::^^^f^f2f'&*^iv^.-;. / S. A I. Order 361) iMued December 3. 193A Order Regulating the Handling of Anti-Hog^Cliolera Serum and Hog-'Cholera Virxis and Approved Marketing Agreement for Handlers of Anti-Hog^Cholera Serum and Hog-Cholera Virus Effective December 7, 1936 ;•.•,•:&; (B. A. I. 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 (B. A. I. Order 3G1) United States Department of Agriculture BUREAU OF ANIMAL INDUSTRY ORDER REGULATING THE HANDLING OF ANTIHOG- CHOLERA SERUM AND HOG-CHOLERA VIRUS Whereas, Section 57, 49 Stat. 750, approved August 24, 1935 (here- inafter called the Act), provides as follows: 111 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- 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) W/i(/ra.s, the SiHi-etary of A<^riciilture 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 lio<;-cliolera virus prochiced in the United States enters into (lie current of interstate and f<)reivill tend to insure tlie maintenance of an adecpuite supi)ly of anti- liog-chokM-a serum and liog-cholera virus and to prevent undue and excessive fluctuations and unfair methods of competition and unfair tra(K» practices in sucli marketing; (J^) That tlie control agency is a ])roper agency to administer the marketing agieement 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 piovisions of paragraph (C) of subsection (7) of Section 8c of the Agricultural Adjustment Act, as amended; (4) That the exjxMises which will necessarily be incurred by the control agency during the remainder of the calendar year of 1936 for the maintenance and functioning of said agency will be approxi- nuitely Twelve Hundred Fifty ($1250) Dollars; that such ex])enses are fair and reasomible; that the i)ro rata share thereof of each manufacturing handler in the amount of Two Dollars & Fifty Cents ($2.50) for each million cubic centimeters (determined by the nearest Avhole number) of hyperimmune blood collected by such handlers during the preceding calendar year is fair and reasonable and is a])pr()ved; 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^) Cents for each million cubic centimeters determined by the nearest whole number and based upon each handler's percentage of the total of serum nuirketed 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 administra- tion of the marketing agreement and order ; and Whejr.as^ the Secretary of Agriculture finds that the marketing agreement regulating the handling of anti-hog-cholera serum and hog-cholera virus, executed by him on the 2nd day of December 19;JG. 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 of aiiti-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, TiiEREFOKE, the Secretary of Agriculture, pursuant to the au- thority vested in liim by the Act. hereby orders that such handling of ant:i-hog-cholera serum and hog-cholera virus as is in the current of interstate or foreign commerce, or which directly burdens, ob- structs, or affects interstate or foreign connnerce in such serum and vims, shall from the effective date hereof be in conformity to, and in compliance with, the following terms and conditions: ARTICLE I— DEFINITIONS Section 1. Deftnition 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 t o 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 tliat 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 virus for service clmr«2:es, dni«^ stores, county farm bureaus, j)ur- chascrs of serum for use in U. S. licensed stock yards vaccination, and agencies who maintain stocks of serum and virus in sufficient quantities under proper storaurchaser" means that class or classes of buyers ('()mprisin:ed in the handline made within thirty (30) days after such vacancy occurs. If a nomination 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 comnmnications from the Secretary may be addressed to the chairman at such address as may from tmie to time be fik'd with the Secretary. The a<^^Micv shall select such other officei-s and adoi)t such rules not inconsistent with the ])rovisions of this order for the conduct of its business as it may deem advisable. The ao^ency shall jrive to the Secretary or his desiers of the control agency who have been selected by the Secretary to represent such luiiuUers, pursuant to tlio provisions of article II. Such pro rata share of expenses shall l)e subject to the approval of the Secretary. These assessments may be adjusted, from time to time, by the control a<>ency, with the a])proval of tlie Secretary, in order to })rovide funds sufficient in amount to cover any later Hndiner- mittine construed to be in derogation or in modification of the rights of the Secretary or of the United States (1) to exercise any powei*s granted by the act or otherwise, and/or (2) in accordance with such ])()wers, to act in the premises whenever such action is deemed advisable. ARTICLE XI— LIABILITY OF CONTROL AGENCY Sfxtiox 1. L/ar(ihf1}fii. — If any jirovision 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 193G, and pursuant to the provisions hereof declares this order to be effective on and after 12:01 a. m., e. s. t., December 7, 1936. H. A. Wali^\ce, Secretary of Agriculture. United States Department of Agriculture BUREAU OF ANIMAL INDUSTRY APPROVED MARKETING AGREEMENT FOR HANDLERS OF ANTI-HOG-CHOLERA SERUM AND HOG-CHOLERA VIRUS PURPOSES The parties to this agreement are the contracting handlers of anti- hog-cholera serum and hog-cholera virus in the United States and the Secretary of Agriculture of the United States. Whe?'eas, 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 24, 1935, to insure the maintenauce of an adequate supply of anti-hog-cliolera serum 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- 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- pose of correcting conditions noAv obtaining in the handling of anti- hog-cholera serum and hog-cholera virus in interstate and foreign commerce and to effectuate the declared policy of Congress with respect to such serum and virus, desire to enter into a marketing agreement under the provisions of section 57 of the said act : Xow, Therefore, the parties hereto agree as follows : ARTICLE I— DEFINITIONS Section 1. Definition of terms. — As used in this agreement the 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 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. 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 (15) 16 a similar inannor and for an identical purpose under license or author- ity of any State or otherwise, and marketed in interstate and forei:ency for its maintenance and functi()nin<^ under the ])rovisions of article III hereof. Sec. 2. Pojrer.