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available for expenditure by the Authority in the same manner and to the same extent as if the Authority had been named in the law making such appropriations.

REQUISITION OF VESSELS SEC. 1004. Section 702 of the Merchant Marine Act, 1928, is hereby amended to read as follows:

"REQUISITION OF VESSELS " Sec. 702. (a) The following vessels may be taken over and purchased or used by the United States for national defense or during any national emergency declared by proclamation of the President:

"(1) Any vessel in respect of which, under a contract heretofore or hereafter entered into, a loan is made from the construction-loan fund created by section 11 of the Merchant Marine Act, 1920, as amended-at any time until the principal and interest of the loan have been paid; and

“(2) Any vessel in respect of which an ocean-mail contract has been heretofore or is hereafter entered into—at any time during the period for which the contract is in effect.

(3) Any vessel in respect of which a construction or operating subsidy or shipping trade promotion aid is granted pursuant to the Merchant Marine Act, 1935, and any vessel which the Government of the United States has the right to acquire or take over pursuant to such Act.

“(b) In such event the ownershall be paid the fair actual value of the reseel at the time of taking, or paid the fair compensation for its use based upon such fair actual value; but in neither case shall such fair actual value be enhanced by the causes necessitating the taking. In the case of a vessel taken over and used, but not purchased, the vessel shall be restored to the owner in a condition at least as good as when taken, less reasonable wear and tear, or the owner shall be paid an amount for reconditioning sufficient to place the vessel in such condition. The owner shall not be paid for any consequential damages arising from such taking over and purchase or use.

"(c) The President shall ascertain the fair compensation for such taking over and purchase or use and shall certify to Congress the amount so found by him to be due, for appropriation and payment to the person entitled thereto. If the amount so fixed by the President is unsatisfactory to the person entitled thereto, such person shall be entitled to sue the United States for the amount of such fair compensation, and such suit shall be brought in the manner provided by paragraph 20 of section 24 or by section 145 of the Judicial Code, as amended (U. S. C., title 28, secs. 41, 250)."


SEC. 1005. To aid in carrying out the primary purpose and intent of this Act, the Authority is authorized to have its representatives sitting with and participating in discussions or decisions of pools, conferences, and associations having for their general purpose the distribution of traffic, fixing of rates, and such other matters as are usually the subject of such organizations, and for any such organization to refuse or fail to permit an accredited representative or representatives of the Authority to sit with and participate in such discussions or decisions, shall render such organization, its officers and directors, or each of them, liable to a fine of $

Sec. 1006. The Authority shall have the power to permit members of conferences to enter into contracts with shippers providing for a return of a stipulated part of freight moneys to the shipper in consideration of the shipper confining his shipments to lines and vessels which are members of the conference.


Sec. 1007. (a) The Authority shall make an annual report to the President of the administration of the functions with which it is charged, includin: statements relating to the grants of financial aid under this Act.

(b) The Authority shall also, on or before the 1st day of December in each year, make a report to Congress, which shall include the results of its investigations, a summary of its transactions, its recommendations for legislation, a statement of all receipts under this act and the purposes for which all expenditures were made, and the names and compensation of all persons employed by the Authority.

SEC. 1008. All mails of the United States carried on vessels between ports between which it is lawful under the navigation laws for a vessel not documented under the laws of the United States to carry merchandise shall, if practicable, be carried on vessels in respect of which a contract is made under this title.

UNFAIR COMPETITION OR PRACTICES SEC. 1009. The Authority shall have full power and authority to use any funds not designated for other purposes to give aid and support to the holder of any contract under this Act, in meeting any unfair competition or practice by any foreign vessels or vessel, together with the power and authority to aid and support a fighting ship as defined in paragraph 2 of section 14 of the Shipping Act of 1916, and to use said money in the aid and support of such ship.


Sec. 1010. When used in this Act

(a) The words “foreign trade" mean trade between the United States, its territories or possessions, or the District of Columbia, and a foreign country. The loading or the unloading of cargo, mail, or passengers at any port in any territory or possession of the United States shall be deemed to be foreign trade if the stop at such territory or possession is an intermediate stop on what would otherwise be voyage in foreign trade; and

(b) The term “ 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 38 of the Merchant Marine Act, 1920, as amended (U. S. C., title 46, sec. 802).

(c) The term " person includes corporations, partnerships, and associations existing under or authorized by the laws of the United States, or any State, territory, District, or possession thereof, or of any foreign country.


SEC. 1011. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the remainder of the Act, and the application of such provision to other persons or circumstances shall not be affected thereby.


SEC. 1012. All Acts and parts of Acts inconsistent with the provisions of this Act are hereby repealed; but the provisions of this Act shall not be construed to repeal any of the provisions of the Shipping Act, 1916, the Merchant Marine Act, 1920, the Merchant Marine Act, 1928, or the Intercoastal Shipping Act, 1933, unless directly in conflict therewith.


