§ 1641. Repealed. Subsecs. (a) and (b)(1) of this section, acts Oct. 3, 1944, ch. 479, § 32 (a), (b) (1), 58 Stat. 782; Sept. 18, 1945, ch. 368, § 2, 59 Stat. 533; Aug. 1, 1946, ch. 723, § 2, 60 Stat. 754, which related to the authority of commanders in active theaters of military operations with respect to property in their control and to the disposition of surplus property outside the United States, were repealed by act June 30, 1949, ch. 288, title VI, § 602(a)(1), 63 Stat. 399, renumbered Sept. 5, 1950, ch. 849, § 6 (a), (b), 64 Stat. 583, and are now covered by chapter 10 of Title 40, Public Buildings, Property and Works. Subsec. (b) (2) of this section, acts Oct. 3, 1944, ch. 479, § 32(b) (2), 58 Stat. 782; Sept. 18, 1945, ch. 368, § 2, 59 Stat. 533; Aug. 1, 1946, ch. 723, § 2, 60 Stat. 754; June 20, 1952, ch. 449, § 11, 66 Stat. 151; Aug. 26, 1954, ch. 937, title V, § 544 (d), as added July 12, 1956, ch. 627, § 11(a), 70 Stat. 563, and amended Aug. 14, 1957, Pub. L. 85-141, § 11(b) (1), 71 Stat. 365; Aug. 17, 1961, Pub. L. 87-153, 75 Stat. 390, which related to the use of foreign currencies, foreign scholarships, and the establishment of the Board of Foreign Scholarships, was repealed by Pub. L. 87-256, § 111(a) (1), Sept. 21, 1961, 75 Stat. 538, and is now covered by chapter 33 of Title 22, Foreign Relations and Intercourse. CONTINUATION OF CERTAIN EXECUTIVE Orders, AGREEMENTS, DETERMINATIONS, REGULATIONS, CONTRACTS, APPOINTMENTS, AND OTHER ACTIONS Continuation in full force and effect, and applicability to the appropriate provisions of the Mutual Educational and Cultural Exchange Act of 1961, set out as chapter 33 of Title 22, Foreign Relations and Intercourse, until modified or superseded by appropriate authority, of all Executive orders, agreements, determinations, regulations, contracts, appointments, and other actions issued, concluded, or taken under authority of this section, see section 111(b) of Pub. L. 87-256, set out as a note under section 2451 of Title 22. S$ 1642 to 1646. Repealed. June 30, 1949, ch. 288, title VI, § 602(a)(1), 63 Stat. 399, renumbered Sept. 5, 1950, ch. 849, § 6 (a), (b), 64 Stat. 583. Sections, act Oct. 3, 1944, ch. 479, §§ 33-37, 58 Stat. 782-784, relating to restrictions on importation of surplus property, saving provisions, etc., are now covered by chapter 10 of Title 40, Public Buildings, Property, and Works. Sections 1642-1645 amended by act Sept. 18, 1945, ch. 368, § 2, 59 Stat. 533. WAR MOBILIZATION AND RECONVERSION ACT OF 1944 ACT OCT. 3, 1944, CH. 480, 58 STAT. 785 S$ 1651 to 1678. Omitted. CODIFICATION Sections 1651, 1652, 1656-1660, and 1661-1663, 1666, 1667, 1671, and 1678, were from act Oct. 3, 1944, ch. 480, 58 Stat. 785-789. Sections 1651, 1652, 1656-1660, and 1661-1663 related to the creation of the Office of War Mobilization and reconversion, demobilization and reconversion policies and retraining and reemployment, and expired on June 30, 1947, under the provisions of section 603 of act Oct. 3, 1944. Act Oct. 3, 1944, ch. 480, title I, §§ 101, 102, title III, §§ 301, 303, 58 Stat. 785, 788, 789, formerly classified to sections 1651, 1652, 1661 and 1663 of this Appendix, was repealed by Pub. L. 89-554, § 8(a), Sept. 6, 1966, 80 Stat. 652. Section 1666 amended section 1104 of Title 42, The Public Health and Welfare, and section 1667 added section 1321 of Title 42, and both sections were excluded from the provisions of section 603 of act Oct. 3, 1944, ch. 480, title VI, 58 Stat. 791, which provided for the termination of act Oct. 3, 1944 on June 30, 1947, by act Aug. 6, 1947, ch. 510, § 4, 61 Stat. 794. The provisions of sections 1666 and 1667 have been incorporated in sections 1104 and 1321 of Title 42, and accordingly are omitted here. 47-500 0-71-vol. 11-21 Sections 1671, and 1676-1678, related to public works, definitions, transfers of functions, savings clause, etc., and expired on June 30, 1947, under the provisions of section 603 of act Oct. 3, 1944. APPROPRIATION Act Oct. 3, 