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Be it  enacted by the Senate and House of Representatives of the  Philippines in Legislature assembled and by the authority of the same:

SECTION  1. Section seventeen hundred and seventy-one of Act Numbered Twenty-seven  hundred and eleven, known as the Administrative  Code, is hereby  amended to read as follows:

"SEC. 1771.  Words defined.—The words used in  this law shall be taken in the sense indicated below:

" (a)  'Fiber' shall mean in this law the raw material only and not fibers partially or entirely manufactured.   It shall be interpreted  according to  its common and  commercial significance and not according to its scientific  meaning.

"(b)  'Abaca' shall mean the fiber of the plant of the same name known in  botany as Musa textilis.

"(c)  'Maguey' shall mean the fiber  retted in sea water or in  fresh water, or the knife- or machine-stripped  fiber, washed in  sea  water,  of the true sisal plant of the  same name, known in botany by the name of Agave cantala Per.

" (d)  'Cantala' shall mean the knife- or machine-stripped fiber,  whether or not washed  in  fresh water, of the plant of the same name known in  botany by the  name of Agave cantala Roxb.

"(e)  'Sisal' shall mean the fiber retted  in sea water or in fresh water, or the  knife-  or  machine-stripped  fiber washed in  salt water,  of  the true  sisal  plant of the  same name, known in botany by the name of Agave sisalana Per.

"(f)   'Sisalana'  shall mean the knife- or machine-stripped fiber, whether  or not washed in  fresh water, of the true sisal plant  known in botany by the name of Agave sisalana Per."

SEC. 2. The following  new  sections  are hereby  inserted between  sections seventeen hundred and seventy-one and seventeen hundred and seventy-two  of the same Act:

  "SEC.  1771-A. Philippines  fiber inspection service.— There is hereby created an office which  shall have charge of the classification, baling, and inspection of Philippine fibers and  shall be designated and known  as  'Philippines Fiber Inspection Service' and be governed by a standardization board.

"SEC 1771-B. Standardization Board.—There is hereby created a board which shall  be designated and known as 'Fiber  Standardization Board'  and shall be vested with the powers and duties hereinafter specified.  Said  Board shall consist of seven members, with the  Director of  Agriculture as its  permanent chairman and executive officer,  and the other members shall be appointed by the  Governor-General, with the advice  and consent of the  Senate:  Provided, That one member shall  represent the local rope manufacturers; two members shall represent the fiber exporters; one member shall represent the  dealers  or middlemen;  and two members shall represent the fiber producers.

SEC. 1771-C. Terms of service of members of Standardization Board.—The members of the Standardization Board, with the exception of the Director of Agriculture, shall hold office as follows:

"The manufacturer for three years; one exporter for two years,  and one  exporter for  three years; the dealer for three years; one producer for two years, and one producer for three years.  At the expiration of their respective terms of service, a successor shall  be appointed for the term of three years from the date of such  expiration.  All vacancies, except through  expiration of the term,  shall be filled for the unexpired term only.

"SEC. 1771-D. Officers and employees of the Board.—The said Board  shall,  immediately after  its appointment, organize by electing a  secretary-treasurer.   The Board shall appoint such employees as it may deem necessary, and fix their duties, compensation, and terms of service.   None of the  said  employees  shall,  (luring  their service  with the Board, be a member thereof.

"SEC.  1771-E. Duties  of   the  secretary-treasurer.—The secretary-treasurer shall keep full  and  correct minutes of all the transactions and proceeding's of the Board, and shall perform such other  duties as may be assigned to  him- by the Board.  He shall also pay out of the funds in his charge all  properly approved accounts and shall, in  general, manage  the funds entrusted  to  him  by and on  behalf  of the Board  as authorized by  law and regulations.   He shall execute a bond in favor of the Board, conditioned upon the faithful performance of all  the  duties of his office, which bond shall be approved by the Board and be in such amount as the  latter may determine.

"SEC. 1771-F. Meetings of Board.—The Board shall have its  main  office in the  City of Manila, at such place as  it may designate, and shall meet at such times as it may designate.  The Board shall have authority to make the necessary rules not inconsistent with  this law to carry out its functions.

