Classes of buyers.-The control agency, subject to the dis-
S approval of the Secretary. shall upon the basis of a written request
I supported by economic data sufficiently adequate to warrant a con-
clusion that such definition is neither unreasonable nor discrimina-
tory, define all classes of buyers not defined in this order, and shall,
Subject to the disapproval of the Secretary, determine in specific
S cases whether any person who is a handler or who is about to be-
come a handler comes within any class of buyers herein or hereafter
defined, and shall compile, subject to the disapproval of the Secre-
i tary, lists of persons comprising each class of buyers, suLch lists and
additions thereto to be filed immediately with the Secretary and
S distributed to the handlers.
SEC. 4. Uniform sales invoices.-The control agency, subject to
the disapproval of the Secretary, may formulate and adopt uniform
S sales invoices for handlers. After the adoption of such uniform
. .sales invoices, all sales of serum and/or virus by handlers to all
classes of buyers shall be made in accordance with the terms of such
invoices, and prices and terms of sale therein shall conform to the
i seller's filed prices and terms of sale, effective at the time of making
i sales covered by such invoices.
ARTICLE V-UNFAIR METHODS OF COMPETITION AND UNFAIR
Is TRADE PRACTICES
i. SECTION 1. Secret rebates.-1. The secret payment or allowance of
S rebates, refunds, commissions, or unearned discounts, whether in the
:V form of money or otherwise, or secretly extending to certain pur-
*[ chasers special services or privileges, not extended to all purchasers
It under like terms and conditions, with the intent and with the effect
S of injuring a competitor, and where the effect may be to substan-
tially lessen competition or tend to create a monopoly or to unreason-
ably restrain trade, is an unfair trade practice, and is prohibited.
2. To sell other products at less than reasonable market value
thereof, for the purpose or with the effect of influencing sales of
serum and/or virus, is prohibited.
SEC. 2. Enticing employees.-Maliciously enticing away the em-
ployees of competitors with the purpose and effect of unduly ham-
pering, injuring, or embarrassing competitors in their businesses is
an unfair trade practice, and is prohibited.
SEC. 3. Defamation of competitors.-The defamation of competi-
tors by falsely imputing to them dishonorable conduct, inability to
perform contracts, questionable credit standing, or by other false
representation, or the false disparagement of the grade or quality of
their serum and/or virus, with the tendency and capacity to mis-
lead or deceive purchasers or prospective purchasers, is an unfair
trade practice, and is prohibited.
SEC. 4. Sale by false means.-The sale or offering for sale of any
serum and/or virus by any false means or device which has the
tendency and capacity to mislead or deceive customers or prospective
customers as to the quantity, quality, or substance of such serum
and/or virus is an unfair trade practice, and is prohibited.
SEC. 5. Consignment shipping.-Shipping serum or virus on con-
signment, with the intent and with the effect of injuring a competi-
tor, and where the effect may be to substantially lessen competition




.. ,.. :. ..T.- ith*

12 .-I
'::.... ...^
or tend to create a monopoly or to unreasonably restrain trad% :i
an unfair trade practice, and is prohibited. .i' 3
SwC. 6. False invoicing.-Withholding from or inserting mi the : :3
voice statements which make the invoice a false record, whollyo4k i
part, of the transaction represented on the face thereof, is prohibiI .
SEC. 7. Misleading advertising.-1. The making, causing, or !I
mitting to be made, or publishing of any false, untrue, misleadin e .1
deceptive statement by way of advertisement or otherwise, con ert-
ing the grade, quality, quantity, character, nature origin2 prepaid '
tion, or use of serum and virus is an unfair trade practice and'i
prohibited. .
2. The use by handlers who are distributors of the words "Serm
Company", "Serum Laboratories" or other equivalent words on letter-
heads, signs, advertising matter, and otherwise where such .practice
tends to mislead and deceive purchasers and consumers into belief I
that such distributor is a manufacturer, where in fact he is not, is
prohibited. ;
SEC. 8. Emergency reserve.-Each manufacturer who is a handler
shall have available on May 1 of each year a supply of completed
serum equivalent to not less than forty (40) percentum of his previous
year's sales.
ARTICLE VI-AMENDMENTS "..
SECTON 1. Proposals.-Amendments to this order may, from time
to time, be proposed by handlers subject hereto or by the control
agency. : i
SEC. 2. Hearing and amendment.-After due notice and opportunity .
for hearing and upon determination by the Secretary that the propas
amendment has been incorporated in the marketing agreement for
handlers of anti-hog-cholera serum and hog-cholera virus, executM
by the Secretary on the 2nd day of December 1936, the Secretary shal
amend this order in conformance with such amendment to the said
marketing agreement, and such amendment shall become effective at ;
such time as the Secretary may designate. ,|
ARTICLE VII-EFFECTIVE TIME AND TERMINATION
7
SECTION 1. Effective time.-This order shall become effective atM
such time as the Secretary may determine the marketing agreement.
for handlers of anti-hog-cholera serum and hog-cholera virus, es- "I
cited by him on the 2nd day of December 1936, has been executed by |
all the handlers of seventy-five (75) percent of the volume of serum
and virus handled during the preceding marketing year and ma? '.
declare above his signature attached hereto, and shall continue i n
force until terminated in one of the ways hereinafter specified.
SEC. 2. Termination.-1. The Secretary may at any time terminal *:
this order as to all parties subject thereto by giving at least seven ()
(lays' notice by means of a press release or in any other manner whi|
the Secret a ry may determine.
2. The Secretary shall terminate this order at the end of the the |
current marketing period (December 31) whenever he finds that suchd |
termination is favored by all the handlers of not less than seveY
five (75) percent of the volume of serum and virus handled during:":.,
the preced(ling marketing period. .-.
*: ":L 1^





