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Chapter 904 2d Session

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To authorize the Secretary of Commerce to sell certain war-built vessels.

Vessels.

Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) notwithstanding Sale of tankers. the provisions of section 11 of the Merchant Ship Sales Act of 1946, 60 Stat. 49. as amended, and section 510 (h) of the Merchant Marine Act, 1936, as 50 USC app. amended, the Secretary of Commerce is authorized to sell within one 1744. year after the enactment of this joint resolution to the highest respon- 68 Stat. 680. sible bidder who is a citizen of the United States, within the meaning 46 USC 1160. of section 2 of the Shipping Act, 1916, as amended, for employment 39 Stat. 729. on essential trade routes 3 and 4 to Cuba and Mexico, any two war- 46 USC 844. built vessels under the jurisdiction of the Secretary of Commerce, on an as is, where is, basis, provided that the Secretary of Commerce shall determine before entering into such sales that the purchaser possesses the ability, experience, financial resources, and other qualifications necessary to enable it to operate and maintain the vessels in service on that portion of essential trade routes 3 and 4 between Atlantic Coast ports of the United States and Cuba and Mexico and to maintain adequate service on such portion of such routes. The upset prices of the vessels shall be their sales prices computed under the Merchant Ship Sales Act of 1946, as of January 15, 1951, depreciated (after reduction for residual value) on a straight line basis for the period from January 15, 1951, to the date of execution of the contract of sale, on the basis of the portion of a twenty-year useful life of the vessels remaining after January 15, 1951.

(b) Each such sale shall be on the basis of the payment by the purchaser of not less than 25 per centum of the vessel sales price at the time of execution of the vessel sales contract, with the balance payable in approximately equal annual installments over the remainder of the economic life of the vessel, which economic life is to be determined by the Maritime Administration, with interest on the portion of the vessel sales price remaining unpaid at the rate of 32 per centum per annum. The obligation of the purchaser with respect to payment of such unpaid balance, with interest, shall be secured by a preferred mortgage on the vessels in form satisfactory to the Maritime Administrator.

(c) (1) Such sales shall be made upon such conditions as the Secretary of Commerce deems necessary to protect the interests of the United States.

(2) Vessels sold under this Act shall be employed exclusively as dry cargo common carriers on that portion of essential trade routes 3 and 4 between Atlantic Coast ports of the United States and Cuba and Mexico, until the end of their useful lives, as determined under subsection (b) of this Act, or until they are replaced by new tonnage, whichever happens first. These restrictions shall run at law and in equity with the titles to the vessels and are binding upon all subsequent owners.

(d) Any contract of sale executed under authority of this Act shall provide that in the event the United States shall, through purchase or requisition, acquire ownership of any 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); 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 income tax purposes as applicable to such vessel; that such vessel shall remain documented

All 70 Stat. 958.

under the laws of the United States during the remainder of the economic life of the vessel or as long as there remains due the United States any principal or interest on account of the sales price, which ever 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 3, 1956.

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To authorize the construction of one prototype ship and the conversion of one
Liberty ship, by the Maritime Administration, Department of Commerce.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That there is hereby Construction authorized to be appropriated to the Department of Commerce, and conversion Maritime Administration, such sums as may be necessary, to reof vessels, authorization. main available until expended, to construct, outfit, and test one prototype merchant ship of the "Clipper" class, as designed by the Maritime Administration, Department of Commerce, and to convert, outfit, and test one reserve fleet Liberty ship. Such construction and conversion, outfitting, and testing shall be subject to the pro- 49 Stat. 1985. visions of the Merchant Marine Act, 1936, as amended. Approved August 3, 1956.

46 USC 1245.

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To provide for a study by the Federal Communications Commission, the United States Coast Guard, and the Federal Maritime Administration with respect to the need for automatic radiotelegraph call selectors and other such safety devices on certain cargo ships of the United States.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Federal Cargo ships. Communications Commission, the United States Coast Guard, and Automatic radiothe Federal Maritime Administration are hereby authorized and telegraph. directed, acting jointly, (1) to make a full and complete study and investigation with respect to the need for installing automatic radiotelegraph call selectors on cargo ships of the United States carrying less than two radio operators, and other such safety devices, and the

feasibility thereof, (2) to report to the Congress at the earliest prac- Report to ticable date, but not later than March 1, 1957, and (3) to include in Congress. such report their recommendations, if any, for necessary legislation. Approved August 3, 1956.

