WOOL WEDNESDAY, MAY 4, 1938 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE OF THE COMMITTEE ON Washington, D. C. The subcommittee met, pursuant to call, at 10 a. m., in the committee room, New House Office Building, Hon. Clarence F. Lea (chairman) presiding. The CHAIRMAN. The committee will please come to order. We have this morning a hearing on H. R. 9909, introduced by Mr. Martin of Colorado. This is a bill to protect producers, manufacturers, and consumers from the unrevealed presence of substitutes and mixtures in spun, woven, or knitted or felted fabrics and in garments or articles of apparel or other articles made therefrom, and for other purposes. (The bill, H. R. 9909, is as follows:) [H. R. 9909, 75th Cong., 3d sess.] A BILL To protect producers, manufacturers, and consumers from the unrevealed presence of substitutes and mixtures in spun, woven, or knitted or felted fabrics and in garments or articles of apparel or other articles made therefrom, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this act may be cited as the "Labeling Act for wool and part-wool products." DEFINITIONS SEC. 2. As used in this act (a) The term "person" means an individual, partnership, corporation, association, or any other form of business enterprise, plural or singular as the case demands. (b) The term "wool" means the fiber from the fleece of the sheep or lamb or hair of the Angora or Cashmere goat and may include the so-called specialty fibers, namely the hair of the camel, alpaca, llama, vicuna, rabbit, and other similar animal fibers. (c) The term “virgin wool" means wool that has never been spun or woven or knitted or felted nor used for any other purpose. (d) The term "reclaimed wool" means wool which has been reconverted into a loose fibrous state, after having been spun, woven, knitted, felted, or otherwise made into a wool product. (e) The term "wool product" means any yarn or woven or knitted or felted fabric which purports to contain or is in any way represented as being wool, before it is made into a converted wool product as defined in the following paragraph (f) of this section. (f) The term "converted wool product" means a product which has been converted by a garment manufacturer or any other converter into a garment or any other article out of a wool product as defined in paragraph (e) of this section. 59 (g) The term "Commission" means the Federal Trade Commission. (h) The term "Federal Trade Commission Act" means the Act of Congress entitled "An Act to create a Federal Trade Commission, to define its power and duties, and for other purposes," approved September 26, 1914, as amended (U. S. C., title 15, secs. 41–77). (i) The term "interstate or foreign commerce" means commerce between any State, Territory, or possession, or the District of Columbia, and any place outside thereof, or commerce between points within the same State, Territory, or possession, or the District of Columbia, and any place outside thereof, or commerce between points within the same State, Territory, or possession, or the District of Columbia, through any place outside thereof; or commerce within any Territory, or possession, or the District of Columbia. (j) The trm "State" means any State of the United States. (k) The term "Territory or possession" means the District of Alaska and the insular possessions of the United States. MISBRANDING DECLARED UNLAWFUL SEC. 3. The introduction into interstate or foreign commerce of any wool product or converted wool product which is misbranded within the meaning of this Act, or the rules and regulations hereunder, is unlawful and shall constitute, per se, an unfair method of competition in commerce under the Federal Trade Commission Act; and any person who shall ship or deliver for shipment or sell or offer for sale, in interstate or foreign commerce, or who shall receive from or through interstate or foreign commerce and having so received shall deliver for pay or otherwise, or offer to deliver to any other person, any such wool product or converted wool product which is misbranded within the meaning of this Act and the rules and regulations hereunder is guilty of an unfair method of competition in commerce within the meaning of the Federal Trade Commission Act and shall be subject to the penalties and entitled to the privileges therein provided as if the same were incorporated into and made part of this Act, and such person shall also be guilty of a misdemeanor and upon conviction thereof shall be fined not exceeding $5,000 or be imprisoned not exceeding one year, or both, in the discretion of the court. This section shall not apply (a) to any common carrier in respect to any article shipped or delivered for shipment in the ordinary course of its business as a common carrier; nor (b) to any person in respect of any article delivered for shipment, shipped, or sold for exportation from the United States to any foreign country if such article is branded in accordance with the specifications of the purchaser and in accordance with the laws of such country. MISBRANDED GOODS SEC. 4. For the purpose of this Act any wool product shall be deemed to be misbranded unless stamped, tagged, labeled, or otherwise identified, in accordance with the following provisions of this section, and such rules and regulations hereunder and pursuant hereto as the Commission may prescribe: (a) Each stamp, tag, label, or other means of identification shall show (1) the minimum percentage by weight in proportion to the total fiber content of the wool product of (a) virgin wool fiber; (b) reclaimed wool fiber; and (c) other fibers: Provided, That in the case of fiber other than wool, used exclusively for ornamentation, a statement excepting the percentage by weight of such fiber in proportion to the total fiber content of the wool product shall be sufficient: Provided further, That the Commission shall, under proper regulations for various classes of wool products, permit fiber other than wool used exclusively for ornamentation, not exceeding 5 per centum of the total fiber content, to be computed as part of the woolfiber content of a wool product; and shall similarly permit a tolerance, not exceeding 5 per centum of the total