13


3. This order shall in any event terminate whenever the provisions
of the act authorizing it cease to be in effect.
4. Upon the termination or suspension of this order or of any
provision thereof, the members of the control agency then function-
ing, or such other persons as the Secretary may from time to time
designate, shall, if so ordered by the Secretary, liquidate the business
of the control agency under this order, and dispose of all funds and
property then in the possession or under the control of the control
Agency, together with claims for any funds which are unpaid or
property not delivered at the time of such termination. The control
agency or such other persons as the Secretary may designate (a) shall
continue in such capacity until discharged by the Secretary, (b) shall,
from time to time, account for all receipts and disbursements and/or
deliver all funds and property on hand, together with the books and
recordsof the control agency, to such person or persons as the Secre-
tary shall direct, and (c) shall, upon the request of the Secretary,
execute such assignments, or other instruments necessary or appro-
priate to vest in such person or persons full title to all the funds,
property, and/or claims vested in the control agency pursuant to
this order. Any funds collected for expenses, pursuant to the provi-
sions of this order, and held by the control agency or such person or
persons, over and above the amounts necessary to meet outstanding
obligations and the expenses necessarily incurred by the control
agency or such person or persons, shall be returned to the contribut-
ing handlers in proportion to the contributions of each handler, or
shall be expended by the control agency for a purpose not incon-
sistent with the provisions of this order and in a manner which the
handlers shall determine by a three-fourths (3/4) vote of such han-
dlers. The control agency or such person or persons shliall observe the
procedure governing the actions of the control agency as established
under the provisions of section 4 of article II of this order. Any per-
son to whom funds, property, and/or claims have been delivered by
the control agency or its members upon direction of the Secretary, as
provided in this paragraph, shall be subject to the same obligations
and duties with respect to said funds, property, and/or claims as are
imposed upon the members of the control agency.
ARTICLE VIII-DURATION OF IMMUNITIES
SECTION 1. Immunities.-The benefits, privileges, and immunities
conferred by virtue of this order shall not extend or be construed to
extend further than is necessary for the purpose of carrying out the
provisions of this order and shall cease upon its termination except
with respect to acts done under and during the existence of this
order, and benefits, privileges and immunities conferred by this
order upon any party subject hereto shall cease upon its termination
as to such party, except with respect to acts done under and during
the existence of this order.
ARTICLE IX-AGENTS AND COMMITTEES
SECTION 1. Agents.-The Secretary may by designation in writing
name any person (not subject to this order), including any officer or
employee of the Government or bureau or division c f the Department





14


of Agriculture, to act as his agent or representative in connection
with. any of the provisions of this order.
SEC. 2. Committees.-Tlie Secretary may select such committees to
meet with or advise the control agency as he deems necessary for
ilie proper functioning of the control agency under the provisions
of this order. One such committee or its representative shall repre-
sent the interests of consumers. The expenses for the maintenance
and functioning of the advisory committees may be included within
the budget submitted to the Secretary for approval, pursuant to
section 1 of article III of this order, and may be met by the control
agency from funds paid to it for the maintenance and functioning
of the control agency.
ARTICLE X-DEROGATION
SECTION 1. Derogation.-Nothing contained in this order is or shal
be construed to be in derogation or in modification of the rights
of the Secretary or of the United States (1) to exercise any powers
granted by the act or otherwise, and/or (2) in accordance with such
powers, to act in the premises whenever such action is deemed
advisable.
ARTICLE XI-LIABILITY OF CONTROL AGENCY
SrCTnON 1. Litiblity.-No member of the control agency nor any
employee thereof shall be held responsible individually in any way
whatsoever to any handler subject hereto or any other person for
errors in judgment, mistakes, or other acts either of commission or
omission as such member or employee, except for acts of dishonesty.
The contractual obligations of the handlers hereunder are several
and not joint, and no handler shall be liable for the default of any
other handler.
ARTICLE XII-SEPARABILITY
SEC'rION 1. Separability.-If any provision of this order is declared
invalid, or the applicability thereof to any person, circumstance, or
thing is held invalid, the validity of the remainder of this order,'
and/or the applicability thereof to any other person, circumstance,
or thing shall not be affected thereby.
In witness whereof, the Secretary of Agriculture
does hereby execute in duplicate and issue this order '
in the city of Washington, District of Columbia, on
this 2nd day of December 1936, and pursuant to the
provisions hereof declares this order to be effective...
on and after 12:01 a. mn., e. s. t., December 7, 1936.
H. A. W Acz.
Secretary of Agriculture.,








"I
-'..
...im












I United States Department of Agriculture
~BUREAU OF ANIMAL INDUSTRY


APPROVED MARKETING AGREEMENT FOR HANDLERS
OF ANTI-HOG-CHOLERA SERUM AND HOG-CHOLERA
| VIRUS
PURPOSES
|l The parties to this agreement are the contracting handlers of anti-
I hog-cholera serum and hog-cholera virus in the United States and
I. the Secretary of Agriculture of the United States.
Whereas, it is the declared policy of Congress as set forth in section
56 of the act to amend the Agricultural Adjustment Act, and for
Other purposes Public No. 320, approved by the President August
S24, 1935,
S to insure the maintenance of an adequate supply of anti-hog-cholera serum
S and hog-cholera virus by regulating the marketing of such serum and virus in
interstate and foreign commerce and to prevent undue and excessive fluctua-
S tions and unfair methods of competition and unfair trade practices in such
marketing.
; Whereas, pursuant to the said act, the parties hereto, for the pur-
I pose of correcting conditions now obtaining in the handling of anti-
S hog-cholera serum and hog-cholera virus in interstate and foreign
I commerce and to effectuate the declared policy of Congress with
K: respect to such serum and virus, desire to enter into a marketing
S agreement under the provisions of section 57 of the said act:
[ Now, THEREFORE, the parties hereto agree as follows:
: ARTICLE I-DEFINITIONS

