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desiring to transfer any such vessel to foreign registry upon such default or cancelation shall file an application to writing with the Commission setting forth its contentions with respect to the lack of just cause or lawful grounds for such default or cancelation. The Commission shall afford the contractor an opportunity for a hearing within twenty days after such contractor files written application therefor, and, after the testimony, if any, in such hearing has been reduced to writing and filed with the Commission, it shall, within a reasonable time, grant or deny the application by order.

"(b) If any such application is denied, the contractor may obtain a review of the order of denial in the United States Court of Appeals for the District of Columbia, by filing in such court, within twenty days after the entry of such order, a written petition praying that the order of the Commission be set aside. A copy of such petition shall be forthwith served upon any member of the Commission, or upon any officer thereof designated by the Commission for that purpose, and thereupon the Commission shall certify and file in the court a transcript of the record upon which the order complained of was entered. Upon the filing of such transcript such court shall have exclusive jurisdiction to determine whether such cancelation or default was without just cause, and to affirm or set aside such order. The judgment and decree of the court affirming or setting aside any such order of the Commission shall be final.

"(c) No transfer of vessels to foreign registry under this section shall become effective until any indebtedness to the Government or to any citizen of the United States, secured by such vessels, has been paid or discharged, and until after the expiration of ninety days from the date of final determination of the application or the appeal, if any. Within such ninety-day period the Commission may (1) with the consent of the contractor purchase the vessels at cost to the contractor plus cost of capital improvements thereon, less 5 per centum annual depreciation upon such vessel, and the actual depreciated costs of capital improvements thereon, or (2) reinstate the contract and adjust or settle, to the satisfaction of the contractor, the default found by the Commission or the court to exist."

SEC. 29. Section 708 of the Merchant Marine Act, 1936, is hereby amended to read as follows:

"SEC. 708. The Commission may, if in its discretion financial aid is deemed necessary, enter into a contract with any charterer of its vessels for payment to such charterer of an operating-differential subsidy upon the same terms and conditions and subject to the same limitations and restrictions, where applicable, as are elsewhere provided in this Act with respect to payments of such subsidies to operators of privately owned vessels."

Sec. 30. Section 714 of the Merchant Marine Act, 1936, is hereby amended to read as follows:

“SEC. 714. If the Commission shall find that any trade route (determined by the Commission to be an essential trade route as provided in section 211 of this Act) cannot be successfully developed and maintained and the Commission's replacement program cannot be achieved under private operation of such trade route by a citizen of the United States with vessels registered under the laws thereof, without further Government aid in addition to the financial aids. authorized under titles V and VI of this Act, the Commission is authorized to have constructed, in private shipyards or in navy yards, the vessel or vessels: of the types deemed necessary for such trade route, and to demise such new vessel or vessels on bare-boat charter to the American-flag operator established on such trade route, without advertisement or competition, upon an annual charter hire of not less than 5 per centum of the construction cost of such new vessel or vessels. Such charter may contain an option to the charterer to purchase such vessel or vessels from the Commission, within five years after the execution of the charter, upon the same terms and conditions as are provided in title V for the purchase of new vessels from the Commission and upon the agreement of the purchaser to pay interest at the rate of 342 per centum per annum upon all unpaid portions of the purchase price from the date of the delivery of the vessel to the purchaser under the charter agreement with credit on the purchase price for all charter-hire theretofore paid by the purchaser on account of such charter. If the option to purchase is exercised, the deferred payments of the purchase price shall not be extended beyond the life of the vessel computed on a twenty-year expectancy."

Sec. 31. Section 802 of the Merchant Marine Act, 1936, is hereby amended to read as follows:

“SEC. 802. Every contract executed by the Commission under authority of title V of this Act shall provide that

"In the event the United States shall, through purchase or requisition, acquire ownership of the vessel or vessels on which a construction-differential subsidy was paid, the owner shall be paid therefor the fair actual value thereof, but in no event shall such payment exceed the actual depreciated construction cost there (together with the actual depreciated cost of capital improvements thereon, but excluding the cost of national-defense features) less the depreciated amount of construction-differential subsidy theretofore paid incident to the construction or reconditioning of such vessel or vessels, or the fair and reasonable scrap value of such vessel as determined by the Commission, whichever is the greater. Such determination shall be final. In computing the depreciated value of such vessel, depreciation shall be computed on each vessel on the schedule adopted by the Bureau of Internal Revenue for income-tax purposes.

“The foregoing provision respecting the requisition or the acquisition of ownership by the United States shall run with the title to such vessel or vessels and be binding on all owners thereof."