SEC. 1013. This Act may be cited as the “ Merchant Act, 1935."


(Committee print no. 2, Apr. 30, 1935, H. R. 7521, 74th Cong., 1st sess.)

(Omit the part struck through and insert the part printed in italics) A BILL To develop a strong American merchant marine, to promote the commerce of the United States,

to aid national defense, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,


SECTION 1. It is necessary for the national defense and development of its foreign and domestic commerce that the United States shall have a merchant marine (1) sufficient to carry its domestic water-borne commerce and at least one. half of the foreign commerce water-borne export and import foreign commerce of the United States and to provide shipping service on all routes essential for maintaining the flow of national 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 and so operated and regulated as to secure to the shipper of American products by the Government as to secure to the shipper and receiver of products in the domestic and foreign water-borne commerce of the United States adequate service and parity of rates to foreign markets, and (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. It is hereby declared to be the policy of the United States to foster the development and encourage the maintenance of such a merchant marine by the means hereafter expressly provided in this Aet and by any other means which the Congress from time to time may deem Hecessary. Insofar is not consistent with the express provisions of this Act, the agencies of the United States Government charged with the administration of this Act and shipping lawe shall, in such administration and in the making of rules and regulations, marine. All the agencies of the United States Government shall keep always in view the purpose and object of the policies herein expressed as the primary end to be attained.


Section 201. (a) A board is hereby created to be known as the “United States Maritime Authority”, and hereinafter referred to as the "Authority." The Authority shall be composed of five persons, hereinafter referred to as members”, to be appointed by the President by and with the advice and consent of the Senate; and the President shall designate the member to act as chairman of the Authority, and the Authority may elect one of its members as vice chairman. The members of the Authority shall be appointed as soon as practicable after the enactment of this Act, and shall continue in office for terms of three, four, five, six, and seven years, respectively, from the date of their appointment, the term of each to be designated by the President, but their successors shall be appointed for terms of seven years, except that any person chosen to fill a vacancy shall be appointed only for the unexpired term of the member whom he succeeds. The members shall be appointed with due regard to their fitness for the efficient discharge of the duties imposed upon them by this Act. Not more than one member shall be appointed from the same State. Not more than three of the members shall be appointed from the same political party. A vacancy in the Authority shall be filled in the same manner as the original appointment. No member shall take any part in the consideration or decision of any claim or particular controversy in which he has a pecuniary interest.

(b) No member shall be appointed who is in the employ of, or holds any official relation to, any common carrier by water or other person subject to this Act or the shipping laws, or owns any stock or bonds thereof, or is pecuniarily interested, directly or indirectly, in any person subject to this Act. No member while in office shall engage in any other business, vocation, or employment, or hold any official relation to any common carrier by water or other person subject to this Act, or the shipping laws, or own any stock or bonds thereof, or be in any manner pecuniarily interested, directly or indirectly, in such person.

(c) The duties of the Authority may be so divided that under its supervision the directorship of various activities may be assigned to one or more members. Any member may be removed by the President for inefficiency, neglect of duty; or malfeasance in office. In case of a vacancy in the Authority the remaining members shall exercise all its powers. The Authority shall have an official seal, which shall be judicially noticed.

(d) The Authority may adopt rules and regulations in regard to its procedure and the conduct of its business. It may employ, within the limits of appropriations made therefor by Congress, such attorneys as it finds necessary in the conduct of its work, or for proper representation of the public interest in investigations made by it or in proceedings pending before it, whether at the Authority's own instance or upon complaint, or to appear for or represent the Authority in any case in court or other tribunal.

(e) Each member shall receive a salary of $12,000 per annum. The Authority shall appoint a secretary at a salary of $7,500 per annum, and employ and fix the compensation of such attorneys, officers, naval architects, special experts, examiners, clerks, and other employees as it may find necessary for the proper performance of its duties and as may be appropriated for by the Congress, and shall, whenever possible, in such employment, employ qualified present employees of the United States Shipping Board Bureau or United States Shipping Board Merchant Fleet Corporation. The President, upon the request of the Authority, may authorize the detail of officers of the military, naval, or other services of the United States for such duties as the Authority may deem necessary in connection with its business.

(f) With the exception of the secretary, a clerk to each member, the attorneys, naval architects, and such other special experts and examiners as the Authority may from time to time find necessary to employ for the conduct of its work, all employees of the Authority shall be appointed from qualified present employees of the United States Shipping Board Bureau or United States Shipping Board Merchant Fleet Corporation, or from lists of eligibles to be supplied by the Civil Service Commission and in accordance with the civil-service law, when no such qualified Shipping Board employee is available.