1944, ch. 480, title VI, § 602, 58 Stat. 792, authorized to be appropriated such sums as might be necessary or appropriate to carry out the purposes and provisions of act Oct. 3, 1944. REVOLVING FUND Establishment of revolving fund under which to account for assets and liabilities in connection with loans or advances made pursuant to former section 1671 of this title, see section 1701g-5 of Title 12, Banks and Banking, and "References in Text" note thereunder. FLEET ADMIRAL OF THE NAVY AND GENERAL OF THE ARMY ACT DEC. 14, 1944, CH. 580, 58 STAT. 802 §§ 1691 to 1697. Repealed. Aug. 10, 1956, ch. 1041, § 53, 70A Stat. 641. Section 1691, act Dec. 14, 1944, ch. 580, § 1, 58 Stat. 802, established the Fleet Admiral of the United States Navy as the highest grade in the Navy with provision for appointment of four on the active list at any one time. Section 1692, act Dec. 14, 1944, ch. 580, § 2, 58 Stat. 802, established the General of the Army as the highest grade in the Army with provision for appointment of four on the active list at any one time. Section 1693, act Dec. 14, 1944, ch. 580, § 3, 58 Stat. 802, related to appointment without examination, tenure, effect on permanent or temporary status, appointment and reversion of retired officers. Section 1694, act Dec. 14, 1944, ch. 580, § 4, 58 Stat. 803, related to pay and allowances of appointees under former sections 1691-1697 of this Appendix. Section 1695, act Dec. 14, 1944, ch. 580, § 5, 58 Stat. 803, related to rank and pay on retirement of appointees under former sections 1691-1697 of this Appendix. Section 1696, act Dec. 14, 1944, ch. 580, § 6, 58 Stat. 803, related to rank and precedence of appointees under former sections 1691-1697 of this Appendix according to date of appointment. Section 1697, act Dec. 14, 1944, ch. 580, § 7, 58 Stat. 803, left unaffected by former sections 1691-1697 of this Appendix, any other law relating to office of General of the Armies of the United States. PERMANENT APPOINTMENT Act Mar. 23, 1946, ch. 112, § 1, 60 Stat. 59, provided in part for making permanent the grades held by Fleet Admirals of the Navy Ernest J. King, Chester W. Nimitz, William Halsey and William D. Leahy and Generals of the Army Douglas MacArthur, Dwight D. Eisenhower, Henry H. Arnold and George C. Marshall. Section also provided for full pay upon retirement. APPOINTMENT OF GENERAL OF THE ARMY Pub. L. 87-3, Mar. 22, 1961, 75 Stat. 5, authorized: the President of the United States to appoint former President Dwight David Eisenhower to the active list of the Regular Army in his former grade of General of the Army with his former date of rank in such grade. DISPOSAL OF CENSORED MAIL ACT DEC. 22, 1944, CH. 673, 58 STAT. 913 § 1701. Creation and composition of disposal committee; type of mail matter; rules and regulations. CODIFICATION Section, act Dec. 22, 1944, ch. 673, § 1, 58 Stat. 913, relating to disposal of censored mail, expired six months after termination of hostilities in World War II, which was proclaimed at 12 o'clock noon on Dec. 31, 1946 by 1946 Proc. No. 2714, 12 F. R. 1, set out as a note under section 601 of this Appendix, as provided in section 2 of act Dec. 22, 1944. DISBURSING OFFICERS' ADDITIONAL FUNCTIONS ACT DEC. 23, 1944, CH. 716, 58 STAT. 921 SS 1705 to 1707. Transferred. CODIFICATION Sections 1705-1707 transferred to sections 492a-492c, respectively, of Title 31, Money and Finance. GENERAL OF THE MARINE CORPS ACT MAR. 21, 1945, CH. 29, 59 STAT. 36 §§ 1711 to 1715. Omitted. CODIFICATION Section 1711, act Mar. 21, 1945, ch. 29, § 1, 59 Stat. 36, established the grade and rank of General of the Marine Corps and provided for the appointment of the Commandant of the Marine Corps thereto. Section 1712, act Mar. 21, 1945, ch. 29, § 2, 59 Stat. 36, related to appointment without examination, tenure and effect on permanent or temporary status. Section 1713, act Mar. 21, 1945, ch. 29, § 3, 59 Stat. 36, related to pay and allowances of appointees under former sections 1711-1715 