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.  Sections three, nine, and twelve of Act Numbered Twenty-six hundred and thirteen, entitled,"An Act to improve the methods  of  production and the quality  of tobacco in  the Philippines and to develop the export  trade therein," are hereby amended  to read as  follows:

"SEC. 3.  The Director of Agriculture is hereby authorized to appoint in any tobacco province the necessary  inspectors to carry out the purposes of this Act.   Said inspectors need not necessarily be residents of the province where they are to serve;  but  must be  graduates of agricultural schools recognized  by the  Government, preference to be given  to eligibles under the Civil Service rules who have especialized in tobacco-growing in an experimental farm  or have  at least one year's practical experience.   In the absence of eligibles  under the Civil Service rules,  temporary employees may be appointed.   Their  salaries  shall be fixed in  their appointments and shall be subject to the Civil Service rules.

Said tobacco inspectors shall receive a per diem not greater than two pesos when they  are performing inspections outside of the municipality of their  official  station,  together with actual and necessary  traveling expenses."

"SEC. 9. The Collector of Internal Revenue may appoint inspectors of tobacco for the purpose  of making the inspections herein required, and  may  also  detail any officer or employee of the Bureau to perform such duty.  Said inspectors or employees shall likewise  be charged with the duty of grading leaf tobacco and shall perform such other duties  as may be required of them in the  promotion of the Philippine tobacco industry.  The Collector of Internal Revenue shall likewise appoint,  with  the  approval  of  the Secretary  of  Finance, agents in the  United States for the purpose of promoting the export trade in tobacco with the United States, whose duty  it shall be to inspect shipments of tobacco upon or after their arrival in that country when so required, to  assist manufacturers of, exporters  of, and dealers in tobacco in disseminating information regarding Philippine tobacco and, at the request of the  parties, to act as arbitrators between  the  exporter in the  Philippine Islands and the importer  in the  United  States  whenever a dispute arises between them as to the quality, sizes, classes, or shapes  shipped or received.   When acting as arbitrator as aforesaid,  the agent  shall  proceed in accordance  with the law governing arbitration  and award  in  the  locality where  the dispute arises.  All agents, inspectors,  and employees acting  under and  by  virtue  of this Act  shall be subject to  all penal provisions applicable to internal-revenue officers generally."

"SEC. 12. The  inspection  fees collected by virtue of the provisions of this Act shall constitute a special fund to be known as  the Tobacco Inspection Fund, which shall be expended by the Collector of Internal Revenue, with the approval  of  the Secretary of Finance,  upon allotment  by a board consisting  of the Collector of  Internal Revenue, the Director  of Agriculture,  the  Director of the  Bureau of Commerce and  Industry, two manufacturers designated by the Manila Tobacco Association,  and two  persons representing the interests of the tobacco producers and  growers, appointed by the Governor-General.   The Collector of Internal  Revenue shall be ex-officio  chairman  of  this board, which  shall have  a secretary elected by  the members thereof and compensated  at  a  rate  determined by the board, with the approval of the Secretary of Finance.

"These funds may be expended for any of the following purposes:

"(a) The payment of the expenses incident to the enforcement of this Act including the salaries of the inspectors and agents.

"(b) The payment of expenses incident to the reconditioning and returning to the Philippine  Islands of damaged tobacco and the reimbursement  of the value of the  United States  internal-revenue stamps lost thereby.

"(c The advertising of Philippine tobacco products in the United States and in foreign countries.

"(d) The  establishment of tobacco  warehouses  in the Philippine Islands and in the United States  at such points as the  trade conditions may demand.

"(e)  The payment of bounties to encourage the production of. leaf tobacco of high quality.

" (f  The promotion and defense of the Philippine tobacco interests in the United States and in foreign countries.

"(g) The establishment, operation, and maintenance of tobacco experimental farms for the purpose of studying and  testing the best  methods for the improvement of the leaves: Provided,  however, That thirty per centum of the total annual income of the tobacco inspection fund shall be expended for the establishment, operation, and maintenance of said tobacco experimental farms and for the investigation and  discovery of efficacious ways and means  for the extermination and control of the pests and diseases  of tobacco: Provided, further, That  in  the establishment  of  experimental farms, preference shall be given  to  municipalities offering the necessary  suitable land for the establishment of an experimental farm.

"(h) The sending  of special agents  and commissions to study the markets of the United States and foreign  countries with regard  to the Philippine cigars and their propaganda in said markets.

"(i) The organization of exhibits of cigars and  other Philippine  tobacco products in the  United  States and in foreign countries."

SEC.  2. This Act shall take effect on its approval.

Approved,  November 25,  1924.