S SECTION 1. Definition of termsn.-As used in this agreement the
Pr following terms have the following meanings:
1. "Secretary" means the Secretary of Agriculture of the United
States.
2. "Act" means the act to amend the Agricultural Adjustment
S Act, and for other purposes Public No. 320, approved by the President
August 24, 1935.
: 3. "Person" means individual, partnership, corporation, association
or any other business unit.
I 4. "Serum" and "virus" means anti-hog-cholera serum and hog-
cholera virus, respectively, products used in the immunization of
swine against hog cholera, manufactured and marketed in compliance
with standards and regulations, promulgated by the United States
S Department of Agriculture, and serum and virus manufactured in
(15)





1 6 .. ..

a similar manner and for an identical purpose under license or author.i
ity of any State or otherwise, and marketed in interstate and foreign -
commerce or so as directly to burden, obstruct or affect intestate *I
or foreign commerce.
5. "Handler" means any person who is engaged in the handlinl .
of anti-hog-cholera serum and hog-cholera virus in the current *I'
interstate or foreign commerce, or so as directly to burden, obstruct; .*
or affect interstate or foreign commerce.
6. "To handle" means to sell for shipment in, to ship in, or in any ::
way to put into the channels of trade in the current of interstate or
foreign commerce, or so as directly to burden, obstruct, or aft.o
interstate or foreign commerce.
7. "To market" means to consign or to sell or in any other manner
transfer or convey title to, or any interest in, serum and/or virus in
interstate or foreign commerce or so as to directly burden, obstruct,
or affect interstate or foreign conummerce, or to enter into any contract
or arrangement to do or have done any of the said acts.
8. "Wholesaler" means that class of buyers comprising persons or
agencies who do not administer serum and virus but are regularly
engaged in purchasing and maintaining stocks of serum and virus
in sufficient quantities to supply dealer demand, who are properly
located and( equipped with proper storage and distributing facilities
to supply dealer demand, who resell principally to dealers, and whe
shall have been found by the control agency on submitted evidencem
acceptable to said control agency to perform in good faith the usual
functions of a wholesaler, including, but without limitation, the .
absorbing of all expenses incidental to the advertising, transporta- ,
tion, and selling of serum and virus, after receipt by them, to other "
trade groups, together with the furnishing of field or veterinary
service necessary to determine whether the products sold have served ,H
their purpose in specific cases.
9. "Dealer" means that class of buyers comprising veterinarians
and other persons regularly engaged in administering serum and virus.
for service charges, drug stores, county farm bureaus, purchasers of
serum for use in U. S. Licensed stockyards vaccination, and agencies
who maintain stocks of serum and virus in sufficient quantities under .
proper storage and distributive facilities for resale to ultimate con-
sumers (owners of swine).
10. "Volume contract purchaser" means that class or classes of
buyers comprising persons or agencies who regularly purchase, for.i
delivery within a definite period of time, serum and virus in s pecifia
amounts, adequate, in the opinion of the control agency, to justify
such special classification. l
11. "Manufacturer" or "producer" means any person who mai |
factures or produces and is engaged in. the handling or distribution
of serum and virus in the current of interstate or foreign commerce, *
or so as directly to burden, obstruct or affect interstate or foreign
commerce. "
12. "Distributor" means any person who does not manufacture !
serum and/or virus, but is engaged in the handling or distribution J
(of serum and/or virus in the current of interstate or foreign COm ::i
mercer, or so as directly to burden, obstruct or affect interstate or 4;!
foreign commerce. ..
i-4 !...





17


f 18. "Control agency" means the agency established pursuant to
article II of this agreement.
14. "Books and records" means any books, papers, records, copies
Sof income tax reports, accounts, correspondence, contracts, documents,
memoranda, or other data pertaining to the business of the person in
Question.
S 15. "Subsidiary" means any person, of or over whom or which a
Chandler or an affiliate of a handler has, or several handlers collec-
i lively have, either directly or indirectly, actual or legal control,
whether by stock ownership or in any other manner.
i 16. "Affiliate" means any person and/or subsidiary thereof, who
i: or which has, either directly or indirectly, actual or legal control of
: or over a handler, whether by stock ownership or in any other
Manner.
17. "Agreement" means the marketing agreement entered into by
: the parties hereto.

|| ARTICLE II-CONTROL AGENCY
S SEc noI 1. Membership and organization.-1. A control agency is
Shereby established consisting of twelve (12) members. The original
Members and their respective alternates shall be as follows:
STo represent manufacturers marketing their products principally through vet-
i. erinarians:
I 1. E. A. Cahill, alternate A. E. Bott.
2. G. H. Williams, alternate John Guilfoil.
3. G. G. Graham, alternate C. J. Norden.
4. Dean Corsa, alternate E. P. Maxwell.
r 5. R. M. Young, alternate H. J. Shore.
| To represent manufacturers marketing their products principally through other
channels:
i 6. W. J. Kennedy, alternate J. H. Williams.
7. John E. Swaim, alternate Myron Miller.
8. Frank R. Jones, alternate Fred Toler.
t 9. T. B. Huff, alternate L. R. Smith.
I 10. W. G. Peters, alternate J. L. Robinson.
STo represent distributors marketing their products principally through vet-
erinarians:
i 11. Thomas A. Edwards, alternate F. W. Cairy.
: To represent distributors marketing their products principally through other
S channels:
12. A. H. Adams, alternate F. W. Klusmire.
who shall hold office for a term ending December 31, 1936, and until
their successors are selected and qualified.
2. The successors to the members and their respective alternates
named herein shall be selected by the Secretary annually at least
fifteen (15) days prior to the termination of the term of office of their
respective predecessors. Such selections shall be made by the Secre-
tary from the respective nominees of groups hereinafter designated
to make nominations. Nominations shall be made on December 1 of
each year in the following manner: The contracting handlers who are
manufacturers marketing their products principally through veteri-
narians, as a group, may nominate by inscribing on a ballot the names
of twenty (20) individuals to represent such contracting handlers as
members and/or alternates. The contracting handlers who are manu-
facturers marketing their products principally through other chan-
nels, as a group, may nominate by inscribing on a ballot the names of