of this Appendix. Section 1714, act Mar. 21, 1945, ch. 29, § 4, 59 Stat. 36, related to rank and pay on retirement of appointees under former sections 1711-1715 of this Appendix. Section 1715, act Mar. 21, 1945, ch. 29, § 5, 59 Stat. 37, provided for the termination of sections 1711-1715 of this Appendix six months after the termination of the wars in which the United States was engaged as proclaimed by the President or such earlier date as Congress, by concurrent resolution, might fix. Cessation of hostilities of World War II, eff. twelve o'clock noon, Dec. 31, 1946, was proclaimed by the President in 1946 Proc. No. 2714, Dec. 31, 1946, 12 F. R. 1. The Treaty of Peace with Japan, signed at San Francisco on Sept. 8, 1951, was ratified by the United States Senate on Mar. 20, 1952 and came into force on Apr. 28, 1952. See Termination of State of War 1739 to 1745, and 1746 of this Appendix. PERMANENT APPOINTMENT Section 2 of act Mar. 23, 1946, ch. 112, 60 Stat. 60, provides for the permanent appointment in the grade of General in the Regular Marine Corps of General Alexander A. Vandegrift. Section also provided for full pay upon retirement. ADMIRAL IN THE COAST GUARD ACT MAR. 21, 1945, CH. 30, 59 STAT. 37 SS 1721 to 1725. Omitted. CODIFICATION Section 1721, act Mar. 21, 1945, ch. 30, § 1, 59 Stat. 37, established the grade and rank of Admiral in the Coast Guard and provided for the appointment of the Commandant of the Coast Guard thereto. Section 1722, act Mar. 21, 1945, ch. 30, § 2, 59 Stat. 37, related to appointment without examination, tenure and effect on permanent or temporary status. Section 1723, act Mar. 21, 1945, ch. 30, § 3, 59 Stat. 37, related to pay and allowances of appointees under former sections 1721-1725 of this Appendix. Section 1724, act Mar. 21, 1945, ch. 30, § 4, 59 Stat. 37, related to rank and pay on retirement of appointees under former sections 1721-1725 of this Appendix. Section 1725, act Mar. 21, 1945, ch. 30, § 5, 59 Stat. 37, provided for the termination of sections 1721-1725 of this Appendix six months after the termination of the wars in which the United States was engaged as proclaimed by the President or such earlier date as Congress, by concurrent resolution, might fix. Cessation of hostilities of World War II, eff. twelve o'clock noon, Dec. 31, 1946, was proclaimed by the President in 1946 Proc. No. 2714, Dec. 31, 1946, 12 F. R. 1. The Treaty of Peace with Japan, signed at San Francisco on Sept. 8, 1951, was ratified by the United States Senate on Mar. 20, 1952, and came into force on Apr. 28, 1952. See Termination of State of War notes set out preceding section 1 of this Appendix. PERMANENT APPOINTMENT Section 3 of act Mar. 3, 1946, ch. 112, 60 Stat. 60, provides for the permanent appointment in the grade of Admiral in the Coast Guard of Admiral Russell R. Waesche. Section also provided for full pay upon retirement. EXCEPTION OF NAVY OR COAST GUARD CODIFICATION Sections 1731 and 1732 were originally enacted as a temporary measure and were to terminate on June 30, 1948 but this termination date was repealed by act Mar. 5, 1948, ch. 99, 62 Stat. 69. Sections have been transferred to sections 360 and 360a, respectively, of Title 33, Navigation and Navigable Waters. SALE OF SURPLUS WAR-BUILT VESSELS ACT MAR. 8, 1946, CH. 82, 60 STAT. 41 Sec. 1736. Definitions. 1737. Sales of vessels to citizens; sales price; down payment and installment payments; restrictions on vessel operation. 1738. Charter of vessels. (a) To citizens; publication of domestic prewar cost. (b) Rate of charter hire. (c) Laws applicable to charter hire. (d) Computation of charter hire where engaged (f) Charter of passenger vessels. 1738a. Termination of charters; exceptions. 1738b. Condition for chartering vessels. 1739. Sale of vessels to non-citizens; conditions; priority of mortgage on unpaid balance. 1740. Order of preference in sales and charters; determination; operation of commercial vessels by Government. 