"SEC. 1771-G. Transaction, of business.—The presence of five members of said Board  shall constitute  a quorum for transacting any of the business of the Board.  In the absence of a quorum, the members present may adjourn the Board until there shall be a  quorum.  The concurrence of not less than five members of the Board  shall be  necessary to the formulation and promulgation  of a rule or order.

SEC. 1771-H.  Reports  of  proceedings.—The Board shall transmit  to the Secretary of Agriculture and Natural Resources, through the Director of  Agriculture, copies of the minutes of its meetings, and also a monthly report of all work  performed and  of all funds collected during  said month.

"As  soon  as  practicable  after the first of  January of each year, the Board shall transmit to the Governor-General, through  the  Secretary of  Agriculture  and  Natural Resources, its annual  report covering all the  phases of the work performed and making such recommendations as it may deem proper."

SEC. 3. Section seventeen hundred and seventy-two of the same Act is hereby amended to read as follows:

"SEC.  1772.  Official standards for commercial grades of fibers.—The Fiber Standardization Board shall  determine the official standards for the various commercial grades of Philippine fibers that are or may hereafter be produced in the Philippine Islands for  shipment abroad.  Each grade shall  have its proper name and designation which, together with  the basis upon which the several grades are determined,  shall  be defined by the said  Board  in  a general order.  Such order shall have the approval of the Secretary of Agriculture and Natural Resources; and for the dissemination of information, copies of the same shall be supplied gratis to the foreign  markets,  provincial governors, municipal presidents, and to  such other persons and agencies as shall  make request therefor.

"If it  is considered expedient to change these  standards at any time, notice shall be given in the local and foreign markets for a period of at least six months before the new standard shall go into effect."

SEC. 4. Section  seventeen  hundred and seventy-three of Act Numbered  Twenty-seven hundred  and eleven, known as the Administrative Code, is hereby repealed.

SEC. 5. Section  seventeen hundred and seventy-four of the same Act is hereby amended to read as follows:

   "SEC.  1774.  Preservation of official standards.—The originals  of all  official standards  shall be prepared in suitable form  and shall be securely kept at the main  office of the Fiber Standardization  Board,  subject  to  renewal in  the discretion  of said Board,  but without variation of  the standards, as occasion may require."

SEC. 6. Section  seventeen hundred  and seventy-five  of the same Act is hereby amended to read as follows:

  "SEC.  1775.  Supply of secondary standards for use  of trade.—Specimens of the different grades of fibers conforming to the original official standards shall be prepared under the supervision of the Fiber Standardization Board,  and shall,  upon request, be supplied as secondary official standards,  to  all  authorized establishments of  chambers  of commerce, planters' associations, and other institutions  or persons directly interested in the trade, the actual cost of the specimens to be paid in  advance by the party requesting the same.

"Secondary standards prepared by the Fiber Standardization Board or its authorized agents shall be deemed to be official standards for  all purposes, and for such periods  as the Board may determine."

SEC. 7. Section seventeen hundred and seventy-six of Act Numbered Twenty-seven hundred and eleven, known as the ' Administrative Code,  is hereby repealed.

SEC. 8.  Section seventeen hundred and seventy-seven of the same Act is hereby amended to read as follows:

"SEC.  1777. Classes of grading establishments.—There shall be four classes  of grading establishments which shall be determined by the number of bales baled per annum as follows: First-class establishments, those baling fifty thousand bales and above; second-class establishments,  those baling between  thirty thousand and fifty thousand; third- class establishments, those baling between ten thousand and thirty thousand;  and  fourth-class establishments,  those baling less than ten thousand bales.

"The classification of fiber grading  establishments shall be based on the number of bales baled  during the year previous to the one for which a fiber grading permit is desired. In the case of a new grading establishment, it shall pay an initial fee equivalent to the amount paid by the lowest class grading establishment."

SEC. 9. Section  seventeen  hundred and seventy-eight of the same Act is hereby amended to read as follows:

     "SEC. 1778. Grading permits.—No person shall engage in grading  and baling fibers which  have  established official standards,  unless he shall have  previously obtained a permit which shall be issued by the Fiber Standardization Board and signed by  the  chairman thereof, such permits  to be known as  'grading  permits.' "

SEC. 10. Section seventeen hundred and seventy-nine of said Act is hereby amended to  read as follows:

"SEC. 1779. Fees  for grading permits.—Grading permits shall be furnished to any grading establishment the owner or owners  of which shall prove to the Fiber Standardization Board that they possess the necessary qualifications to carry on the work, and shall pay in advance an annual fee of one thousand pesos for first-class, five  hundred pesos for second-class, two hundred and fifty pesos for third-class, and one hundred pesos for fourth-class establishments.