18
twenty (20) individuals to represent such contracting handlmers as
nimemnilbers and/or alternates. The contracting handlers who are disc
tributors marketing their products principally through veterinarias,
as a group, may nominate by inscribing on a ballot the names of four
(4) individuals to represent such contracting handlers as membs
and/or alternates. The contracting handlers who are distributow i
marketing their products principally through other channels may
nominate by inscribing on a ballot the names of four (4) individuals
to represent such contracting handlers as members and/or alternates.
3. Each of the twelve (12) members of the control agency and
each of the twelve (12) alternates shall be selected by the Secretary
from the individuals in each of the four groups comprising the forty-
eight. (48) nominees for membership and/or alternates who receive
thlie highest numbers, successively, of votes cast by contracting han-
dlers entitled to vote for nominees in each group. No two (2) indi-
viduals from the same partnership, corporation, association or any
other business unit, including agents, affiliates, subsidiaries and/or
representatives thereof, shall be selected for membership in or serve
as members of the control agency at the same time. The nominees in
each instance shall be nominated by a vote of the contracting
handlers who are entitled under the provisions of this agreement to
vote for such nominees. At any election of nominees each contract- ,
ing handler shall be entitled to cast one (1) vote on behalf of him- .
self, agents, partners, affiliates, subsidiaries and/or representatives
for each of the members of the control agency and their respective
alternates for whom he is entitled to vote.
4. Members of the control agency and their respective alternates,
subsequent to the members herein designated, shall be selected an-
nually for a term of one year beginning the first day of January
and shall serve until their respective successors shall be selected and j
shall qualify. Any individual selected as a member of the control i
agency or an alternate shall qualify by filing a written acceptance of
his appointment with the Secretary or his designated representative.
5. To fill any vacancy occasioned by the removal, resignation or
disqualification of any member of the control agency or an alternate,
a successor for his unexpired term shall be selected by the Secretary
from nominees selected by the respective group of contracting
handlers in whose representation the vacancy has occurred, such
nominees to be determined by the selection by the proper group as
specified in paragraph 2 of this section of two (2) nominees for each
vacancy to be filled and selected in the manner specified in par&-
graph 3 of this section. Such selection of nominees shall be made
within thirty (30) days after such vacancy occurs. If a nomina-
tion is not made within such thirty (30) days, the Secretary may
select an individual to fill such vacancy.
6. The members of the control agency shall select a chairman from
their membership, and all communications from the Secretary may
be addressed to the chairman at such address as may from timune to
time be filed with the Secretary. The agency shall select such other
officers and adopt such rules not inconsistent with the provisions of
his agreement for the conduct of its business as it may deem ad-
vi.able. The agency shall give to the Secretary or his designated .
agent the same notice of meetings of the control agency as is given
to members of the agency and their alternates.

2





19


7. A reasonable compensation to be determined by the control
agency, to be paid to the secretary of the control agency, and the
expenses of the members of the control agency while engaged in
the business of the control agency, shall be necessary expenses to be
incurred by the control agency for its maintenance and functioning
, under the provisions of article III hereof.
SEC. 2. Powers.-The control agency shall have power:
(1) To administer, as hereinafter specifically provided, the terms
4and provisions hereof;
S(2) To make, in accordance with the provisions hereinafter con-
tained, administrative rules and regulations;
(3) To receive, investigate, and report to the Secretary of Agricul-
ture complaints of violations of this agreement; and
(4) To recommend to the Secretary of Agriculture amendments
to this agreement.
SEC. 3. Duties.-It shall be the duty of the control agency:
(1) To act as intermediary between the secretary and any con-
tracting handler;
(2) To keep minute books and records which will clearly reflect all
of its acts and transactions, and such minute books and records shall,
at any time, be subject to the examination of the Secretary;
(3) To furnish to the Secretary such available information as lihe
may request;
(4) To appoint such employees as it may deem necessary and to
determine the salaries and define the duties of any such employees;
(5) To establish and/or foster any agency for the purpose of
securing new or improved markets for the serum and virus industry
through marketing research. The expenses of such expansion or im-
provement of markets through research shall be a necessary expense
incurred by the control agency for its maintenance and functioning,
and shall be defrayed by it from funds collected pursuant to article
III of this agreement; and
(6) To make such disbursements as may be necessary to meet ex-
penses necessarily incurred by the control agency for its maintenance
and functioning under the provisions of this agreement.
SEC. 4. Procedure.-1. All decisions of the control agency except
where otherwise specifically provided, shall be by a three-fourths
(34) vote of the members who have qualified by filing their written
acceptance and who are eligible to vote.
2. The control agency may provide for voting by its members
by mail or telegraph upon due notice to all members, and' when any
proposition is submitted for voting by such method, one dissenting
vote shall prevent its adoption until submitted to a meeting of the
control agency.
3. The members of the control agency (including alternates, suc-
cessors, or other persons selected by the Secretary), and any agent
or employee appointed or employed by the control agency, shall be
subject to removal or suspension by the Secretary at any time. Each
and every order, regulation, decision, determination, or other act
of the control agency, shall be subject to the continuing right of the
Secretary to disapprove of the same at any time, and upon such dis-
approval, shall be deemed null and void except as to acts done in
reliance thereon or in compliance therewith.