1741. Exchange of vessels. (a) Allowance as credit on purchase price; vessels acceptable. (b) Amount of allowance. (c) Transfers in settlement of claims. 1742. Price adjustment on prior sales to citizens. 1743. 1744. (c) Conditions binding on applicant. Limitation on eligibility for benefits under act. 1745. Reconversion of vessels for normal commercial operation; applicability of other laws to construction contracts; coastwise trade; disposition of moneys; Great Lakes trade. 1745a. Great Lakes vessels accorded operation status of documented vessels. 1746. Quarterly reports to Congress. § 1735. Declaration of policy. (a) It is necessary for the national security and development and maintenance of the domestic and the export and import foreign commerce of the United States that the United States have an efficient and adequate American-owned merchant marine (1) sufficient to carry its domestic water-borne commerce and a substantial portion of its waterborne export and import foreign commerce and to provide shipping service on all routes essential for maintaining the flow of such domestic and foreign water-borne commerce at all times; (2) capable of serving as a naval and military auxiliary in time of war or national emergency; (3) owned and operated under the United States flag by citizens of the United States; (4) composed of the best-equipped, safest, and most suitable types of vessels, constructed in the United States and manned with a trained and efficient citizen personnel; and (5) supplemented by efficient American-owned facilities for shipbuilding and ship repair, marine insurance, and other auxiliary services. (b) It is declared to be the policy of this Act [sections 1735 to 1738, 1739 to 1745, and 1746 of this Appendix] to foster the development and encourage the maintenance of such a merchant marine. (Mar. 8, 1946, ch. 82, § 2, 60 Stat. 41.) SHORT TITLE Section 1 of act Mar. 8, 1946, provided that act Mar. 8, 1946, should be popularly known as "The Merchant Ship Sales Act of 1946". TERMINATION DATE Section 14 of act Mar. 8, 1946, as amended June 28, 1947, ch. 161, § 1, 61 Stat. 190; Feb. 27, 1948, ch. 78, § 1 (a), 62 Stat. 38; Feb. 27, 1949, ch. 12, 63 Stat. 9; June 29, 1949, ch. 281, § 1, 63 Stat. 349; June 30, 1950, ch. 427, § 1, 64 Stat. 308; Aug. 17, 1950, ch. 725, 64 Stat. 452, provided that: "No contract of sale shall be made under this Act [sections 1735-1738 and 1739-1746 of this Appendix] after January 15, 1951, and no contract of charter shall be made under this Act [sections 1735-1738 and 1739-1746 of this Appendix] after June 30, 1950, except as provided for charter under subsections (e) and (f) of section 5 hereof, as amended [section 1738 (e, f) of this Appendix]." DETERMINATION OF SELLING PRICE Elements to be considered in determination of the selling price of vessels, see section 864b of Title 46, Shipping. GREAT LAKES VESSELS Section 3 of act Sept. 28, 1950, ch. 1093, 64 Stat. 1078, provided: "Contracts for the sale of vessels for exclusive use on the Great Lakes, including the Saint Lawrence River and Gulf and their connecting waterways, may be made until December 31, 1950. Such contracts shall require that transfer to the Great Lakes of such vessels by the buyers shall be completed by December 31, 1951." SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1736 to 1738, 1739 to 1745, and 1746 of this Appendix. § 1736. Definitions. As used in this Act [sections 1735 to 1738, 1739 to 1745, and 1746 of this Appendix] the term— (a) "Secretary" means the Secretary of Commerce. (b) "War-built vessel" means an oceangoing vessel of one thousand five hundred gross tons or more, owned by the United States and suitable for commercial use (1) which was constructed or contracted for by or for the account of the United States during the period, beginning January 1, 1941, and ending with September 2, 1945; or (2) which, having been constructed during the period beginning September 3, 1939, and ending with September 2, 1945, was acquired by the United