Page:United States Statutes at Large Volume 42 Part 1.djvu/883

SIXTY-SEVEN TH CONGRESS. Sess. II. Ch. 346. 1922. 855 PENALTIES. Sec. 18. No stockholder, director, officer, employee, or ent of a False $*¤*¤{¤¤¤*S 0* China Trade Act corporation shall make, issue, Idr gublish gy state- Z§firgi;i$1E°ifsii1$i;i; ment, written or ora , or advertisement in any form, as to the value §,§Q,‘;§§fj°l§f§{,'{,f§§;,d‘f‘“‘ or as to the facts affecting the value of stocks, bonds, or other evidences of debt, or as to the financial condition or transactions, or facts affectin such condition or transactions, of such corporation if it has issued or is to issue stocks, bonds, or other evidences of debt, whenever he knows or has reason to believe that an material repre- 8—;(g$!<;¤¤¤¤¤¤¢¤fS¢¤¤k sentation in such statement or advertisement is fleilse. No stock- P I ` holder, director, officer, employlee, or agent of a China Trade Act corporation shall, if all the authorized capital stock thereof has not been paid in, make, issue, or publish any written statement or advertisement, in an form, stating the amount of the authorized capital stock without also stating as the amount actually paid in, a sum not I, . I mm greater than the amount aid in. Any person violating any pro- ' visions of this section shall, u on conviction thereof, be fined not more than $5,000 or imprisoned) not more than ten years, or both. Srzc. 19. No individual, partnership, or association, or cortporation th§ji*;:};{mf°g, 3;;; not incorporated under this Act or under a law of the Unite States, era1Inc.U. s. A. shall engage in business within China 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 lined not more than $1,000 for each violation. JURISDIOTION or snrrs AGAINST CORPORATION. Smo. 20. That the Federal district courts shall have exclusive ueilixgiuiiiiimlucbiiuitsw original iurisdiction of all suits (except as provided by the Act V°*· *”·¥’·““· entitled ‘An Act creating a United tates Court for China and prescribing the jurisdiction thereof," approved June 30, 1906, as amended) to which a China 'l‘rade Act corporation, or a stockholder, _ director, or officer thereof in his capacity as such, is a arty. Suit V°°“°°fsm”` against the corporation may be brought in the United States Court for China, or in the Supreme Court of the District of Columbia, or in the Federal district court for any district in which the corporation has an agent and is engaged in doing business. FEDERAL TAXATION. ,,§§{§f;'§,'§§t,f°t’ mh Srzc. 21. Title II of the Revenue Act of 1921 is amended b ad ° *¤°°’“° ‘°"· at the end thereof a new section to read as follows: y ding •ciW(’p'm`mmd· “CHINA TRADE ACT COBPORATIONS. cmpvrnae Act eos pG8£1®S. "Sec. 264. (a) That for the purpose only of the tax imposed by ,$§.,,f’1§'€§'€?,;.,,§§’§ section 230 there shall be allowed, in the case of a corporation organ- {xs tg}{‘¤3,=}r_§gp;g§ ized under the China Trade Act, 1922, a credit of an amount eqilip-El amen cuiéei ` to the proportion of the net income derived from sourqes_ wit **""'·p*"°"2’2“· China ( etermined in a similar manner to that provided in section 217) which the par value of the shares of stock of the corporation owned on the last da of the taxable year by individual citizens of the United States or China, resident in China, bears to the par value of the whole number of shares of stock of the cor oration outstanding , on such date: Provided, That in no case shall the amount byx which the tax imposed by section 230 is diminished by reason of suc credit exceed the amount of the special dividend certified under subdivision (b) of this section.