PROHIBITING THE MISUSE BY COLLECTING AGENCIES OR PRIVATE DETECTIVE AGENCIES OF NAMES, EMBLEMS, AND INSIGNIA TO INDICATE FEDERAL AGENCY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP61-00357R000100090013-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 12
• Document Creation Date: December 27, 2016
• Document Release Date: December 16, 2013
• Sequence Number: 13
• Publication Date: August 11, 1959
• Content Type: REPORT

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86TH CONGRESS t HOUSE OF REPRESENTATIVES J REPORT
/St Session f No. 874
PROHIBITING THE MISUSE BY COLLECTING AGENCIES
OR PRIVATE DETECTIVE AGENCIES OF NAMES, EM-
BLEMS, AND INSIGNIA TO INDICATE FEDERAL AGENCY
AUGUST 11, 1959.?Referred to the House Calendar and ordered to be printed
Mr. WALTER, from the Committee on the Judiciary, submitted the
following
REPORT
[To accompany S. 355]
'
The Committee on the Judiciary, to whom was referred the bill
(S. 355), to amend title 18`of the United States Code so as to prohibit
the misuse by collecting agencies or private detective agencies of
names, emblems, and insignia to indicate Federal agency, having
considered the same, report favorably thereon with amendments and
recommend that the bill as amended do pass.
The amendment is as follows:
On page 2, line 11, strike out "$10,000" and insert in lieu thereof
"$1,000,,.
PURPOSE
The purpose of the proposed legislation, as amended, is to add a
new section 712 to title 18 of the United States Code to prohibit the
use by collecting agencies or private detective agencies of any emblem,
insignia, or name, or the words "national," "Federal," or "United
States," or the initials "U.S." for the purpose of conveying and in a
manner reasonably calculated to convey the false impression that such
business is a department, agency, bureau, or instrumentality of the
United States.
The amendment is designed to bring the penalty in line with
the provisions of section 709 of title 18 of the United States Code,
which provides for a similar violation of the law.
GENERAL INFORMATION
A bill similar to S. 355 passed the Senate in the 84th Congress on
July 2, 1956. Since that time, the Committee on the Judiciary of
the Senate has further studied the matter pursuant to the introduction
of S. 763 of the 85th Congress.
34006
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a-11,7J-? 1[1...V A:AS TO INDICATE FEDERAL AGENCY
In the 86th Congress, the Committee on the Judiciary of the House
has obtained the following reports on this legislation.
APRIL 22, 1959.
Hon. EMANUEL CELLER,
Chairman, Committee on the Judiciary,
House of Representatives, Washington, D.C.
DEAR MR. CHAIRMAN: This is in response to your request for the
views of the Department of Justice concerning the bill (S. 355) to
amend title 18 of the United States Code so as to prohibit the misuse
by collecting agencies or private detective agencies of names, emblems,
and insignia to indicate Federal agency.
The bill would amend title 18 of the United States Code so as to
add to it a new section 712. The section would provide that whoever,
"being engaged in the business of collecting or aiding in the collection
of private debts or obligations, or being engaged in furnishing private
police, investigation, or other private detective services, uses as part
of the firm name of such business, or employs in any communication,
correspondence notice, advertisement, or circular the words 'national',
'Federal', or 'United States', the initials 'U.S.', or any emblem, in-
signia, or name, for the purpose of conVeying and in a manner reason-
ably calculated to convey the false Impression that such business is a
department, agency, bureau., or instrumentality of the United States
or in any manner represents the United States, shall be fined not more
than $10,000 or imprisoned not more than one year, or both."
Whether legislation such as this should be enacted constitutes a
question of policy concerning which the Department of Justice prefers
to make no recommendation. There are certain features of the pro-
posal, however, to which the committee may wish to give further
consideration. The proposed legislation is of a type similar to that
contained in present section 709, yet the fine provided for in S. 355
is substantially greater than that provided in section 709. Also sec-
tion 709 specifically provides that it "shall not make unlawful the use
of any name or title which was lawful on the date of enactment of
this title." No such provision is contained in the legislation under
consideration.
Records of the Department of Justice indicate that complaints
have been received concerning firms operating under styles such as
"Reverification Office" and "Claims Office." Although such a name,
when coupled with a Washington, D.C., mailing address, could easily
cause some persons to believe that the organization is an agency of
the United States, the committee may be interested to know that in
some such instances the Federal Trade Commission issued a cease and
desist order which has since become final. In so doing, the Commis-
sion took the position that the use of these terms was unfair and
deceptive in violation of the Federal Trade Commission Act. The
committee may wish to consider whether or not continued utilization
of the Federal Trade Commission Act to prevent the deceptive use
of forms, emblems, names, insignia, etc., would adequately protect
the public.