fiber content, in the treatment of fibercontent percentages, for unavoidable variations in manufacture; (2) the maximum percentage by weight in proportion to the total weight of the wool product, of any matter other than fiber contained therein, if the exceeding 5 per centum of the total fiber content, in the statement of fiberof the total weight of such wool product. (b) No trade name, pictorial representation, term, or descriptive name suggesting or implying the presence of wool shall be used in connection with any wool product unless such wool product contains at least 51 per centum by weight of wool in proportion to the total fiber content: Provided, That where the term "wool" or any trade name, pictorial representation, term, or descriptive name suggesting or implying the presence of wool is used in connection with any wool product, the percentage by weight of wool content thereof must be shown in words and figures equally conspicuous. (c) No trade name, pictorial representation, term, or descriptive name suggesting or implying that a wool product is made entirely of virgin wool shall be use in connection with any wool product unless such wool product contains 100 per centum virgin wool. (d) This Act shall not be construed as requiring any information in respect to linings, interlinings, paddings, stiffenings, trimmings, or facings, except that if any lining or interlining is represented as containing wool then the terms of this section shall be applicable thereto. AFFIXING OF STAMP, TAG, LABEL, OR OTHER IDENTIFICATION SEC. 5. (a) Such stamp, tag, label, or other means of identification shall be affixed to the wool product by the manufacturer thereof, in the case of wool products of domestic manufacture, and by the importer thereof, in the case of wool products of foreign manufacture. (b) In the case of wool products which are sold directly or indirectly to converters, garment manufacturers, or other manufacturers to be made by them into converted wool products, the manufacturer of the wool product, in the case of wool products of domestic manufacture, and the importer thereof, in the case of wool products of foreign manufacture, shall also furnish to such converter, garment manufacturer, or other manufacturer the tag, label, or other means of identification required by this Act and by such rules and regulations as the Commission may prescribe, and such tag, label, or other means of identification shall be affixed by such converter, garment manufacturer, or other manufacturer to the converted wool products made by him out of such wool product. (c) Such tag, label, or other means of identification shall remain affixed to such wool product, or to such converted wool products made out of such wool product, as the case may be, when the same are offered for sale or sold to wholesale or retail merchants, and shall not be removed therefrom prior to the time when such wool product or converted wool product shall be sold to the consuming public. (d) Any person who shall violate any of the provisions of this section shall be subject to the penalties imposed by this Act for any violation of any of the terms and provisions thereof. (e) Every manufacturer of wool products shall maintain complete and accurate records showing the fiber content as required by section 4 of this Act of the wool products manufactured by him, and the refusal or failure to maintain such records shall be unlawful and shall subject the person so refusing or failing to maintain such records to the penalties provided by this Act for the violation of any of the terms or provisions thereof. ENFORCEMENT OF THE ACT SEC. 6. (a) Except as otherwise specifically provided, this Act shall be enforced by the Federal Trade Commission under rules, regulations, and procedure provided for in the Federal Trade Commission Act. The Commission is authorized and directed to prevent any person from engaging in the practices forbidden by this Act in the same manner, by the same means, and with the same purpose and effect as though all applicable terms and provisions of the Federal Trade Commission Act were incorporated into and made a part of this Act; and any such person engaged in the practices forbidden by this Act shall be subject to the penalties and entitled to the privileges and immunities provided in said Federal Trade Commission Act, in the same manner, by the same means, and with the same purposes and effects as though the applicable terms and provisions of the said Federal Trade Commission Act were incorporated into and made a part of this Act. The Commission is authorized and directed to make such further rules and regulations under and in pursuance of the terms of this Act as may be necessary and proper for administration and enforcement. The Commission is authorized to cause investigations, inspections, analyses, and tests to be made of any fabrics or goods subject to this Act; and to co 68916-38-5 operate with any department or agency of the Government, with any State, Territory, or possession, or with the District of Columbia; or with any department, agency, or political subdivision thereof; or with any person. (b) In the administration and enforcement of this Act any standards, analyses, and tests adopted by the Commission for the determination of fiber content in wool products, or for other enforcement purposes, shall be uniform in their application. CONDEMNATION PROCEEDINGS SEC. 7. (a) Any misbranded goods shall be liable to be proceeded against in the district court of the United States for any judicial district in which found, and to be seized for confiscation by a process of libel for condemnation, if such goods are being- (1) shipped in interstate or foreign commerce; or (2) held for sale or exchange after having been so shipped; or (3) held for sale or exchange in any Territory or possession or the District of Columbia. (b) If such goods are condemned by the court, they shall be disposed of, in the discretion of the court— (1) by destruction; or (2) by sale; or (3) by delivery to the owner or claimant thereof upon the payment of the legal costs and charges, and the execution and delivery of a good and sufficient bond to the effect that such goods will not be