Ste 101 T at whom en ny bates any pro tuon of this Act or any order pros munitetty the I ited States Maritime Authority ez eit where a different penuity se proxied, shall be galt, of a mi-temeanor, punishable by a fine not to exceed 1011 Any person or termina who still knowingly and usiifully solicit, or receive any rebate, deferred rebite, or other concession in modsts in of the singans of the preceding sections of this part, or who shall by any device or means, 1 * **** *ith or 51th at the consent or conni or bin ur sin offer, agent, empi yer, or represent stire, knowingly and usifully end aan interstate transportation, or un infinger service, at less than the rates fares, or enlarges barf ally in effect, or at all knowing,, and willful,, directly or an at ecti¡, by frase elum, false buiing, Frise representation, or other device or means, obtain any au mence, refind, or rep,,mert in connection, with or growing out of such transBertice, whether su ihae vitko at the consent or connivance of such carrier a” sharfinger, or his or its · Cheer, agent, empujee, or representative, whereby the comDemention of such carrier for much transp- tion of service, either after pis, ment, shall be less than the rates, fares, or charges ba fully in effect, u bo d'emest jute'; of a mis lement, 2o and upon conection thereof in any court of the User Seiter of empetent jurinaiction within the district in a hich much offense vae in whole or in part co nmatte 1, he a abject for each offense to a tue of not less than 8!! and not more than 8 (un) TRANSPORTATION OF GOVERNMENT OFFICIALS Sa tuak 1012. Any of cer or employee of the Unite-1 States traveling on etai bussens overseas to a from for a cour tries, or to say of the posse ANIOTIS of the United States, shail travel and transport in perma! effects on at ips registered under the laws of the Urute 1 States When hps are avaiable t; 'res the fecessity of lym trans, 11 Tequates the use of a sip ander a foreign tag Prosded, That the Com; troi er Genera, of the Urite 1 States si.ail not credit any a warce for travel or shipping expcases the arred on a fore gi slap in the absence of satisfactory proof of the tecoms ty therefor DEFINITIONS a The words "foreign tra le" mest that trade between the United States, its territories or possessiotis, or the District of Columbia, and a fore gn country. The bading or the unloading of eargo, ma 1, or passengers at any port in the Iwate 1 States in and territory or pos con of Ve Un te d States st all be deemed to be foreach trade if the st pat sich portar pete in the United States, territory, or ps**, iti s an intermediate stip on what would otherwise be a voyage in foreign trak, a 1 tv The term "citizen of the United States” ir el ides a corporation, partnerip, or sssociation or ly if it waiter of the United States wit in the meaning on 3% of the Merchant Marine Act, 1920, as an ended. U SC, title 46 Ite term "person" ir el. los corrørstists, partierulips, and associations ex at ng under or authorized by the laws of the United States or any State, territry, District, or pess of the reef, or of any fore qui country. SEPAPABILITY CLAUSE, Arc 1014 101; If any provision of this Act, or the appliestion, Uereof to any person or cire instance, is held invalid. The remainder of the Act and the application of such provision to other persons of circitustances shan not be affected tereby Sec 2013 1015 Ad A te ard parts of Acts in ecrisistent with fre provisions of this Act are hereby repeated, but ta proviscous of ti in Act still tot be construed to repeal any of the provisions of the Shatting Act 1916, the Merchant Marce Act, 1920, the Merchant Marine Act, 1928, or the I terroastal Slappu g Act, 1933, tiles directly in conflict therewitha SHORT TITLE SLC. 4943 1018. This Act may be exted as the "Merchant Marine Act, 1935 " FIRST MORAN BILL (H. R. 7854, 74th Cong., 1st Sess.] A BILL To further the development and maintenance of an adequate and well-balanced American merchant marine, to provide for the separation of the regulatory functions of the Government over shipping from the Government's business interests in ships and shipping, to repeal certain former legislation, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, TITLE I-UNITED STATES MERCHANT MARINE CORPORATION SECTION 1. It is hereby delcared that it is necessary for the national defense and for the proper development and maintenance of its foreign and domestic commerce that the United States shall have a merchant marine of the best equipped and most suitable types of vessels sufficient to carry the greater portion of its commerce and serve as a naval or military auxiliary in time of war or national emergency, to be owned by a Federal corporation and to be privately operated by citizens of the United States whenever practicable, and that all common carriers by water engaged in the commerce of the United States, including such Federal corporation, and other persons subject to this Act shall be subject to regulation to the same extent as common carriers by land. SEC. 2. Within thirty days after the passage of this Act the President is hereby authorized and directed to create and organize a Federal corporation with an authorized capital stock of $500,000,000, to be subscribed for, paid in, and owned by the United States, as hereinafter provided, which corporation shall possess an entity separate from that of the United States, shall have a perpetual existence unless