The Bureau of the Budget has advised that there is no objection
to the submission of this report.
Sincerely yours,
LAWRENCE E. WALSH,
Deputy Attorney General.
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OFFICE OF THE SECRETARY OF THE TREASURY,
Washington, D.C., April 22, 1959.
Hon. EMANUEL CELLER,
Chairman, Committee on the Judiciary,
House of Representatives, Washington, D.C.
MY DEAR MR. CHAIRMAN: Reference is made to your request for
the views of this Department on S. 355, to amend title 18 of the
United States Code so as to prohibit the misuse by collecing agencies
or private detective agencies of names, emblems, and insignia to indi-
cate Federal agency.
The Department urges favorable consideration of the proposed
legislation insofar as it would relate to collection agencies.
The records of the Department show that private firms engaged in
the business of locating the whereabouts of delinquent debtors have
been operating under names such as "Treasurer's Office", "Disburse-
ments Office", and "Claims Office", coupled with a Washington, D.C.
post office address. The firms mail out forms headed in the foregoing
manner to the last known address of the debtor, the forms containing
blanks to fill in which call for information such as the current address,
current employer, and the bank with which the debtor keeps his funds
The forms usually carry a legend or are drawn up in such a manner as
to lead the recipient to believe that he will receive some money if the
form is returned completed.
The Department is of the opinion that the above-described forms
used by the so-called skip-tracing firms are conceived with the idea
of giving the recipient the impression that they emanated from a
Government agency and that there are funds due him from the Fed-
eral Government. This is particularly true with respect to the use
of names such as "Treasurer's Office" and "Disbursements Office",
which lead the recipients to believe that the forms were sent by the
Office of the Treasurer of the United States or the Division of Dis-
btrsement of the Treasury Department. This belief of the Depart-
ment is borne out by the fact that we have received numerous letters
from persons complaining that they had returned the forms, but had
not received their money. For example, from December 1956 to
December 1958, 2,400 letters of inquiry were received from persons
who received these forms. The Department has no alternative but
to advise the individuals that the forms were not issued by a Govern-
ment agency and that no violation of the statutes enforced by this
Department is involved.
We have been informed that the Federal Trade Commission under
its authority has obtained cease and desist orders in the case of some
firms engaging in the foregoing practices. However, the Department
believes that the additional and more direct sanctions contained in
S. 355 would be desirable.
The Department has been advised by the Bureau of the Budget
that there is no objection to the submission of this report to your
committee.
Very truly yours,
A. GILMORE FLUES,
Acting Secretary of the Treasury.
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CIA-RDP61-00357R000100090013-8 iS TO INDICATE FEDERAL AGENCY
FEDERAL TRADE COMMISSION,
Washington, July 6, 1959.
Hon. FRANCIS E. WALTER,
Chairman, Subcommittee No. 1,
House Committee on the Judiciary,
Washington, D.C.
DEAR MR. CHAIRMAN: This is in response to your request of May
25, 1959, for the views of the Federal Trade Commission on S. 355,
86th Congress, 1st session, a bill to amend title 18 of the United
States Code so as to prohibit the misuse by collecting agencies or
private detective agencies of names, emblems, and insignia to indicate
Federal agency, and on certain comments made by the Department of
the Treasury and the Department of Justice.
The bill would make it a criminal offense for any person engaged
in collecting private debts or in furnishing private detective services
to use as part of the firm name or employ "in any communication,
correspondence, notice, advertisement, or circular the words 'national',
'Federal', or 'United States', the initials 'U.S.', or any emblem,
insignia, or name, for the purpose of conveying and in a manner
reasonably calculated to convey the false impression that such busi-
ness is a department, agency, bureau, or instrumentality of the United
States or in any manner represents the United States."
As noted by the Department of the Treasury and the Department
of Justice, the proposed legislation deals with practices concerning
which the Federal Trade Commission has issued orders to cease and
desist.
The Commission has issued numerous orders prohibiting the use of
skip-trace materials designed to obtain information concerning
alleged delinquent debtors by deception and subetrfuge. Many of
these orders prohibit the use of business names calculated to lead the
recipients of such materials into the belief that they emanated from
the Federal Government. Typical names are "Treasurer's Office,"
"Disbursement Office," "Claims Office," "Reverification Office," and
"U.S. Credit Control Bureau." Machine forms designed to simulate
forms used by the Government and Washington, D.C., addresses are
ordinarily employed.