20
.. '.." i,,. ;;;, ^ ^^ i


4. If a member of the control agency shall be a party in i....te ...':i....
to any dispute or complaint, or a representative of such W pat...k
interest, he shall, for the purpose of the consideration of sachk
or complaint, be disqualified as a member of the control agenc. StA
disqualification, however, shall not be deemed to create a vacant hi
the control agency. ..i .
5. The alternate for each member of the control agency shall ham
the power to act in the place and stead of such member in his abmumm.
and/or in the event of his removal, resignation or disqualificatin 4
until a successor for such member's unexpired term has been selected.
6. The control agency, subject to the disapproval of the Secreta,
.. .. +" "" ~.. J .:] +,, .





may select an executive committee of not more than four (4) memW
bers who shall be empowered to act for the control agency in the 6
routine administration of this agreement, at such times as the coutoI ,'
agency is not meeting gnd cannot be conveniently convened for the
purpose. Any and all acts of the executive committee shall be subject I
to the approval of the control agency, which shall take action with
respect to any act of the executive committee at the next meeting f 1
the control agency held immediately following any action by the
executive committee. 0e
SEC. 5. Funtds.-All funds received by the control agency, pursuant
to any provision of this agreement, shall be used solely for the pr I
pose therein specified and shall be accounted for in the following ,
manner:
1. The Secretary shall require the control agency and its iem bmn
or alternates acting as members, to account for all receipts and die -
bursements. !
2. Upon the removal or expiration of the term of office of anl y mes-
bher of the control agency or of an alternate acting as a member, ah
member or alternate shall account for all receipts and disbursemets, I
and deliver all property and funds in his hands, together with all i
books and records in his possession, to his successor in office, and shall
execute such assignments and other instruments as may be neceary
or appropriate to vest in such successor full title to all of the prop?
erty, funds and/or claims vested in such member or alternate pursuant
to this agreement. i-
3. Upon the termination or suspension of this agreement o of any
provision thereof, the funds of the control agency shall be disposed
of in the manner provided in article VII, section 2, paragraph 4 C 1
this agreement.
ARTICLE Ill-ASSESSMENTS
SECTION 1. Expenmes.-1. Each contracting handler shall pay to tbp-i|
control agency, upon demand, such contracting handler's pro raet:'s:
share, as is approved by the Secretary, of the expenses in the amount
of $15,000 (which amount the Secretary has found will neceUssarily
incurred by the control a agency during the year ending December di 4
1936), or expenses in such other amount, as the Secretary may lawi
find will necessarily be incurred by the control agency during the
year for the maintenance and functioning of the control agency duri
said year, as set forth in this agreement.
2. Subsequent to the year ending December 31, 1986, every
tracing handler shall pay the control agency, upon demand, such 4X*b
shre a i apovd y heScrtayofte xpnss nth +:'++Ii





21

I tracing handler's pro rata share, as may be approved by the Secrs-
IL1tary, of such expenses as the Secretary may find will necessarily be
Incurred by the control agency during any period specified by the
SSecretary for the maintenance and functioning of the control agency,
W s set forth in this agreement.
|. Szc. 2. Shares.--1. The share of such expenses for each contract-
I ing handler who is a manufacturer shall be that amount which is
H' paid to the control agency pursuant to paragraph 4 of this section,
LT and such pro rata share is hereby approved by the Secretary. These
t assessments may be adjusted, from time to time, by the control
I, Agency, with the approval of the Secretary, in order to provide funds
I sufficient in amount to cover any later findings by the Secretary of
L estimated expenses or the actual expenses of the control agency dur-
( ing the said year.
2. The share of such expenses for each contracting handler, who
Sis a distributor marketing his products principally through veteri-
Snarians, shall be such handler's pro rata share (to be computed by
Sthe disinterested agency selected under the provisions of paragraph
S4 of this section and shall be based upon such handler's percentage
Sof the total of serum marketed by such handlers during the preced-
I ing calendar year) of the total amount expended in defraying the
Expenses of the two (2) members of the control agency who have
M. been selected by the Secretary to represent such contracting handlers,
Spursuant to the provisions of article II. Such pro rata share of ex-
Spenses shall be subject to the approval of the Secretary. These
i- assessments may be adjusted, from time to time, by the control
I agency, with the approval of the Secretary, in order to provide
funds sufficient in amount to cover any later findings by the Secre-
Stary of estimated expenses or the actual expenses of the control
agency during the said year.
3. The share of such expenses for each contracting handler, who
is a distributor marketing his products principally through other
channels, shall be such handler's pro rata share (to be computed by
the disinterested agency selected under the provisions of paragraph
4 of this section and shall be based upon such handler's percentage
of the total of serum marketed by such handlers during the preced-
ing calendar year) of the total amount expended in defraying the
expenses of the two (2) members of the control agency who have
been selected by the Secretary to represent such contracting handl-
ers, pursuant to the provisions of article II. Such pro rata share of
expenses shall be subject to the approval of the Secretary. These
assessments may be adjusted, from time to time, by the control
agency, with the approval of the Secretary, in order to provide funds
sufficient in amount to cover any later findings by the Secretary of
estimated expenses or the actual expenses of the control agency dur-
ing the said year.
4. Within five (5) days after this agreement becomes effective,
and on January lU- of each year thereafter, while this agreement is
effective, each manufacturer who is a contracting handler shall fur-
nish the Secretary, through a disinterested agency, to be selected by
the control agency and approved by the Secretary, a report which
shall be sworn to and which shall set forth the amount of hyper-
immune blood which has been collected by such contracting handler




