case of a deposition the testimony shall be reduced to writing by the person taking the deposition or under his direction, and shall then be subscribed to by the deponent. The Secretary may administer oaths and examine any witness. Any witnesses summoned before the Secretary and any witness whose deposition is taken shall be paid the same fees and mileage as are paid witnesses in the courts of the United States.

(b) In the case of failure to comply with any subpoena or in the case of the contumacy of any witness appearing before the Secretary, he may invoke the aid of any federal district court. Such court may thereupon order the witness to comply with the requirements of such subpoena, and to give evidence touching the matter in question. Any failure to obey such order may be punished by such court as a contempt thereof.

(c) No person shall be excused from so attending and testifying or deposing, nor from so producing any book, paper, document, or other evidence on the ground that the testimony or evidence, documentary or otherwise, required of him may tend to incriminate him or subject him to a penalty or forfeiture; but no natural person shall be prosecuted or subject to any penalty or forfeiture for or on account of any transaction, matter, or thing, as to which in obedience to a subpoena and under oath, he may so testify or produce in evidence, documentary or otherwise. But no person shall be exempt from prosecution and punishment for perjury committed in so testifying.

(d) For the efficient administration of the functions vested in the Secretary by this Act, he, or any officer, employee, or agent thereof, duly authorized in writing by the Secretary, shall at all reasonable times for the purpose of examination have access to and the right to copy any book, account, record, paper, or correspondence relating to the business or affairs of a corporation. Any person who upon demand refuses any duly authorized officer, employee, or agent such right of access or copying, or hinders, obstructs, or resists him in the exercise of such right, shall be liable to a penalty of $500 for each such offense. Each day during any part of which such offense continues shall constitute a separate offense. Such penalty shall be recoverable in a civil suit brought in the name of the United States, and shall be covered into the Treasury of the United States as miscellaneous receipts.

SEC. 19. The federal district courts shall have exclusive original jurisdiction of all suits (except as provided by the Act entitled "An Act creating a United States Court for China and prescribing

the jurisdicton thereof," approved June 30, 1906, as amended) against a corporation, or a stockholder, director, or officer thereof in his capacity as such. Suit against the corporation may be brought in the United States Court for China, or in the district in which the cause of action arose or in which the corporation has an agent and is engaged in doing business. A federal district court having jurisdiction of such suit is authorized to direct service of process by registered mail upon the corporation. Any judgment, order, or decree rendered by the court in any such suit shall, upon the presentation of a certified copy thereof to any other federal district court, be enforced by such other court, as the judgment, order, or decree may require.

SEC. 20. No (a) individual, partnership, or association, (b) corporation not incorporated under this Act or under a law of the United States, or (c) corporation of the District of Columbia, shall engage in commerce among the several States or with foreign nations under a name in connection with which the legend "Federal Inc. U. S. A." is used. Any person violating this section shall upon conviction thereof be fined not more than $100 for each violation. Each day or fraction thereof during which the violation continues shall be deemed a separate offense.

SEC. 21. No stockholder, director, officer, employee, or agent, of a corporation shall make, issue, or publish any statement, written or oral, or advertisement, in any form, as to the value or as to facts affecting the value of stocks, bonds, or other evidences of debt, or as to the financial condition or transactions, or facts affecting such condition or transactions, of any corporation which has issued or is to issue stocks, bonds, or other evidences of debt, if he knows or has reason to believe that any material representation in such statement or advertisement is false. No stockholder, director, officer, employee, or agent of a corporation shall, if all the authorized capital stock thereof has not been paid in, make, issue, or publish any written statement or advertisement, in any form, stating the amount of the authorized capital stock, without also stating as the amount actually paid in a sum not greater than such amount paid in. Any person violating any provision of this section shall, upon conviction thereof, be fined not more than $5,000, or imprisioned not more than ten years, or both.