Other orders strike at various means of deception other than the
use of materials creating the impression that the sender is an instru-
mentality of the United States.
Ordinarily enforcement of such orders can only be had under
section 5(1) of the Federal Trade Commission Act in civil suits seeking
penalties for violations. It is the Commission's view that S. 355
would be an effective auxiliary means of expeditiously eliminating the
objectionable practices in the area where the materials indicate some
Federal connection. Its enactment would not defeat the Commis-
sion's jurisdiction in the same field.
By direction of the Commission:
EARL W. KINTNER, Chairman.
N.B.?Pursuant to regulations, this report was submitted to the
Bureau of the Budget on June 23, 1959, and on July 2, 1959, the
Commission was advised that there would be no objection to the
submission of the report to the committee.
ROBERT M. PARRISH, Secretary.
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After full consideration of all the facts involved, the committee
recommends that S. 355, as amended, be enacted.
CHANGES IN EXISTING LAW
In compliance with paragraph 2 of clause 3 of rule XIII of the
Rules of the House of Representatives, changes in existing law made
by the bill are shown as follows (existing law proposed to be omitted
is enclosed in black brackets, new matter is printed in italic, existing
law in which no change is proposed is shown in roman):
TITLE 18?CRIMINAL CODE AND CRIMINAL PROCEDURE
"712. Misuse of names by collecting agencies or private detective agencies
to indicate Federal agency
"Whoever, being engaged in the business of collecting or aiding in the
collection of private debts or obligations, or being engaged in furnishing
private police, investigation, or other private detective services, uses as
part of the firm name of such business, or employs in any communica-
tion, correspondence, notice, advertisement, or circular the words "na-
tional", "Federal", or "United States", the initials "U.S.", or any
emblem, insignia, or name, for the purpose of conveying and in a manner
reasonably calculated to convey the false impression that such business is
a department, agency, bureau, or instrumentality of the United States
er in any manner represents the United States, shall be fined not more
than $1,000 and imprisoned not more than one year, or both."
SEC. 2. The provisions of this section shall become effective sixty days
from the enactment thereof.
SEC. 8. The analysis of chapter 88 of title 18 of the United States
Code which immediately precedes section 701 of such title is amended by
adding at the end thereof the following:
"SEC. 712. Misuse of names by collecting agencies or private detective
agencies to indicate Federal agency".
0
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Eern CONGRESS t HOUSE OF REPRESENTATIVESREPORT
1st Session -t No. 874
PROHIBITING THE MISUSE BY COLLECTING AGENCIES
OR PRIVATE DETECTIVE AGENCIES OF NAMES, EM-
BLEMS, AND INSIGNIA TO INDICATE FEDERAL AGENCY
AUGUST 11, 1959.?Referred to the House Calendar and ordered to be printed
Mr. WALTER, from the Committee on the Judiciary, submitted the
following
REPORT
[To accompany S. 355]
The Committee on the Judiciary, to whom was referred the bill
(S. 355), to amend title 18 of the United States Code so as to prohibit
the misuse by collecting agencies or private detective agencies of
names, emblems, and insignia to indicate Federal agency, having
considered the same, report favorably thereon with amendments and
recommend that the bill as amended do pass.
The amendment is as follows:
On page 2, line 11, strike out "$10,000" and insert in lieu thereof
"$1,000".
PURPOSE
The purpose of the proposed legislation, as amended, is to add a
new section 712 to title 18 of the United States Code to prohibit the
use by collecting agencies or private detective agencies of any emblem,
insignia, or name, or the words "national," "Federal," or "United
States," or the initials "U.S." for the purpose of conveying and in a
manner reasonably calculated to convey the false impression that such
business is a department, agency, bureau, or instrumentality of the
United States.
The amendment is designed to bring the penalty in line with
the provisions of section 709 of title 18 of the United States Code,
which provides for a similar violation of the law.
GENERAL INFORMATION
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CIA-RDP61-00357R000100090013-8
A bill similar to S. 355 passed the Senate in the 84th Congress on
July 2, 1956. Since that time, the Committee on the Judiciary of
Illkthe Senate has further studied the matter pursuant to the introduction
of S. 763 of the 85th Congress.
34006
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----IS TO INDICATE FEDERAL AGENCY
In the 86th Congress, the Committee on the Judiciary of the House
has obtained the following reports on this legislation.
APRIL 22, 1959.
Hon. EMA.NUEL CELLER,
Chairman, Committee on the Judiciary,
House of Representatives, Washington, D.C.