States during such period. (c) "Prewar domestic cost", as applied to any type of vessel, means the amount determined by the Secretary, and published by the Secretary in the Federal Register, to be the amount for which a standard vessel of such type could have been constructed (without its national defense features) in the United States under normal conditions relating to labor, materials, and other elements of cost, obtaining on or about January 1, 1941. In no case shall the prewar domestic cost of any type of vessel be considered to be greater than 80 percentum of the domestic war cost of vessels of the same type. (d) "Statutory sales price", as applied to a particular vessel, means, in the case of a dry-cargo vessel, an amount equal to 50 per centum of the prewar domestic cost of that type of vessel, and in the case of a tanker, such term means an amount equal to 872 per centum of the prewar domestic cost of a tanker of that type, such amount in each case being adjusted as follows: (1) If the Secretary is of the opinion that the vessel is not in class, there shall be subtracted the amount estimated by the Secretary as the cost of putting the vessel in class. (2) If the Secretary is of the opinion that the vessel lacks desirable features which are incorporated in the standard vessel used for the purpose of determining prewar domestic cost, and that the statutory sales price (unadjusted) would be lower if the standard vessel had also lacked such features, there shall be subtracted the amount estimated by the Secretary as the amount of such resulting difference in statutory sales price. (3) If the Secretary is of the opinion that the vessel contains desirable features which are not incorporated in the standard vessel used for the purpose of determining prewar domestic cost, and that the statutory sales price (unadjusted) would be higher if the standard vessel had also contained such features, there shall be added the amount estimated by the Secretary as the amount of such resulting difference in statutory sales price. (4) There shall be subtracted, as representing normal depreciation, an amount computed by applying to the statutory sales price (determined without regard to this paragraph) the rate of 5 per centum per annum for the period beginning with the date of the original delivery of the vessel by its builder and ending with the date of sale or charter to the applicant in question, and there shall also be subtracted an amount computed by applying to the statutory sales price (determined without regard to this paragraph) such rate not in excess of 3 per centum per annum in the case of a vessel other than a tanker, and not in excess of 4 per centum per annum in the case of a tanker, for such period or periods of war service as the Secretary determines will make reasonable allowance for excessive wear and tear by reason of war service which cannot be or has not been otherwise compensated for under this subsection. No adjustment, except in respect of passenger vessels constructed before January 1, 1941, shall be made under this Act [sections 1735 to 1738 and 1739 to 1745, and 1746 of this Appendix] which will result in a statutory sales price which (1) in the case of drycargo vessels (except Liberty type vessels) will be less than 35 per centum of the domestic war cost of vessels of the same type, (2) in the case of any Liberty type vessel will be less than 311⁄2 per centum of the domestic war cost of vessels of such type, or (3) in the case of a tanker will be less than 50 per centum of the domestic war cost of tankers of the same type. For the purposes of this Act [said sections], except section 5 [section 1738 of this Appendix], all Liberty vessels shall be considered to be vessels of one and the same type (e) "Domestic war cost" as applied to any type of vessel means the average construction cost (without national defense features) as determined by the Secretary, of vessels of such type delivered during the calendar year 1944, except in