"The Fiber Standardization  Board may, after giving the grading establishment one month's notice, cancel the grading permit of any  establishment  when  it shall have been proved that such  establishment has not carried on its grading and baling work in accordance with the provisions of this law and the authorized orders of the Fiber Standardization Board.   The order of  cancellation  must be concurred in by not less than  five members of the  Fiber Standardization Board to be final, and shall take effect immediately."

SEC. 11. Section  seventeen  hundred  and eighty of the same Act  is hereby amended to read  as follows:

"SEC.  1780.  Charges for  grading and baling.—So  far as their facilities shall extend beyond the requirements of their own business, grading establishments may grade and  bale fibers for others  when delivered  in fit  condition for such process.   The charges for  such services shall be  fixed by the Fiber  Standardization Board."

SEC. 12. Section seventeen  hundred  and  eighty-two of the same Act is hereby amended to read as follows:

SEC. 12. Use of registered mark  by exporters.—Every grading establishment in the  fiber business shall  have the right to use a mark (initial or initials) in connection  with the designation of the official standard, providing that such mark shall have  been previously registered with the Fiber Standardization Board and  its use authorized by the same. The Board shall  issue rules and regulations  governing the registration and  use of these marks.  The  Fiber Standardization Board shall have the power to cancel the registered mark of any grading establishment when, in its discretion, the use of such mark has not been made in accordance with the prescribed rules and regulations."

SEC. 13.  Section seventeen hundred  and eighty-three of the same Act is hereby amended to read as follows:

  "SEC. 1783. Baling of fibers for export.—All fibers within the purview of this law which are intended for export shall be pressed in uniform bales.  The approximate volume and net weight of each bale, together with the manner of binding,  marking, wrapping, and stamping of the same,  shall be defined in  a general order by the Fiber Standardization Board.

"For any grade of abaca in which  the quality may be injured by excessive pressure, or for any grade which, owing to the nature of the fiber, it shall be practically impossible to press to the dimensions of the bale prescribed in the first paragraph of this  section, the approximate volume of each bale of such  fiber  shall be determined  in a general order by the Fiber  Standardization Board."

SEC. 14. Section seventeen hundred  and eighty-four of the same Act is hereby amended to read as follows:

"SEC. 1784. Supervision of grading and baling of fibers.— (trading  establishments  and the  grading and  baling of fibers shall be subject to the supervision of the Fiber Standardization Board or its duly authorized  agents; and it shall be the duty of said Board to provide an adequate force of inspectors for the inspection and supervision of such places and  processes.   The Board is hereby authorized to fix the duties, compensation,  terms of  service,  and distribution of all fiber inspectors; to provide for the manner of inspection and certification of any quantity of fiber submitted for such purpose,  and to fix and regulate the collection of the  inspection fees."

SEC. 15. Section seventeen  hundred  and eighty-five of Act Numbered Twenty-seven hundred and eleven, known as the Administrative Code, is-hereby repealed.

SEC. 16.  Section seventeen hundred  and eighty-eight of the same Act is  hereby amended to read as follows:

 "SEC. 1788. General requirement as to grading and certification  of fiber.—No fiber within the purview of  this law shall be exported from the Philippine Islands in  quantity greater than  the amount sufficient to make one bale, without being graded,  baled, inspected, and certified as in this law provided.

SEC. 17. Sections  seventeen  hundred  and  eighty-nine, seventeen hundred and ninety,  seventeen hundred  and ninety-two, seventeen hundred and ninety-three, and seventeen hundred  and  ninety-four  of  Act  Numbered  Twenty-seven hundred and eleven, known as  the Administrative Code, are hereby repealed.

SEC. 18. A new section, to be known  as section seventeen hundred and  ninety-four and a  half, is  hereby inserted between  sections  seventeen  hundred and  ninety-four  and seventeen hundred and ninety-five of the same Act, to read as follows:

  "SEC.  17941.  Arbitration.—The  Fiber  Standardization Board may make rules and regulations for the settlement of  all disputes which shall arise concerning the grading, baling, and condition of all fibers within the  purview of this law."