DEAR MR. CHAIRMAN: This is in response to your request for the
views of the Department of Justice concerning the bill (S. 355) to
amend title 18 of the United States Code so as to prohibit the misuse
by collecting agencies or private detective agencies of names, emblems,
and insignia to indicate Federal agency.
The bill would amend title 18 of the United States Code so as to
add to it a new section 712. The section would provide that whoever,
"being engaged in the business of collecting or aiding in the collection
of private debts or obligations, or being engaged in. furnishing private
police, investigation, or other private detective services, uses as part
of the firm name of such business, or employs in any communication,
correspondence, notice, advertisement, or circular the words 'national',
'Federal', or 'United States', the initials 'U.S.', or any emblem, in-
signia, or name, for the purpose of conveying and in a manner reason-
ably calculated to convey the false impression that such business is a
department, agency, bureau, or instrumentality of the United States
or in any manner represents the United States, shall be fined not more
than $10,000 or imprisoned not more than one year, or both."
Whether legislation such as this should be enacted constitutes a
question of policy concerning which the Department of Justice prefers
to make no recommendation. There are certain features of the pro-
posal, however, to which the committee may wish to give further
consideration. The proposed legislation is of a type similar to that
contained in present section 709, yet the fine provided for in S. 355
is substantially greater than that provided in section 709. Also, sec-
tion 709 specifically provides that it "shall not make unlawful the use
of any name or title which was lawful on the date of enactment of
this title." No such provision is contained in the legislation under
consideration.
Records of the Department of Justice indicate that complaints
have been received concerning firms operating under styles such as
"Reverification Office" and "Claims Office." Although such a name,
when coupled with a Washington, D.C., mailing address, could easily
cause some persons to believe that the organization is an agency of
the United States, the committee may be interested to know that in
some such instances the Federal Trade Commission issued a cease and
desist order which has since become final. In so doing, the Commis-
sion took the position that the use of these terms was unfair and
deceptive in violation of the Federal Trade Commission Act. The
committee may wish to consider whether or not continued utilization
of the Federal Trade Commission Act to prevent the deceptive use
of forms, emblems, names, insignia, etc., would adequately protect
the public.
The Bureau of the Budget has advised that there is no objection
to the submission of this report.
Sincerely yours,
LAWRENCE E. WALsii,
Deputy Attorney General.
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NIES TO INDICATE FEDERAL AGENCY 3
OFFICE OF THE SECRETARY OF THE TREASURY,
Washington, D.C., April 22, 1959.
Hon. EMANUEL CELLER,
Chairman, Committee on the Judiciary,
House of Representatives, Washington, D.C.
MY DEAR Mn. CHAIRMAN: Reference is made to your request for
the views of this Department on S. 355, to amend title 18 of the
United States Code so as to prohibit the misuse by collecing agencies
or private detective agencies of names, emblems, and insignia to indi-
cate Federal agency.
The Department urges favorable consideration of the proposed
legislation insofar as it would relate to collection agencies.
The records of the Department show that private firms engaged in
the business of locating the whereabouts of delinquent debtors have
been operating under names such as "Treasurer's Office", "Disburse-
ments Office", and "Claims Office", coupled with a Washington, D.C.
post office address. The firms mail out forms headed in the foregoing
manner to the last known address of the debtor, the forms containing
blanks to fill in which call for information such as the current address,
current employer, and the bank with which the debtor keeps his funds
The forms usually carry a legend or are drawn up in such a manner as
to lead the recipient to believe that he will receive some money if the
form is returned completed.
The Department is of the opinion that the above-described forms
used by the so-called skip-tracing firms are conceived with the idea
of giving the recipient the impression that they emanated from a
Government agency and that there are funds due him from the Fed-
eral Government. This is particularly true with respect to the use
of names such as "Treasurer's Office' and "Disbursements Office",
which lead the recipients to believe that the forms were sent by the
Office of the Treasurer of the United States or the Division of Dis-
bursement of the Treasury Department. This belief of the Depart-
ment is borne out by the fact that we have received numerous letters
from persons complaining that they bad returned the forms, but had
not received their money. For example, from December 1956 to
December 1958, 2,400 letters of inquiry were received from persons
who received these forms. The Department has no alternative but
to advise the individuals that the forms were not issued by a Govern-
ment agency and that no violation of the statutes enforced by this
Department is involved.
We have been informed that the Federal Trade Commission under
its authority has obtained cease and desist orders in the case of some
firms engaging in the foregoing practices. However, the Department
believes that the additional and more direct sanctions contained in
S. 355 would be desirable.
The Department has been advised by the Bureau of the Budget
that there is no objection to the submission of this report to your
committee.