case of any type of vessel the principal deliveries of which were made after the calendar year 1944, there shall be used in lieu of such year 1944 such period of not less than six consecutive calendar months as the Secretary shall find to be most representative of war production costs of such type. (f) "Cessation of hostilities" means the date proclaimed by the President as the date of the cessation of hostilities in the present war, or the date so specified in a concurrent resolution of the two Houses of the Congress, whichever is the earlier. (g) "Citizen of the United States" includes a corporation, partnership, or association only if it is a citizen of the United States within the meaning of section 2 of the Shipping Act of 1916, as amended [sections 802 and 803 of Title 46]. The term "affiliated interest" as used in sections 9 and 10 of this Act [sections 1742 and 1743 of this Appendix] includes any person affiliated or associated with a citizen applicant for benefits under this Act [sections 1735 to 1738, 1739 to 1745, and 1746 of this Appendix] who the Secretary, pursuant to rules and regulations prescribed hereunder, determines should be so included in order to carry out the policy and purposes of this Act [sections 1735 to 1738, 1739 to 1745, and 1746 of this Appendix]. (Mar. 8, 1946, ch. 82, § 3, 60 Stat. 41; 1950 Reorg. Plan No. 21, §§ 204, 306, eff. May 24, 1950, 15 F.R. 3178, 64 Stat. 1276, 1277.) REFERENCES IN TEXT "Cessation of hostilities", referred to in subsec. (f), was proclaimed at 12 o'clock noon on Dec. 31, 1946 by 1946 Proc. No. 2714, 12 F. R. 1, set out as a note under section 601 of this Appendix. TRANSFER OF FUNCTIONS "Secretary of Commerce" and "Secretary" were substituted for "United States Maritime Commission" and "Commission" on authority of 1950 Reorg. Plan No. 21, set out in the Appendix to Title 5, Government Organization and Employees. All executive and administrative functions of the United States Maritime Commission were transferred to the Chairman thereof by 1949 Reorg. Plan No. 6, eff. Aug. 19, 1949, 14 F.R. 5228, 63 Stat. 1069. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1735, 1737, 1738, 1739 to 1745, and 1746 of this Appendix. § 1737. Sales of vessels to citizens; sales price; down payment and installment payments; restrictions on vessel operation. (a) Any citizen of the United States may make application to the Secretary to purchase a warbuilt vessel, under the jurisdiction and control of the Secretary determines that the applicant possesses the ability, experience, financial resources, and other qualifications, necessary to enable him to operate and maintain the vessel under normal competitive conditions, and that such sale will aid in carrying out the policies of this Act [sections 1735 to 1738, 1739 to 1745, and 1746 of this Appendix], the Secretary shall sell such vessel to the applicant at the statutory sales price. (b) At the time of sale, the purchaser shall pay to the Secretary at least 25 per centum of the statutory sales price. The balance of the statutory sales price shall be payable in not more than twenty-five equal annual installments, with interest on the portion of the statutory sales price remaining unpaid, at the rate of 31⁄2 per centum per annum, or shall be payable under such other amortization provisions which permit the purchaser to accelerate payment of the unpaid balance as the Secretary deems satisfactory. The obligation of the purchaser with respect to payment of such unpaid balance with interest shall be secured by a preferred mortgage on the vessel sold. (c) The contract of sale, and the mortgage given to secure the payment of the unpaid balance of the purchase price, shall not restrict the lawful or proper use or operation of the vessel. (Mar. 8, 1946, ch. 82, § 4, 60 Stat. 43; 1950 Reorg. Plan No. 21, §§ 204, 306, eff. May 24, 1950, 15 F. R. 3178, 64 Stat. 1276, 1277; June 12, 1960, Pub. L. 86-518, § 1, 74 Stat. 216.) AMENDMENTS 1960 Subsec. (b). Pub. L. 86-518 