84th Congress Chapter 914 - 2d Session

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To extend the time limit within which naval vessels may be loaned to friendly
Far Eastern nations and to authorize the loan of naval vessels to friendly
European nations.

Be it enacted by the Senate and House of Representatives of the

United States of America in Congress assembled, That (a) the first Naval vessels. sentence of section 4 (a) of the Act of August 5, 1953 (67 Stat. 363), Loan to foreign is amended by inserting immediately after "Far Eastern" the words governments. "or European".

(b) Section 4 (c) of such Act is amended by striking out "December

31, 1956" and inserting in lieu thereof "December 31, 1957".

(c) Section 5 of such Act is amended by striking out "respective

Governments under the Mutual Security Act" and inserting in lieu

thereof "recipient Governments under the Mutual Security Act of 67 Stat. 478. 1954, as amended, or provided by the recipient Governments under reimbursable provisions of such Act".

Approved August 3, 1956.

(760)

Chapter 929 - 2d Session

S. 1833

AN ACT

All 70 Stat. 984.

To amend the Merchant Marine Act of 1936, as amended.

Be it enacted by the Senate and House of Representatives of the United States of America in l'ongress assembled, That section 1209 (a) of the Merchant Marine Act, 1936, as amended (U. S. C., title 46. sec. 1289 (a)), is amended to read as follows:

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Merchant Marine.
War risk insur-

ance.

64 Stat. 775.

(a) (1) The Secretary, in the administration of this title, may Issuance of issue such policies, rules, and regulations as he deems proper and policies, etc. may adjust and pay losses, compromise and settle claims, whether Claims settlein favor of or against the United States and pay the amount of ment. judgment rendered against the United States in any suit, or the amount of any settlement agreed upon, in respect of any claim under insurance authorized by this title.

any

subsidized

vessels.

valuation.

(2) In respect of hull insurance, the valuation in the policy for Valuation. actual or constructive total loss of the vessel insured shall be a stated valuation (exclusive of National Defense features paid for by the Government) determined by the Secretary which shall not exceed the amount that would be payable if the vessel had been requisitioned for title under section 902 (a) at the time of the attachment of the in- 46 USC 1242. surance under said policy: Provided, however, That in the case of Constructiona construction-subsidized vessel, for the period of insurance prior to requisition for title or use, the valuation so determined shall be reduced by such proportion as the amount of construction subsidy paid. with respect to the vessel bears to the entire construction cost and capital improvements thereof (excluding the cost of national defense features), and for the period of insurance after requisition for use the valuation so determined shall not exceed the amount which would be payable under section 802 in the case of requisition for title or use: 46 USC 1212. Provided further. That the insured shall have the right within sixty Rejection of days after the attachment of the insurance under saïd policy, or within sixty days after determination of such valuation by the Secretary, whichever is later, to reject such väluation, and shall pay, at the rate provided for in said policy, premiums upon such asserted valuation as the insured shall specify at the time of rejection, but such asserted valuation shall not operate to the prejudice of the Government in any subsequent action on the policy. In the event of the actual or constructive total loss of the vessel, if the insured has not rejected such valuation the amount of any claim therefor which is adjusted, compromised, settled, adjudged, or paid shall not exceed such stated amount, but if the insured has so rejected such valuation, the insured shall be paid as a tentative advance only, 75 per centum of such valuation so determined by the Secretary and shall be entitled to sue the United States in a court having jurisdiction of such claims to recover such valuation as would be equal to the just compensation which such court determines would have been payable if the vessel had been requisitioned for title under section 902 (a) at the time of the attachment of the insurance under said policy: Provided, however, That in the case of a construction-subsidized vessel, the valuation determined by the court as such just compensation for any period of insurance prior to actual requisition for title or use of the vessel shall be reduced by such proportion as the amount of construction subsidy paid with respect to the vessel bears to the entire construction cost and capital improvements thereof (excluding the cost of national defense features), and for any period of insurance after actual requisition for use, the valuation determined by the court shall be the amount which would have been payable under section 802 in the case of requisition for title: And provided further, That in the event of an election

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