dissolved by Act of Congress, shall adopt a seal and make its own bylaws, shall sue and be sued in its own name as hereinafter provided, and said corporation and its income and property shall be exempt from all taxation, direct or indirect, of whatsoever kind or nature. All the capital stock in said corporation shall be issued to and held in trust ex officio by the President of the United States. The name of said corporation, hereinafter in this Act referred to as "the Corporation", shall be "United States Merchant Marine Corporation". SEC. 3. The Corporation is hereby authorized to build, reconstruct, recondition, and repair its own vessels, or to make contracts for the building, reconstruction, reconditioning, and repair of its own vessels; to acquire vessels by purchase or by transfer from Government departments and agencies, by charter or in any other lawful manner; to operate vessels in the commerce of the United States as a common carrier by water, either directly or through subsidiary corporations; to charter its vessels as hereinafter provided; to carry on the business of underwriting marine insurance, builders' risk insurance and protection and indemnity insurance, either directly or through a subsidiary corporation; to own real estate; to issue and sell its own bonds; and to make any and all contracts necessary for the exercise of the foregoing powers, within the limitations imposed by this Act. SEC. 4. (a) The business of said corporation shall be controlled and directed by a board of directors composed of five members, to be appointed by the President, by and with the advice and consent of the Senate. Such directors shall be appointed as soon as practicable after the enactment of this Act, one for a term of one year, two for a term of three years, and two for a term of five years, the term of each to be designated by the President, but their successors shall be appointed for terms of five years, except that any person chosen to fill a vacancy shall be appointed only for the unexpired term of the director whom he succeeds. (b) The directors shall be appointed with due regard to their particular fitness for the intelligent and efficient discharge of their duties. Not more than three directors shall be affiliated with the same political party. No person shall be appointed a director, who, within three years prior to his appointment, shall have been employed by or have had any pecuniary interest in any common carrier by water or other person subject to this Act. Each director shall devote Ne full time to the distira of low off re. It shall be unlawful for any director, er, or employee of the C-rporat, in to be in the employ of any other person, firm, or corporati n, or to have any pertuary in ferest in, or hold ar v "official pelataan erip with any ecnother, carter, m'ap', der, port authority, contracter, or other permit, firin, nesocalt, or corporation with whom the United States Merchant. Marie C-rporata ni may have basincas relations director may be removed by the President in his discretion for inevey, begeet of dats, rasti vatce in office, or other onese A Vacancy of esit to hard of directors stail 1 st impair the right of the remaining me here of the band to exerc se all its powers Ise president of the Corporation, shall be one of the board of directers ite cartian, tere of an i ali be desig? a'cd by the President of the United In other pri, cija, oft erw of the Corporation shall be a vice president, erala general coat sl to be electe fan wally te board of directora 1 e president of the Corporation shall appoint all uffer of! 14s and employees of the A orporation Fa Ndirector shal roouve a salary of $10.000 per annum, except the for serving as pre alert of the corp rationi »' all receive a scary, of $12,000 The board of directors »ail de‘ernabe te salanes of the othe eu stave off ers herein hamed and the prescient of the Corporation s' all fix teens'aries of all other off sale at 1 employees but no officer, official, or etpovee eive a alary in, ex es of $10.000 per atham, except the president of the I mejecting the off vale ar 1 employees of the Corporation the president of the Corporation a' sil give preference to those of Lais and employees of the feterijing Board an. 1 of the United States N pping Band Merchant Eest who have na. fured cresta) de recer is for efl, Jenny and devotion to the best antepoata of the Government at i why by reason of Piir past expenrad tai k w.cig woaa on valja'le to tie row Corporata), སལ་་ 3 The prin apal off c of the Corporation, at vi beat Waragtet. Di triet m'a but the Cor #+ rator may may tain, suh, bran, b CENC, me Whare ka rate ta**** II.A. D 1 of *** ( ortwf*ato a . hall not expend any of it fads for re:ted tre board of directors f the Corporationi sta a have bect appetite d and shall ave taken the oath tutte fias practies! 