shipped, sold, offered for sale, or otherwise disposed of until properly stamped, tagged, labeled, or otherwise identified in accordance with the provisions of this Act and the regulations thereunder. (c) If such goods are disposed of by sale, the proceeds of the sale, less the legal costs and charges, shall be paid into the Treasury as miscellaneous receipts. (d) Proceedings in such libel cases shall conform as nearly as may be to suits in rem in admiralty, except that either party may demand trial by jury on any issue of fact if the value in controversy exceeds $20. All such proceedings shall be at the suit and in the name of the United States. EXCLUSION OF MISRBANDED GOODS SEC. 8. (a) Whenever the Commission has reason to believe that any wool product or converted wool product is being imported, or offered for import, into the United States from any foreign country, in violation of the provisions of this Act, it shall give due notice and opportunity for hearing to the owner or consignee of said wool product or converted wool product, who may appear before the Commission at said hearing and introduce testimony and evidence relevant to the question of whether or not in fact there has been a violation of the provisions of the Act. Upon giving notice of opportunity for hearing to such owner or consignee, the Commission shall certify that fact to the Secretary of the Treasury, who shall thereupon (1) refuse admission and delivery of such wool product or converted wool product to the said owner or consignee; or (2) authorize admission and delivery of such wool product or converted wool product to such owner or consignee pending examination, hearing, and decision in the matter, upon the execution of a penal bond for the amount of the full invoice value of such wool product or converted wool product, together with the duty thereon, if any, to the effect that on refusal to return such product for any cause to the Secretary of the Treasury when demanded. for the purpose of excluding it from the country, or for any other purpose, said owner or consignee shall forfeit the full amount of the bond. (b) If, after proceeding in accordance with subsection (a) above, the Commission decides that the wool product or converted wool product therein referred to was shipped, delivered for shipment, sold or offered for sale, or purchased for resale, in interstate or foreign commerce in violation of the provisions of this Act, it shall certify that decision to the Secretary of the Treasury, who, after giving due notice to the said owner or consignee, shall cause the sale or other disposition of such wool product or converted wool product, unless the same is exported by the said owner or consignee within one month from the date of such notice, under such regulations as the Secretary of the Treasury may prescribe, or unless such goods are within that time properly tagged, marked, labeled, or otherwise identified, as provided in this Act. (c) All charges for storage, cartage, or labor on any wool product or converted wool product arising under the administration and enforcement of this section shall be paid by the owner or consignee of the said wool product or converted wool product, and in default of such payment such charges shall constitute a lien against such wool product or converted wool product and against any wool product or converted wool product thereafter imported by such owner or consignee. GUARANTY SEC. 9. No person shall be prosecuted under the provisions of this Act if he can establish a guaranty signed by the manufacturer, wholesaler, jobber, or other person, residing in the United States, from whom the wool product or converted wool product was received, to the effect that the said wool product or converted wool product designated is not misbranded within the meaning of this Act. Said guaranty, to afford protection, shall contain the name and address of the manufacturer, wholesaler, jobber, or other person, residing in the United States, from whom the said wool product or converted wool product was received; and the said manufacturer, wholesaler, jobber, or other person, from whom the said wool product or converted wool product was received, shall be amenable to prosecution and penalty which would attach in due course to any person violating. the provisions of this Act. No person who shall establish a guaranty as provided above shall be exempt. from prosecution and penalty under the provisions of this Act unless such person, upon the exercise of due diligence, does not find any cause to believe, and does not in fact believe, that the wool product or converted wool product guaranteed is misbranded under the provisions of this Act. APPLICATION OF EXISTING LAWS SEC. 10. The provisions of this Act shall be held to be in addition to, and not in substitution for, the provisions of any other Act of the United States. EFFECTIVE DATE SEC. 11. This Act shall take effect at a date to be fixed by the Commission, but not later than one year after the date of its passage. STATEMENT OF HON. WALTER M. PIERCE, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF OREGON The CHAIRMAN. Governor Pierce, you wished to make a statement? Mr. PIERCE. Yes, Mr. Chairman. The CHAIRMAN. You may proceed. Mr. PIERCE. Mr. Chairman and gentlemen, I do not know much about the details of this proposed legislation, but I do not know that I am in favor of truth in fabrics. My legislative career commenced some 30-odd years ago in Oregon and since then we have been talking about truth in fabrics. In fact, this type of legislation at wool meetings through many years in Oregon, has been one of the objects of conversation. I have always taken the side and believe that there should be labeling of goods so that we might know the amount of virgin wool in woolen goods sold, and I am firmly convinced that if we reach such a place as they tell me they have in the analysis of woolen goods, that they can tell without difficulty, the amount of virgin wool, I think we should pass this legislation. I have been informed by scientific men that ought to know, that, they now can take a piece of goods and really tell the percentage of virgin wool and the amount of shoddy, and I am hoping this com |