Page:United States Statutes at Large Volume 54 Part 1.djvu/524

 PUBLIC LAWS-CH. 397-JUNE 19, 1940 Spreading false re- ports; penalty. shares nor incur any indebtedness, for the payment of any compen- sation for the organization of the association except necessary legal fees; nor for the payment of any promotion expenses in excess of 5 per centum of the amount paid in for the shares or membership certificates involved in the promotion transaction. Any association's officer, director, or agent who gives, or any person, firm2 corporation or association which receives such promotion commission in viola- tion of this section shall, upon conviction of such offense, be punished by a fine of not less than $25, nor more than $200, or by imprison- ment for not less than thirty days nor more than one year, or by both such fine and imprisonment. SEC. 39. SPREADINO FALSE REPORTS; PENALTY. -Any person, firm, corporation, or association which maliciously and knowingly spreads false reports about the management or finances of any association shall, upon conviction of such offense, be punished by a fine of not less than $25 and not more than $200, or by imprisonment for not less than thirty days nor more than one year, or by both such fine and imprisonment. ARTICLE XIII-R ELATION TO OTnER LAWS Existingcooperative groups. Foreign corporations and associations. Legality declared; not in restraint of trade. Laws not applicable. 31 Stat. 1280 . 6 D. C. Code; Supp. V. Annual license fee. Separability; consti- tutionality. SEC. 40. EXISTING COOPERATIVE GROUPS. - Any group incorporated under another law of the District of Columbia and operating on a cooperative basis or any unincorporated group operating on such a basis in the District of Columbia may elect by a vote of two-thirds of the members voting to secure the benefits of and be bound by this Act, and shall thereupon amend such of its articles and bylaws as are not in conformity with this Act. A certified copy of the amended articles shall be filed and recorded with the recorder of deeds and a fee of $5 shall be paid. SEC. 41. FOREMIN CORPORATIONS AND ASSOCIATIONS. -A foreign cor- poration or association operating on a cooperative basis and comply- ing with the applicable laws of the State wherein it is organized shall be entitled to do business in the District of Columbia as a foreign cooperative corporation or association. SEC. 42. LEGALITY DECLARED; NOT IN RESTRAINT OF TRADE.- No asso- ciation, or method or act thereof which complies with this Act, shall be deemed a conspiracy or combination in restraint of trade or an illegal monopoly, or an attempt to lessen competition or fix prices arbitrarily. SEC. 43. LAWS NOT APPLICABLE. -NO law of the District of Colum- bia conflicting or inconsistent with any part of this Act shall, to the extent of the conflict or inconsistency, be construed as applicable to associations formed hereunder; nor shall any law of the District of Columbia inappropriate to the purposes of such associations be so construed; nor shall any of the provisions of sections 574 through 797, both inclusive, of the Act entitled "An Act to establish a Code of Law for the District of Columbia", approved March 3, 1901, be construed as applicable to associations formed hereunder, except as expressly stated in this Act. SEC. 44. TAXATION.- Associations formed hereunder, and foreign corporations and associations admitted under section 41 to do busi- ness in the District of Columbia and entitled to the benefits of section 37, shall pay an annual license fee of $10. SEC. 45. SEPARABILITrr; CONSTPrUTIONALrTY. -If any provision of this Act or the application thereof to any person or circumstance shall be held unconstitutional or otherwise invalid for any reason, the validity of the remainder of this Act and the application of such provision to other persons or circumstances shall not be affected thereby. 490 [54 STAT.

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