'e, thereafter, an invertory and en mother↑ of all the money and property so transferred what he pale by a fap pra sera retesting of time perdre one met her to be fo cretary of 1) e Tru38.PV one member by the Secretary of the Navy, and re menter by the Secretary of C. p.eree from their respe, tive departments Said a. vertory and a; tra serierte al atard pisce a fair vai ati ħor all mi nev and Terty so tras, ferreled pore wetter n;;* val of an. Deventers ne dajtra semeet by the sa. 1 tiree Secretares the Corporat, 1, 9, al ན པ aགས ཨ cf *w«a{, * a! stok of ej ovalent par vaca of said thores and property as so deemed to he be i by the President of the United States in trist for the United States Sy 7 The Pros lent of the United States in a ithorized and directed to allot lens to be paid to the Corporation, from t me to time as ti ay be required farther win, or sans of money as may be necessary to com.j.cte the authors ized satutal stock of said Corporst, it, and sad sum of a ins are hereł v approprinted from publie für ds in the Treasury of the United States, or nav be transferre i from fards previously approprated for public works as the President n ny The Corporation et s'i jam je »l ares of its capital stock of eg wvalert par value to the amount of money received, to be Lead by the President of the Urated States in trust for the United States. ( Upon completion of the sa'e ar. I transfer to the United States Merchant Marine Corporation of all the ve mix transferred from the former United States 2. pping Board to the Department of Commerce by the President's Exce„tive order of June 19, 1933, the United States Shipping Board Merchant Firet Cor poration shall cease to exist and shall stand dissolved. All of the records, books, papers, and corporate property of said dissolved corporation shall be taken over by the United States Merchant Marine Corporation. SEC. 9. The Corporation is authorized to issue and sell from time to time its short-term or long-term bonds in such denominations, bearing such rates of interest, and such maturity dates as shall be jointly approved by the regulatory commission hereinafter created and by the Secretary of the Treasury, and payment of the principal and interest on said bonds shall be guaranteed by the United States: Provided, That the total principal amount of such bonds outstanding at any time shall not exceed $500,000,000. SEC. 10. The Corporation is directed to perfect, adopt, and carry out a longrange shipbuilding program to provide an adequate and well-balanced American merchant marine to be largely owned by the Corporation but to be privately operated, except in national emergencies as proclaimed by the President, when the Corporation's vessels shall be operated by it or as the President of the United States shall direct. Such shipbuilding program shall provide for the construction of vessels of all types, including passenger liners, combination cargo-passenger vessels, cargo carriers, tankers, and colliers, so designed as to be readily and quickly converted into transports and supply vessels for employment by the armed forces of the United States in a national emergency, and to this end the Corporation shall closely cooperate with the Navy Department as to nationaldefense needs and as to design and plan of the Corporation's new vessels. The Corporation's long-range program shall make provision for replacement and modernization of its vessels as circumstances may require, so that its fleet shall at all times be well-balanced and adequate for the needs of the Nation's water-borne commerce and as a naval auxiliary. SEC. 11. The Corporation is authorized and directed to have constructed in American yards, on the Atlantic and Gulf and Pacific coasts, such new vessels as it shall determine may be required to carry out the objects of this Act, and to have old vessels reconditioned or remodeled in such yards: Provided, That is satisfactory contracts for such new construction or reconstruction, in accordance with the provisions of this Act, cannot be obtained from private shipbuilders, the Corporation is authorized and directed to build its vessels in its own yards. In the letting of contracts for construction of vessels in private yards and in the construction of vessels in its own yards, the Corporation shall keep in view that it is desirable to have shipbuilding yards available on the Atlantic, Gulf, and Pacific coasts and to encourage the development of the art of shipbuilding on each of said coasts, even though it may be necessary for the Corporation to allow a higher cost for vessels constructed on the Pacific coast. SEC. 12. (a) No contract for the building of a new vessel, or for the reconditioning, reconstruction, or repair of any other vessel, where the cost thereof shall exceed $100,000, shall be made by the Corporation with any private shipbuilder, except after due advertisement and upon sealed competitive bids: Provided, That the advertisement for bids shall specify that the vessel is to be built or the work is to be done on the Atlantic, Gulf, or Pacific coasts of the United States, as the case may be. (b) No bid shall be considered unless submitted on a printed form of proposal prepared by the Corporation and furnished upon request to all prospective bidders. (c) Such proposal form shall provide for an offer by the bidder to construct, or reconstruct, or recondition, or repair the vessel, according to the plans and specifications therefor, on a basis of actual cost to the contractor plus such percentage of profit on the bidder's actual cost as shall be specified in the bid. (d) Every such proposal form shall contain a precise definition of the term "actual cost to the contractor", which definition shall have been previously approved by the United States Maritime Commission, hereinafter created. In establishing such definition and providing for the proportion of the overhead expense that may be included in "actual cost to the contractor", no credit shall be allowed for any salary paid to any one of the contractor's officials in excess