substituted "twentyfive equal annual installments" for "twenty equal annual installments." EFFECTIVE DATE OF 1960 AMENDMENT Amendment of this section by Pub. L. 86-518 applicable only to vessels delivered by the shipbuilder on or after Jan. 1, 1946, and with respect to such vessels shall become effective on Jan. 1, 1960, and with respect to vessels delivered by the shipbuilder before Jan. 1, 1946, the provisions of the Merchant Marine Act, 1936 [section 1101 et seq. of Title 46. Shipping], existing immediately before June 12, 1960, shall continue in effect, see section 8(a) of Pub. L. 86-518, set out as a note under section 1125 of Title 46, Shipping. TRANSFER OF FUNCTIONS "Secretary" (meaning Secretary of Commerce) was substituted for "Commission" (meaning United States Maritime Commission) on authority of 1950 Reorg. Plan No. 21, set out in the Appendix to Title 5, Government Organization and Employees. All executive and administrative functions of the United States Maritime Commission were transferred to the Chairman thereof by 1949 Reorg. Plan No. 6, eff. Aug. 19, 1949, 14 F.R. 5228, 63 Stat. 1069. REVISION OF CONTRACTS, COMMITMENTS TO INSURE MORTGAGES, MORTGAGES, AND MORTGAGE INSURANCE CONTRACTS ENTERED INTO PRIOR TO JUNE 12, 1960 For provisions authorizing revision, see section 8 (c) of Pub. L. 86-518, set out as a note under section 1125 of Title 46, Shipping. COMMERCIAL EXPECTANCY OR PERIOD OF DEPRECIATION OF TANKERS AND OTHER LIQUID BULK CARRIERS Nothing in any amendment made by Pub. L. 86-518 to operate or be interpreted to change from 20 to 25 years the provisions of the Merchant Marine Act, 1936 [section 1101 et seq. of Title 46. Shipping], relating to the commercial expectancy or period of depreciation of any tanker or other liquid bulk carrier, see section 9 of Pub. L. 86-518, set out as a note under section 1125 of Title 46, SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1735, 1736, 1738, 1739 to 1745, and 1746 of this Appendix. § 1738. Charter of vessels. (a) To citizens; publication of domestic prewar cost. Any citizen of the United States and, until July 4, 1946, any citizen of the Commonwealth of the Philippines, may make application to the Secretary to charter a war-built dry-cargo vessel, under the jurisdiction and control of the Secretary for bare-boat use. The Secretary may, in his discretion, either reject or approve the application, but shall not so approve unless in his opinion the chartering of such vessel to the applicant would be consistent with the policies of this Act [sections 1735 to 1738, 1739 to 1745, and 1746 of this Appendix] No vessel shall be chartered under this section until sixty days after publication of the applicable prewar domestic cost in the Federal Register under subsection 3(c) of this Act [section 1736 (c) of this Appendix]. (b) Rate of charter hire. The charter hire for any vessel chartered under the provisions of this section shall be fixed by the Secretary at such rate as the Secretary determines to be consistent with the policies of this Act [sections 1735 to 1738, 1739 to 1745, and 1746 of this Appendix]. Except in the case of vessels having passenger accommodations for not less than eighty passengers rates of charter hire fixed by the Secretary on any war-built vessel which differ from the rate specified in this subsection shall not be less than the prevailing world market charter rates for similar vessels for similar use as determined by the Secretary. (c) Laws applicable to charter hire. The provisions of sections 708, 709, 710, 712, and 713 of the Merchant Marine Act, 1936, as amended [sections 1198 to 1200, 1202, and 1203 of Title 46], shall be applicable to charters made under this section. (d) Computation of charter hire where engaged in both foreign and domestic trade. When an operator is engaged both in the foreign trade and in the domestic trade (coastwise or intercoastal), additional charter hire determined with reference to voyage profits of the chartered