22

during the preceding calendar year, and each distributor who is a
contracting handler shall furnish the Secretary, through such disinteri"
ested agency, a report which shall be sworn to and which shall Wt
forth the amount of serum marketed by such contracting haIl
during thle preceding calendar year. The control agency shall inform
the disinterested agency concerning the total amount of expense to
be paid by contracting handlers who are manufacturers and by coJ.
tracing handlers who are distributors. The pro rata share of ex
penses to be paid by each manufacturer who is a contracting handler
shall be based upon such handler's percentage of the total amount
of hyperinimmune blood which has been collected by such contracting
handlers during the preceding calendar year. During the calendar
year 1936, each manufacturer who is a contracting handler shall py
the control agency thirty (30) dollars with respect to each million
cubic centimeters (determined by the nearest whole number) of hype-
immune blood collected by such contracting handler during the
preceding calendar year, as determined by the reports submitted
pursuant to this paragraph. Such payments shall become due in
quarterly installments beginning January 1 of each year, and shall
be made to the disinterested agency, which shall transmit the total J
amount received from all contracting handlers to the control agency
without disclosing the amount of each payment made by individual
contracting handlers. A quarterly report shall be made to the Secre-.
tary by such disinterested agency, setting forth the amount of the
quarterly payment made by each contracting handler. Any funds
derived from assessments or any other source which have not been
expended by the control agency at the end of the calendar year shall .l
be carried over by the control agency to be expended during the :i
succeeding calendar year.
ARTICLE IV-FILING OF PRICES AND TERMS OF SALE FOR SERUMI
AND VIRUS
SECTION. 1. Open prices.-1. Each contracting handler shall file
with the Secretary and the control agency, within ten (10) days after
the effective date of this agreement, a separate list of his selling prices ;
in the United States, including terms of sale and discounts to each
class of buyers, as defined in this agreement or under the provisions
thereof, other than those specified in section 2 of this article. AU i
filed prices to dealers and wholesalers shall be on a delivered basis
where the amount sold is 3,000 cc or more. Each contracting handler'
prices, discounts and terms of sale shall be uniform for all buyers
in each classification of the trade as defined by the control agency
pursuant to this agreement. j,
2. The price list for each class of buyers filed by a contracts ,g
handler may, subject to the limitations set forth in paragraph 3 o01
this section, be modified at any time by such handler by filing for any
class of buyers a new or amended list of prices, including discoumnts I
and terms of sale, which shall only become effective when said new 1iW
amended list shall have been on file for three (3) days in any oiti J
designated by the control agency: Provided, however, That in td o I
event such list is mailed by registered letter or telegraphed to suk :23
office, it shall be deemed to have been filed either (a) at the time dir- I
ing usual business hours it is actually delivered in such office, or (b)


I
.;iii





23

at the time during usual business hours such communication would
have been received, considering the usual time required for the means
of communication used, in the absence of delays in transit, which-
ever time is the earlier.
3. Each contracting handler agrees that he will make no sales
unless he has an effective price list, including discounts and terms
of sale as set forth in paragraph 1 of this section, filed with the con-
trol agency, and that after any such price list or amended price list
becomes effective, he will make no sales at prices, discounts or terms
of sale different from those set forth in his latest effective list and
will file no new or amended price list until his most recently filed
Price list for any class of buyers becomes effective: Provided, however,
no contracting handler shall withdraw any filing of a price list prior
to the effective date of such price list.
4. The control agency shall immediately upon receipt of any such
new or amended price list, give written notice thereof to each of the
contracting handlers and to the Secretary. All price lists shall be
Made immediately available to the daily and trade press and to the
consuming public by employing a means of communication at least
* as rapid as that used to notify the contracting handlers and the
Secretary.
SEC. 2. Exceptions to flied prices.-1. The provisions of this agree-
ment shall not apply to any sales made by any contracting handler
for delivery outside the United States.
2. If the Secretary has reason to believe, from economic data
directly available to him or secured by him under the provisions of
directly th ertar hsraonrt belee frm rcoomicsdata
the act, that any price list, term of sale or discount, in whole or in
part, is inequitable to consumers or handlers by reason of the fact that
it may cause immediate injury by impeding the carrying out of this
agreement or the effectuation of the declared policy of the act or by
creating an abuse of the privilege of exemptions from the antitrust
laws, he may suspend the effectiveness of such price list, term of
sale or discount, in whole or in part, pending an investigation which
shall be completed as soon as practicable, and he shall report such
suspension to the control agency, who shall in turn immediately notify
the handler whose price filing has been suspended. The Secretary
may declare a filed price, discount or term of sale, in whole or in part,
to be ineffective if, after an investigation and an opportunity to be
heard has been afforded the handler whose price filing is questioned,
the Secretary finds from the facts presented during such investigation
that such price list, term of sale or discount, in whole or in part, is
inequitable as measured by the standards set up in this paragraph.
SEC. 3. Classes of buyers.-The control agency, subject to the dis-
approval of the Secretary, shall upon the basis of a written request
supported by economic data sufficiently adequate to warrant a conclu-
sion that such definition is neither unreasonable nor discriminatory,
define all classes of buyers not defined in this agreement, and shall,
subject to the disapproval of the Secretary, determine in specific cases
whether any person who is a handler or who is about to become a
handler comes within any class of buyers herein or hereafter defined,
and shall compile, subject to the disapproval of the Secretary, lists
of persons comprising each class of buyers, such lists and additions
thereto to be filed immediately with the Secretary and distributed to
the handlers.