of $20,000 per annum to the contractor's principal officer and in excess of $10,000 per annum to any other officer or employee. (e) Before accepting any bid or entering into any such contract, the Corporation shall require the bidder to submit a statement, sworn to by the bidder or by the bidder's principal officer, if a corporation, setting forth at length and in such detail as the Corporation shall require all the items going to make up the bidder's annual executive, administrative, and fixed overhead expense, the volume of business transacted by the bidder during the preceding two years, and such firma toh as the Corporat, in may reg ..re Such information shall be vecot dential by the Corporate nard's all in 't be div i'ged to any person ely the Corporation or ty t'e C muss n'ervir after created dier kovertesi ests are deemed by the Corporation to be cut of Ir part. n tot e direct labor ersploved and materials used by the bidder in haim oberst ins, the Corporation w' all determine t ́e amount of over; en i that maV belelange 1)y tre bad fer as a part of "set zal cost with out at ererg t'e perརྒྱུད་ཐུལམ:|:ཀྱི་ཐུག་མ { profit t'e 1, der has sper fed in his bid, and if the butter agrees to detern, hat, on, of over end by the Corporation, te bid shall be entia,dered t:.{t { s i ject to suer, determination If the Corporation s'all determine Ustall Peb la s.) m. tted are unreasor q? by high, the Corporation, shall reject all tfear i rem fvert se for b is, or the Corporation may proceed to build the vessel ave the pecesary work performed in its own yards or in Lavy yards owned b. the Irate ! States ས་་ 13 Ali b. in for the construction, reconstruct. n, ree 1. lition ng, or repair A De Corporation's vessels, and for the el arter ng of the Corporationis vessels after provided for, s all be opened at the time, hour, an i place stated in the alvert semest for bids, and ail interested persons, itic', dog retresentatives of the press, somil be permitted to attend and tre results of such bidding shall be publicly and med 14 The Corporation is a ithorized and directed to negotiate with and, if starren est car, be reached, to purchase fronthe owner thereof any vessel now despierted under the laws of the United States, a which was purchased by the owner thereof from the former Shipping Board, or th` on which the owner theroof of faired a cot structior loan or a recor difior 11 g loan from the former Slippng Board, or e which the owner is now operati g of any tha route ur der contract made with the Patnaster General Prottle., Dat the seller of ich vessel •`al accept at par valse tue Corporation's bords for the amount of the purchase price of wich vessel in jeu of cash therefor. The price to be paid by the Corpora for any vessel no purc! nsed «all be computed as follows Cost of the Vossel to De owner thereof piss the with, or sums exp rded by the owner to recoalition ly vessel excude gorde ary repairs and replacementa, less an art ai depres e at it, of 5 per cent in pez asn in from the date nich vesse i was la inched, less ati a lowar ce for place g the vessel in good repair in every particular, the Corporation to take credit for a'l en 1 advanced on any lean misde by the Stappig Board on #.0), vessel, with interest at 3 per cent im per arrum dari gary period the vessel was operated in foreign trade after the loan was made, irrespective of the rate ebarged, and interest at 511⁄4, per centum per annum for the balance of the time the 1 an bas run, and the owner to have credit for all payments of principal at d interest made on such loans If the Corporation hol is a pire? as for ev mortgage, transferred to it by t'e United States, on my such vessel, the atoutt of ur part principai and interest on sich mortgage staŭ be deducted from the purchase price to be paid by the Corporation The purchase price so determined, if the vessels parel ased are operated on a reg dar stean,sl ip route, al nu include the transfer of Pe trade name and goodwill of a ich line, without aditional cost to the Cor}" 'a' on. 15 In determining the t me a vessel has been engaged in foreign trade, De Corporation, at all rot muske at y allowance for nov portion, of a voyage from ་ཚོམ་ཟླ རྒསོ the Afarteur 6 ferite to the Pactor „st of the krited states of from Ve Fir he coat to the Gulf or r *squf*!n།,,'au, s'ste was of the Patata Calal even thena'. Ve vemer may have to jeled at a West 1. an. Sout', Amer can, or Mex car. 1- rt oh auch Vovko, Lof s'ail t e Corpora I make my adowat ee for any portet, of a rost div ae betwet a 1 States portat i a port in the West In fas perut the voyant of any voxel whet a5 75 per certom, of the cargo carred by a ra vis det sted of coillife» cutis gned by or to the owner of *jeta v *ht, of any mats Lary, or a' n 15 Pe Corporated at all tot perelease any vessel from a private ovIET, 'cos na ote of the cordatiera of much pre ཉ་སྟུ་།**》 རྞ ¿ OMC tea teri, with one or more aj proved mizetica condit, red bjef, at dettet, fvala, and saying the Corporation, from less gallata a existat al dietan apa tint such vessel ar sig out of prior operation thereof or otherwome Before verejt vice of wie, bend by te Corporation it must be approved by the Secretary of t Who s pil rat at prove such bond unless satisfied as to the financiui rempotactility of the Sic 17. The Corporation is authorized and directed to ir vetsigste, and determine from time to time what existing steamshaj, ait en ani w: at me a steamship |