vessels, under regulations promulgated by the Secretary, shall be computed, accounted for, and paid separately on such foreign trade and shall be computed, accounted for, and paid separately on such domestic trade, covering all voyages commencing subsequent to June 30, 1947. (e) Proceedings and findings; extension of charters. (1) Notwithstanding the provisions of sections 11 and 14 of this Act, as amended [sections 1744 and 1735 note of this Appendix], war-built dry-cargo vessels owned by the United States on or after June 30, 1950, may be chartered pursuant to this Act [sections 1735 to 1738, 1739 to 1745, and 1746 of this Appendix] for bareboat use in any service which, in the opinion of the Federal Maritime Board, is required in the public interest and is not adequately served, and for which privately owned American flag vessels are not available for charter by private operators on reasonable conditions and at reasonable rates for use in such service. No charters shall be made by the Secretary of Commerce under authority of this subsection until the Federal Maritime Board shall have given due notice to all interested parties and shall have afforded such parties an opportunity for a public hearing on such charters and shall have certified its findings to the Secretary of Commerce. The Secretary of Commerce is authorized to include in such charters such restrictions and conditions as the Federal Maritime Board determines to be necessary or appropriate to protect the public interest in respect of such charters and to protect privately owned vessels against competition from vessels chartered under this section: Provided, however, That all such charters shall contain a provision that they will be reviewed annually by the Federal Maritime Board, with recommendations to the Secretary of Commerce, for the purpose of determining whether conditions exist justifying continuance of the charters under the provisions of this subsection. (2) A charter existing on June 30, 1950, with respect to a war-built dry-cargo vessel may be extended to October 31, 1950, if application is made within ten days after the enactment hereof [June 30, 1950] for the charter of such vessel under this subsection and if the Secretary of Commerce deems such extension is justified in accordance with the provisions of subdivision (1) of this subsection: Provided, however, That a new voyage under such extended charter shall not be begun after October 31, 1950, unless it has been determined prior to such date, in accordance with the procedure set forth in this subsection, that the continued use of the vessel in the service is required. The Federal Maritime Board shall conduct all hearings on applications made under this paragraph immediately upon receipt thereof and shall promptly certify its findings to the Secretary of Commerce, provided that all such certifications shall be made not later than October 31, 1950. (f) Charter of passenger vessels. (1) Notwithstanding the provisions of sections 11 and 14 of this Act, as amended [sections 1744 and 1735 note of this Appendix], the Secretary of Commerce may charter any passenger vessel, whether or not war-built, owned by the United States on or after June 30, 1950, pursuant to title VII of the Merchant Marine Act, 1936, as amended [subchapter VII of chapter 27 of Title 46], and may charter any war-built passenger vessel owned by the United States for use in the domestic trade of the United States, under the conditions prescribed for the charter of war-built cargo vessels in subsection (e) of this section. (2) Charters existing on June 30, 1950, with respect to passenger vessels may be continued until December 31, 1951, or until expiration thereof by the terms of their provisions. (Mar. 8, 1946, ch. 82, § 5, 60 Stat. 43; June 28, 1947, ch. 161, § 2, 61 Stat. 191; 1950 Reorg. Plan No. 21, §§ 204, 306, eff. May 24, 1950, 15 F. R. 3178, 64 Stat. 1276, 1277; June 30, 1950, ch. 427, § 3, 64 Stat. 308; Aug. 31, 1954, ch. 1175, 68 Stat. 1050.) |