Page:United States Statutes at Large Volume 49 Part 1.djvu/2044

 74rx C ONGRESS. SESS. II. CH. 858. J UNE 29, 1936 . 1 999 determine the amount of such excess profit and collect it in the same manner that other debts due the United States may be collected ; (3) to make no subdivi sions of any con tract or subcont ract for the Subdivisions of co n- same article or articles for the purpose of evading the provisions of tracts or sub contrac ts. this Act, and any subdivision of any contract or subcontract involving an amount in excess of $10,000 shall be subject to the conditions herein prescribed ; (4) that the books, files, and all other records of et Inspection of b ooks, the shipbuilder, or any holding, subsidiary, affiliated, or associated company, shall at all times be subject to inspection and audit by any person designated by the Commission, and the premises, including ships under construction, of the shipbuilder, shall at all reasonable Agre ement by sub- times be subject to inspection by the agents of the Commission (5) to make no subcontract unless the subcontractor agrees to the fo regoing conditio ns : Pr ov id ed , That this section shall not apply contracts for scien- to contracts or subcontracts for scientific equipment used for com- t ific equ ipme nt. munication and navigation as may be so designated by the Commis- si on, and the Comm ission s hall rep ort annu ally to the Cong ress the names of such contractors and subcontractors affected by this provi- sion, together with the applicable contracts and the amounts thereof. (c) The method of determining the shipbuilder's profit shall be Nietbod of determin- ing shipbuilder's profit. prescribed by the Commission : Provided, Th at in com put ing su ch Proviso. Salar ies, const ruc- profits no salary of more than $25,000 per year to any individual tion costs, etc. shall be considered as a part of the cost of building such ship, and the Commission shall scrutinize construction costs and overhead expenses to determine that they are fair, just, and not in excess of a reasonable market price for commodities or goods or services pur- chased or charged. (d) The Commission may, with the consent of the Secretary of the Department. Soof Tr easury Treasury, utilize the services of Treasury Department employees en gaged in similar functio ns in th e determ ination or colle ction of shipbuilder profits in naval construction. (e) If the shipbuilder whose bid has been approved by the Com- . Rescission of approval ~f shipbuilder refuses to mission and accepted by the applicant, as provided in section 502 agre e to req uirem ents . of this title, shall refuse to agree to any of the requirements of this section, the Commission is authorized to rescind its approval of such bid and to advertise for new bids, or, in its discretion, the Commis- sion may have the vessel or vessels in question constructed in a United States navy yard. SEC. 506. It shall be unlawful to operate any vessel, for the con- Operating subsidized struction of which any subsidy has been paid pursuant to this title, fo re ign n trade than other than exclusively in foreign trade, or on a round-the-world voy- age or a round voyage from the west coast of the United States to a European port or ports or a round voyage from the Atlantic coast to the Orient which includes intercoastal ports of the United States, or on a voyage in foreign trade on which the vessel may stop at an island possession or island territory of the United States, unless the Ex cepti on. owner of such vessel shall receive the written consent of the Commis- sion so to operate and prior to such operation shall agree to pay to the Commission, upon such terms and conditions as the Commission may prescribe, an amount which bears the same proportion to the construction subsidy theretofore paid or agreed to be paid (excluding cost of national-defense features as hereinbefore provided), as the re maining economic life of the ves sel bear s to its entire economic life. If an emergency arises which, in the opinion of the Commission, Eme rgency tr ansfer. warrants the temporary transfer of a vessel, for the construction of whic h any su bsidy ha s been p aid purs uant to this tit le, to s ervice other than exclusive operation in foreign trade, the Commission may
 * and contractors.