^. — The control agency shall have power: (1) To administer, as hereinafter specifically provided, the terms and provisions hereof ; (2) To make, in accordance with the provisions hereinafter con- tained, administrative rules and regulations; (3) To recdve, 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 he 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 sliall 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 (?4) "^^ote 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 4. If a memlKT of the control a^m y shall be a party in interest to any dispute or coni|)laint, or a representative of such party in interest, he shall, for the purposi* of the consideration of such dispute or complaint, be discjualilled as a member of the control a<^ency. Such disension of this agi*eement or 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 of this agreement. ARTICLE III— ASSESSMENTS SixTiON 1. Expen-^es. — 1. Each contracting handler shall pay to thd control agency, upon demand, such contracting handler's pro rata share, as is approved by the Secretary, of the ex])enses in the amount of $15,000 (which amount the Secretary has found will necessarily be incurred by the control agency during the year ending December 31, 193G), or expenses in sucli other amount, as the Secretary may later find will necessarily be incurred by the control agency during the said year for the maintenance and functioning of the control agency during said year, as set forth in this agreement. 2. Subsequent to the year ending December 31. 1936. r»very con- tracting handler shall pay the control agency, upon demand, such con- 21 tract in^ handler's pro rata share, as may he approved hy tlie Secre- tary, of such expenses as the Secretary may find will necessarily he incurred hy the control a<2:ency durinrecedinect to each million cubic centimeters (determined by the nearest whole number) of hyjx^r- imnnme blood collected by such contractin<>: handler during the precedineen 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 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 i)rovisions 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 contracting handler's prices, discounts and terms of sale shall be uniform for all bu3'ers in each classification of the trade as defined b^^ the control agency pursuant to this agreement. 2. The })rice list for each class of buyers filed by a contracting handler may. subject to the limitations set forth in paragraph 3 of 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 discoinits 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, hoirirrr. 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 dur- ing usual business hours it is actually delivered in such office, or (b) 23 at the time during usual business hours such communication wouhl have been received, coiisicUn-ing the usual lime i-equired for (lie means of communication used, in the absence of dehiys in ti'ansit, wliich- ever time is the earlier. 3. Each contracting handler agrees that he will make no sales unless he has an eft'ective price list, including discounts and terms of sale as set forth in paragi*aph 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 inmiediately available to the daily and trade press and to the consuming public b}^ employing a means of communication at least as rapid as that used to notify the contracting handlers and the Secretary. Sec. 2. Exceptions to fled f rices. — 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 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 notifj^ 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 Skc. 4. r?u'form sales invoices. — The control iipcMicv. subject to the disai)[)roval of the Secret arv. may formulate and acloi)t uniform sales invoices for contracting handlers. After the adoption of such uni- form sales invoices, all sales of serum and or virus by contracting handk'rs to all classes of buyers shall be made in accordance with the terms of such invoices, and prices and terms of side theiein shall con- form to the seller's filed prices and terms of sale, effective at the time of making sales covered by sucii invoices. ARTICLE V— UNFAIR METHODS OF COMPETITION AND UNFAIR TRADE PRACTICES Section 1. Stcret rebates. — 1. The secret payment or allowance of rebates, refunds, commissions, or unearned discounts, whether in the form of money or otherwise, or secretly extendinurchasers special services or privileose not inconsistent with the provisions of this agreement and in a manner which the contract- ine construed to extend furtlier than is necessary for the purpose of carrying out the provisions of this agreement and shall cease upon its termination except with res])ect to acts done under and during tlie existence of this agreement, and benefits, privileges and immunities conferred by tliis agreement upon any party signatory liereto shall cease upon its termination as to such party, except with respect to acts done under and during tlie existence of this agi-eement. ARTICLE IX— COUNTERPARTS Section 1. Coimterparts. — This agreement may be executed in mul- tiple counterparts, and when one counterpart is signed by the Secre- taiy. all such counterparts shall constitute, when taken together, one and the same instrument as if all such signatures were contained in one original. ARTICLE X— ADDITIONAL PARTIES Section 1. Additional parti^^s. — After this agreement first takes effect, any handler may become a ])arty to this agreement if a counter- ])art thereof is executed by him and delivered to the Secretary. This agreement shall take etfect as to such new contracting party at the time such counterpart is delivered to the Secretary, and the benefits, ])rivileges, and innnunities conferred by this agreement shall then be effcK*tive as to such contracting party. 27 ARTICLE XI— AGENTS AND COMMITTEES Section 1. Agents. — The Secretary may by desi<^iiation in writing name any person (not a party to this a<^rwment), including any offi- cer 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 conunittees to meet with or advise the control agency as he deems necessary for the proi)er functioning of the control agency under the provisions of this agreement. One such committee or its representative shall rep- resent the interests of consumers. The expenses for the maintenance iind functioning of the advisory committees may be included within the budget submitted to the Secretary for approval, pursuant to sec- 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 deemed 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. Separahility. — 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. 28 ARTICLE XVI— SIGNATURE OF PARTIES In Avitness whereof, the c()iitrju'tin«r parlies. Hctine effective on and after 12:01 a. m., eastern standard time, December 7, 1936. H. A. Wallace, Secretar-y of Agriculture. o ■ 'ft'"