SEC. 19. Section seventeen hundred and  ninety-five of the same Act is hereby amended to read as follows:

"SEC. 1795.  Inspection fees.—A fee of not  more than thirty centavos nor less than ten centavos shall be charged and collected  by the  Fiber  Standardization  Board  or  its authorized agent  for each  bale  inspected  and  stamped, whether approved or rejected.   Such charges shall be paid by the owner of the bale and receipt therefor shall be given him.   This fee may be changed  at any time by the Fiber Standardization Board: Provided, That the Board  shall give  general notice  in writing  of  its intention to  change the amount of the fee  not  less than  a  month nor more than three months previous to the date on which such new fee takes effect."

SEC. 20.  Section seventeen hundred and ninety-six of the same Act is hereby amended to read as follows:

   "SEC.  1796. Refund of inspection fee upon fibers used in local manufactures.—Any person purchasing graded, baled, and inspected fiber for manufacture in the  Philippine  Islands  into yarn, twine,  rope, or  other articles shall  be refunded the inspection fee  hereinbefore provided for upon presentation  to the  Fiber  Standardization  Board  of the certificate of inspection covering the  number of bales consumed in such manufacture, together with an affidavit that said number of bales has actually been consumed in such manufacture within the Islands."

SEC. 21.  The following new sections  are hereby inserted between sections  seventeen  hundred  and  ninety-six and seventeen hundred and ninety-seven of  the same Act:

"SEC.  1796-A. Fiber inspection section  of the  Fiber Division  of  the Bureau, of Agriculture.—The fiber inspection section of the Fiber Division of the Bureau of Agriculture is hereby abolished and all records and data in its files and all business pertaining to fiber production and inspection pending at the time  of  the  approval  of  this Act shall be transferred to  the Fiber Standardization Board.

"SEC.  1796-B. Disposition of  funds.—All receipts  of the Fiber Standardization Board  corning  into  its possession from all fees collected for grading permits, baling of fibers, and sale of  specimens of the official  standards shall  be deposited in the Insular Treasury to the credit of the Fiber Standardization Board.   The said Board shall  use such funds for the payment of salaries of its inspectors and other employees, and for all just expenses incurred in the performance  of its duties and  powers: Provided, That not less than  twenty  per centum of all fees collected  may be used by the Director of Agriculture,  with  the approval of the Secretary of Agriculture and Natural Resources,  upon the recommendation of the  Fiber  Standardization  Board, for the following purposes:

"(a) For scientific and economic  research work to  be carried on in Philippine fibers;

"(b) For the control of plant pests and  diseases-injurious to Philippine fiber plants;

"(c)  For educational work among Philippine fiber producers ;

"(d) For such other purposes as in the judgment of the Director of Agriculture have for their object the promotion, encouragement, improvement, etc., of the Philippine  fiber industry.

"Any surplus money  remaining unexpended at  the end of any year may be used by said Board to defray  the cost of such project or projects as  it  may deem necessary to carry  out for the  benefit of the fiber industry of the  Philippine Islands in  general: Provided, That the expenditure of such surplus money shall be subject to the approval of the Secretary of Agriculture and Natural Resources."

SEC. 22. Section twenty-seven hundred  and forty-eight of the same Act is hereby  amended to read  as follows:

"SEC 2748. Violation  of provisions relative  to  grading of fibers.—Any person who shall change, obliterate, or counterfeit. wholly or in  part, or cause to be changed, obliterated, or counterfeited,  the official or private mark  or brand on any bale of fiber which has been inspected,  graded, and stamped as provided in this law,  or who shall use any tag or mark which is not in accordance with the provisions of this Act or the authorized orders  of the Fiber  Standardization Board, or who shall tamper with or  alter the  quantity or quality of any  bale of fiber which has  been  so inspected, graded, and stamped, or who shall otherwise violate any of the provisions of this Act, shall be punished by a fine of not more than three hundred pesos; and upon conviction  hereunder of any person holding a grading  permit, the  Fiber Standardization Board may, with  the approval of the Secretary of Agriculture  and Natural Resources, withdraw and cancel such permit."

SEC 23. This Act shall take effect on July first,  nineteen hundred and twenty-six.

Approved,  December 7, 1925.