Very truly yours,
A. GILMORE FLUES,
Acting Secretary of the Treasury.
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FEDERAL TRADE COMMISSION,
Washington, July 6, 1959.
Hon. FRANCIS E. WALTER,
Chairman, Subcommittee No. 1,
House Committee on the Judiciary,
Washington, D.C.
DEAR Mn. CHAIRMAN: This is in response to your request of May
25, 1959, for the views of the Federal Trade Commission on S. 355,
86th Congress, 1st session, a bill to amend title 18 of the United
States Code so as to prohibit the misuse by collecting agencies or
private detective agencies of names, emblems, and insignia to indicate
Federal agency, and on certain comments made by the Department of
the Treasury and the Department of Justice.
The bill would make it a criminal offense for any person engaged
in collecting private debts or in furnishing private detective services
to use as part of the firm name or employ 'in any communication,
correspondence, notice, advertisement, or circular the words 'national',
'Federal', or 'United States', the initials 'U.S.', or any emblem,
insignia, or name for the purpose of conveying and in a manner
reasonably calculated to convey the false impression that such busi-
ness is a department, agency, bureau, or instrumentality of the United
States or in any manner represents the United States."
As noted by the Department of the Treasury and the Department
of Justice, the proposed legislation deals with practices concerning
which the Federal Trade Commission has issued orders to cease and
desist.
The Commission has issued numerous orders prohibiting the use of
skip-trace materials designed to obtain information concerning
alleged delinquent debtors by deception and subetrfuge. Many of
these orders prohibit the use of business names calculated to lead the
recipients of such materials into the belief that they emanated from
the Federal Government. Typical names are "Treasurer's Office,"
"Disbursement Office," "Claims Office," "Reverification Office," and
"U.S. Credit Control Bureau." Machine forms designed to simulate
forms used by the Government and Washington, D.C., addresses are
ordinarily employed.
Other orders strike at various means of deception other than the
use of materials creating the impression that the sender is an instru-
mentality of the United States.
Ordinarily enforcement of such orders can only be had under
section 5(1) of the Federal Trade Commission Act in civil suits seeking
penalties for violations. It is the Commission's view that S. 355
would be an effective auxiliary means of expeditiously eliminating the
objectionable practices in the area where the materials indicate some
Federal connection. Its enactment would not defeat the Commis-
sion's jurisdiction in the same field.
By direction of the Commission:
EARL W. KINTNER, Chairman.
N.B.?Pursuant to regulations, this report was submitted to the
Bureau of the Budget on June 23, 1959, and on July 2, 1959, the
Commission was advised that there would be no objection to the
submission of the report to the committee.
ROBERT M. PARRISH, Secretary.
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Declassified in Part - Sanitized Copy Approved for Release 2013/12/16
.01A-RDP61-00357R000100090013-8 ES TO INDICATE FEDERAL AGENCY 5
After full consideration of all the facts involved, the committee
recommends that S. 355, as amended, be enacted.
CHANGES IN EXISTING LAW
In compliance with paragraph 2 of clause 3 of rule XIII of the
Rules of the House of Representatives, changes in existing law made
by the bill are shown as follows (existing law proposed to be omitted
is enclosed in black brackets, new matter is printed in italic, existing
law in which no change is proposed is shown in roman):
TITLE 18?CRIMINAL CODE AND CRIMINAL PROCEDURE
"712. Misuse of names by collecting agencies or private detective agencies
to indicate Federal agency
"Whoever, being engaged in the business of collecting or aiding in the
collection of private debts or obligations, or being engaged in furnishing
private police, investigation, or other private detective services, uses as
part of the firm name of such business, or employs in any communica-
tion, correspondence, notice, advertisement, or circular the words "na-
tional", "Federal", or "United States", the initials "U.S.", or any
emblem, insignia, or name, for the purpose of conveying and in a manner
reasonably calculated to convey the false impression that such business is
a department, agency, bureau, or instrumentality of the United States
or in any manner represents the United States, shall be fined not more
than $1,000 and imprisoned not more than one year, or both."
SEC. 2. The provisions of this section shall become effective sixty days
from the enactment thereof.
SEC. 3. The analysis of chapter 33 of title 18 of the United States
Code which immediately precedes section 701 of such title is amended by
adding at the end thereof the following:
"SEC. 712. Misuse of names by collecting agencies or private detective
agencies to indicate Federal agency".
0
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