(g) The expenses of the Authority in the conduct of its business, including necessary expenses for transportation, incurred by the members of the Authority or designated employees under its orders, in making any investigation, or upon official business in any other place than in the city of Washington, shall be allowed and paid on the presentation of itemized vouchers therefor approved by the Chairman of the Authority, or a designated employee of the Authority.

Sec. 202. The Authority is authorized and directed:

(1) To study all national maritime problems, and their proper relationship to trade and commerce, including the investigations, studies, and duties prescribed in section 8 of the Merchant Marine Act of 1920;

(2) To analyze and edit pertinent data and develop to collaborate with vessel owners in developing plans for construction and efficient operation of vessels, taking into consideration the benefits accruing from standardized production and pooling of operations where practicable:

(3) To determine, under rules and regulations to be prescribed by the Authority, the amounts of direct financial aid to be paid under contracts awarded pursuant to titles III and V of this Act; and

(4) To study means by which through added efficiency the revenue of contractors may be increased by advertising and solicitation on the part of operators; and wherein economies may be effected increased, and operating costs decreased, and means by which the importers and exporters of the United States can be induced to give preference to vessels under United States registry.

(5) Ío establish and maintain liaison with such other departments and boards of the Federal Government, and with representative trade organizations throughout the United States, as may be concerned, directly or indirectly, with any movement of commodities in foreign commerce, for the purpose of securing preference to vessels of United States register in such shipments.


Sec. 203. The Authority shall make studies of and make a report to Congress as soon as practicable on

(1) The scrapping, or removal from competitive fields of old or obsolete tonnage owned by the United States or in use in the merchant marine;

(2) Tramp shipping service and the advisability of participating in such service with vessels under United States register;

(3) The construction by or with the aid of the United States of superliners express liner vessels comparable with those of other nations, especially with a view to their use in national emergency, and the use in connection with, or in lieu of such vessels, of transoceanic airship service.

(4) The relative cost of construction of comparable ocean vessels in the skipyards on various coastal districts of the United States, together with recommendations as to how such differentiat may be equalized shipyards may compete for work on an equalized basis.

Sec. 204. In the execution of its duties under this Act the Authority is authorized and directed to investigate, determine, and keep current records of: (1) The essential services, routes, and lines for the development of the American merchant marine pursuant to section 7, Merchant Marine Act, 1920 (U. S. C., title 46, sec. 866); (2) the relative cost of construction or reconditioning of comparable vessel of in the United States and in foreign countries; (3) the relative cost of marine insurance, maintenance repairs, wages and subsistence of officers and crews, in the operation of comparable vessels on particular routes, services, and lines under the laws, rules, and regulations of the United States and under those of the foreign countries whose vessels are the competitiors of such American service, route, or line; (4) the extent and character of the governmental aid and subsidies granted by foreign governments to their merchant marine; (5) the number, location, and efficiency of the shipyards now existing or which may hereafter be built in the United States, the practicality and means by which naey yards may enter into contract commitments for construction or reconditioning of vessels; and (6) such other matters, as such Authority may from time to time determine to be necessary, relating to the development of the merchant marine and the cost of maintenance and operation of the various services, routes, and lines compared with the cost of similar services, routes, and lines under foreign flags.

Sec. 205. For the purpose of any investigation which, in the opinion of the Authority, is necessary and proper for the enforcement of this Act, any member of the Authority or any officer or employee designated by it is empowered to administer oaths and affirmations, subpena witnesses, take evidence, and require the production of any books, papers, or other documents which the Authority deems relevant or material to the inquiry. Such attendance of witnesses and the production of such documentary evidence may be required from any place in the United States or any Territory at any designated place of hearing.


SECTION 301. Sections 401 to 413, inclusive, of Title IV of the Merchant Marine Act, 1928, are hereby repealed, subject to the limitations and exceptions hereinafter in this Act provided.

All rights, interests, or remedies accruing or to accrue as the result of any contract or agreement lawfully entered into before the passage of this Act, under or in pursuance of the sections of the law hereby repealed, shall be in all respcets as valid and may be exercised and enforced in like manner as if this Act had not been passed.

Sec. 302. The Authority is hereby authorized to negotiate privately with the holder of any contract entered into under the provisions of Title IV of the Merchant Marine Act, 1928, without advertisement or the taking of bids, for the adjustment, modification, settlement, or cancelation of said contract on such terms and conditions as the Authority may deem advisable. The Authority may enter into a new contract with such holder for the performance of services and the payment therefor in accordance with the terms and conditions of this Act.

In arriving at an adjustment, modification, or settlement of such contract, the Authority, in accordance with the principles set forth in sections 501 and 502 of this Act, may determine the amount of the construction differential with respect to any vessel or vessels constructed or reconditioned by virtue of mail contracts, as well as the expenses paid or incurred on account of such construction differential, and may agree to pay to the holder such part thereof as the Authority considers fair and equitable, or at the option of either party the sum so determined may be

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