24
...E ". 'g

Szc. 4. Uniform sales invoioea.-The control agency, subject tot
disapproval of the Secretary, may formulate and adopt unifom; ...i.
invoices for contracting handlers. After the adoption of suc h M& j
form sales invoices, al sales of serum and/or virus by contraciig
handlers to all classes of buyers shall be made in accordance with the
terms of such invoices, and prices and terms of sale therein shall eOBM
form to the seller's filed prices and terms of sale, effective at theti .:t
of making sales covered by such invoices. i
ARTICLE V-UNFAIR METHODS OF COMPETITION AND UNFAIR ,
TRADE PRACTICES ,
SECTIoN 1. Secret rebates.--1. The secret payment or allowance
of rebates, refunds, commissions, or unearned discounts, whether in
the form of money or otherwise, or secretly extending to certain
purchasers special services or privileges, not extended to all pur-
chasers under like terms and conditions, with the intent and with
the effect of injuring a competitor, and where the effect may be to
substantially lessen competition or tend to create a monopoly or to
unreasonably restrain trade, is an unfair trade practice, and is
prohibited.
2. To sell other products at less than reasonable market value
thereof, for the purpose or with the effect of influencing sales of
serum and/or virus, is prohibited.
SEC. 2. Enticing employees.-Maliciously enticing away the em- |
ployees of competitors with the purpose and effect of unduly ham-
pering, injuring, or embarrassing competitors in their businesses is
an unfair trade practice, and is prohibited.
SEC. 3. Defamation of campetitors.-The defamation of competl-
tors by falsely imputing to them dishonorable conduct, inability to
perform contracts, questionable credit standing, or by other als
representation, or the false disparagement of the grade or quality of
their serum and/or virus, with the tendency and capacity to mislead .
or deceive purchasers or prospective purchasers, is an unfair trade
practice, and is prohibited.
SEc. 4. Sale by false mean&.-The sale or offering for sale of a.y:0
serum and/or virus by any false means or device which has ti i
tendency and capacity to mislead or deceive customers or prospect
tive customers as to the quantity, quality, or substance of suc seruh
and/or virus is an unfair trade practice, and is prohibited, i.
SEC. 5. Consignment shipping.-Shipping serum or virus on oom !i'
signment, with the intent and with the effect of injuring a comptW
tor, and where the effect may be to substantially lessen competitaic ,
or tend to create a monopoly or to unreasonably restrain trade, is.a i
unfair trade practice, and is prohibited. :
SEC. 6. False invoicing.-Withholding from or inserting in t i..
invoice statements which make the invoice a false record, Wholly a0l!
in part, of the transaction represented on the face thereof is J3
prohibited. , ,,iii
SEc. 7. Misleading advertising.-1. The making, causing, or..'ir
mitting to be made, or publishing of any false, untrue, mualsadhe A
or deceptive statement, by way of advertisement or otherwise, ,ia
cerning the grade, quality, quantity, character, nature, origin, prep .
I 7 i


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25

nation, or use of serum and virus is an unfair trade practice and is
prohibited.
2. The use by contracting handlers who are distributors of the words
"Serum Company", "Serum Laboratories" or other equivalent words
on letterheads, signs, advertising matter and otherwise where such
Practice tends to mislead and deceive purchasers and consumers into
belief that such distributor is a manufacturer, where in fact lie is not.,
is prohibited.
SEC. 8. Emergency reserve.-Each manufacturer who is a contract-
ing handler shall have available on May 1 of each year a supply of
completed serum equivalent to not less than forty (40) percentum
of his previous year's sales.
ARTICLE VI-AMENDMENTS
SECTION 1. Proposals.-Amendments to this agreement may, from
time to time, be proposed by any party to this agreement or by the
control agency.
SEc. 2. Hearing and approval.-After due notice and opportunity
for hearing and upon determination by the Secretary that the pro-
Sposed amendment has been executed by all the handlers of not less
than seventy-five (75) percent of the volume of serum and virus
Handled during the preceding marketing year (January 1-Decemnber
31), the Secretary may approve such amendment, and it shall become
effective at such time as the Secretary may designate.
I ARTICLE VII-EFFECTIVE TIME AND TERMINATION
I SECON 1. Effective time.-This agreement shall become effective
Sat such time as the Secretary may determine it has been executed by
all the handlers of seventy-five (75) percent of the volume of serum
and virus handled during the preceding marketing year and may
declare above his signature attached hereto, and shall continue in
force until terminated in one of the ways hereinafter specified.
SSEc. 2. Termination.-1. The Secretary may at any time terminate
this agreement as to all parties hereto, by giving at least seven (7)
days' notice by means of a press release or in any other manner which
the Secretary may determine.
2. The Secretary shall terminate this agreement at the end of the
then current marketing period (December 31) whenever he finds that
such termination is favored by all the handlers of not less than 75
percent of the volume of serum and virus handled during the preced-
ing marketing period.
3. This agreement shall in any event terminate whenever the pro-
visions of the act authorizing it cease to be in effect.
4. Upon the termination or suspension of this agreement or of any
provision thereof, the members of the control agency then function-
ing, or such other persons as the Secretary may from time to time
designate, shall, if so ordered by the Secretary, liquidate the business
of the control agency under this agreement, and dispose of all funds
and property then in the possession or under the control of the control
agency, together with claims for any funds which are unpaid or prop-
erty not delivered at the time of such termination. The control agency
or such other persons as the Secretary may designate (a) shall con-