SEC. 32. Section 803 of the Merchant Marine Act, 1936, is hereby amended by striking out the provisos, and inserting in lieu thereof the following: "except that the Commission, by a vote of four members (except as provided in section 201 (a) may grant an exemption in writing from the provisions of this section, upon such terms and conditions and for such specific period of time as the Commission deems necessary or appropriate to carry out the policy of this Act, in any case where

“(a) The Commission finds that the enforcement of such provisions is not necessary to safeguard the economical and fair application of subsidies paid the contractor under this Act, and that such exemption will promote economy or efficiency of service by the merchant marine; and

“(b) The person performing the services or supplying the facilities agrees to account for and pay over to the contractor any and all profits resulting from performing such services or suplying such facilities."

SEC. 33. The proviso in section 804 of the Merchant Marine Act, 1936, is amended to read as follows: Provided, however, That under special circumstances and for good cause shown the Commission may, in its discretion, waive the provisions of this section as to any contractor, for a specific period of time, by affirmative vote of four of its members, except as otherwise provided in subsection 201 (a)”.

SEC. 34. Section 805 (b) of the Merchant Marine Act, 1936, is hereby amended by inserting a period after the word "contractor" at the end thereof.

SEC. 35. Section 805 (c) of the Merchant Marine Act, 1936, is hereby amended to read as follows:

"(c) No director, officer, or employee (which terms shall be construed in the broadest sense to include, but not to be limited to, managing trustee or other administrative agent) shall receive from any contractor, holding a contract authorized by title VI or title VII of this Act, and its affiliate, subsidiary, associate, directly or indirectly, wages, salary, allowances, or compensation in any form for personal services which will result in such person's receiving a total compensation for his personal services from such sources exceeding in amount or value $25,000 per annum, and no such person or concern shall be qualified to receive or thereafter to hold any contract under this part if such person or concern, its subsidiary, affiliate, or associate, pays or causes to be paid, directly or indirectly, wages, salary, allowances, or compensation in any form for personal services which result in such person's receiving a total compensation for his personal services from such sources exceeding in amount or value $25,000 per annum, except that the Commission, by a vote of four members (except as provided in section 201 (a)) may grant an exemption in writing from the provisions of this subsection, upon such terms and conditions and for such specific period of time as the Commission deems necessary or appropriate to carry out the policy of this Act, in any case where the Commission finds that such exemption is justified by reason of the character or extent of shipping operations conducted by the contractor, and that the enforcement of any such provisions is not necessary to safeguard the economical and fair application of subsidies paid the contractor under this Act, or that such exemption will promote economy or efficiency of service.”.

SEC. 36. The last sentence of section 805 (d) of the Merchant Marine Act, 1936, is hereby amended to read as follows: "No contractor shall receive an operating-differential subsidy for the operation of any chartered vessel save and except during a period of actual emergency determined by the Commission, or except as provided in section 708."

SEC. 37, Section 807 of the Merchant Marine Act, 1936, is hereby amended to read as follows:

"Sec. 807. It shall be unlawful for any person employed or retained by any shipbuilder or ship operator holding or applying for a contract under the provisions of this Act, or employed or retained by any subsidiary, affiliate, associate, or holding company of such shipbuilder or ship operator, to present, advocate, or oppose any matter within the scope of the Shipping Act, 1916, as amended; the Merchant Marine Act, 1920, as amended; the Merchant Marine Act, 1928, as amended; the Intercoastal Shipping Act, 1933; or this Act, before the Congress or any committee thereof, or before the Commission, unless such shipbuilder or ship operator shall have previously filed with the Commission in such form and detail as the Commission shall by rules and regulations or order prescribe as necessary or appropriate in the public interest, a statement of the subject matter in respect of which such person is retained or employed, the nature and character of such retainer or employment, and the amount of compensation received or to be received by such person, directly or indirectly, in connection therewith. It shall be the duty of every such person so employed or retained to file with the Commission within thirty days after the close of each calendar month during such retainer or employment, in such form and detail as the Commission shall by rules and regulations or order prescribe as necessary or appropriate in the public interest, a statement of the expenses incurred and the compensation received by such person during such month in connection with such retainer or employment. Whosoever shall violate this provision shall be guilty of a misdemeanor."

SEC. 38. Section 810 of the Merchant Marine Act, 1936, is hereby repealed.

SEC. 39. Section 905 (a) of the Merchant Marine Act, 1936, is hereby amended to read as follows:

“(a) The words 'foreign commerce' or 'foreign trade' mean commerce or trade between the United States, its Territories or possessions, or the District of Columbia and a foreign country.”

SEC. 40. The Merchant Marine Act, 1936, is hereby amended by striking out the words “construction subsidy" wherever they appear in said Act and inserting in lieu thereof the words “construction-differential subsidy”.

