To authorize the Secretary of Commerce to sell the steamship Monterey. Sale. Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) the Secretary of Steamship Commerce is hereby authorized, during a period of six months after Monterey. the enactment of this joint resolution, to sell the steamship Monterey and the uninstalled materials heretofore acquired by the United States with said vessel, which are held in storage by the Maritime Administration, Department of Commerce, to a citizen of the United States at competitive bidding, subject to the provisions of this joint resolution, and such terms and conditions not contrary hereto as the Secretary may prescribe. The vessel with such materials shall be sold on an "as is, where is" basis, at an aggregate minimum sales price of $3,081,665.72, depreciated on the basis of a twenty-year life from August 6, 1952, to the date of the award of the contract of sale. Such sale shall be made upon a condition and agreement that the purchaser expend at least $10,000,000 to recondition the vessel satisfactory to the Secretary of Commerce in a domestic shipyard for passenger service, with documentation under the laws of the United States. Such sale shall be on the basis of the payment of not less than 25 per centum of the sale price of the vessel and materials at the time of the execution of such sales contract, with balance payable in approximately equal annual installments over the life expectancy of the vessel after reconditioning by the purchaser which life expectancy shall be determined jointly by the Secretary of the Treasury and the Secretary of Commerce, with interest on the portion of the sales price remaining unpaid at the rate 69 Stat. 542. of 32 per centum per annum; with right of prepayment from time to 69 Stat. 543. time of any or all of the sales price remaining unpaid. The obligation of the purchaser with respect to payment of such unpaid balance, with interest. shall be secured by a first preferred mortgage on the vessel sold, which mortgage may provide that the sole recourse against the purchaser under such mortgage, and any of the notes secured thereby, shall be limited to repossession of the vessel by the United States and the assignment of insurance claims, if the purchaser shall have complied with all provisions of the mortgage other than those relating to the payment of principal and interest when due, and the obligation of the purchaser shall be satisfied and discharged by the surrender of the vessel, and all right, title, and interest therein to the United States. Such vessel upon surrender shall be (1) free and clear of all liens and encumbrances whatsoever, except the lien of the above-mentioned preferred mortgage and any other mortgage held by the Secretary of Commerce pursuant to an assignment under title XI of the Merchant 52 Stat. 969. Marine Act, 1936, as amended, (2) in class, and (3) equipped and in as 46 USC 1271-1279. good order and condition, ordinary wear and tear excepted, as when reconditioned as a passenger vessel by the purchaser except that any deficiencies with respect to freedom from encumbrances, condition, and class, may, to the extent covered by valid policies of insurance, be satisfied by the assignment to the United States of claims of the purchaser under such policies of insurance. (b) Any contract of sale executed under authority of this joint resolution shall provide that in the event the United States shall, through purchase or requisition, acquire ownership of such vessel, the owner shall be paid therefor the value thereof, but in no event shall such payment exceed the actual depreciated sales price under such contract (together with the actual depreciated cost of capital improvements thereon), or the fair and reasonable scrap value of such vessel, as determined by the Maritime Administrator, whichever is the greater; that All 69 Stat. 543. such determination shall be final; that in computing the depreciated acquisition cost of such vessel, the depreciation shall be computed on the vessel on the schedule adopted or accepted by the Secretary of the Treasury for Federal income tax purposes as applicable to such vessel; that such vessel shall remain documented under the laws of the United States for a period of at least ten years after completion as a passenger vessel or as long as there remains due the United States any principal or interest on account of the sales price, whichever is the longer period; and that the foregoing provisions respecting the requisition or the acquisition of ownership by the United States and documentation shall run with the title to such vessel and be binding on all owners thereof. Approved August 9, 1955. To amend section 313 of the Agricultural Adjustment Act of 1938, with respect to tobacco allotments. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 313 of Tobacco. the Agricultural Adjustment Act of 1938, as amended, is amended by 65 Stat. 422. adding at the end thereof the following new subsection: "(j) The production of tobacco on a farm in 1955 or any subsequent year for which no farm acreage allotment was established shall not make the farm eligible for an allotment as an old farm under subsections (b) and (g) hereof: Provided, however, That by reason of such production the farm need not be considered as ineligible for a new farm allotment under subsections (c) and (g) hereof, but such production shall not be deemed past tobacco experience for any producer on the farm." Approved August 11, 1955. 7 USC 1313. 84th Congress To amend section 216 (b) of the Merchant Marine Act, 1936, as amended, to provide for the maintenance of the Merchant Marine Academy. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 216 Merchant Marine (b) of the Merchant Marine Act, 1936, as amended (U. S. C., title Academy. 