26

tinue in such capacity until discharged by the Secretary, (b) 141M
from time to time, account for all receipts and disbursements and/
deliver all funds and property on hand, together with the books at
records of the control agency, to such person or persons as the ew'
tary shall direct, and (c) shall, upon the request of the Seretary
execute such assignments, or other instruments necessary or a.pw I
private to vest in such person or persons full title to all the fuda, j
property and/or claims vested in the control agency pursuant to this
agreement. Any funds collected for expenses, pursuant to the provi-
sions of this agreement, and held by the control agency or such person
or persons, over and above the amounts necessary to meet outstanding
obligations and the expenses necessarily incurred by the control agency
or such person or persons, shall be returned to the contributing han-
dlers in proportion to the contributions of each handler, or shall be
expended by the control agency for a purpose not inconsistent with
the provisions of this agreement and in a manner which the contradt-
ing handlers shall determine by a three-fourths (3A) vote of such
handlers. The control agency or such person or persons shall observe
the procedure governing the actions of the control agency as estab-
lished under the provisions of section 4 of article II of this agreement
Any person to whom funds, property and/or claims have been deliv-
ered by the control agency or its members upon direction of the Secre-
tary, as provided in this paragraph, shall be subject to the sam
obligations and duties with respect to said funds, property, and/or
claims as are imposed upon the members of the control agency.
ARTICLE VIII-DURATION OF IMMUNITIES
SECTIONz 1. Immunities.-The benefits, privileges and immunities
conferred by virtue of this agreement shall not extend or be construed
to extend further than is necessary for the purpose of carrying out
the provisions of this agreement and shall cease upon its termination I"
except with respect to acts done under and during the existence of i
this agreement, and benefits, privileges and immunities conferred by i(
this agreement upon any party signatory hereto shall cease upon its i
termination as to such party, except with respect to acts done under
and during the existence of this agreement.
ARTICLE IX-COUNTERPARTS 9
SEc TION 1. Counterparts.-This agreement may be executed in mul :I
tiple counterparts, and when one counterpart is signed by the Seen w
tary. all such counterparts shall constitute, when taken together, one ......
and the same instrument as if all such signatures were contained inm ;;
one original. "
ARTICLE X-ADDITIONAL PARTIES |
SECnoN 1. Additional parties.-After this agreement first takbs .I.
effect, any handler may become a party to this agreement if a counter.
part thereof is executed by him and delivered to the Secretary. This '
agreement shall take effect as to such new contracting party at tM
time such counterpart. is delivered to the Secretary, and the henefitrs
privileges, and immunities conferred by this agreement shall then beI
effective as to such contracting party.





27

ARTICLE XI-AGENTS AND COMMITTEES
SECTION 1. Agenta.-The Secretary may by designation in writing
name any person (not a party to this agreement), including any off-
-car or employee of the Government or bureau or division of the De-
partment of Agriculture to act as his agent or representative in con-
nection with any of the provisions of this agreement.
SEC. 2. Committees.-The Secretary may select such committees
Sto meet with or advise the control agency as he deems necessary for
1the proper functioning of the control agency under the provisions of
-this agreement. One such committee or its representative shall rep-
t resent the interests of consumers. The expenses for the maintenance
pand functioning of the advisory committees may be included within
the budget submitted to the Secretary for approval, pursuant to sec-
p tion 1 of article III of this agreement, and may be met by the con-
trol agency from funds paid to it for the maintenance and function-
ing of the control agency.
ARTICLE XII-DEROGATION
SECTION 1. Derogation..-Nothing contained in this agreement is
or shall be construed to be in derogation or in modification of the
Rights of the Secretary or of the United States (1) to exercise any
: powers granted by the act or otherwise, and/or (2) in accordance
With such powers, to act in the premises whenever such action is
Seemed advisable.
ARTICLE XIII-LIABILITY OF CONTROL AGENCY
* SECTION 1. Liability.-No member of the control agency nor any
Employee thereof shall be held responsible individually in any way
whatsoever to any handler signatory hereto or any other person
for errors in judgment, mistakes, or other acts either of commission
or omission as such member or employee, except for acts of dis-
honesty. The contractual obligations of the handlers hereunder
are several and not joint, and no handler shall be liable for the de-
fault of any other handler.
ARTICLE XIV-SEPARABILITY
SECTION 1. Separability.-If any provision of this agreement is
declared invalid, or the applicability thereof to any person, circum-
stance, or thing is held invalid, the validity of the remainder of this
agreement, and/or the applicability thereof to any other person,
circumstance or thing shall not be affected thereby.
ARTICLE XV-ORDER WITH MARKETING AGREEMENT
SECTION 1. Request for order.-Each signatory handler hereby re-
quests the Secretary, to issue an order pursuant to the act, regulating
the handling of serum and virus substantially in the same manner
as provided in this agreement.




2 8" "::, :1" 'I"

ARTICLE XVI-SIGNATURE OF PARTII

In witness whereof, the contracting parties, acting under tlBww
plicable provisions of the act (Public No. 820), for the purpo aL
subject to the limitatiormns herein contained and not otherwi s m
hereunto set their respective hands and seals. e1mb .
I, H. A. Wallace, Secretary of Agriculture, :
hereby execute this agreement m duplicate under: 7.:ii
hand and the official seal of the Department of
culture, in the City of Washington, D. C., on: il
2nd of December 1936, and pursuant of the proM
visions hereof, declare this agreement to be eflweir
on and after 12:01 a. m., eastern standard ti, 1
December 7,1936. 1
H. A. WALLAC, 1,
Secretary of Agrio l:M

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