SEC. 41. The Merchant Marine Act, 1936, is hereby amended by striking out the words “operating subsidy” wherever they occur in said Act and inserting in lieu thereof the words “operating-differential subsidy”.

Sec. 42. Section 9 of the Shipping Act, 1916, is hereby amended by striking vut paragraphs 3 and 4 and inserting in lieu thereof the following:

“Except as provided in section 611 of the Merchant Marine Act, 1936, as amended, it shall be unlawful, without the approval of the United States Jaritime Commission, to sell, mortgage, lease, charter, deliver, or in any manner transfer, or agree to sell, mortgage, lease, charter, deliver, or in any manner transfer, to any person not a citizen of the United States, or transfer or place under foreign registry or flag, any vessel or any interest therein (1) owned in whole or in part by any person a citizen of the United States, or (2) any vessel documented under the laws of the United States.

“Any vessel, or any interest therein chartered, sold, transferred, or mortgaged to a person not a citizen of the United States or placed under a foreign registry or flag, or operated in violation of any provision of this section, shall be forfeited to the United States, and whoever violates any provision of this section shall be guilty of a misdemeanor and subject to a fine of not more than $5,000 or to imprisonment for not more than five years, or both."

SEC. 43. The Intercoastal Shipping Act, 1933, is hereby amended by adding two new sections to be numbered "SEC. 4” and “SEC 5”, to read as follows:

“SEC. 4. Whenever the Commission finds that any rate, fare, charge, classification, tariff, regulation, or practice demanded, charged, collected, or observed hy any carrier subject to the provisions of this Act is umjust or unreasonable, it may determine, prescribe, and order enforced a just and reasonable maximum or minimum, or maximum and minimum rate, fare, or charge, or a just and reasonable classification, tariff, regulation, or practice.”

"SEC. I. The provisions of this Act are extended and shall apply to every common carrier by water in interstate commerce, as defined in section 1 of the Shipping Act, 1916."

The Intercoastal Shipping Act, 1933, is further amended by striking ont the words "Sec. 4" and inserting in lieu thereof the words "SEC. 6."

Section 5 of said Intercoastal Shipping Act, 1933, is amended to read as follows:

"SEC. 7. That the provisions of the Shipping Act, 1916, as amended, shall in all respects, except as amended by this Act, continue to be applicable to every carrier subject to the provisions of this Act."

The Intercoastal Shipping Act, 1933, is further amended by striking out the words "SEC. 6" and inserting in lieu thereof the words “SEC. 8.”

SEC. 44. The Merchant Marine Act, 1936, is hereby amended by adding a new section at the end of title II thereof, to be known as section 216 and to read as follows:

"SEC. 216. (a) The Commission is hereby authorized and directed to establish a system for the training of citizens of the United States to serve as licensed and unlicensed personnel on American merchant vessels, and may employ as instructors, on a contract or fee basis, such qualified licensed and unlicensed personnel of the merchant marine as the Commission may deem necessary to effectuate the purposes of this section.

“(b) The Commission is hereby authorized and directed, under such rules and regulations as it may prescribe, to establish the United States Maritime Service which shall consist of such licensed and unlicensed personnel of the United States merchant marine as may be enrolled under the provisions of this section. The ranks, grades, and ratings for the personnel of the Maritime Service shall be the same as are now or shall hereafter be prescribed for the personnel of the Coast Guard. The Commission is authorized and directed to determine the number of persons to be enrolled in the Maritime Service, to fix the rates of pay of such persons, and to prescribe such courses and periods of training as, in its discretion, is necessary to maintain a trained and efficient merchant-marine personnel.

"(c) The Commission, with the consent of any executive department, independent establishment, or other agency of the Government, including any field service thereof, may avail itself of the use of information, services, facilities, officers, and employees thereof in carrying out the provisions of this section.”

SEC. 45. The Merchant Marine Act, 1936, is hereby amended by adding a new title to be known as title X and to read as follows:

TITLE X

“SEC. 1001. For the purposes of this title

“(a) The term ‘maritime employer' means any person not included in the term 'carrier' in title I of the Railway Labor Act who (1) is engaged in the transportation by water of passengers or property between the United States or any of its districts, Territories, or possessions and a foreign country, or engaged in the transportation by water of passengers or property on the high seas or the Great Lakes from one State, Territory, district, or possession of the United States to any other State. Territory, district, or possession of the United States; (2) is engaged in towboat, barge, or lighterage service in connection with the transportation by water of passengers or property as set forth in clause (1) hereof; (3) operates or manages or controls the operation or management of any wharf or pier or any dock or any water space for the accommodation of vessels engaged in the transportation by water of passengers or property as set forth in clause (1) hereof; (4) is engaged in the business of loading or unloading vessels engaged in the transportation by water of passengers or property as set forth in clause (1) hereof; or (5) operates any equipment or facilities directly connected with the services set forth in clauses (1), (2), (3), and (4) hereof. The United States Maritime Commission is hereby authorized and directed, upon request of the Mediation Board, to determine, after investigation, whether any employer is a maritime employer within the meaning of this subsection.