46, sec. 1126), is amended to read as follows: 53 Stat. 1183. "(b) (1) The Secretary of Commerce shall maintain a Merchant Maintenance. Marine Academy at Kings Point, New York, for the instruction and preparation for service in the merchant marine of selected persons as officers thereof. Competitive examinations shall be held annually among those persons nominated as candidates to the Academy by Senators and Representatives. The number of vacancies allocated to each State shall be proportioned to the representation in Congress from that State. Appointments from each State shall be made by the Secretary of Commerce from among qualified candidates nominated from that State in the order of merit established by the examinations. In case vacancies remain after the appointments under the preceding sentence have been made, the Secretary of Commerce shall fill them by appointments from qualified candidates from other States. "(2) In connection with such instruction and as a part thereof, Training the Secretary of Commerce is authorized to provide for training of merchant marine cadets on Government-owned and subsidized vessels and, in cooperation with other governmental and private agencies, on other vessels, and, for instructional purposes only, in shipyards, plants, and industrial and educational organizations under rules and regulations prescribed by the Secretary of Commerce and upon such terms as the Secretary of Commerce may arrange, and expenditures incident to such training are hereby authorized. "(3) Cadets appointed to the United States Merchant Marine Appointments, Academy may be appointed by the Secretary of the Navy as Reserve etc. midshipmen in the United States Navy and may be commissioned as Reserve ensigns in the United States Navy upon graduation from the Academy. "(4) Cadets at the United States Merchant Marine Academy shall Allowances. receive allowances for all required uniforms and textbooks as prescribed by rules and regulations under this Act, and to transportation, including reimbursement of traveling expenses, while traveling under orders as a cadet. "(5) (a) 'Representative' as used in this Act shall include Dele- "Representative". gates to the House of Representatives from Alaska and Hawaii and the Resident Commissioner from the Commonwealth of Puerto Rico. "(b) 'State' as used in this Act shall include Territories of Alaska, Hawaii, and the Commonwealth of Puerto Rico." Approved February 20, 1956. "State". To authorize the loan of two submarines to the Government of Brazil. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the President Brazil. is authorized to lend two submarines to the Government of Brazil for Loan of suba period of not more than five years and may, in his discretion, extend marines. the loan for an additional period of not more than five years. The President shall, prior to the delivery of the submarines to the Governiment of Brazil, conclude an agreement with the Government providing for the return of the submarines in accordance with the provisions of this Act and in substantially the same condition as when loaned. All expenses involved in the activation of the submarines, including repairs, alterations, outfitting, and logistic support shall be charged to funds programed for the Brazilian Government under the Mutual 65 Stat. 373. Security Act. Approved April 6, 1956. 22 USC 1651 note. To provide transportation on Canadian vessels between ports in southeastern Alaska, and between Hyder, Alaska, and other points in southeastern Alaska or the continental United States, either directly or via a foreign port, or for any part of the transportation. on Canadian vessels. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That, until June 30, Alaska. 1957, notwithstanding the provisions of law of the United States Transportation restricting to vessels of the United States the transportation of passengers and merchandise directly or indirectly from any port in the United States to another port of the United States, passengers may be transported on Canadian vessels between ports in southeastern Alaska, and passengers and merchandise may be transported on Canadian Vessels between Hyder, Alaska, and other points in southeastern Alaska or the continental United States, either directly or via a foreign port, or for any part of the transportation. Approved April 18, 1956. Chapter 247 2d Session H. R. 4118 AN ACT To amend section 606 (5) of the Merchant Marine Act, 1936, relating to the computation of the 10-year recapture period. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subdivision (3) Merchant Marine of section 606 of the Merchant Marine Act, 1936, as amended (46 Aot, amendment. U.S. C. 1176), is amended to read as follows: 49 Stat. 2004. "(5) that when at the end of any ten-year period during which Recapture an operating-differential subsidy has been paid under a contract period. or consecutive contracts (such period to be computed from the end of the operator's last completed recapture period regardless of its duration, or from the beginning of subsidized operations if the operator has not previously completed a recapture period), or when prior to the end of such ten-year period subsidized operations shall be finally terminated, if the net profit of the contractor on his subsidized vessels and services incident thereto during such period or time (without regard to capital gains and capital losses), after deduction of depreciation charges based upon a life expectancy of the subsidized vessels determined as provided in section 607 (b), has averaged more than 10 per centum per annum 46 USC 1177. upon the contractor's capital investment necessarily employed in 70 Stat. 148. the operation of the subsidized vessels, services, routes, and lines, 70 Stat. 149. the contractor shall pay to the United States an amount equal to one-half of such profits in excess of 10 per centum per annum as partial or complete reimbursement for operating-differential subsidy payments received by the contractor for such recapture period, but the amount of excessive profit so recaptured shall not in any case exceed the amount of the operating-differential subsidy payments theretofore made to the contractor for such period under such contract or consecutive contracts and the repayment of such reimbursement to the Commission shall be subject to the provisions of section 607;" SEC. 2. Each operating-differential subsidy contract in force on the Amendment of date of enactment of this Act shall, if the subsidized contractor con- contract. sents, be amended to conform to the provisions of section 606 of the Merchant Marine Act, 1936, as amended by section 1 of this Act. Approved May 10, 1956. |