SEC. 22. The following Acts, including administrative and penal provisions thereof, shall extend to the acts, failures, and omissions of a corporation or the stockholders, directors, officers, employees, and agents thereof, in their capacity as such, even though such

acts, failures, or omissions occur without the territorial jurisdiction of the United States:

(a) The Act entitled "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes," approved September 26, 1914;

(b) The National Prohibition Act of October 28, 1919; and

(c) The Act entitled "An Act to provide for the registration of, with collectors of internal revenue, and to impose a special tax upon all persons who produce, import, manufacture, compound, deal in, dispense, sell, distribute, or give away opium or coca leaves, their salts, derivatives or preparations, and for other purposes," approved December 17, 1914, as amended.

SEC. 23. (a) Section 231 of the Revenue Act of 1918 is amended by striking out the period at the end thereof, inserting in lieu thereof a semicolon, and adding a new subdivision to read as follows:

"(15) A corporation organized under the China Trade Act, 1921, but only if and with respect to any taxable year for which (a) it files a return at the time and place provided in section 241, made in the manner provided in section 239, and containing such information as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may by regulation prescribe; (b) it declares dividends during the taxable year in an amount equal to one-third of its net income the payment of which not later than 60 days after the close of such taxable year is assured in such manner as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may require; (c) it derives less than 5 per centum of its gross income from sources within the United States; and (d) the Secretary of Commerce certifies to the Commissioner of Internal Revenue that during the taxable year the corporation in all respects has complied with the provisions of the China Trade Act, 1921, and regulations made thereunder. The Commisssioner of Internal Revenue with the approval of the Secretary of the Treasury shall make all regulations necessary for the determination of such exemption and of the liability of shareholders or members to taxation in respect to dividends paid by such corporation."

(b) Section 1 of the Revenue Act of 1918 is amended by adding at the end thereof a new paragraph to read as follows:

"A corporation organized under the China Trade Act, 1921, shall for the purposes of this Act be considered a domestic corporation."

(c) Sections 232, 233, and 234 of the Revenue Act of 1918 are amended by inserting in each of such sections after the words "corporation subject to the tax imposed by section 230," the words "or organized under the China Trade Act, 1921.”

(d) Section 240 of the Revenue Act of 1918 is amended by adding at the end thereof a new subdivision to read as follows: "(d) A corporation organized under the China Trade Act, 1921, shall not be deemed to be affiliated with any other corporation within the meaning of this section.”

(e) Section 254 of the Revenue Act of 1918 is amended to read as follows:

"SEC. 254. That every corporation subject to the tax imposed by this title, every personal service corporation, and every corporation organized under the China Trade Act, 1921, shall, when required by the Commissioner, render a correct return duly verified under oath, of its payments of dividends, stating the name and address of each stockholder, the number of shares owned by him, and the amount of dividends paid to him."

SEC. 24. The Congress of the United States reserves the right to alter, amend, or repeal the provisions of this Act.

APPENDIX III

EXTRACT FROM HONGKONG ORDINANCES RELATING TO COMPANIES ESTABLISHED OUTSIDE THE COLONY

Requirements as to companies established outside the Colony. 252. 1. Every company incorporated outside the Colony which shall establish a place of business within the Colony, shall within one month from the establishment of the place of business file with the Registrar of Companies: (a) A certified copy of the charter, statutes, or memorandum and articles of the company, or other instrument constituting or defining the constitution of the company, and, if the instrument is not written in the English language, a certified translation in the English language thereof; (b) A list of the directors of the company; (c) The names and addresses of some one or more persons resident in the Colony authorised to accept on behalf of the company service of process and any notices required to be served on the company; and, in the event of any alteration being made in any such instrument or in the directors or in the names or addresses of any such persons as aforesaid, the company shall within the prescribed time file with the Registrar a notice of the alteration. 2. Any process or notice required to be served on the company shall be sufficiently served if addressed to any person whose name has been so filed as aforesaid and left at or sent by post to the address which has been so filed. 3. Every company to which this section applies shall in every year file with the Registrar such a statement in the form of a balance sheet as would, if it were a company formed and registered under this Ordinance and having a share capital, be required under this Ordinance to be included in the annual summary. 4. Every company to which this section applies, and which uses the word "Limited" or the equivalent Chinese characters, as part of its name, shall: (a) In every prospectus inviting subscriptions for its shares or debentures in the Colony state the country in which the company is incorporated; and (b) Conspicuously exhibit on every place where it carries on business in the Colony the name of the company and the country in which the