“(b) The term 'employee' means any person who performs any work as an employee or subordinate official of any maritime employer subject to its authority to supervise and direct the manner of rendition of service when the duties assigned to or services rendered by such employee directly or indirectly, in any manner, affect, relate to, or are concerned with the transportation by water of passengers or property as set forth in clause (1) of subsection (a) of this section; or the furnishing of equipment and facilities therefor or services thereto as set forth in clauses (2), (3), (4), and (5) of subsection (a) of this section; it being intended that this title should apply not only to those persons whose work may be exclusively in connection with the movement of passengers and property in the interstate and foreign commerce of the United States but also to those persons whose work may have such a close relation to the movement of such interstate and foreign commerce that the provisions of this title are essential and appropriate to secure the freedom of that commerce from interference and interruption. The provisions of this title shall not apply to the master or members of the crew of any vessel not documented, registered, licensed, or enrolled under the laws of the United States. The United States Maritime Commission is hereby authorized and directed, upon request of the Mediation Board, to determine, aftor investigation, whether any person is an employee within the meaning of this subsection.

"(c) The term 'Railway Labor Act' means the Railway Labor Act, approved May 20, 1926, as amended.

"(d) The term “Mediation Board' means the National Mediation Board created by the Railway Labor Act.

"SEC. 1002. All provisions of title I of the Railway Labor Act with the exception of the provisions of section 2, paragraphs fourth, fifth, and ninth; section 3; and section 10 are extended to and shall cover every maritime employer and every employee of such maritime employer as they are defined in section 1102 hereof, in the same manner and to the same extent as though such maritime employers and their employees were specifically included within the definition of 'carrier' and 'employee' in section 1 thereof.

"SEC. 1003. If any dispute shall arise among the employees of a maritime employer as to who are the representatives of such employees designated and authorized to act for them for the purposes of this title, it shall be the duty of the National Labor Relations Board, upon request of any party to the dispute, or the maritime employer, promptly to determine, in the same manner as provided in the National Labor Relations Act for the selection of representatives for the purposes of collective bargaining, and to certify to the parties and to the maritime employer in writing, the name or names of the individuals or organizations that have been designated and authorized to represent the employees involved in the dispute. Upon receipt of such certification the maritime em yer shall treat with the representatives so certified as the representatives of such employees.

"SEC. 1C04. Disputes between a maritime employer or group of maritime employers and any of its or their employees growing out of grievances, or out of the interpretation or application of agreements concerning rates of pay, rules, or working conditions, shall be handled in compliance with the provisions of any agreement relating to the settlement of such disputes or in the usual manner up to and including the chief operating officer of the maritime employer designated to handle such disputes; but, failing to reach an adjustment in either manner, the disputes may be referred by petition of the parties or by either party to an appropriate adjustment board, as hereinafter provided, with a full statement of the facts and supporting data bearing upon the disputes.

"It shall be the duty of every maritime employer and of its employees, acting through their representatives, to establish a board of adjustment with jurisdiction not exceeding the jurisdiction which may be lawfully exercised by system, group, or regional boards of adjustment, under the authority of section 3, title I, of the Railway Labor Act.

"SEC. 1005. When, in the judgment of the Mediation Board, it shall be necessary to have a permanent national board of adjustment in order to provide for the prompt and orderly settlement of disputes between said maritime employers, or any of them, and its or their employees growing out of grievances, or out of the interpretation or application of agreements covering rates of pay, rules, or working conditions, the Mediation Board is hereby empowered and directed to establish a National Maritime Adjustment Board. Such Board shall be composed of such number of persons as the Mediation Board may determine, and its members shall be selected in the manner and by the procedure prescribed by section 3 of title I of the Railway Labor Act for the selection and designation of members of the National Railroad Adjustment Board. The National Maritime Adjustment Board shall meet within forty days after the date of the order of the Mediation Board directing the selection and designation of its members and shall organize and adopt rules for conducting its proceedings, in the manner prescribed in section 3 of title I of the Railway Labor Act. Vacancies in membership or office shall be filled; members shall be appointed in case of failure of the maritime employers or of labor organizations of the employees to select and designate representatives; members of the National Maritime Adjustment Board shall be compensated; hearings shall be

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